Lightstone Value Plus REIT II (LVPR) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares shares in Millions	9 Months Ended
	Sep. 30, 2017	Nov. 01, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Registrant Name	LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST II INC
Entity Central Index Key	1,436,975
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		18.2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investment property:
Land and improvements	$ 31,026	$ 44,137
Building and improvements	130,831	174,234
Furniture and fixtures	29,771	38,827
Construction in progress	100	675
Gross investment property	191,728	257,873
Less accumulated depreciation	(24,584)	(25,430)
Net investment property	167,144	232,443
Investment in unconsolidated affiliated entity	5,867	5,836
Cash and cash equivalents	32,894	43,179
Marketable securities, available for sale	9,917	8,738
Restricted escrows	62,889	3,488
Accounts receivable and other assets	4,557	4,189
Total Assets	283,268	297,873
Liabilities and Stockholders' Equity
Accounts payable and other accrued expenses	6,887	6,581
Margin loan	6,618	3,854
Mortgages payable, net	87,420	127,140
Due to related party	309	418
Distributions payable	3,219	3,248
Total liabilities	104,453	141,241
Commitments and contingencies
Company's stockholders' equity:
Preferred shares, $0.01 par value, 10,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.01 par value; 100,000 shares authorized, 18,243 and 18,411 shares issued and outstanding, respectively	182	184
Additional paid-in-capital	155,592	157,259
Accumulated other comprehensive loss	(71)	(1,456)
Accumulated surplus/(deficit)	7,325	(19,552)
Total Company stockholders' equity	163,028	136,435
Noncontrolling interests	15,787	20,197
Total Stockholders' Equity	178,815	156,632
Total Liabilities and Stockholders' Equity	$ 283,268	$ 297,873

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2017	Dec. 31, 2016
Preferred shares, par value	$ 0.01	$ 0.01
Preferred shares, shares authorized	10,000	10,000
Preferred shares, shares issued	0	0
Preferred shares, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	18,243	18,411
Common stock, shares outstanding	18,243	18,411

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Rental revenue	$ 15,353	$ 22,195	$ 57,603	$ 63,435
Expenses:
Property operating expenses	10,778	13,604	37,253	39,379
Real estate taxes	622	784	2,112	2,395
General and administrative costs	987	1,146	3,293	3,580
Depreciation and amortization	2,039	2,658	7,465	7,819
Total operating expenses	14,426	18,192	50,123	53,173
Operating income	927	4,003	7,480	10,262
Interest and dividend income	530	208	836	1,157
Interest expense	(1,630)	(1,961)	(5,566)	(5,837)
Loss on sale of marketable securities, available for sale	(331)	0	(638)	(161)
Gain on disposition of real estate and other assets, net	37,465	0	37,465	0
Earnings/(loss) from investment in unconsolidated affiliated entity	18	(11)	128	28
Other income, net	91	26	51	213
Net income	37,070	2,265	39,756	5,662
Less: net income attributable to noncontrolling interests	(1,038)	(111)	(1,153)	(183)
Net income applicable to Company's common shares	$ 36,032	$ 2,154	$ 38,603	$ 5,479
Net income per Company's common share, basic and diluted	$ 1.97	$ 0.12	$ 2.11	$ 0.3
Weighted average number of common shares outstanding, basic and diluted	18,271	18,463	18,322	18,520

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income	$ 37,070	$ 2,265	$ 39,756	$ 5,662
Other comprehensive income:
Holding (loss)/gain on available for sale securities	(148)	328	747	707
Reclassification adjustment for loss included in net income	331	0	638	161
Other comprehensive income	183	328	1,385	868
Comprehensive income	37,253	2,593	41,141	6,530
Less: Comprehensive income attributable to noncontrolling interests	(1,038)	(111)	(1,153)	(183)
Comprehensive income attributable to the Company's common shares	$ 36,215	$ 2,482	$ 39,988	$ 6,347

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2017 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]	Total Noncontrolling Interests [Member]
BALANCE at Dec. 31, 2016	$ 156,632	$ 184	$ 157,259	$ (1,456)	$ (19,552)	$ 20,197
BALANCE (in shares) at Dec. 31, 2016		18,411
Net income	39,756	$ 0	0	0	38,603	1,153
Other comprehensive income	1,385	0	0	1,385	0	0
Distributions declared	(11,726)	0	0	0	(11,726)	0
Contributions of noncontrolling interests	607	0	0	0	0	607
Distributions to noncontrolling interests	(6,170)	0	0	0	0	(6,170)
Redemption and cancellation of shares	(1,669)	$ (2)	(1,667)	0	0	0
Redemption and cancellation of shares (in shares)		(168)
BALANCE at Sep. 30, 2017	$ 178,815	$ 182	$ 155,592	$ (71)	$ 7,325	$ 15,787
BALANCE (in shares) at Sep. 30, 2017		18,243

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 39,756	$ 5,662
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,465	7,819
Amortization of deferred financing costs	458	499
Loss on sale of marketable securities, available for sale	638	161
Earnings from investment in unconsolidated affiliated entity	(128)	(28)
Gain on disposition of real estate and other assets, net	(37,465)	0
Other non-cash adjustments	(4)	175
Changes in assets and liabilities, net of acquisitions:
Increase in accounts receivable and other assets	(757)	(1,269)
(Decrease)/increase in accounts payable and other accrued expenses	(1,022)	1,003
(Decrease)/increase in due to related party	(109)	7
Net cash provided by operating activities	8,832	14,029
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(2,323)	(3,867)
Purchase of marketable securities	(8,719)	0
Proceeds from sale of marketable securities	8,285	7,573
Proceeds from sale of investment property	99,472	0
Distributions from unconsolidated affiliated entity	97	0
Funding of notes receivable from related party	0	(24,200)
Receipt of payments on notes receivable from related party	0	26,255
Deposits for investment in real estate	(3,000)	0
(Funding)/release of restricted escrows, net	(56,401)	4,060
Net cash provided by investing activities	37,411	9,821
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on mortgages payable	(40,304)	(1,582)
Proceeds/(payments) on margin loan, net	2,764	(3,571)
Contribution of noncontrolling interests	607	9
Redemption and cancellation of common shares	(1,669)	(1,353)
Distributions to noncontrolling interests	(6,170)	(63)
Distributions to common stockholders	(11,756)	(9,744)
Net cash used in financing activities	(56,528)	(16,304)
Net change in cash and cash equivalents	(10,285)	7,546
Cash and cash equivalents, beginning of year	43,179	37,381
Cash and cash equivalents, end of period	32,894	44,927
Supplemental disclosure of cash flow information:
Cash paid for interest	5,230	5,339
Distributions declared	11,726	9,719
Unrealized gain on marketable securities, available for sale	747	868
Non-cash purchase of investment property	$ 2	$ 84

Organization

Organization	9 Months Ended
	Sep. 30, 2017
Organization [Abstract]
Organization	1 Organization Lightstone Value Plus Real Estate Investment Trust II, Inc. (the “Lightstone REIT II”) is a Maryland corporation formed on April 28, 2008 The Lightstone REIT II is structured as an umbrella partnership REIT, or UPREIT, and substantially all of its current and future business is and will be conducted through Lightstone Value Plus REIT II LP (the “Operating Partnership”), a Delaware limited partnership formed on April 30, 2008 99 The 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 the Lightstone REIT II, its Operating Partnership or the Company as required by the context in which such pronoun is used. The Company is managed by Lightstone Value Plus REIT II LLC (the “Advisor”), an affiliate of The Lightstone Group, Inc. under the terms and conditions of an advisory agreement. The Lightstone Group, Inc. previously served as the Company’s sponsor (the “Sponsor”) during its initial public offering and follow-on offering, which terminated on August 15, 2012 and September 27, 2014, respectively. Subject to the oversight of the Company’s board of directors (the “Board of Directors”), the Advisor has primary responsibility for making investment decisions and managing the Company’s day-to-day operations. Through his ownership and control of The Lightstone Group, Inc., Mr. Lichtenstein is the indirect owner of the Advisor and the indirect owner and manager of Lightstone SLP II LLC, which has subordinated profits interests in the Operating Partnership. 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’s shares of common stock are not currently listed on a national securities exchange. The Company may seek to list its shares of common stock 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 shares of common stock until they are listed for trading. In the event the Company does not obtain listing prior to August 15, 2022, the tenth anniversary of the termination of its initial public 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 The noncontrolling interests consist of (i) parties of the Company that hold units in the Operating Partnership, (ii) membership interests held by Lightstone Value Plus Real Estate Investment Trust, Inc., a REIT also sponsored by the Company’s Sponsor, in a joint venture (“the Joint Venture”), and (iii) the membership interests held by minority owners of certain of the Company’s hotels. Partners of Operating Partnership On May 20, 2008, the Advisor contributed $ 2 200 Lightstone SLP II LLC, which is wholly owned by the Company’s Sponsor, committed to purchase subordinated profits interests in the Operating Partnership (“Subordinated Profits Interests”) at a cost of $ 100,000 1.0 12.9 48.6 4.8 177.0 17.7

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2 Summary of Significant Accounting Policies 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 September 30, 2017, the Lightstone REIT II had a 99 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, 2016. 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, 2016 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. In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that clarifies the definition of a business and assists in the evaluation of whether a transaction will be accounted for as an acquisition of an asset or as a business combination. The guidance provides a test to determine when a set of assets and activities acquired is not a business. When substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. Under the updated guidance, an acquisition of a single property will likely be treated as an asset acquisition as opposed to a business combination and associated transaction costs will be capitalized rather than expensed as incurred. Additionally, assets acquired, liabilities assumed, and any noncontrolling interest will be measured at their relative fair values. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, with early adoption permitted. This guidance is not expected to have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued guidance that requires amounts that are generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted and the pronouncement requires a retrospective transition method of adoption. This guidance is not expected to have a material impact on the Company’s consolidated financial statements. In August 2016, the issued FASB an accounting standards update which provides guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including those related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance, and distributions received from equity method investees. This guidance is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The guidance must be adopted on a retrospective basis and must be applied to all periods presented, but may be applied prospectively if retrospective application would be impracticable. This guidance will not have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued an accounting standards update that generally requires companies to measure investments in equity securities, except those accounted for under the equity method, at fair value and recognize any changes in fair value in net income. The new guidance must be applied using a modified-retrospective approach and is effective for periods beginning after December 15, 2017 and early adoption is not permitted. If the Company had adopted this standard during the year ended December 31, 2016, it would have resulted in an increase to net income of approximately $ 0.2 1.4 0.3 0.9 In May 2014, the FASB issued an accounting standards update that provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. While the Company has not decided on the implementation method, we do not expect the adoption of this standard to have a material impact on its financial position, results of operations or cash flows. The Company has reviewed and determined that other 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.

Disposition of limited service

Disposition of limited service hotels	9 Months Ended
	Sep. 30, 2017
Discontinued Operations and Disposal Groups [Abstract]
Disposition of limited service hotels	3. Disposition of limited service hotels On July 14, 2017, certain wholly and majority owned subsidiaries (collectively, the “Sellers”) of the Company’s operating partnership and certain subsidiaries of Phoenix American Hospitality, LLC (the “Buyers”), all unaffiliated third parties, entered into a purchase and sale agreement (the “Hotel Portfolio Agreement”) pursuant to which the Sellers would dispose of their respective membership interests in a portfolio of seven limited service hotels (the “Hotel Portfolio”) to the Buyers for a contractual sales price of $ 101.0 The Hotel Portfolio, which has an aggregate of 778 rooms, is comprised of the following properties: · an Aloft located in Rogers, Arkansas (the “Aloft – Rogers”) · a Fairfield Inn & Suites by Marriott located in Jonesboro, Arkansas (the “Fairfield Inn - Jonesboro”); · a Courtyard by Marriott located in Baton Rouge, Louisiana (the “Courtyard - Baton Rouge”); · a Residence Inn by Marriott located in Baton Rouge, Louisiana (the “Residence Inn - Baton Rouge”); · a TownePlace Suites by Marriott located in Harahan, Louisiana (the “TownePlace Suites - Metairie”); · a TownePlace Suites by Marriott located in Johnson/Springdale, Arkansas (the “TownePlace Suites - Fayetteville”); and · a Hampton Inn & Suites located in Fort Myers Beach, Florida (the “Hampton Inn - Fort Myers Beach”). On July 14, 2017, pursuant to the terms of the Hotel Portfolio Agreement, the Sellers completed the disposition of their membership interests in the Hotel Portfolio for $101.0 million to the Buyers. The Seller’s net proceeds from the disposition of the Hotel Portfolio were approximately $ 65.2 38.2 Additionally, in connection with the disposition of the Hotel Portfolio, approximately $ 34.6 Additionally, approximately $ 57.2 The disposition of the Hotel Portfolio did not qualify to be reported as discontinued operations since the disposition did not represent a strategic shift that had a major effect on the Company’s operations and financial results. Accordingly, the operating results of the Hotel Portfolio are reflected in the Company’s results from continuing operations for all periods presented through its respective date of disposition. Four of the seven hotel properties included in the Hotel Portfolio were wholly or majority owned by the Joint Venture. As a result, as of September 30, 2017, the Joint Venture held membership interests in seven hotels.

Marketable Securities and Fair

Marketable Securities and Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Marketable Securities, Margin Loan and Fair Value Measurements [Abstract]
Marketable Securities and Fair Value Measurements	4. Marketable Securities and Fair Value Measurements Marketable Securities The following is a summary of the Company’s available for sale securities as of the dates indicated: As of September 30, 2017 Gross Unrealized Adjusted Cost Gross Unrealized Gains Losses Fair Value Equity Securities $ 9,988 $ 27 $ (98) $ 9,917 As of December 31, 2016 Gross Unrealized Adjusted Cost Gross Unrealized Gains Losses Fair Value Equity Securities $ 10,194 $ - $ (1,456) $ 8,738 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 margin loan bears interest at Libor plus 0.85 2.09 When evaluating the investments 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 investment before recovery of the investment’s amortized cost basis. As of September 30, 2017 and December 31, 2016, the Company did not recognize any impairment charges. 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 September 30, 2017 and December 31, 2016, all of the Company’s equity securities and were classified as Level 1 assets and there were no transfers between the level classifications during the nine months ended September 30, 2017.

Mortgages payable, net

Mortgages payable, net	9 Months Ended
	Sep. 30, 2017
Mortgages payable [Abstract]
Mortgages payable, net	Mortgages payable, net Weighted Average Interest Rate As of As of Interest as of Maturity Amount Due September 30, December 31, Description Rate September 30, 2017 Date at Maturity 2017 2016 Promissory Note, secured by two properties 4.94% 4.94 % August 2018 $ 6,546 $ 6,697 $ 22,688 Revolving Loan, secured by nine properties LIBOR + 4.95% 6.10 % January 2018 73,616 73,616 73,616 Courtyard - Parsippany LIBOR + 3.50% 4.49 % August 2018 7,126 7,290 7,431 Residence Inn - Baton Rouge (Repaid in full on July 14, 2017) - - 3,640 Promissory Note, secured by three properties (Repaid in full on July 14, 2017) - - 14,610 Courtyard - Baton Rouge (Matured and repaid in full on May 1, 2017) - - 5,922 Total mortgages payable 5.88 % $ 87,288 $ 87,603 $ 127,907 Less: Deferred financing costs (183) (767) Total mortgages payable, net $ 87,420 $ 127,140 The Company’s mortgage loan secured by the Courtyard – Baton Rouge matured on May 1, 2017 and the outstanding principal balance of $ 5.9 On July 14, 2017, the Company used approximately $ 34.6 · Approximately $ 14.9 14.4 0.5 · Approximately $ 16.1 15.6 22.4 6.8 0.5 6.7 · Approximately $ 3.6 3.6 Principal Maturities Remainder of 2017 2018 2019 2020 2021 Thereafter Total Principal maturities $ 93 $ 87,510 $ $ - $ - $ - $ 87,603 Less: Deferred financing costs (183) Total principal maturities, net $ 87,420 Additionally, the Company’s Revolving Loan secured by nine of its hotel properties (outstanding principal balance of $ 73.6 7.3 Restricted escrows Pursuant to the Company’s loan agreements, escrows in the amount of $ 2.7 3.5 Additionally, as of September 30, 2017, approximately $ 57.2 .0 million for the purchase of the Hyatt – New Orleans (see Note 10), the aggregate amount of $ 60.2 Debt Compliance Certain of our debt agreements also contain clauses providing for prepayment penalties and require the maintenance of certain ratios, including debt service coverage and fixed leverage charge ratio. As of September 30, 2017, the Company is in compliance with respect to all of its financial debt covenants other than the debt associated with the Revolving Loan, secured by nine properties as discussed below. During the third quarter of 2017, the Company did not meet the loan to value ratio on the non-recourse Revolving Loan, secured by nine properties. However, the lender elected not to require the Company to make the required principal payment necessary to meet the loan to value ratio.

Equity

Equity	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Equity	Equity 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. Catch-Up Distribution On March 30, 2009, our Board of Directors declared the annualized distribution rate for each quarterly of $ 0.00178082191 365 6.5 10.00 On September 25, 2015, the Board of Directors resolved that future distributions declared to shareholders of record on the close of business on the last day of the quarter during the applicable quarter would be targeted to be paid at a rate of $ 0.0019178 365 7.0 10.00 6.5 On February 28, 2017, our Board of Directors declared a special distribution, payable to stockholders of record on February 28, 2017, for the difference between the Revised Annualized Distribution Rate and the Initial Annualized Distribution Rate for the period from October 1, 2009 through September 30, 2015. This distribution was calculated based on stockholders of record each day during the applicable period at a rate of $ 0.000136986 365 0.5 10.00 6.3 2.1 4.2

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
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. For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Development Fees $ - $ - $ - $ 59 Asset Management Fees 505 601 1,717 1,786 Total $ 505 $ 601 $ 1,717 $ 1,845

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2017
Financial Instruments [Abstract]
Financial Instruments	8. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted escrows, accounts receivable and other assets, accounts payable and accrued expenses, margin loan, due to related party, and distributions payable approximated their fair values because of the short maturity of these instruments. As of September 30, 2017 As of December 31, 2016 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Mortgages payable $ 87,603 $ 87,610 $ 127,907 $ 128,052 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	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies [Abstract]
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.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	10. Subsequent Events Distribution Payments On October 16, 2017, the distribution for the three-month period ending September 30, 2017 of $ 3.2 Acquisition of Hyatt – New Orleans On November 6, 2017, the Company completed the acquisition of a 170 32.0 3.0 0.95 0.3 Distribution Declaration On November 14, 2017, the Board of Directors authorized and the Company declared a distribution for the three-month period ending December 31, 2017. The distribution will be calculated based on shareholders of record each day during this three-month period at a rate of $ 0.0019178 365 7.0 10.00

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Summary of Significant Accounting Policies [Abstract]
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 September 30, 2017, the Lightstone REIT II had a 99 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, 2016. 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, 2016 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.
New Accounting Pronouncements	New Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued guidance that clarifies the definition of a business and assists in the evaluation of whether a transaction will be accounted for as an acquisition of an asset or as a business combination. The guidance provides a test to determine when a set of assets and activities acquired is not a business. When substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not a business. Under the updated guidance, an acquisition of a single property will likely be treated as an asset acquisition as opposed to a business combination and associated transaction costs will be capitalized rather than expensed as incurred. Additionally, assets acquired, liabilities assumed, and any noncontrolling interest will be measured at their relative fair values. This guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, with early adoption permitted. This guidance is not expected to have a material impact on the Company’s consolidated financial statements. In November 2016, the FASB issued guidance that requires amounts that are generally described as restricted cash and restricted cash equivalents to be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective for public companies for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted and the pronouncement requires a retrospective transition method of adoption. This guidance is not expected to have a material impact on the Company’s consolidated financial statements. In August 2016, the issued FASB an accounting standards update which provides guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including those related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance, and distributions received from equity method investees. This guidance is effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. The guidance must be adopted on a retrospective basis and must be applied to all periods presented, but may be applied prospectively if retrospective application would be impracticable. This guidance will not have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued an accounting standards update that generally requires companies to measure investments in equity securities, except those accounted for under the equity method, at fair value and recognize any changes in fair value in net income. The new guidance must be applied using a modified-retrospective approach and is effective for periods beginning after December 15, 2017 and early adoption is not permitted. If the Company had adopted this standard during the year ended December 31, 2016, it would have resulted in an increase to net income of approximately $ 0.2 1.4 0.3 0.9 In May 2014, the FASB issued an accounting standards update that provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows relating to customer contracts. Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. While the Company has not decided on the implementation method, we do not expect the adoption of this standard to have a material impact on its financial position, results of operations or cash flows. The Company has reviewed and determined that other 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.

Marketable Securities and Fai19

Marketable Securities and Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Marketable Securities, Margin Loan and Fair Value Measurements [Abstract]
Summary of Available for Sale Securities	As of September 30, 2017 Gross Unrealized Adjusted Cost Gross Unrealized Gains Losses Fair Value Equity Securities $ 9,988 $ 27 $ (98) $ 9,917 As of December 31, 2016 Gross Unrealized Adjusted Cost Gross Unrealized Gains Losses Fair Value Equity Securities $ 10,194 $ - $ (1,456) $ 8,738

Mortgages payable, net (Tables)

Mortgages payable, net (Tables)	9 Months Ended
	Sep. 30, 2017
Mortgages payable [Abstract]
Schedule of Mortgages Payable	Weighted Average Interest Rate As of As of Interest as of Maturity Amount Due September 30, December 31, Description Rate September 30, 2017 Date at Maturity 2017 2016 Promissory Note, secured by two properties 4.94% 4.94 % August 2018 $ 6,546 $ 6,697 $ 22,688 Revolving Loan, secured by nine properties LIBOR + 4.95% 6.10 % January 2018 73,616 73,616 73,616 Courtyard - Parsippany LIBOR + 3.50% 4.49 % August 2018 7,126 7,290 7,431 Residence Inn - Baton Rouge (Repaid in full on July 14, 2017) - - 3,640 Promissory Note, secured by three properties (Repaid in full on July 14, 2017) - - 14,610 Courtyard - Baton Rouge (Matured and repaid in full on May 1, 2017) - - 5,922 Total mortgages payable 5.88 % $ 87,288 $ 87,603 $ 127,907 Less: Deferred financing costs (183) (767) Total mortgages payable, net $ 87,420 $ 127,140
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 September 30, 2017: Remainder of 2017 2018 2019 2020 2021 Thereafter Total Principal maturities $ 93 $ 87,510 $ $ - $ - $ - $ 87,603 Less: Deferred financing costs (183) Total principal maturities, net $ 87,420

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Schedule of Fees to Related Parties	The following table represents the fees incurred associated with the payments to the Company’s Advisor and Property Manager for the periods indicated: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2017 2016 2017 2016 Development Fees $ - $ - $ - $ 59 Asset Management Fees 505 601 1,717 1,786 Total $ 505 $ 601 $ 1,717 $ 1,845

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2017
Financial Instruments [Abstract]
Summary of Estimated Fair Value of Debt	The estimated fair value of our mortgages payable is as follows: As of September 30, 2017 As of December 31, 2016 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Mortgages payable $ 87,603 $ 87,610 $ 127,907 $ 128,052

Organization (Details Textual)

Organization (Details Textual) $ / shares in Units, $ in Thousands	1 Months Ended	9 Months Ended
	May 20, 2008USD ($)	Sep. 30, 2017USD ($)$ / sharesshares
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Date of incorporation		Apr. 28, 2008
Lightstone REIT, partnership formation date		Apr. 30, 2008
General partner ownership interest		99.00%
Advisor's contribution to operating partnership	$ 2
Partnership units issued	200
Brownmill, LLC [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Sponsor's cash contribution		$ 12,900
Ownership interest		48.60%
Value of ownership interest		$ 4,800
Subordinate profit interest units | shares		177,000
Aggregate value of subordinate profits		$ 17,700
for each $1.0 million in subscriptions up to ten percent of its primary offering proceeds on a semi-annual basis [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Subordinate General Partner Unit Value		$ 1,000
Subordinated general partner participation, per unit cost | $ / shares		$ 100,000

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Summary of Significant Accounting Policies [Line Items]
Percentage general partnership interest in common units operating partnership			99.00%
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income	$ 0.2	$ 0.3	$ 1.4	$ 0.9

Disposition of limited servic25

Disposition of limited service hotels (Details Textual) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 14, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Gain (Loss) on Disposition of Real Estate, Discontinued Operations		$ 37,465	$ 0	$ 37,465	$ 0
Increase (Decrease) of Restricted Investments				$ 56,401	$ (4,060)
Operating Partnership [Member] | Hotel Portfolio [Member]
Disposal Group, Including Discontinued Operation, Consideration	$ 101,000
Proceeds from Real Estate and Real Estate Joint Ventures	65,200
Gain (Loss) on Disposition of Real Estate, Discontinued Operations	38,200
Repayments of Secured Debt	34,600
Increase (Decrease) of Restricted Investments	$ 57,200

Marketable Securities and Fai26

Marketable Securities and Fair Value Measurements (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Fair Value	$ 9,917	$ 8,738
Equity Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	9,988	10,194
Gross Unrealized Gains	27	0
Gross Unrealized Losses	(98)	(1,456)
Fair Value	$ 9,917	$ 8,738

Marketable Securities and Fai27

Marketable Securities and Fair Value Measurements (Details Textual) - Margin Loan [Member]	9 Months Ended
	Sep. 30, 2017
Debt Instrument [Line Items]
Libor	2.09%
Interest rate, Libor plus	0.85%

Mortgages payable, net (Details

Mortgages payable, net (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Jul. 14, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Weighted Average Interest Rate	5.88%
Amount Due at Maturity	$ 87,288
Total mortgages payable	87,603		$ 127,907
Less: Deferred financing costs	(183)		(767)
Total mortgages payable, net	$ 87,420		127,140
Promissory Note, secured by two properties [Member]
Debt Instrument [Line Items]
Interest Rate	4.94%
Weighted Average Interest Rate	4.94%
Maturity Date	Aug. 31, 2018
Amount Due at Maturity	$ 6,546
Total mortgages payable	$ 6,697
Total mortgages payable, net			22,688
Promissory Note, secured by three properties [Member]
Debt Instrument [Line Items]
Maturity Date	Jul. 14, 2017
Amount Due at Maturity	$ 0
Total mortgages payable	$ 0
Total mortgages payable, net			14,610
Revolving Loan, secured by nine properties [Member]
Debt Instrument [Line Items]
Variable interest rate basis	LIBOR + 4.95
Weighted Average Interest Rate	6.10%
Maturity Date	Jan. 31, 2018
Amount Due at Maturity	$ 73,616
Total mortgages payable	73,616
Total mortgages payable, net	$ 73,600	$ 6,700	73,616
Courtyard-Parsippany [Member]
Debt Instrument [Line Items]
Variable interest rate basis	LIBOR + 3.50
Weighted Average Interest Rate	4.49%
Maturity Date	Aug. 31, 2018
Amount Due at Maturity	$ 7,126
Total mortgages payable	7,290
Total mortgages payable, net	$ 7,300		7,431
Residence Inn - Baton Rouge [Member]
Debt Instrument [Line Items]
Maturity Date	Jul. 14, 2017
Amount Due at Maturity	$ 0
Total mortgages payable	$ 0
Total mortgages payable, net		$ 3,600	3,640
Courtyard - Baton Rouge [Member]
Debt Instrument [Line Items]
Maturity Date	May 1, 2017
Amount Due at Maturity	$ 0
Total mortgages payable	$ 0
Total mortgages payable, net			$ 5,922

Mortgages payable, net (Detai29

Mortgages payable, net (Details 1) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
2,017	$ 93
2,018	87,510
2,019
2,020	0
2,021	0
Thereafter	0
Total	87,603	$ 127,907
Less: Deferred financing costs	(183)	(767)
Total principal maturiteis, net	$ 87,420	$ 127,140

Mortgages payable, net (Detai30

Mortgages payable, net (Details Textual) - USD ($) $ in Thousands	Jul. 14, 2017	May 01, 2017	Jul. 14, 2017	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Restricted escrows				$ 62,889		$ 3,488
Secured Debt				87,420		127,140
Repayments of Notes Payable	$ 34,600
Notes Payable	22,400		$ 22,400
Increase (Decrease) of Restricted Investments				56,401	$ (4,060)
Payments for Deposits on Real Estate Acquisitions			3,000	3,000	$ 0
Hotel Portfolio [Member] | Operating Partnership [Member]
Debt Instrument [Line Items]
Increase (Decrease) of Restricted Investments			57,200
Credit Agreement [Member]
Debt Instrument [Line Items]
Restricted escrows				2,700		3,500
Secured Promissory Note
Debt Instrument [Line Items]
Repayments of Notes Payable			16,100
Debt Instrument, Repurchase Amount	15,600		15,600
Debt Instrument, Fee Amount	500		500
Notes Payable	6,800		6,800
Secured Promissory Note Two [Member]
Debt Instrument [Line Items]
Secured Debt						22,688
Repayments of Notes Payable		$ 5,900	14,900
Debt Instrument, Repurchase Amount	14,400		14,400
Debt Instrument, Fee Amount	500		500
Revolving Loan, secured by nine properties [Member]
Debt Instrument [Line Items]
Secured Debt	6,700		6,700	73,600		73,616
Mortgage payable [Member]
Debt Instrument [Line Items]
Increase (Decrease) of Restricted Investments				60,200
Courtyard-Parsippany [Member]
Debt Instrument [Line Items]
Secured Debt				$ 7,300		7,431
Residence Inn - Baton Rouge [Member]
Debt Instrument [Line Items]
Secured Debt	$ 3,600		3,600			$ 3,640
Repayments of Notes Payable			$ 3,600

Equity (Details Textual)

Equity (Details Textual) - USD ($)	1 Months Ended
	Feb. 28, 2017	Sep. 25, 2015	Mar. 30, 2009	Sep. 30, 2017	Mar. 15, 2017	Dec. 31, 2016
Stockholders Equity Note [Line Items]
Distribution Rate Per Day	$ 0.000136986	$ 0.0019178	$ 0.00178082191
Number Of Days Used To Calculate Dividend Per Day	365 days	365 days	365 days
Annualized Distribution Rate	0.50%	7.00%	6.50%
Share Price	$ 10	$ 10	$ 10
Annualized Rate		6.50%
Dividends Payable				$ 3,219,000	$ 6,300,000	$ 3,248,000
Common Shares [Member]
Stockholders Equity Note [Line Items]
Dividends Payable					2,100,000
Subordinated Profits Interests [Member]
Stockholders Equity Note [Line Items]
Dividends Payable					$ 4,200,000

Related Party Transactions (Det

Related Party Transactions (Details) - Related Party [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Related Party Transaction [Line Items]
Development fees	$ 0	$ 0	$ 0	$ 59
Asset management fees	505	601	1,717	1,786
Total	$ 505	$ 601	$ 1,717	$ 1,845

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Carrying Amount	$ 87,603	$ 127,907
Mortgages payable [Member]
Debt Instrument [Line Items]
Carrying Amount	87,603	127,907
Estimated Fair Value	$ 87,610	$ 128,052

Subsequent Events (Details Text

Subsequent Events (Details Textual) - USD ($)	Nov. 14, 2017	Nov. 06, 2017	Jul. 14, 2017	Feb. 28, 2017	Sep. 25, 2015	Mar. 30, 2009	Sep. 30, 2017	Sep. 30, 2017	Sep. 30, 2016
Subsequent Event [Line Items]
Distribution payment							$ 3,200,000
Distribution on per day basis				$ 0.000136986	$ 0.0019178	$ 0.00178082191
Number of days used to calculate daily amount of distribution				365 days	365 days	365 days
Annualized rate of dividend				0.50%	7.00%	6.50%
Share price				$ 10	$ 10	$ 10
Payments for Deposits on Real Estate Acquisitions			$ 3,000,000					$ 3,000,000	$ 0
Subsequent Event [Member]
Subsequent Event [Line Items]
Distribution on per day basis	$ 0.0019178
Number of days used to calculate daily amount of distribution	365 days
Annualized rate of dividend	7.00%
Share price	$ 10
Subsequent Event [Member] | New Orleans Hyatt [Member]
Subsequent Event [Line Items]
Business Combination, Acquisition Fee, Percentage		0.95%
Number of Real Estate Properties, Fee Simple		170
Business Combination, Consideration Transferred		$ 32,000,000
Payments for Deposits on Real Estate Acquisitions		3,000,000
Business Combination, Acquisition Related Costs		$ 300,000