Lightstone Value Plus REIT II (LVPR) 10-Q 15 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares shares in Millions	3 Months Ended
	Mar. 31, 2020	May 11, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Entity Registrant Name	LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST II INC
Entity Central Index Key	0001436975
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		17.4
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Small Business	true

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Investment property:
Land and improvements	$ 36,684	$ 36,662
Building and improvements	203,553	200,362
Furniture and fixtures	35,540	32,861
Construction in progress	223	4,612
Gross investment property	276,000	274,497
Less accumulated depreciation	(43,184)	(40,545)
Net investment property	232,816	233,952
Investments in unconsolidated affiliated entities	15,799	16,394
Cash and cash equivalents	13,806	21,242
Marketable securities, available for sale	5,905	8,890
Restricted cash	9,017	8,974
Accounts receivable and other assets	4,092	3,903
Total Assets	281,435	293,355
Liabilities and Stockholders' Equity
Accounts payable and other accrued expenses	7,240	8,160
Margin loan	2,701	4,744
Mortgages payable, net	136,233	136,177
Due to related party	591	587
Distributions payable	0	3,065
Total liabilities	146,765	152,733
Commitments and contingencies
Company's stockholders' equity:
Preferred shares, $0.01 par value, 10.0 million shares authorized, none issued and outstanding	0	0
Common stock, $0.01 par value; 100.0 million shares authorized, 17.4 million and 17.5 million shares issued and outstanding, respectively	174	175
Additional paid-in-capital	147,100	147,924
Accumulated other comprehensive (loss)/income	(748)	172
Accumulated deficit	(23,714)	(19,863)
Total Company stockholders' equity	122,812	128,408
Noncontrolling interests	11,858	12,214
Total Stockholders' Equity	134,670	140,622
Total Liabilities and Stockholders' Equity	$ 281,435	$ 293,355

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions	Mar. 31, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Preferred shares, par value	$ 0.01	$ 0.01
Preferred shares, shares authorized	10	10
Preferred shares, shares issued	0	0
Preferred shares, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100	100
Common stock, shares issued	17.4	17.5
Common stock, shares outstanding	17.4	17.5

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues	$ 13,245	$ 17,764
Expenses:
Property operating expenses	9,988	12,133
Real estate taxes	882	967
General and administrative costs	1,206	1,313
Depreciation and amortization	2,645	2,987
Total operating expenses	14,721	17,400
Operating (loss)/income	(1,476)	364
Interest and dividend income	143	144
Interest expense	(1,817)	(2,440)
Loss on sale of marketable securities, available for sale	(245)	0
Earnings from investments in unconsolidated affiliated entities	(516)	(314)
Other expense, net	(14)	(34)
Net loss	(3,925)	(2,280)
Less: net loss attributable to noncontrolling interests	74	25
Net loss applicable to Company's common shares	$ (3,851)	$ (2,255)
Net loss per Company's common share, basic and diluted	$ (0.22)	$ (0.13)
Weighted average number of common shares outstanding, basic and diluted	17,445	17,799

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$ (3,925)	$ (2,280)
Other comprehensive (loss)/income:
Holding (loss)/gain on marketable securities, available for sale	(1,165)	525
Reclassification adjustment for loss included in net loss	245	0
Other comprehensive (loss)/income:	(920)	525
Comprehensive loss	(4,845)	(1,755)
Less: Comprehensive loss attributable to noncontrolling interests	74	25
Comprehensive loss attributable to the Company's common shares	$ (4,771)	$ (1,730)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands		Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Noncontrolling Interests	Total
BALANCE at Dec. 31, 2018		$ 179	$ 151,538	$ (817)	$ (13,277)	$ 13,466	$ 151,089
BALANCE (in shares) at Dec. 31, 2018		17,874
Net loss		$ 0	0	0	(2,255)	(25)	(2,280)
Other comprehensive income (loss)		0	0	525	0	0	525
Distributions declared (a)	[1]	0	0	0	(3,069)	0	(3,069)
Contributions of noncontrolling interests		0	0	0	0	33	33
Distributions to noncontrolling interests		0	0	0	0	(314)	(314)
Redemption and cancellation of shares		$ (1)	(914)	0	0	0	(915)
Redemption and cancellation of shares (in shares)		(92)
BALANCE at Mar. 31, 2019		$ 178	150,624	(292)	(18,601)	13,160	145,069
BALANCE (in shares) at Mar. 31, 2019		17,782
BALANCE at Dec. 31, 2019		$ 175	147,924	172	(19,863)	12,214	140,622
BALANCE (in shares) at Dec. 31, 2019		17,512
Net loss		$ 0	0	0	(3,851)	(74)	(3,925)
Other comprehensive income (loss)		0	0	(920)	0	0	(920)
Contributions of noncontrolling interests		0	0	0	0	45	45
Distributions to noncontrolling interests		0	0	0	0	(327)	(327)
Redemption and cancellation of shares		$ (1)	(824)	0	0	0	(825)
Redemption and cancellation of shares (in shares)		(82)
BALANCE at Mar. 31, 2020		$ 174	$ 147,100	$ (748)	$ (23,714)	$ 11,858	$ 134,670
BALANCE (in shares) at Mar. 31, 2020		17,430
[1]	Distributions per share were $0.175.

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical)	3 Months Ended
	Mar. 31, 2019$ / shares
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Distribution, amount per share	$ 0.175

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,925)	$ (2,280)
Adjustments to reconcile net loss to net cash (used in)/provided by operating activities:
Depreciation and amortization	2,645	2,987
Amortization of deferred financing costs	103	103
Loss on sale of marketable securities, available for sale	245	0
Earnings from investments in unconsolidated affiliated entities	516	314
Other non-cash adjustments	45	37
Changes in assets and liabilities:
Increase in accounts receivable and other assets	(240)	(703)
(Decrease)/increase in accounts payable and other accrued expenses	(230)	343
Increase in due to related party	4	31
Net cash (used in)/provided by operating activities	(837)	832
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(2,192)	(1,609)
Investments in unconsolidated affiliated entities	0	(58)
Proceeds from the sale of marketable debt securities	1,819	0
Distributions from unconsolidated affiliated entities	79	0
Net cash used in investing activities	(294)	(1,667)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on mortgages payable	(48)	(46)
Payment on margin loan	(2,043)	(193)
Redemption and cancellation of common shares	(824)	(915)
Distributions to noncontrolling interests	(327)	(314)
Contributions of noncontrolling interests	45	33
Distributions to common stockholders	(3,065)	(3,154)
Net cash used in financing activities	(6,262)	(4,589)
Net change in cash, cash equivalents and restricted cash	(7,393)	(5,424)
Cash, cash equivalents and restricted cash, beginning of year	30,216	30,660
Cash, cash equivalents and restricted cash, end of period	22,823	25,236
Supplemental cash flow information for the periods indicated is as follows:
Cash paid for interest	1,732	2,313
Distributions declared but not paid	0	3,069
Holding loss/gain on marketable securities, available for sale	920	525
Investment property acquired but not paid	613	184
The following is a summary of the Company's cash, cash equivalents, and restricted cash total as presented in our statements of cash flows for the periods presented:
Cash	13,806	22,377
Restricted cash	9,017	2,859
Total cash and restricted cash	$ 22,823	$ 25,236

Business and Structure

Business and Structure	3 Months Ended
	Mar. 31, 2020
Business and Structure
Business and Structure	1. Business and Structure Lightstone Value Plus Real Estate Investment Trust II, Inc. (‘‘Lightstone REIT II’’), is a Maryland corporation, formed on April 28, 2008, which elected to qualify as a real estate investment trust (‘‘REIT’’) for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2009. Lightstone REIT II is structured as an umbrella partnership REIT, or UPREIT, and substantially all of its current and future business will be conducted through Lightstone Value Plus REIT II LP, a Delaware limited partnership (the ‘‘Operating Partnership’’). As of March 31, 2020, Lightstone REIT II held an approximately 99% general partnership interest in the Operating Partnership’s common units. Lightstone REIT II and the Operating Partnership and its subsidiaries are collectively referred to as the ‘‘Company’’ and the use of ‘‘we,’’ ‘‘our,’’ ‘‘us’’ or similar pronouns refers to Lightstone REIT II, its Operating Partnership or the Company as required by the context in which such pronoun is used. The Company has and will continue to seek to acquire a diverse portfolio of real estate assets and real estate-related investments, including hotels, other commercial and/or residential properties, primarily located in the United States. All such properties may be acquired and operated by the Company alone or jointly with another party. The Company may also originate or acquire mortgage loans secured by real estate. Although the Company expects that most of its investments will be of these types, it may invest in whatever types of real estate-related investments that it believes are in its best interests. The Company currently has one operating segment. As of March 31, 2020, we (i) majority owned and consolidated the operating results and financial condition of 14 limited service hotels containing a total of 1,802 rooms, (ii) held an unconsolidated 48.6% membership interest in Brownmill, LLC (“Brownmill”), an affiliated entity that owns two retail properties, and (iii) held an unconsolidated 50.0% membership interest in LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”), an affiliated real estate entity that owns and operates a 183-room limited service hotel located in Long Island City, New York (the “Hilton Garden Inn – Long Island City”). The Company accounts for its membership interests in Brownmill and the Hilton Garden Inn Joint Venture under the equity method of accounting. As of March 31, 2020, seven of our consolidated limited service hotels are held in a joint venture (the “Joint Venture”) formed between us and Lightstone Value Plus Real Estate Investment Trust, Inc. (“Lightstone I”), a related party REIT also sponsored by The Lightstone Group, LLC. The Company and Lightstone I have 97.5% and 2.5% membership interests in the Joint Venture, respectively. Additionally, as of March 31, 2020, certain of our consolidated hotels also have ownership interests held by unrelated minority owners. The membership interests of Lightstone I and the unrelated minority owners are accounted for as noncontrolling interests. The Company’s advisor is Lightstone Value Plus REIT II LLC (the “Advisor”), which is majority owned by David Lichtenstein. On May 20, 2008, the Advisor contributed $2 to the Operating Partnership in exchange for 200 limited partner common units in the Operating Partnership. The Advisor also owns 20,000 shares of the Company’s common stock (“Common Shares”) which were issued on May 20, 2008 for $200, or $10.00 per share. Mr. Lichtenstein also is a majority owner of the equity interests of the Lightstone Group, LLC. The Lightstone Group, LLC served as the Company’s sponsor (the ‘‘Sponsor’’) during its initial public offering (the “Offering”) and follow-on offering (the “Follow-on Offering”, and collectively, “the Offerings”), which terminated on August 15, 2012 and September 27, 2014, respectively. The Advisor, together with the Company’s board of directors (the “Board of Directors”), is primarily responsible for making investment decisions on behalf of the Company and managing its day-to-day operations. Through his ownership and control of the Lightstone Group, LLC, Mr. Lichtenstein is the indirect owner and manager of Lightstone SLP II LLC, a Delaware limited liability company (the “Associate General Partner”), which has subordinated profits interests in the Operating Partnership which were acquired for aggregate consideration of $17.7 million in connection with the Company’s Offerings. Mr. Lichtenstein also acts as the Company’s Chairman and Chief Executive Officer. As a result, he exerts influence over but does not control Lightstone REIT II or the Operating Partnership. The Company does not have any employees. The Advisor receives compensation and fees for services related to the investment and management of the Company’s assets. The Company’s Advisor has certain affiliates which may manage the properties the Company acquires. However, the Company also contracts with other unaffiliated third-party property managers, principally for the management of its hospitality properties. The Company’s Common Shares are not currently listed on a national securities exchange. The Company may seek to list its Common Shares for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its shares at this time. The Company does not anticipate that there would be any market for its Common Shares until they are listed for trading. In the event the Company does not obtain listing prior to September 27, 2024, which is the tenth anniversary of the termination of its Follow-On Offering, its charter requires that the Board of Directors must either (i) seek stockholder approval of an extension or amendment of this listing deadline; or (ii) seek stockholder approval to adopt a plan of liquidation of the corporation. Noncontrolling Interests Limited Partner On May 20, 2008, the Advisor contributed $2 to the Operating Partnership in exchange for 200 limited partner common units in the Operating Partnership. The Advisor has the right to convert limited partner common units into cash or, at the Company’s option, an equal number of Common Shares. Associate General Partner In connection with the Company’s Offerings, which concluded on September 27, 2014, the Associate General Partner contributed (i) cash of approximately $12.9 million and (ii) equity interests totaling 48.6% in Brownmill, which were valued at $4.8 million, to the Operating Partnership in exchange for 177.0 Subordinated Profits Interests in the Operating Partnership with an aggregate value of $17.7 million. As the indirect majority owner of the Associate General Partner, Mr. Lichtenstein is the beneficial owner of a 99% interest in such Subordinated Profits Interests and thus receives an indirect benefit from any distributions made in respect thereof. These Subordinated Profits Interests may entitle the Associate General Partner to a portion of any regular and liquidation distributions that the Company makes to its stockholders, but only after its stockholders have received a stated preferred return. Other Noncontrolling Interests in Consolidated Subsidiaries Other noncontrolling interests consist of the (i) membership interest in the Joint Venture held by Lightstone I and (ii) membership interests held by minority owners in certain of the Company’s hotels. The Advisor and its affiliates and Associate General Partner are related parties of the Company. Certain of these entities are entitled to compensation and fees for services related to the investment, management and disposition of the Company’s assets during its acquisition, operational and liquidation stages. The compensation levels during the Company's acquisition and operational stages are based on the cost of acquired properties/investments and the annual revenue earned from such properties/investments, and other such fees and reimbursements as outlined in each of the respective agreements. See Note 7 for additional information.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT II and its Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of March 31, 2020, the Lightstone REIT II had a 99% general partnership interest in the common units of the Operating Partnership. All inter-company balances and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company’s Annual Report on Form 10‑K for the fiscal year ended December 31, 2019. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Value Plus Real Estate Investment Trust II, Inc. and Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate, depreciable lives, and revenue recognition. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. The consolidated balance sheet as of December 31, 2019 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10‑K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. To qualify or maintain our qualification as a REIT, we engage in certain activities through wholly-owned taxable REIT subsidiaries (“TRS”). As such, we are subject to U.S. federal and state income and franchise taxes from these activities. Revenue Recognition The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended March 31, 2020 2019 Revenues Room $ 12,451 $ 16,421 Food, beverage and other 794 1,343 Total revenues $ 13,245 $ 17,764 Restricted cash As required by the Company’s lenders, restricted cash is held in escrow accounts for anticipated capital expenditures, real estate taxes, and other reserves for certain of our consolidated properties. Capital reserves are typically utilized for non-operating expenses such as major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. As of March 31, 2020 and December 31, 2019, restricted cash also included approximately $7.2 million of the proceeds from the October 2019 sale of the Company’s SpringHill Suites by Marriott hotel, located in Peabody, Massachusetts. These funds were temporarily placed in escrow with a qualified intermediary to potentially facilitate a like-kind exchange transaction in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended. However, the Company decided not to pursue a like-kind exchange transaction and the funds were subsequently released in May 2020. COVID-19 Pandemic The global impact of the COVID-19 pandemic has been rapidly evolving and, as cases of the illness caused by the virus have continued to be identified in additional countries, many countries, including the United States, have reacted by instituting quarantines and restrictions on travel. In addition, all the states where the Company operates properties have reacted to the COVID-19 pandemic by instituting quarantines, restrictions on travel, “shelter in place” rules and restrictions on types of business that may continue to operate. Many states have recently announced guidelines to reduce certain of these restrictions. Commencing in March 2020, room demand for the Company’s consolidated and unconsolidated hotels has significantly declined due to the COVID-19 pandemic resulting in lower occupancy and rental revenues during the first quarter of 2020 compared to first quarter of 2019. These trends have continued into the second quarter of 2020 and if demand for the Company’s hotel rooms continues to be negatively impacted for an extended period, as a result of cancellations, travel restrictions, governmental travel advisories and/or state of emergency declarations, the Company’s business and financial results could be materially and adversely impacted. Additionally, the Company has an unconsolidated 48.6% membership interest in Brownmill, which owns two retail properties located in New Jersey that have been subject to the above noted restrictions. If Brownmill’s retail properties are negatively impacted for an extended period because its tenants are unable to pay their rent, the Company’s equity earnings and the carrying value of its investment in Brownmill could be materially and adversely impacted. In light of the impact of the COVID-19 pandemic on the operating results of its hotels, the Company has taken certain actions to preserve its liquidity, including the following: · The Company has implemented various cost reduction strategies for its hotels, including the deferral of all non-critical capital expenditures. However, there can be no assurance that these cost reductions will fully mitigate the adverse impact of any lost revenue and income. · The Company has been proactively working with its lenders to obtain or seek to obtain modification of key terms to its indebtedness, including interest rate reductions, forbearance of scheduled debt service and waivers of financial covenants. While the Company has historically been successful in obtaining modifications of key terms for certain of its indebtedness, discussions with the lenders are ongoing and there can be no assurance the Company will be successful in its endeavors. See Note 5 for additional information. · On March19, 2020, the Company’s board of directors determined to suspend regular quarterly distributions. See Note 6 for additional information. · On March 19, 2020, the Company’s board of directors approved the suspension of all redemptions under the Company’s shareholder redemption program. See Note 6 for additional information. · In May 2020, the Company had approximately $7.2 million of funds released to it from an escrow account. New Accounting Pronouncements The Company has reviewed and determined that recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations.

Investments in Unconsolidated A

Investments in Unconsolidated Affiliated Entities	3 Months Ended
	Mar. 31, 2020
Investments in Unconsolidated Affiliated Entities
Investments in Unconsolidated Affiliated Entities	3. Investments in Unconsolidated Affiliated Entities The entities listed below are partially owned by the Company. The Company accounts for these investments under the equity method of accounting as the Company exercises significant influence, but does not exercise financial and operating control over these entities. A summary of the Company’s investments in the unconsolidated affiliated entities is as follows: As of Entity Date of Ownership Ownership % March 31, 2020 December 31, 2019 Brownmill Various % $ 4,534 $ 4,630 Hilton Garden Inn Joint Venture March 27, 2018 % 11,265 11,764 Total investments in unconsolidated affiliated real estate entities $ 15,799 $ 16,394 Brownmill During 2010 through 2012, the Company entered into various contribution agreements with Lightstone Holdings LLC (‘‘LGH’’), a wholly-owned subsidiary of the Company’s Sponsor, pursuant to which LGH contributed to the Company an approximate aggregate 48.6% equity interest in exchange for the Company issuing an aggregate of 48 units of Subordinated Profits Interests, at $100,000 per unit (at an aggregate total value of $4.8 million), to Lightstone SLP II LLC. As of March 31, 2020, the Company owns a 48.6% membership interest in Brownmill. The Company’s interest in Brownmill is a non-managing interest. An affiliate of the Company’s Sponsor is the majority owner and manager of Brownmill. Profit and cash distributions are allocated in accordance with each investor’s ownership percentage. The Company accounts for its investment in Brownmill in accordance with the equity method of accounting. During the three months ended March 31, 2020, the Company received distributions from Brownmill aggregating $35. Brownmill owns two retail properties known as Browntown Shopping Center, located in Old Bridge, New Jersey, and Millburn Mall, located in Vauxhaull, New Jersey, which collectively, are referred to as the “Brownmill Properties.” Brownmill Financial Information The Company’s carrying value of its interest in Brownmill differs from its share of member’s equity reported in the condensed balance sheet of Brownmill due to the Company’s basis of its investment in excess of the historical net book value of Brownmill. The Company’s additional basis allocated to depreciable assets is being recognized on a straight-line basis over the lives of the appropriate assets. The following table represents the condensed income statements for Brownmill for the periods indicated: For the Three Months Ended March 31, 2020 2019 Revenue $ 925 $ 909 Property operating expenses 652 462 Depreciation and amortization 165 175 Operating income 108 272 Interest expense and other, net (169) (190) Net (loss)/income $ (61) $ 82 Company’s share of earnings $ (30) $ 40 Additional depreciation and amortization expense (1) (31) (32) Company’s earnings from investment $ (61) $ 8 1) Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in Brownmill and the amount of the underlying equity in net assets of Brownmill. The following table represents the condensed balance sheets for Brownmill: As of As of March 31, 2020 December 31, 2019 Real estate, at cost (net) $ 13,451 $ 13,507 Cash and restricted cash 1,062 1,016 Other assets 1,306 1,440 Total assets $ 15,819 $ 15,963 Mortgage payable $ 14,004 $ 14,061 Other liabilities 670 648 Members’ capital 1,145 1,254 Total liabilities and members’ capital $ 15,819 $ 15,963 Hilton Garden Inn Joint Venture On March 27, 2018, the Company and Lightstone Value Plus Real Estate Investment Trust III, Inc. (“Lightstone REIT III”), a related party REIT also sponsored by the Company’s Sponsor, acquired, through the Hilton Garden Inn Joint Venture, a 183‑room, limited-service hotel located at 29‑21 41 st Avenue, Long Island City, New York (the “Hilton Garden Inn - Long Island City”) from an unrelated third party, for aggregate consideration of approximately $60.0 million, which consisted of $25.0 million of cash and $35.0 million of proceeds from a loan from a financial institution, excluding closing and other related transaction costs. The Company and Lightstone REIT III each have a 50.0% membership interest in the Hilton Garden Inn Joint Venture. The Company paid approximately $12.9 million for a 50.0% membership interest in the Hilton Garden Inn Joint Venture. The Company’s membership interest in the Hilton Garden Inn Joint Venture is a co-managing interest. The Company accounts for its membership interest in the Hilton Garden Inn Joint Venture in accordance with the equity method of accounting because it exerts significant influence over but does not control the Hilton Garden Inn Joint Venture. All capital contributions and distributions of earnings from the Hilton Garden Inn Joint Venture are made on a pro rata basis in proportion to each member’s equity interest percentage. Any distributions in excess of earnings from the Hilton Garden Inn Joint Venture are made to the members pursuant to the terms of the Hilton Garden Inn Joint Venture’s operating agreement. The Company commenced recording its allocated portion of profit/loss and cash distributions beginning as of March 27, 2018 with respect to its membership interest of 50.0% in the Hilton Garden Inn Joint Venture. Subsequent to the Company’s acquisition of its 50.0% membership interest in the Hilton Garden Joint Venture through March 31, 2020, it has made an aggregate of $0.7 million of additional capital contributions and received aggregate distributions of $1.5 million (of which $44 was received in 2020). Hilton Garden Inn Joint Venture Financial Information The following table represents the condensed income statements for the Hilton Garden Inn Joint Venture for the period indicated: For the Three Months For the Three Months Ended March 31, 2020 Ended March 31, 2019 Revenues $ 1,540 $ 2,008 Property operating expenses 1,344 1,505 General and administrative costs 18 — Depreciation and amortization 630 642 Operating loss (452) (139) Interest expense (457) (506) Net loss $ (909) $ (645) Company’s share of net loss (50.00%) $ (455) $ (323) The following table represents the condensed balance sheets for the Hilton Garden Inn Joint Venture: As of As of March 31, 2020 December 31, 2019 Investment property, net $ 56,558 $ 56,775 Cash 507 904 Other assets 753 894 Total assets $ 57,818 $ 58,573 Mortgage payable, net $ 34,835 $ 34,821 Other liabilities 1,023 794 Members’ capital 21,960 22,958 Total liabilities and members’ capital $ 57,818 $ 58,573

Marketable Securities, Fair Val

Marketable Securities, Fair Value Measurements and Margin Loan	3 Months Ended
	Mar. 31, 2020
Marketable Securities, Fair Value Measurements and Margin Loan
Marketable Securities, Fair Value Measurements and Margin Loan	4. Marketable Securities, Fair Value Measurements and Margin Loan Marketable Securities The following is a summary of the Company’s available for sale securities as of the dates indicated: As of March 31, 2020 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 6,653 $ — $ (748) $ 5,905 As of December 31, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 8,718 $ 172 $ — $ 8,890 Financial markets have experienced significant volatility in response to the current COVID-19 pandemic, including significant reductions in market interest rates and market prices of certain debt securities during the three months ended March 31, 2020. During the three months ended March 31, 2020, the Company’s experienced a holding loss of approximately $1.2 million on its available for sale marketable debt securities, which is included in its consolidated statements of comprehensive income. The Company considers the declines in market value of its investments in marketable debt securities to be temporary in nature as the unrealized losses were caused primarily by financial market volatility associated with the current COVID-19 pandemic which resulting in significant reductions in market interest rates and market prices of certain debt securities. When evaluating its investments in marketable debt securities for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the marketable security before recovery of its amortized cost basis. During the three months ended March 31, 2020 and 2019, the Company did not recognize any impairment charges on its investments in marketable securities. As of March 31, 2020, the Company does not consider any of its investments in marketable securities to be other-than-temporarily impaired. The Company may sell certain of its investments in marketable debt securities prior to their stated maturities for strategic purposes, in anticipation of credit deterioration, or for duration management. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: · Level 1 – Quoted prices in active markets for identical assets or liabilities. · Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of March 31, 2020 and December 31, 2019, all of the Company’s debt securities were classified as Level 2 assets and there were no transfers between the level classifications during the three months ended March 31, 2020. The fair values of the Company’s investments in Corporate Bonds are measured using readily available quoted prices for similar assets. The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: As of March 31, 2020 Due in 1 year $ — Due in 1 year through 5 years 2,895 Due in 5 year through 10 years — Due after 10 years 3,010 Total $ 5,905 The Company did not have any other significant financial assets or liabilities, which would require revised valuations that are recognized at fair value. Margin loan The Company has access to a margin loan from a financial institution that holds custody of certain of the Company’s marketable securities. The margin loan is collateralized by the marketable securities in the Company’s account. The amounts available to the Company under the margin loan are at the discretion of the financial institution and not limited to the amount of collateral in its account. The amount outstanding under this margin loan was $2.7 million and $4.7 million as of March 31, 2020 and December 31, 2019, respectively, and is due on demand. The margin loan bears interest at Libor plus 0.85% (1.84% as of March 31, 2020).

Mortgages payable, net

Mortgages payable, net	3 Months Ended
	Mar. 31, 2020
Mortgages payable, net
Mortgages payable, net	5 . Mortgages payable, net Mortgages payable, net consisted of the following: Weighted Average Interest Rate Interest as of Maturity Amount Due As of As of Description Rate March 31, 2020 Date at Maturity March 31, 2020 December 31, 2019 Revolving Credit Facility LIBOR + 3.15 % 4.80 % May 2021 $ 123,045 $ 123,045 $ 123,045 Courtyard – Paso Robles % 5.49 % November 2023 13,022 13,759 13,806 Total mortgages payable 4.87 % $ 136,067 136,804 136,851 Less: Deferred financing costs (571) (674) Total mortgages payable, net $ 136,233 $ 136,177 Revolving Credit Facility The Company, through certain subsidiaries, has a Revolving Credit Facility with a financial institution. The Revolving Credit Facility provides the Company with a line of credit of up to $140.0 million pursuant to which it may designate properties as collateral that allow borrowings up to a 65.0% loan-to-value ratio subject to also meeting certain financial covenants, including a prescribed minimum debt yield. The Revolving Credit Facility provides for monthly interest-only payments and the entire principal balance is due upon its expiration. The Revolving Credit Facility, which was entered into on May 17, 2018, has an initial maturity date of May 17, 2021, subject to two one-year options to extend at the sole discretion of the lender. The initial interest rate on the Revolving Credit Facility was Libor plus 3.50% until it was reduced to Libor plus 3.15% effective March 31, 2019. As of March 31, 2020, twelve of the Company’s hotel properties were pledged as collateral under the Revolving Credit Facility and the outstanding principal balance was approximately $123.0 million. Because of the impact of the COVID-19 pandemic on the operating performance of the twelve hotels pledged as collateral under the Revolving Credit Facility, the Company and the lender have agreed to certain changes to the terms of the Revolving Credit Facility. The key changes are as follows: · The Company will receive a deferral of monthly debt service for the payments due on April 1, 2020 through September 1, 2020, with the deferred payments added to the principal balance due at maturity; · Subject to certain conditions, including maintenance of a minimum aggregate of $25.0 million of deposits with the lender by the Company, The Lightstone Group, LLC and/or other affiliated entities, the interest rate spread will be reduced by 100 bps to Libor plus 2.15% for the six-month period beginning September 1, 2020 through February 28, 2021; · The Company will deposit $3.0 million into a cash collateral account to be applied against the monthly debt service payments due on October 1, 2020 through March 1, 2021; and · Waiver of all financial covenants until June 30, 2021. Courtyard – Paso Robles Mortgage Loan In connection with the Company’s acquisition of the Courtyard – Paso Robles on December 14, 2017, it assumed an existing $14.0 million non-recourse mortgage loan collateralized by the Courtyard – Paso Robles (the “Courtyard - Paso Robles Mortgage Loan”). The Courtyard – Paso Robles Mortgage Loan matures in November 2023, bears interest at a fixed rate of 5.49% and requires monthly principal and interest payments of approximately $79 through its stated maturity with a balloon payment of approximately $13.0 million due at maturity. The Courtyard – Paso Robles Mortgage Loan had an outstanding balance of approximately $13.8 million as of March 31, 2020. Despite the impact of the COVID-19 pandemic on the operating performance of the Courtyard - Paso Robles, the Company has continued to make scheduled monthly debt service payments. However, the Company is currently engaged in discussions with the servicer of the Courtyard - Paso Robles Mortgage Loan and is seeking forbearance of certain future scheduled monthly debt service. There can be no assurance that the Company will be successful in its endeavors. Principal Maturities The following table, based on the initial terms of the mortgages, sets forth their aggregate estimated contractual principal maturities, including balloon payments due at maturity, as of March 31, 2020: 2020 2021 2022 2023 2024 Thereafter Total Principal maturities $ 140 $ 123,245 $ 211 $ 13,208 $ — $ — $ 136,804 Less: deferred financing costs (571) Total principal maturities, net $ 136,233 Pursuant to the Company’s loan agreements, escrows in the amount of $1.8 million were held in restricted cash accounts as of both March 31, 2020 and December 31, 2019. Such escrows will be released in accordance with the applicable loan agreements for payments of real estate taxes, insurance and capital improvement transactions, as required. Certain of our debt agreements also contain clauses providing for prepayment penalties.

Equity

Equity	3 Months Ended
	Mar. 31, 2020
Equity
Equity	6. Equity Distributions On March 19, 2020, the Company’s Board of Directors determined to suspend regular quarterly distributions. Future distributions declared will be at the discretion of the Board of Directors based on their analysis of the Company’s performance over the previous periods and expectations of performance for future periods. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, operating and interest expenses and our ability to refinance near-term debt. In addition, the Company currently intends to continue to comply with the REIT distribution requirement that it annually distribute no less than 90% of our taxable income. The Company cannot assure that distributions will be made or that it will maintain any particular level of distributions that it has previously established or may establish. Share Repurchase Program The Company’s share repurchase program may provide its stockholders with limited, interim liquidity by enabling them to sell their shares of common stock back to it, subject to certain restrictions. From the Company’s inception through December 31, 2019 it redeemed approximately 1.4 million common shares at an average price of $9.77 per share. For the three months ended March 31, 2020, the Company redeemed 0.1 million common shares at an average price of $10.00 per share. On March 19, 2020, the Board of Directors amended the share repurchase program to remove stockholder notice requirements and also approved the suspension of all redemptions effective immediately. Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, earnings per share is calculated by dividing net income attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the applicable period.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2020
Related Party Transactions
Related Party Transactions	7 . Related Party Transactions The Company has agreements with the Advisor and Lightstone Value Plus REIT Management LLC (the “Property Manager”) to pay certain fees in exchange for services performed by these entities and other related party entities. The Company’s ability to secure financing and subsequent real estate operations are dependent upon its Advisor, Property Manager and their affiliates to perform such services as provided in these agreements. The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: For the Three Months Ended March 31, 2020 2019 Asset management fees (general and administrative costs) $ 722 $ 775 Development fees (1) 32 5 Total $ 754 $ 780 (1) Generally, capitalized and amortized over the estimated useful life of the associated asset. In connection with the Company’s Offering and Follow-On Offering, Lightstone SLP II LLC, an affiliate of the Company’s Sponsor, contributed (i) cash of approximately $12.9 million and (ii) equity interests in Brownmill valued at $4.8 million to the Operating Partnership in exchange for 177.0 Subordinated Profits Interests in the Operating Partnership with an aggregate value of $17.7 million, which are included in noncontrolling interests in the consolidated balance sheets. These Subordinated Profit Interests, the purchase price of which will be repaid only after stockholders receive a stated preferred return and their net investment, entitle Lightstone SLP II, LLC to a portion of any regular distributions made by the Operating Partnership.

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2020
Financial Instruments
Financial Instruments	8. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable and other assets, accounts payable and other accrued expenses, margin loan, due to related party, and distributions payable approximated their fair values because of the short maturity of these instruments. The estimated fair value of our mortgages payable is as follows: As of March 31, 2020 As of December 31, 2019 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Mortgages payable $ 136,804 $ 137,970 $ 136,851 $ 137,303 The fair value of our mortgages payable was determined by discounting the future contractual interest and principal payments by market interest rates.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies
Commitments and Contingencies	9. Commitments and Contingencies Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT II and its Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of March 31, 2020, the Lightstone REIT II had a 99% general partnership interest in the common units of the Operating Partnership. All inter-company balances and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company’s Annual Report on Form 10‑K for the fiscal year ended December 31, 2019. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Value Plus Real Estate Investment Trust II, Inc. and Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10‑Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate, depreciable lives, and revenue recognition. Application of these assumptions requires the exercise of judgment as to future uncertainties and, as a result, actual results could differ from these estimates. The consolidated balance sheet as of December 31, 2019 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10‑K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. To qualify or maintain our qualification as a REIT, we engage in certain activities through wholly-owned taxable REIT subsidiaries (“TRS”). As such, we are subject to U.S. federal and state income and franchise taxes from these activities.
Revenue Recognition	Revenue Recognition The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended March 31, 2020 2019 Revenues Room $ 12,451 $ 16,421 Food, beverage and other 794 1,343 Total revenues $ 13,245 $ 17,764
Restricted cash	Restricted cash As required by the Company’s lenders, restricted cash is held in escrow accounts for anticipated capital expenditures, real estate taxes, and other reserves for certain of our consolidated properties. Capital reserves are typically utilized for non-operating expenses such as major capital expenditures. Alternatively, a lender may require its own formula for an escrow of capital reserves. As of March 31, 2020 and December 31, 2019, restricted cash also included approximately $7.2 million of the proceeds from the October 2019 sale of the Company’s SpringHill Suites by Marriott hotel, located in Peabody, Massachusetts. These funds were temporarily placed in escrow with a qualified intermediary to potentially facilitate a like-kind exchange transaction in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended. However, the Company decided not to pursue a like-kind exchange transaction and the funds were subsequently released in May 2020.
New Accounting Pronouncements	New Accounting Pronouncements The Company has reviewed and determined that recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2020
Summary of Significant Accounting Policies
Schedule of total revenues from hotel operations on a disaggregated basis	The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended March 31, 2020 2019 Revenues Room $ 12,451 $ 16,421 Food, beverage and other 794 1,343 Total revenues $ 13,245 $ 17,764

Investments in Unconsolidated_2

Investments in Unconsolidated Affiliated Entities (Tables)	3 Months Ended
	Mar. 31, 2020
Schedule of Equity Method Investments [Line Items]
Summary of investments in unconsolidated entities	A summary of the Company’s investments in the unconsolidated affiliated entities is as follows: As of Entity Date of Ownership Ownership % March 31, 2020 December 31, 2019 Brownmill Various % $ 4,534 $ 4,630 Hilton Garden Inn Joint Venture March 27, 2018 % 11,265 11,764 Total investments in unconsolidated affiliated real estate entities $ 15,799 $ 16,394
Brownmill, LLC
Schedule of Equity Method Investments [Line Items]
Schedule of condensed income statements	The following table represents the condensed income statements for Brownmill for the periods indicated: For the Three Months Ended March 31, 2020 2019 Revenue $ 925 $ 909 Property operating expenses 652 462 Depreciation and amortization 165 175 Operating income 108 272 Interest expense and other, net (169) (190) Net (loss)/income $ (61) $ 82 Company’s share of earnings $ (30) $ 40 Additional depreciation and amortization expense (1) (31) (32) Company’s earnings from investment $ (61) $ 8 1) Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in Brownmill and the amount of the underlying equity in net assets of Brownmill.
Schedule of condensed balance sheets	The following table represents the condensed balance sheets for Brownmill: As of As of March 31, 2020 December 31, 2019 Real estate, at cost (net) $ 13,451 $ 13,507 Cash and restricted cash 1,062 1,016 Other assets 1,306 1,440 Total assets $ 15,819 $ 15,963 Mortgage payable $ 14,004 $ 14,061 Other liabilities 670 648 Members’ capital 1,145 1,254 Total liabilities and members’ capital $ 15,819 $ 15,963
Hilton Garden Inn Joint Venture
Schedule of Equity Method Investments [Line Items]
Schedule of condensed income statements	The following table represents the condensed income statements for the Hilton Garden Inn Joint Venture for the period indicated: For the Three Months For the Three Months Ended March 31, 2020 Ended March 31, 2019 Revenues $ 1,540 $ 2,008 Property operating expenses 1,344 1,505 General and administrative costs 18 — Depreciation and amortization 630 642 Operating loss (452) (139) Interest expense (457) (506) Net loss $ (909) $ (645) Company’s share of net loss (50.00%) $ (455) $ (323)
Schedule of condensed balance sheets	The following table represents the condensed balance sheets for the Hilton Garden Inn Joint Venture: As of As of March 31, 2020 December 31, 2019 Investment property, net $ 56,558 $ 56,775 Cash 507 904 Other assets 753 894 Total assets $ 57,818 $ 58,573 Mortgage payable, net $ 34,835 $ 34,821 Other liabilities 1,023 794 Members’ capital 21,960 22,958 Total liabilities and members’ capital $ 57,818 $ 58,573

Marketable Securities, Fair V_2

Marketable Securities, Fair Value Measurements and Margin Loan (Tables)	3 Months Ended
	Mar. 31, 2020
Marketable Securities, Fair Value Measurements and Margin Loan
Summary of Available for Sale Securities	The following is a summary of the Company’s available for sale securities as of the dates indicated: As of March 31, 2020 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 6,653 $ — $ (748) $ 5,905 As of December 31, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 8,718 $ 172 $ — $ 8,890
Summary of the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates	The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: As of March 31, 2020 Due in 1 year $ — Due in 1 year through 5 years 2,895 Due in 5 year through 10 years — Due after 10 years 3,010 Total $ 5,905

Mortgages payable, net (Tables)

Mortgages payable, net (Tables)	3 Months Ended
	Mar. 31, 2020
Mortgages payable, net
Schedule of Mortgages Payable	Mortgages payable, net consisted of the following: Weighted Average Interest Rate Interest as of Maturity Amount Due As of As of Description Rate March 31, 2020 Date at Maturity March 31, 2020 December 31, 2019 Revolving Credit Facility LIBOR + 3.15 % 4.80 % May 2021 $ 123,045 $ 123,045 $ 123,045 Courtyard – Paso Robles % 5.49 % November 2023 13,022 13,759 13,806 Total mortgages payable 4.87 % $ 136,067 136,804 136,851 Less: Deferred financing costs (571) (674) Total mortgages payable, net $ 136,233 $ 136,177
Schedule of Estimated Contractual Principal Maturities	The following table, based on the initial terms of the mortgages, sets forth their aggregate estimated contractual principal maturities, including balloon payments due at maturity, as of March 31, 2020: 2020 2021 2022 2023 2024 Thereafter Total Principal maturities $ 140 $ 123,245 $ 211 $ 13,208 $ — $ — $ 136,804 Less: deferred financing costs (571) Total principal maturities, net $ 136,233

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2020
Related Party Transactions
Schedule of fees to related parties	The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: For the Three Months Ended March 31, 2020 2019 Asset management fees (general and administrative costs) $ 722 $ 775 Development fees (1) 32 5 Total $ 754 $ 780 (1) Generally, capitalized and amortized over the estimated useful life of the associated asset.

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2020
Financial Instruments
Summary of estimated fair value of debt	The estimated fair value of our mortgages payable is as follows: As of March 31, 2020 As of December 31, 2019 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Mortgages payable $ 136,804 $ 137,970 $ 136,851 $ 137,303

Business and Structure (Details

Business and Structure (Details)	May 20, 2008USD ($)$ / sharesshares	Mar. 31, 2020USD ($)itemshares	Dec. 31, 2012USD ($)shares	Mar. 27, 2018
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Date of incorporation		Apr. 28, 2008
Lightstone REIT, partnership formation date		Mar. 31, 2020
Advisor's contribution to operating partnership | $	$ 2
Partnership units issued	200
Sponsor's cash contribution | $		$ 12,900,000
Number of Operating Segments | item		1
Number of limited service hotels | item		14
Number of rooms | item		1,802
Number of retail properties owned | item		2
Brownmill, LLC
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Ownership interest		48.60%
Value of ownership interest | $		$ 4,800,000
Subordinate profit interest units | shares		177,000
Aggregate value of subordinate profits | $		$ 17,700,000
Advisor
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Number of common shares held | shares	20,000
Proceeds from issue of shares | $	$ 200
Issue price per share (in dollars per share) | $ / shares	$ 10
Mr. Lichtenstein
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Beneficial ownership interest (as a percent)		99.00%
Brownmill, LLC
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Ownership interest		48.58%
Subordinate profit interest units | shares		177,000	48,000
Aggregate value of subordinate profits | $			$ 4,800,000
Joint Venture
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Ownership interest		97.50%
Number of limited service hotels | item		7
Joint Venture | Lightstone I
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Ownership interest		2.50%
Hilton Garden Inn Joint Venture
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Ownership interest		50.00%		50.00%
Number of rooms | item		183
Lightstone REIT II
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
General partner ownership interest		99.00%
Hilton Garden Inn Joint Venture
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
General partner ownership interest		50.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues
Revenue	$ 13,245	$ 17,764
Room
Revenues
Revenue	12,451	16,421
Food, beverage and other
Revenues
Revenue	$ 794	$ 1,343

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	1 Months Ended	3 Months Ended
	May 31, 2020USD ($)	Mar. 31, 2020USD ($)item	Dec. 31, 2019USD ($)	Mar. 31, 2019USD ($)
Summary of Significant Accounting Policies [Line Items]
Restricted cash		$ 9,017	$ 8,974	$ 2,859
Number Of Retail Properties Owned | item		2
Brownmill, LLC
Summary of Significant Accounting Policies [Line Items]
Equity Method Investment, Ownership Percentage		48.60%
Subsequent Event
Summary of Significant Accounting Policies [Line Items]
Funds released from escrow account	$ 7,200
SpringHill Suites - Peabody Agreement
Summary of Significant Accounting Policies [Line Items]
Restricted cash		$ 7,200	$ 7,200
Lightstone REIT II
Summary of Significant Accounting Policies [Line Items]
Percentage of general partnership interest in common units of the operating partnership		99.00%

Investments in Unconsolidated_3

Investments in Unconsolidated Affiliated Entities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019	Mar. 27, 2018
Schedule of Equity Method Investments [Line Items]
Investments in unconsolidated affiliated entities	$ 15,799	$ 16,394
Brownmill, LLC
Schedule of Equity Method Investments [Line Items]
Date of ownership	Various
Ownership %	48.58%
Investments in unconsolidated affiliated entities	$ 4,534	4,630
Hilton Garden Inn Joint Venture
Schedule of Equity Method Investments [Line Items]
Date of ownership	March 27, 2018
Ownership %	50.00%		50.00%
Investments in unconsolidated affiliated entities	$ 11,265	$ 11,764

Investments in Unconsolidated_4

Investments in Unconsolidated Affiliated Entities - Condensed Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Schedule of Equity Method Investments [Line Items]
Company's share of earnings	$ (516)	$ (314)
Brownmill, LLC
Schedule of Equity Method Investments [Line Items]
Revenues	925	909
Property operating expenses	652	462
Depreciation and amortization	165	175
Operating income	108	272
Interest expense and other, net	(169)	(190)
Net income	(61)	82
Company's share of earnings	(30)	40
Additional depreciation and amortization expense	(31)	(32)
Company's earnings from investment	(61)	8
Hilton Garden Inn Joint Venture
Schedule of Equity Method Investments [Line Items]
Revenues	1,540	2,008
Property operating expenses	1,344	1,505
General and administrative costs	18
Depreciation and amortization	630	642
Operating income	(452)	(139)
Interest expense and other, net	(457)	(506)
Net income	(909)	(645)
Company's share of earnings	$ (455)	$ (323)

Investments in Unconsolidated_5

Investments in Unconsolidated Affiliated Entities - Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Brownmill, LLC
Total assets	$ 15,819	$ 15,963
Members' capital	1,145	1,254
Total liabilities and members' capital	15,819	15,963
Brownmill, LLC | Real estate, at cost (net)
Total assets	13,451	13,507
Brownmill, LLC | Cash and restricted cash
Total assets	1,062	1,016
Brownmill, LLC | Other assets
Total assets	1,306	1,440
Brownmill, LLC | Mortgage payable
Total liabilities	14,004	14,061
Brownmill, LLC | Other liabilities
Total liabilities	670	648
Hilton Garden Inn Joint Venture
Total assets	57,818	58,573
Members' capital	21,960	22,958
Total liabilities and members' capital	57,818	58,573
Hilton Garden Inn Joint Venture | Real estate, at cost (net)
Total assets	56,558	56,775
Hilton Garden Inn Joint Venture | Cash and restricted cash
Total assets	507	904
Hilton Garden Inn Joint Venture | Other assets
Total assets	753	894
Hilton Garden Inn Joint Venture | Mortgage payable
Total liabilities	34,835	34,821
Hilton Garden Inn Joint Venture | Other liabilities
Total liabilities	$ 1,023	$ 794

Investments in Unconsolidated_6

Investments in Unconsolidated Affiliated Entities - Additional Information (Details) $ / shares in Units, $ in Millions	Mar. 27, 2018USD ($)	Mar. 31, 2020USD ($)itemshares	Mar. 31, 2020USD ($)	Dec. 31, 2012USD ($)$ / sharesshares
Schedule of Equity Method Investments [Line Items]
Sponsorship		$ 12.9
Number Of Rooms | item		1,802
Number of retail properties owned | item		2
Brownmill, LLC
Schedule of Equity Method Investments [Line Items]
Equity investment, percentage ownership purchased				48.60%
Subordinated general partner participation, per unit cost | $ / shares				$ 100,000
Subordinated General Partner Participation Units | shares		177,000		48,000
Subordinated operating partnership				$ 4.8
Ownership interest		48.58%	48.58%
Aggregate distribution received		$ 35
Hilton Garden Inn Joint Venture
Schedule of Equity Method Investments [Line Items]
Number Of Rooms | item		183
Ownership interest	50.00%	50.00%	50.00%
Aggregate consideration	$ 60
Aggregate consideration, cash	25
Proceeds from loans	$ 35
Hilton Garden Inn Joint Venture - Additional Contribution [Member]
Schedule of Equity Method Investments [Line Items]
Aggregate consideration			$ 0.7
Aggregate distribution received		$ 44	$ 1.5

Marketable Securities, Fair V_3

Marketable Securities, Fair Value Measurements and Margin Loan - Available for Sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Schedule of Available-for-sale Securities [Line Items]
Fair Value	$ 5,905	$ 8,890
Debt Securities
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	6,653	8,718
Gross Unrealized Gains	0	172
Gross Unrealized Losses	(748)	0
Fair Value	$ 5,905	$ 8,890

Marketable Securities, Fair V_4

Marketable Securities, Fair Value Measurements and Margin Loan - Classification by Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Marketable Securities, Fair Value Measurements and Margin Loan
Due in 1 year	$ 0
Due in 1 year through 5 years	2,895
Due in 5 year through 10 years	0
Due after 10 years	3,010
Total	$ 5,905	$ 8,890

Marketable Securities, Fair V_5

Marketable Securities, Fair Value Measurements and Margin Loan - Additional Information (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Holidng loss on available sale of marketable securities	$ (1,200,000)
Transfer of assets from level 2 to 1	0	$ 0
Transfer of assets from level 2 to 3	0	0
Margin loan outstanding	2,701,000	4,744,000
Margin Loan [Member]
Debt Instrument [Line Items]
Margin loan outstanding	$ 2,700,000	$ 4,700,000
Interest rate, Libor plus	0.85%
Libor	1.84%

Mortgages payable, net (Details

Mortgages payable, net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Weighted Average Interest Rate	4.87%
Amount due at maturity	$ 136,067
Total mortgages payable	136,804	$ 136,851
Less: Deferred financing costs	(571)	(674)
Total mortgages payable, net	$ 136,233	136,177
Revolving Credit Facility
Debt Instrument [Line Items]
Variable interest rate basis	LIBOR + 3.15
Weighted Average Interest Rate	4.80%
Maturity Date	May 31, 2021
Amount due at maturity	$ 123,045
Total mortgages payable	$ 123,045	123,045
Courtyard - Paso Robles
Debt Instrument [Line Items]
Interest Rate	5.49%
Weighted Average Interest Rate	5.49%
Maturity Date	Nov. 30, 2023
Amount due at maturity	$ 13,022
Total mortgages payable	$ 13,759	$ 13,806

Mortgages payable, net - Princi

Mortgages payable, net - Principal Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Mortgages payable, net
2020	$ 140
2021	123,245
2022	211
2023	13,208
2024	0
Thereafter	0
Total	136,804	$ 136,851
Less: deferred financing costs	(571)	(674)
Total principal maturities, net	$ 136,233	$ 136,177

Mortgages payable, net - Additi

Mortgages payable, net - Additional Information (Details) $ in Thousands	Mar. 31, 2019	May 17, 2018USD ($)Options	Mar. 31, 2020USD ($)item	Feb. 28, 2021USD ($)	Mar. 31, 2021USD ($)	Dec. 31, 2019USD ($)
Debt Instrument [Line Items]
Line of Credit Facility, Covenant Terms		The Revolving Credit Facility provides the Company with a line of credit of up to $140.0 million pursuant to which it may designate properties as collateral that allow borrowings up to a 65.0% loan-to-value ratio subject to also meeting certain financial covenants, including a prescribed minimum debt yield
Total mortgages payable			$ 136,804			$ 136,851
Balloon Payment			136,067
Monthly principal and interest payments required			79,000
Credit Agreement
Debt Instrument [Line Items]
Restricted escrows			1,800			$ 1,800
Courtyard - Paso Robles
Debt Instrument [Line Items]
Total mortgages payable			13,800
Balloon Payment			13,000
Face amount of the debt			$ 14,000
Debt Instrument, Maturity Date			Nov. 30, 2023
Debt Instrument, Interest Rate, Stated Percentage			5.49%
Revolving Credit Facility
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 140,000
Line of Credit Facility, Description		initial maturity date of May 17, 2021, subject to two one-year options to extend at the sole discretion of the lender
Debt Instrument, Basis Spread on Variable Rate	3.15%	3.50%
Total mortgages payable			$ 123,000
Number of extension options | Options		2
Term of the extension option		1 year
Maximum percentage of loan-to-value ratio of properties designated as collateral, provided as borrowings		65.00%
Number of hotel properties pledged | item			12
Revolving Credit Facility | Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate				2.15%
Reduction in interest rate (as a percent)				0.01%
Minimum Aggregate Deposits With Lender				$ 25,000
Cash Collateral Deposits					$ 3,000

Equity (Details)

Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions		3 Months Ended		12 Months Ended
		Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Stockholders Equity Note [Line Items]
REIT annual distribution, percent of taxable income		90.00%
Dividends, Cash	[1]		$ 3,069
Dividends Payable		$ 0		$ 3,065
Distributions and Distributions Declared
Total distributions declared		$ 0	3,069
Share Repurchase Program
Number of share redeemed during the period		0.1		1.4
Average Price Per Share		$ 10		$ 9.77
Common Stock
Stockholders Equity Note [Line Items]
Dividends, Cash	[1]		$ 0
[1]	Distributions per share were $0.175.

Related Party Transactions (Det

Related Party Transactions (Details) - Related Party - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Related Party Transaction [Line Items]
Asset management fees (general and administrative costs)	$ 722	$ 775
Development fees	32	5
Total	$ 754	$ 780

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands		3 Months Ended		36 Months Ended
		Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2012
Related Party Transaction [Line Items]
Distribution	[1]		$ 3,069
Brownmill, LLC
Related Party Transaction [Line Items]
Subordinate profit interest units		177,000		48,000
Subordinated operating partnership				$ 4,800
Lightstone SLP II LLC
Related Party Transaction [Line Items]
Subordinated operating partnership		$ 17,700
Contribution cash		12,900
Equity interest value		$ 4,800
[1]	Distributions per share were $0.175.

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Carrying Amount	$ 136,804	$ 136,851
Mortgage payable
Debt Instrument [Line Items]
Carrying Amount	136,804	136,851
Estimated Fair Value	$ 137,970	$ 137,303