← Back to all investments
NexPoint Lodging II DST property photo

NexPoint Lodging II DST

Sponsored by NexPoint
Minimum Investment$100,000
Total Offering$81,573,000
Available Equity$81,573,000 100% available
Equity$81,573,000
DebtAll-Cash
In-Place LTV0.00% LTV
Average Yield7.15%
Est. Tax-Adjusted Yield¹13.14%
Cap Rate Equivalent8.93%
LocationCT, FL
Estimated Hold Period8 Years
721 Exchange ExitOptional
StrategyCore-Plus
Offering Type506(c)
Connected REIT—
StatusAvailable

NexPoint Lodging II DST Overview

NexPoint Lodging II DST is a $81,573,000 all-equity Delaware Statutory Trust offering comprising two nationally branded, select-service and extended-stay hotel properties totaling 289 rooms: 1. Courtyard by Marriott Bradenton Sarasota/Riverfront (Bradenton, FL – 153 keys, built in 1984/renovated in 2008, leasehold via a 99-year City Ground Lease expiring in 2079). 2. Homewood Suites by Hilton Hartford South-Glastonbury (Glastonbury, CT – 136 keys, built in 2006/renovated in May 2024, fee simple). The portfolio was acquired for a combined property purchase price of $61,950,000 ($214,360/key). The Master Lease structure uses two single-purpose Master Tenants (affiliated with the Sponsor) that pay Base Rent plus Percentage Rent (80% of gross revenues over threshold for Bradenton; 75% for Glastonbury). Day-to-day operations are third-party managed by Dreamscape Hospitality. The offering projects a Year 1 cash-on-cash distribution yield of 6.30%, escalating to 7.69% by Year 8 (8-year average yield of 7.15%).

Highlights

100% Unlevered Equity Structure: Zero debt eliminates refinancing, interest rate, and lender default risk during the hold period.

Dual Tier-1 Global Brand Affiliations: Direct integration into Marriott Bonvoy and Hilton Honors loyalty ecosystems, capturing high-margin direct bookings.

Pre-Funded Capital Reserves & PIP Strategy: $8,932,000 in DST reserves fully funds a $4.06M PIP at Bradenton, $832k PIP at Glastonbury, and $1.0M+ in tax/water line reserves.

Complementary Asset Class & Market Hedges: Pairs Sunbelt leisure/convention demand (Gulf Coast FL) with recession-resilient Northeast extended-stay demand (Hartford Aerospace/Insurance corridor).

Section 721 UPREIT Exit Option: Provides a tax-deferred liquidity bridge into a diversified REIT operating partnership after a 2-year lockup.

Analysis of NexPoint Lodging II DST

Insights

NexPoint Lodging II DST is a conservatively capitalized vehicle designed for 1031 exchange investors prioritizing capital preservation and unlevered yield over maximum equity multiples. The 100% equity structure completely eliminates credit risk, making it an effective safe-haven allocation in a volatile interest rate environment. Operating fundamentals are supported by strong brand distribution (Marriott/Hilton) and recent/planned PIP investments. To be successful, the Sponsor must successfully execute its value-add operational strategy (expanding RevPAR from $137.05 to $185.58 across the portfolio over 8 years) to hit its projected 1.80x (8-year exit) equity multiples.

Advantages

Unlike traditional commercial real estate bound by multi-year leases, hospitality assets reprice daily, allowing the master tenants to adjust Average Daily Rates (ADR) dynamically alongside inflation. By pairing Marriott and Hilton flags, the portfolio leverages national reservation engines and loyalty programs that drive steady occupancy. The absence of property-level debt insulates the DST from rising interest rates, debt service coverage ratio (DSCR) default triggers, or refinancing bottlenecks upon exit. Coupled with $8.93M in upfront reserves, investors face minimal capital call or dilution risks.

Concerns

Hospitality NOI is inherently volatile, and the Master Tenant structures utilize demand promissory notes rather than institutional corporate balance sheet guarantees. Additionally, the Bradenton property sits on a City Ground Lease, which creates long-term reversionary limitations despite having significant term remaining through 2079.

NexPoint Lodging II DST Projected Distributions

Average Yield7.15%
Est. Tax-Adjusted Yield¹13.14%
Cap Rate Equivalent8.93%
Y16.30%
Y26.50%
Y36.93%
Y47.25%
Y57.39%
Y67.54%
Y77.58%
Y87.69%

Projected, not guaranteed. Distribution rates are the sponsor’s projections, are not a promise of performance, and can be reduced or suspended. ¹ Estimated Tax-Adjusted Yield reflects the projected impact of depreciation and amortization deductions at an assumed combined federal and state tax rate; individual tax outcomes vary — consult your CPA regarding your specific situation. Cap Rate Equivalent is a Baker 1031 Investments calculation intended to allow comparison with direct property ownership; it is not a sponsor-reported figure and does not represent a rate of return. See the private placement memorandum for the assumptions behind these figures.

NexPoint Lodging II DST Financing

This is an all-cash offering — the property is owned free and clear, with no in-place financing. There is no lender, loan balance, or scheduled debt service at the trust level.

Benchmarks

Avg. Income
This deal7.15%
Market4.52%
Above Average
Growth
This deal22.06%
Market17.70%
Above Average
Peak
This deal7.69%
Market4.83%
Above Average

Benchmarks are calculated by Baker 1031 Investments: each metric is compared against the average across current offerings of the same property type tracked by Baker 1031 as of the last-updated date shown; a figure within ±10% of that average reads “Meets Average.” Benchmark data is internal, unaudited, and subject to change. Review each offering’s PPM for complete information.

NexPoint Lodging II DST Documents

NexPoint Lodging II DST — Complete Offering Data

Offering & Structure
Investment NameNexPoint Lodging II DST
SponsorNexPoint
StructureDelaware Statutory Trust (DST)
Offering Type506(c)
StatusAvailable
Last Updated2026-08-03
Size & Availability
Total Offering$81,573,000
Equity$81,573,000
DebtAll-Cash
Available Equity$81,573,000 (100% of equity)
Minimum Investment$100,000
Total Load10.87%
Initial Reserves10.95%
Property
Property TypeHospitality
StrategyCore-Plus
LocationCT, FL
Market TierTier 2
Income & Projections
Average Yield7.15%
Projected Yields (Y1–Y10)Y1 6.30% · Y2 6.50% · Y3 6.93% · Y4 7.25% · Y5 7.39% · Y6 7.54% · Y7 7.58% · Y8 7.69%
Tax-Adjusted Yield13.14%
Cap Rate Equivalent8.93%
Year 1 NOI$5,186,232
Y1 Payout Ratio1.01
Financing
In-Place LTV0.00% LTV
LenderN/A
Interest RateN/A
Loan TermN/A
I/O PeriodN/A
AmortizationN/A
Y1 DSCRN/A
Exit
Estimated Hold Period8 Years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income7.15% vs 4.52% market — Above Average
Growth22.06% vs 17.70% market — Above Average
Peak7.69% vs 4.83% market — Above Average

Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.