Moody National REIT II Lawsuits: Liquidation Plan- Updated August 2026
The White Law Group continues to investigate potential securities clams involving investments in Moody National REIT II. In a filing made after stockholders approved the company’s Plan of Liquidation on September 30, 2025, Moody National REIT II disclosed that it now projects approximately $0 per share in liquidating distributions to common stockholders — a sharp reversal from the $17.25 net asset value the REIT reported just two years earlier. The White Law Group continues to investigate potential securities clams involving investments in Moody National REIT II.
If you believe your Moody National REIT II investment was unsuitable for your financial profile, you may be able to pursue recovery through FINRA arbitration.
If you are concerned about your investment losses in Moody National REIT II, please call The White Law Group at (888) 637-5510 for a free consultation.
Moody National REIT II Liquidation Update August 2026
Stockholders approved Moody National REIT II’s Plan of Liquidation in September 2025, and the wind-down is now well underway as the company sells off its remaining hotel properties to pay down debt. In its most recent SEC filing, the REIT disclosed that its liabilities now exceed its assets, and it projects approximately $0 per share in liquidating distributions to common stockholders.
January 2026 – Moody National REIT II Sells Homewood Suites Austin at a Significant Decline from Purchase Price
According to recent SEC filings, Moody National REIT II completed the sale of the Homewood Suites Austin, located at 4143 Governors Road in Austin, Texas, for approximately $9.4 million. Public filings indicate that the REIT originally purchased the property in August 2015 for $14.25 million, excluding acquisition costs. Based on these reported numbers, the transaction reflects a substantial decline in value compared to the original purchase price, even before factoring in expenses, debt payoff, or depreciation.
Recent Hotel Sales & Foreclosure Events
Moody National REIT II has sold several properties in 2025, many at a loss:
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Embassy Suites Nashville – Sold April 11, 2025, for $57.5 million (original purchase: $66.3 million in 2015 by Moody National REIT I).
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Residence Inn Austin – Sold February 6, 2025, for $20.5 million (original purchase: $27.5 million in 2015).
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Residence Inn Grapevine – Sold February 6, 2025, for $22.5 million (original purchase: $20.5 million in 2014).
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TownePlace Suites Fort Worth – Sold December 10, 2024, for $9.1 million.
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Courtyard Marriott Lyndhurst – Sold March 21, 2025, for $21.3 million.
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Hilton Garden Inn Austin – Foreclosed on May 2, 2025, to satisfy a $16.2 million mortgage note.
As of March 31, 2025, the REIT reported $254 million in total assets, including ownership of 11 hotel properties.
Declining NAV and Debt Maturity Concerns
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The REIT’s net asset value (NAV) per share declined from $19.45 in December 2022 to $17.25 in July 2024.
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As of March 2024, 38% of the REIT’s $228 million in debt was set to mature by year-end.
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The board has repeatedly warned that the REIT may fail to meet debt obligations without liquidation.
Share Redemption Program & Distributions Remain Suspended
The share redemption program and shareholder distributions, both suspended in April 2020, remain inactive. According to the company, these programs will not resume until operational cash flow is sufficient to meet:
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Payroll and mortgage obligations;
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Repayment of a $50 million loan from Moody National Capital, LLC.
Secondary Offer Suggests Significant Losses for Investors
In April 2024, Comrit Investments 1 LP offered to purchase Moody shares for $9.09 per share. At that time, the REIT had previously reported a NAV of $19.45 as of year-end 2022.
According to Central Trade and Transfer, a secondary marketplace, in April 2026 shares sold for just $0.30, a steep decline from the original offering price of $25 per share.
Risks of Investing in Non-Traded REITs Like Moody National REIT II
Non-traded REITs are high-risk, illiquid investments often unsuitable for average investors. These investments do not trade on public exchanges and can be difficult to sell except at steep discounts on the secondary market.
Your broker has a fiduciary duty to perform due diligence and to recommend only suitable investments based on your age, net worth, investment objectives, and risk tolerance. If your advisor failed to assess your suitability for an investment in Moody National REIT II, you may have grounds for a FINRA arbitration claim.
Class Action vs. Individual FINRA Arbitration
While class actions can be effective for investors with small losses, investors with losses of $100,000 or more may benefit from filing an individual FINRA arbitration claim. Arbitration is often faster and more tailored to your specific circumstances.
Free Consultation with a Securities Fraud Attorney
If you are concerned about your investment losses in Moody National REIT II, please call The White Law Group at (888) 637-5510 for a free consultation.
The White Law Group is a national securities arbitration and investor protection law firm with offices in Chicago and Seattle. We have recovered millions of dollars for investors nationwide in FINRA claims against brokerage firms and financial advisors.
Frequently Asked Questions (FAQs)
1. How do I file a lawsuit to recover money I invested in Moody National REIT II?
Most brokerage account agreements typically contain a pre-dispute arbitration clause, so claims against the broker-dealer who recommended the investment are generally filed and resolved through FINRA arbitration rather than in court. Arbitration can still result in a monetary recovery, even though the REIT itself is not expected to return meaningful value to shareholders.
2. Why does it matter if my Moody National REIT II investment was unsuitable?
Brokers are required to recommend investments that fit a client’s age, net worth, investment objectives, and risk tolerance, and non-traded REITs like Moody National REIT II are generally illiquid and high-risk. If your broker recommended this investment without a reasonable basis for believing it was suitable for you, that may support a FINRA arbitration claim.
3. Can the brokerage firm be held responsible even though it didn’t cause the REIT’s decline?
Yes — brokerage firms have a duty to supervise the recommendations their representatives make, regardless of what ultimately happened to the underlying investment. A firm that failed to reasonably supervise how Moody National REIT II was sold to its clients may be liable for the resulting losses.
