Fri, Aug 16, 9:30 PM (151 days ago)
Moody National REIT II, Inc. reported a significant decline in its financial performance for Q2 2024 compared to Q2 2023, primarily due to a $21.8 million impairment loss on hotel properties. Total hotel revenue increased slightly to $22.8 million, yet operating income fell to a loss of $20.8 million from a profit of $456,000. The net loss attributable to common stockholders was $25.2 million, up from $3.8 million the previous year. The REIT's total assets decreased to $390.3 million, with liabilities rising to $308.6 million, primarily driven by increased debt obligations. Cash flow from operations was negative, with net cash used amounting to $3.4 million. The company continues to face uncertainties due to rising interest rates and the ongoing impact of the COVID-19 pandemic, which has affected hotel occupancy and revenue. Management has suspended distributions since March 2020 and is evaluating the potential for future capital raises and resuming operations. The REIT's strategy includes selling certain properties to improve liquidity, with a sale agreement for the Townplace Suites Fort Worth already in place.