NexPoint Lodging II DST

An investment in NexPoint Lodging II DST is highly speculative, illiquid and involves substantial risk including the potential loss of your entire investment. The photos presented in this brochure are of the actual Properties that are part of the Offering.

There are substantial risks in any investment program. This is not an offer to sell securities or a solicitation of an offer to buy securities. An offer to sell interests(“Interests”) in NexPoint Lodging II DST (the “Trust”) may be made only pursuant to the Private Placement Memorandum of the Trust, as supplemented (the “PPM”), which is available upon request. Distributions are not guaranteed. Please review the entire PPM prior to investing. Reference is made to the PPM for a statement of risks and terms of the Offering. The information set forth herein is qualified in its entirety by the PPM. All potential investors must read the PPM and no person may invest without acknowledging receipt and complete review of the PPM. The offering of Interests (the “Offering”) is being made by means of the PPM only to accredited investors who meet minimum accreditation requirements, as well as suitability standards as determined by a qualified broker-dealer or investment advisor. The contents of this communication may not be relied upon in making an investment decision related to this Offering. All prospective investors must read the PPM, including the “Risk Factors,” including fees and expenses and other pertinent information prior to investing. These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws.

– this is a “best-efforts” offering with no minimum raise or minimum escrow requirements;
– the lack of liquidity and/or public market for the Interests;
– the holding of a beneficial interest in the Trust with no voting rights with respect to the management or operations of the Trust or in connection with the sale of the Property;
– risks associated with owning, financing, operating and leasing lodging properties, and real estate generally, in Florida, and more specifically the North Port-Bradenton-Sarasota, FL Metropolitan Statistical Area (Bradenton MSA);
– the Courtyard Property being subject to a ground lease with the City of Bradenton;
– the Hampton Inn & Suites Property being subject to a parking lot lease with Manatee County;
– the Master Tenants must comply with their respective franchise agreements which require extensive property improvement plans and could impose additional upgrades in the future;
– the area in which the Property is located may experience hurricanes, high winds, and floods. A hurricane, high winds, or flood could cause structural damage to or destroy the Properties. The Trust will obtain flood insurance for the Properties. It is possible that any such insurance, will not be sufficient to pay for damage to the Properties;
– risks associated with the lodging industry, such as significant occupancy rate fluctuations and relatively low capital requirements or other barriers to entry for competing properties;
– risks associated with the impact of pandemics, including the COVID-19 pandemic, on the Properties and the economies of the communities in which the Properties exist;
– the Trust depends on the Master Tenants and its operations for revenue and thus any default by the Master Tenants will adversely affect the Trust’s operations;
– performance of the Master Tenants under the Master Leases;
– reliance on the Master Tenants and the Property Manager engaged by the Master Tenants to manage each Property;
– risks associated with the sole member of the Master Tenants funding the Demand Notes that capitalize the Master Tenants;
– the existence of various conflicts of interest among the Sponsor, the Trust, the Master Tenants, the Asset Managers, the Property Manager, and their affiliates;
– material tax risks, including property identification risks and treatment of the Interests for purposes of Code Section 1031, and the use of exchange funds to pay acquisition costs, which may result in taxable boot;
– the Interests not being registered with the Securities and Exchange Commission (the “SEC”) or any state securities commissions;
– risks relating to the costs of compliance with laws, rules and regulations applicable to the Property;
– risks related to competition from properties similar to and near the Properties;
– lack of diversity of investment as to asset class; and
– the possibility of environmental risks related to the Properties.

MIF, L.L.C., an Affiliate of Marriott International, Inc. (“Marriott”), entered into a Relicensing Franchise Agreement with the Master Tenant for the Courtyard^® hotel, which is operated under a license granted by the franchisor.  Neither Marriott nor the franchisor has reviewed, endorsed or ratified the Offering, the PPM or this document or recommended or provided any advice in connection with the purchase of an Interest.

NexPoint Securities, Inc., an entity under common control with the Sponsor, serves as the Managing Broker-Dealer of the Offering. The Managing Broker-Dealer was formed in November 2013 and is registered as a broker-dealer with the Securities and Exchange Commission and is a member of FINRA/SIPC.