Lightstone Value Plus REIT II (LVPR) 10-Q 14 Aug 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares shares in Millions	6 Months Ended
	Jun. 30, 2019	Aug. 10, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Jun. 30, 2019
Entity Registrant Name	LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT TRUST II INC
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17.7
Entity Central Index Key	0001436975
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Investment property:
Land and improvements	$ 38,803	$ 40,584
Building and improvements	208,907	216,029
Furniture and fixtures	37,614	38,362
Construction in progress	2,225	3,457
Gross investment property	287,549	298,432
Less accumulated depreciation	(41,423)	(38,550)
Net investment property	246,126	259,882
Investments in unconsolidated affiliated entities	17,317	17,721
Cash and cash equivalents	24,214	27,293
Marketable securities, available for sale	8,672	7,901
Restricted cash	2,820	3,367
Accounts receivable and other assets	5,723	4,703
Total Assets	304,872	320,867
Liabilities and Stockholders' Equity
Accounts payable and other accrued expenses	9,333	8,107
Margin loan	4,908	5,060
Mortgages payable, net	144,847	152,900
Due to related party	692	557
Distributions payable	3,088	3,154
Total liabilities	162,868	169,778
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, 17.7 million and 17.9 million, shares issued and outstanding, respectively	177	179
Additional paid-in-capital	149,725	151,538
Accumulated other comprehensive loss	(46)	(817)
Accumulated deficit	(20,676)	(13,277)
Total Company stockholders' equity	129,180	137,623
Noncontrolling interests	12,824	13,466
Total Stockholders' Equity	142,004	151,089
Total Liabilities and Stockholders' Equity	$ 304,872	$ 320,867

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Millions	Jun. 30, 2019	Dec. 31, 2018
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	17.7	17.9
Common stock, shares outstanding	17.7	17.9

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues	$ 20,921	$ 21,468	$ 38,685	$ 40,832
Expenses:
Property operating expenses	13,087	13,712	25,220	26,461
Real estate taxes	906	799	1,873	1,700
General and administrative costs	1,098	1,247	2,411	2,637
Depreciation and amortization	2,829	2,870	5,816	5,720
Total operating expenses	17,920	18,628	35,320	36,518
Operating income	3,001	2,840	3,365	4,314
Interest and dividend income	139	129	283	261
Loss on sale of marketable securities, available for sale	0	(31)	0	(31)
Earnings from investments in unconsolidated affiliated entities	157	88	(157)	147
Interest expense	(2,324)	(2,661)	(4,764)	(5,053)
Other income/(expense), net	82	(36)	48	(46)
Net income/(loss)	1,055	329	(1,225)	(408)
Less: net income attributable to noncontrolling interests	(42)	(29)	(17)	(47)
Net income/(loss) applicable to Company's common shares	$ 1,013	$ 300	$ (1,242)	$ (455)
Net income/(loss) per Company's common share, basic and diluted	$ 0.06	$ 0.02	$ (0.07)	$ (0.03)
Weighted average number of common shares outstanding, basic and diluted	17,713	18,097	17,756	18,129

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
Net income/(loss)	$ 1,055	$ 329	$ (1,225)	$ (408)
Other comprehensive income/(loss):
Holding gain/(loss) on marketable securities, available for sale	246	(330)	771	(351)
Reclassification adjustment for loss included in net income	0	31	0	31
Other comprehensive income/(loss)	246	(299)	771	(320)
Comprehensive income/(loss)	1,301	30	(454)	(728)
Less: Comprehensive income attributable to noncontrolling interest	(42)	(29)	(17)	(47)
Comprehensive income/(loss) attributable to the Company's common shares	$ 1,259	$ 1	$ (471)	$ (775)

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 Surplus/(Deficit)	Noncontrolling Interests	Total
BALANCE at Dec. 31, 2017		$ 182	$ 155,162	$ (211)	$ 1,771	$ 15,687	$ 172,591
BALANCE (in shares) at Dec. 31, 2017		18,199
Net (loss)/income		$ 0	0	0	(455)	47	(408)
Other comprehensive income (loss)		0	0	(320)	0	0	(320)
Distributions declared (a)	[1]	0	0	0	(6,285)	0	(6,285)
Contributions of noncontrolling interests		0	0	0	0	644	644
Distributions to noncontrolling interests		0	0	0	0	(1,331)	(1,331)
Redemption and cancellation of shares		$ (1)	(1,242)	0	0	0	(1,243)
Redemption and cancellation of shares (in shares)		(126)
BALANCE at Jun. 30, 2018		$ 181	153,920	(531)	(4,969)	15,047	163,648
BALANCE (in shares) at Jun. 30, 2018		18,073
BALANCE at Mar. 31, 2018		$ 181	154,587	(232)	(2,115)	15,405	167,826
BALANCE (in shares) at Mar. 31, 2018		18,140
Net (loss)/income		$ 0	0	0	300	29	329
Other comprehensive income (loss)		0	0	(299)	0	0	(299)
Distributions declared (a)	[1]	0	0	0	(3,154)	0	(3,154)
Contributions of noncontrolling interests		0	0	0	0	631	631
Distributions to noncontrolling interests		0	0	0	0	(1,018)	(1,018)
Redemption and cancellation of shares		$ 0	(667)	0	0	0	(667)
Redemption and cancellation of shares (in shares)		(67)
BALANCE at Jun. 30, 2018		$ 181	153,920	(531)	(4,969)	15,047	163,648
BALANCE (in shares) at Jun. 30, 2018		18,073
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)/income		$ 0	0	0	(1,242)	17	(1,225)
Other comprehensive income (loss)		0	0	771	0	0	771
Distributions declared (a)	[1]	0	0	0	(6,157)	0	(6,157)
Contributions of noncontrolling interests		0	0	0	0	57	57
Distributions to noncontrolling interests		0	0	0	0	(716)	(716)
Redemption and cancellation of shares		$ (2)	(1,813)	0	0	0	(1,815)
Redemption and cancellation of shares (in shares)		(182)
BALANCE at Jun. 30, 2019		$ 177	149,725	(46)	(20,676)	12,824	142,004
BALANCE (in shares) at Jun. 30, 2019		17,692
BALANCE at Mar. 31, 2019		$ 178	150,624	(292)	(18,601)	13,160	145,069
BALANCE (in shares) at Mar. 31, 2019		17,782
Net (loss)/income		$ 0	0	0	1,013	42	1,055
Other comprehensive income (loss)		0	0	246	0	0	246
Distributions declared (a)	[1]	0	0	0	(3,088)	0	(3,088)
Contributions of noncontrolling interests		0	0	0	0	24	24
Distributions to noncontrolling interests		0	0	0	0	(402)	(402)
Redemption and cancellation of shares		$ (1)	(899)	0	0	0	(900)
Redemption and cancellation of shares (in shares)		(90)
BALANCE at Jun. 30, 2019		$ 177	$ 149,725	$ (46)	$ (20,676)	$ 12,824	$ 142,004
BALANCE (in shares) at Jun. 30, 2019		17,692
[1]	Distributions per share were $0.175.

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Dividends Payable, Amount Per Share	$ 0.175	$ 0.175

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (1,225)	$ (408)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	5,816	5,720
Amortization of deferred financing costs	206	567
Earnings from investments in unconsolidated affiliated entities	157	(147)
Other non-cash adjustments	(54)	94
Changes in assets and liabilities:
Increase in accounts receivable and other assets	(1,229)	(1,871)
Increase in accounts payable and other accrued expenses	1,150	879
Increase/(decrease) in due to related party	135	(398)
Net cash provided by operating activities	4,956	4,436
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(4,676)	(2,208)
Proceeds from sale of marketable securities	0	1,239
Proceeds from disposition of investment property, net	12,955	0
Investments in unconsolidated affiliated entities	(58)	(13,266)
Distributions from unconsolidated affiliated entities	304	101
Net cash provided by/(used in) investing activities	8,525	(14,134)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from mortgages payable	0	140,000
Payments on mortgages payable	(8,258)	(130,509)
Payment of loan fees and expenses	0	(1,123)
Payment on margin loan, net	(152)	(1,427)
Redemption and cancellation of common shares	(1,815)	(1,243)
Distributions to noncontrolling interests	(716)	(1,331)
Contributions of noncontrolling interests	57	644
Distributions to common stockholders	(6,223)	(6,342)
Net cash used in financing activities	(17,107)	(1,331)
Net change in cash, cash equivalents and restricted cash	(3,626)	(11,029)
Cash, cash equivalents and restricted cash, beginning of year	30,660	50,173
Cash, cash equivalents and restricted cash, end of period	27,034	39,144
Supplemental cash flow information for the periods indicated is as follows:
Cash paid for interest	4,638	3,421
Distributions declared but not paid	3,088	3,154
Holding gain on marketable securities, available for sale	771	320
Investment property acquired but not paid	316	70
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	24,214	35,390
Restricted cash	2,820	3,754
Cash, cash equivalents and restricted cash, end of period	$ 27,034	$ 39,144

Organization

Organization	6 Months Ended
	Jun. 30, 2019
Organization
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, which has qualified as a real estate investment trust (“REIT”) for U.S. federal income tax purposes since its taxable year ending December 31, 2009. The Lightstone REIT II was formed primarily for the purpose of engaging in the business of investing in and owning commercial and residential real estate properties located principally in North America, as well as other real estate-related securities, such as collateralized debt obligations, commercial mortgage-backed securities and mortgage and mezzanine loans secured, directly or indirectly, by the same types of properties which it may acquire directly. 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, in which Lightstone REIT II as the general partner, held a 99% interest as of June 30, 2019. 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 (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. 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 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 Sponsor has various majority owned and controlled affiliated property managers, which may manage certain of 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 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 the tenth anniversary of the completion or termination of the Follow-on Offering, which was terminated on September 27, 2014, 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 Partners of Operating Partnership On May 20, 2008, the Advisor contributed $2 to the Operating Partnership in exchange for 200 limited partner units in the Operating Partnership. The limited partner has the right to convert Operating Partnership common units into cash or, at the Company’s option, an equal number of shares of the common stock of the Company, as allowed by the limited partnership agreement. From the Company’s inception through the termination of the Follow-On Offering on September 27, 2014, Lightstone SLP II LLC, which is wholly owned by the Sponsor, contributed (i) cash of approximately $12.9 million and (ii) equity interests totaling 48.6% in Brownmill LLC (“Brownmill”), which were valued at $4.8 million, to the Operating Partnership in exchange for 177.0 subordinated profits interests (the “Subordinated Profits Interests”) in the Operating Partnership with an aggregate value of $17.7 million. See Notes 4 and 9 for additional information. Other Noncontrolling Interests in Consolidated Subsidiaries Other noncontrolling interests consist of (i) a 2.5% membership interest held by Lightstone Value Plus Real Estate Investment Trust, Inc. (“Lightstone I”), a related party REIT also sponsored by the Company’s Sponsor, in a joint venture (the “Joint Venture”) formed between the Company and Lightstone I that currently owns 7 of our hotels as of June 30, 2019 and (ii) the membership interests held by minority owners in certain of our hotels.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
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 June 30, 2019, 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. 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, 2018. 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, 2018 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. Revenue Recognition The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenues Room $ 19,648 $ 20,263 $ 36,069 $ 38,510 Food, beverage and other 1,273 1,205 2,616 2,322 Total revenues $ 20,921 $ 21,468 $ 38,685 $ 40,832 Recently Adopted Accounting Pronouncements In August 2018, the Securities and Exchange Commission adopted the final rule amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded. In addition, the amendments expand the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The rule was effective on November 5, 2018 and will be effective for the quarter that begins after the effective date. Since the Company already includes a year to date consolidated statement of stockholders’ equity in our interim financial statement filings, the adoption of this guidance resulted in the inclusion of a quarter to date consolidated statement of stockholders’ equity in our second and third quarter interim financial statement filings and the inclusion of corresponding prior periods statement of stockholders’ equity for all periods presented. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued an accounting standards update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use lease asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. The Company adopted the ASU on January 1, 2019, using the modified retrospective approach, whereby the Company applied the standard at the beginning of the period of adoption and has presented financial information for periods prior to January 1, 2019 in accordance with prior guidance. Upon adoption, the Company elected the following practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, (iii) an entity need not reassess initial direct costs for any existing leases and (iv) the evaluation of lease and non-lease components of a contract. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use lease assets and related lease liabilities for leases with a term greater than one year. The implementation of the ASU had no cumulative effect on accumulated deficit and the adoption resulted in the recognition of right-of-use lease assets of $0.3 million and related lease liabilities of $0.3 million as of January 1, 2019. New Accounting Pronouncements 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.

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases
Leases	3. Leases On January 1, 2019, the Company adopted the ASU and elected the practical expedients which permitted it to not reassess its prior conclusions about lease identification, classification, and initial direct costs. The Company has operating leases related to land used as a parking lot and vehicles. These leases have remaining terms of 3 months to 3 years, some of which include options to extend the leases for additional years. One of our leases contains renewal options which are solely at the Company’s discretion and are not included in the lease term since it is not considered reasonably certain the Company will exercise those options. Leases with an initial term of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Consequently on January 1, 2019, the Company recognized right-of-use lease assets of $0.3 million and related lease liabilities of $0.3 million. Since most of the Company’s leases do not provide an implicit rate, we used our incremental borrowing rate of 5.7% calculated based on information available at adoption. As of June 30, 2019, the Company’s right-of-use lease assets of $0.3 million are included in accounts receivable and other assets and its related lease liabilities of $0.3 million are presented in accounts payable and accrued expenses on the Company’s consolidated balance sheets. During the three and six months ended June 30, 2019, the Company’s total operating lease cost, which is included in property operating expenses on the Company’s consolidated statements of operations, was $44 and $88, respectively, and during the six months ended June 30, 2019, the operating cash outflows from operating leases was $88. As of June 30, 2019, the weighted average operating lease term was 22 months. The adoption of this standard had minimal impact on the Company’s consolidated statements of operations. The maturities of the lease liabilities as of June 30, 2019 for the Company’s operating leases are as follows: 2019 $ 80 2020 160 2021 50 Thereafter — Total lease payments $ 290 Less: imputed interest $ (28) Present value of lease liabilities $ 262

Investments in Unconsolidated A

Investments in Unconsolidated Affiliated Entities	6 Months Ended
	Jun. 30, 2019
Investments in Unconsolidated Affiliated Entities
Investments in Unconsolidated Affiliated Entities	4. 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 % June 30, 2019 December 31, 2018 Brownmill Various % $ 4,868 $ 4,967 Hilton Garden Inn Joint Venture March 27, 2018 % 12,449 12,754 Total investments in unconsolidated affiliated real estate entities $ 17,317 $ 17,721 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 June 30, 2019, 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 six months ended June 30, 2019, the Company received distributions from Brownmill aggregating $0.2 million. 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 For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue $ 865 $ 918 $ 1,774 $ 1,879 Property operating expenses 334 333 796 794 Depreciation and amortization 175 179 350 357 Operating income 356 406 628 728 Interest expense and other, net (170) (172) (360) (384) Net income $ 186 $ 234 $ 268 $ 344 Company’s share of net income $ 90 $ 114 $ 130 $ 167 Additional depreciation and amortization expense (1) (31) (33) (63) (65) Company’s earnings from investment $ 59 $ 81 $ 67 $ 102 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 June 30, 2019 December 31, 2018 Real estate, at cost (net) $ 13,948 $ 14,239 Cash and restricted cash 1,018 1,055 Other assets 1,340 1,226 Total assets $ 16,306 $ 16,520 Mortgage payable $ 14,170 $ 14,278 Other liabilities 498 530 Members’ capital 1,638 1,712 Total liabilities and members’ capital $ 16,306 $ 16,520 Hilton Garden Inn Joint Venture On March 27, 2018, the Company and its Sponsor’s other public program, Lightstone Value Plus Real Estate Investment Trust III, Inc. (“Lightstone REIT III”), acquired, through LVP LIC Hotel JV LLC (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 50.0% joint venture ownership interests, respectively, 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 ownership interest in the Hilton Garden Inn Joint Venture is a co-managing interest. The Company accounts for its ownership 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. During the six months ended June 30, 2019, the Company received distributions from the Hilton Garden Inn Joint Venture aggregating $0.1 million. Subsequent to the Company’s acquisition through June 30, 2019, the Company has made an aggregate of $0.7 million (including $0.1 million during the six months ended June 30, 2019) of additional capital contributions to the Hilton Garden Inn Joint Venture. Hilton Garden Inn Joint Venture Financial Information The following table represents the condensed income statement for the Hilton Garden Inn Joint Venture for the period indicated: For the Three Months For the Three Months For the Six Months For the Six Months Ended June 30, 2019 Ended June 30, 2018 Ended June 30, 2019 Ended June 30, 2018 Revenues $ 3,086 $ 3,015 $ 5,094 $ 3,185 Property operating expenses 1,765 1,901 3,270 1,971 General and administrative costs (22) 2 (22) 2 Depreciation and amortization 627 636 1,269 635 Operating (loss)/income 716 476 577 577 Interest expense (520) (463) (1,026) (488) Net (loss)/income $ 196 $ 13 $ (449) $ 89 Company’s share of net (loss)/income (50.00%) $ 98 $ 7 $ (225) $ 45 The following table represents the condensed balance sheet for the Hilton Garden Inn Joint Venture: As of As of June 30, 2019 December 31, 2018 Investment property, net $ 57,716 $ 58,799 Cash 927 554 Other assets 1,524 1,218 Total assets $ 60,167 $ 60,571 Mortgage payable, net $ 34,793 $ 34,766 Other liabilities 1,045 867 Members’ capital 24,329 24,938 Total liabilities and members’ capital $ 60,167 $ 60,571

Marketable Securities, Fair Val

Marketable Securities, Fair Value Measurements and Margin Loan	6 Months Ended
	Jun. 30, 2019
Marketable Securities, Fair Value Measurements and Margin Loan
Marketable Securities, Fair Value Measurements and Margin Loan	5. 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 June 30, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 8,718 $ — $ (46) $ 8,672 As of December 31, 2018 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 8,718 $ — $ (817) $ 7,901 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 June 30, 2019 and December 31, 2018, 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 June 30, 2019 and December 31, 2018, all of the Company’s debt securities were classified as Level 2 assets and there were no transfers between the level classifications during the six months ended June 30, 2019. 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 June 30, 2019 Due in 1 year $ — Due in 1 year through 5 years 5,100 Due in 5 year through 10 years — Due after 10 years 3,572 Total $ 8,672 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 margin loan bears interest at Libor plus 0.85% (3.25% as of June 30, 2019). As of June 30, 2019 and December 31, 2018, the outstanding balance of the margin loan was approximately $4.9 million and $5.1 million, respectively.

Disposition of Alabama Hotels

Disposition of Alabama Hotels	6 Months Ended
	Jun. 30, 2019
Disposition of Alabama Hotels
Disposition of Alabama Hotels	6. Disposition of Alabama Hotels On February 11, 2019, certain wholly owned subsidiaries (collectively, the “Sellers”) of the Company’s operating partnership and VAH Investments, LLC (the “Buyer”), an unaffiliated third party, entered into purchase and sale agreements (collectively, the “Alabama Hotel Agreements”) pursuant to which the Sellers would dispose of two limited services hotels (the “Alabama Hotels”) to the Buyers for an aggregate contractual sales price of $13.3 million. The Alabama Hotels, which had an aggregate of 169 rooms, were comprised of the following properties: · a Holiday Inn Express Hotel & Suites (the “Holiday Inn — Opelika”) located in Opelika, Alabama.; and · a Holiday Inn Express Hotel & Suites (“Holiday Inn Express – Auburn”) located in Auburn, Alabama. On May 9, 2019, pursuant to the terms of the Alabama Hotel Agreements, the Sellers completed the disposition of the Alabama Hotels to the Buyer for an aggregate contractual sales price of $13.3 million. In connection with the disposition of the Alabama Hotels, the Company recognized a net gain on the disposition of real estate of approximately $0.1 million (included in other income/(expense), net on the consolidated statements of operations) during the second quarter of 2019. Approximately $8.2 million of the proceeds were used for a required paydown of the Revolving Credit Facility (See Note 7). The disposition of the Alabama Hotels did not qualify to be reported as discontinued operations since the disposition did not represent a strategic shift in the Company’s operations that had a major effect on the Company’s operations and financial results. Accordingly, the operating results of the Alabama Hotels are reflected in the Company’s results from continuing operations for all periods presented through its respective date of disposition. The Holiday Inn Express – Auburn was wholly owned by the Joint Venture. As a result, as of June 30, 2019, the Joint Venture held membership interests in seven hotels.

Mortgages payable, net

Mortgages payable, net	6 Months Ended
	Jun. 30, 2019
Mortgages payable, net
Mortgages payable, net	7. 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 June 30, 2019 Date at Maturity June 30, 2019 December 31, 2018 Revolving Credit Facility LIBOR + 3.15 % 5.86 % May 2021 $ 131,831 $ 131,831 $ 140,000 Courtyard – Paso Robles % 5.49 % November 2023 13,022 13,895 13,985 Total mortgages payable 5.82 % $ 144,853 145,726 153,985 Less: Deferred financing costs (879) (1,085) Total mortgages payable, net $ 144,847 $ 152,900 Revolving Credit Facility On May 17, 2018, the Company, through certain subsidiaries, entered into a nonrecourse revolving credit facility (the “Revolving Credit Facility”) with a bank of up to $140.0 million. The Revolving Credit Facility bore interest at Libor plus 3.50%, has an initial term of three years, subject to two, one-year extension options at the sole discretion of Western Alliance, and provides for monthly interest-only payments with the unpaid principal balance due at maturity. The Revolving Credit Facility’s maturity may be accelerated upon the occurrence of certain customary events of default. The Revolving Credit Facility provides for borrowings up to 65.0% of the loan-to-value ratio of properties designated as collateral and also requires the maintenance of certain financial ratios, including a minimum debt yield ratio, which may also be achieved through principal paydowns on the outstanding balance of the Revolving Credit Facility. Effective March 31, 2019, the Company entered into a loan modification agreement with the lender for the Revolving Credit Facility, which, among other things, decreased the interest rate to Libor plus 3.15% and modified the requirements under the minimum debt yield ratio. As of December 31, 2018, the Revolving Credit Facility was fully drawn and collateralized by 15 of the Company’s hotels. On May 9, 2019, the Company completed the disposition of the Alabama Hotels, two properties that were previously designated as collateral under the Revolving Credit Facility. Approximately $8.2 million of the proceeds from the disposition of the Alabama Hotels were used for a required paydown of the Revolving Credit Facility. (See Note 6). As a result, as of June 30, 2019, the Revolving Credit Facility had an outstanding balance of $131.8 million, was fully drawn and was collateralized by 13 of the Company’s hotels. 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 June 30, 2019: 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 89 $ 187 $ 132,031 $ 211 $ 13,208 $ — $ 145,726 Less: deferred financing costs (879) Total principal maturities, net $ 144,847 Restricted escrows Pursuant to the Company’s loan agreements, escrows in the amount of $2.8 million and $3.4 million were held in restricted cash accounts as of June 30, 2019 and December 31, 2018, respectively. 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. Debt Compliance Certain of our debt agreements also contain clauses providing for prepayment penalties and the Revolving Credit Facility requires the maintenance of certain ratios, including a minimum debt yield ratio, which may also be achieved through principal paydowns. As of June 30, 2019, the Company was in compliance with the minimum debt yield ratio for the Revolving Credit Facility.

Equity

Equity	6 Months Ended
	Jun. 30, 2019
Equity
Equity	8. 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.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2019
Related Party Transactions
Related Party Transactions	9. 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 For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Acquisition fees (1) $ — $ — $ — $ Development fees (2) 57 — 62 — Asset management fees (general and administrative costs) 758 755 1,534 1,441 Total $ 815 $ 755 $ 1,596 $ 1,726 (1) The acquisition fee for the Hilton Garden Inn Joint Venture of $285 was capitalized and included in investment in unconsolidated affiliated entities on the consolidated balance sheets. (2) 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. During the three and six months ended June 30, 2019, distributions of $0.3 million and $0.6 million were declared and paid on the Subordinated Profits Interests.

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2019
Financial Instruments
Financial Instruments	10. 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 June 30, 2019 As of December 31, 2018 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Mortgages payable $ 145,726 $ 146,231 $ 153,985 $ 154,134 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	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies.
Commitments and Contingencies	11. 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	6 Months Ended
	Jun. 30, 2019
Subsequent Events
Subsequent Events	12. Subsequent Events Distribution Payments On July 15, 2019, the distribution for the three-month period ending June 30, 2019 of $3.1 million was paid in cash. Distribution Declaration On August 13, 2019, the Company’s Board of Directors authorized and it declared a distribution of $0.175 per share for the quarterly period ending September 30, 2019. The quarterly distribution is the pro rata equivalent of an annual distribution of $0.70 per share, or an annualized rate of 7.0% assuming a purchase price of $10.00 per share. The distribution will be paid on or about the 15th day of the month following the quarter-end to stockholders of record at the close of business on the last day of the quarter-end. Future distributions declared will be at the discretion of the Board of Directors based on their analysis of our performance over the previous periods and expectations of performance for future periods and may differ from the amount of the distribution determined for this period. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, current rental revenues, 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 its taxable income. The Company cannot assure that regular distributions will continue to be made or that it will maintain any particular level of distributions that it has established or may establish.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
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 June 30, 2019, 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. 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, 2018. 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, 2018 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.
Revenue Recognition	Revenue Recognition The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenues Room $ 19,648 $ 20,263 $ 36,069 $ 38,510 Food, beverage and other 1,273 1,205 2,616 2,322 Total revenues $ 20,921 $ 21,468 $ 38,685 $ 40,832
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In August 2018, the Securities and Exchange Commission adopted the final rule amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded. In addition, the amendments expand the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The rule was effective on November 5, 2018 and will be effective for the quarter that begins after the effective date. Since the Company already includes a year to date consolidated statement of stockholders’ equity in our interim financial statement filings, the adoption of this guidance resulted in the inclusion of a quarter to date consolidated statement of stockholders’ equity in our second and third quarter interim financial statement filings and the inclusion of corresponding prior periods statement of stockholders’ equity for all periods presented. In February 2016, the Financial Accounting Standards Board (the “FASB”) issued an accounting standards update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use lease asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. The Company adopted the ASU on January 1, 2019, using the modified retrospective approach, whereby the Company applied the standard at the beginning of the period of adoption and has presented financial information for periods prior to January 1, 2019 in accordance with prior guidance. Upon adoption, the Company elected the following practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, (iii) an entity need not reassess initial direct costs for any existing leases and (iv) the evaluation of lease and non-lease components of a contract. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use lease assets and related lease liabilities for leases with a term greater than one year. The implementation of the ASU had no cumulative effect on accumulated deficit and the adoption resulted in the recognition of right-of-use lease assets of $0.3 million and related lease liabilities of $0.3 million as of January 1, 2019. New Accounting Pronouncements 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.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
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 For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenues Room $ 19,648 $ 20,263 $ 36,069 $ 38,510 Food, beverage and other 1,273 1,205 2,616 2,322 Total revenues $ 20,921 $ 21,468 $ 38,685 $ 40,832

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases
Schedule of maturities of the lease liabilities for the Company's operating leases	The maturities of the lease liabilities as of June 30, 2019 for the Company’s operating leases are as follows: 2019 $ 80 2020 160 2021 50 Thereafter — Total lease payments $ 290 Less: imputed interest $ (28) Present value of lease liabilities $ 262

Investments in Unconsolidated_2

Investments in Unconsolidated Affiliated Entities (Tables)	6 Months Ended
	Jun. 30, 2019
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 % June 30, 2019 December 31, 2018 Brownmill Various % $ 4,868 $ 4,967 Hilton Garden Inn Joint Venture March 27, 2018 % 12,449 12,754 Total investments in unconsolidated affiliated real estate entities $ 17,317 $ 17,721
Brownmill, LLC [Member]
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 For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenue $ 865 $ 918 $ 1,774 $ 1,879 Property operating expenses 334 333 796 794 Depreciation and amortization 175 179 350 357 Operating income 356 406 628 728 Interest expense and other, net (170) (172) (360) (384) Net income $ 186 $ 234 $ 268 $ 344 Company’s share of net income $ 90 $ 114 $ 130 $ 167 Additional depreciation and amortization expense (1) (31) (33) (63) (65) Company’s earnings from investment $ 59 $ 81 $ 67 $ 102
Schedule of condensed balance sheets	The following table represents the condensed balance sheets for Brownmill: As of As of June 30, 2019 December 31, 2018 Real estate, at cost (net) $ 13,948 $ 14,239 Cash and restricted cash 1,018 1,055 Other assets 1,340 1,226 Total assets $ 16,306 $ 16,520 Mortgage payable $ 14,170 $ 14,278 Other liabilities 498 530 Members’ capital 1,638 1,712 Total liabilities and members’ capital $ 16,306 $ 16,520
Hilton Garden Inn Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Schedule of condensed income statements	The following table represents the condensed income statement for the Hilton Garden Inn Joint Venture for the period indicated: For the Three Months For the Three Months For the Six Months For the Six Months Ended June 30, 2019 Ended June 30, 2018 Ended June 30, 2019 Ended June 30, 2018 Revenues $ 3,086 $ 3,015 $ 5,094 $ 3,185 Property operating expenses 1,765 1,901 3,270 1,971 General and administrative costs (22) 2 (22) 2 Depreciation and amortization 627 636 1,269 635 Operating (loss)/income 716 476 577 577 Interest expense (520) (463) (1,026) (488) Net (loss)/income $ 196 $ 13 $ (449) $ 89 Company’s share of net (loss)/income (50.00%) $ 98 $ 7 $ (225) $ 45
Schedule of condensed balance sheets	The following table represents the condensed balance sheet for the Hilton Garden Inn Joint Venture: As of As of June 30, 2019 December 31, 2018 Investment property, net $ 57,716 $ 58,799 Cash 927 554 Other assets 1,524 1,218 Total assets $ 60,167 $ 60,571 Mortgage payable, net $ 34,793 $ 34,766 Other liabilities 1,045 867 Members’ capital 24,329 24,938 Total liabilities and members’ capital $ 60,167 $ 60,571

Marketable Securities, Fair V_2

Marketable Securities, Fair Value Measurements and Margin Loan (Tables)	6 Months Ended
	Jun. 30, 2019
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 June 30, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 8,718 $ — $ (46) $ 8,672 As of December 31, 2018 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 8,718 $ — $ (817) $ 7,901
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 June 30, 2019 Due in 1 year $ — Due in 1 year through 5 years 5,100 Due in 5 year through 10 years — Due after 10 years 3,572 Total $ 8,672

Mortgages payable, net (Tables)

Mortgages payable, net (Tables)	6 Months Ended
	Jun. 30, 2019
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 June 30, 2019 Date at Maturity June 30, 2019 December 31, 2018 Revolving Credit Facility LIBOR + 3.15 % 5.86 % May 2021 $ 131,831 $ 131,831 $ 140,000 Courtyard – Paso Robles % 5.49 % November 2023 13,022 13,895 13,985 Total mortgages payable 5.82 % $ 144,853 145,726 153,985 Less: Deferred financing costs (879) (1,085) Total mortgages payable, net $ 144,847 $ 152,900
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 June 30, 2019: 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 89 $ 187 $ 132,031 $ 211 $ 13,208 $ — $ 145,726 Less: deferred financing costs (879) Total principal maturities, net $ 144,847

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2019
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 For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Acquisition fees (1) $ — $ — $ — $ Development fees (2) 57 — 62 — Asset management fees (general and administrative costs) 758 755 1,534 1,441 Total $ 815 $ 755 $ 1,596 $ 1,726 (1) The acquisition fee for the Hilton Garden Inn Joint Venture of $285 was capitalized and included in investment in unconsolidated affiliated entities on the consolidated balance sheets. (2) Generally, capitalized and amortized over the estimated useful life of the associated asset.

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2019
Financial Instruments
Summary of Estimated Fair Value of Debt	The estimated fair value of our mortgages payable is as follows: As of June 30, 2019 As of December 31, 2018 Carrying Estimated Fair Carrying Estimated Fair Amount Value Amount Value Mortgages payable $ 145,726 $ 146,231 $ 153,985 $ 154,134

Organization (Details)

Organization (Details) $ in Thousands	1 Months Ended	6 Months Ended
	May 20, 2008USD ($)	Jun. 30, 2019USD ($)itemshares
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
Sponsor's cash contribution		$ 12,900
Number of Hotels | item		7
Brownmill, LLC [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Ownership interest		48.60%
Value of ownership interest		$ 4,800
Subordinate profit interest units | shares		177,000
Aggregate value of subordinate profits		$ 17,700
Lightstone SLP II LLC [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Ownership interest		2.50%
Number of Hotels | item		7

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues [Abstract]
Revenues	$ 20,921	$ 21,468	$ 38,685	$ 40,832
Room
Revenues [Abstract]
Revenues	19,648	20,263	36,069	38,510
Food, beverage and other
Revenues [Abstract]
Revenues	$ 1,273	$ 1,205	$ 2,616	$ 2,322

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jan. 01, 2019
Summary of Significant Accounting Policies [Line Items]
Percentage of general partnership interest in common units of the operating partnership	99.00%
Operating Lease, Right-of-Use Asset	$ 300	$ 300
Operating Lease, Liability	$ 262	300
Accounting Standards Update 2016-02 [Member]
Summary of Significant Accounting Policies [Line Items]
Operating Lease, Right-of-Use Asset		300
Operating Lease, Liability		$ 300

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jan. 01, 2019
Leases
2019	$ 80
2020	160
2021	50
Thereafter	0
Total lease payments	290
Less: imputed interest	(28)
Present value of lease liabilities	$ 262	$ 300

Leases - Additional Information

Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019	Jan. 01, 2019
Operating Lease, Right-of-Use Asset	$ 300	$ 300	$ 300
Operating Lease, Liability	262	262	$ 300
Operating Lease, Payments	$ 44	88
Operating Lease, Weighted Average Discount Rate, Percent			5.70%
Lease, Cost		$ 88
Operating Lease, Weighted Average Remaining Lease Term	22 months	22 months
Maximum [Member]
Operating Lease Remaining Lease Term		3 years
Minimum [Member]
Operating Lease Remaining Lease Term		3 months

Investments in Unconsolidated_3

Investments in Unconsolidated Affiliated Entities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Mar. 27, 2018
Schedule of Equity Method Investments [Line Items]
Equity Method Investments	$ 17,317	$ 17,721
Brownmill, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Date of Ownership	Various
Ownership %	48.58%
Equity Method Investments	$ 4,868	4,967
Hilton Garden Inn Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Date of Ownership	March 27, 2018
Ownership %	50.00%		50.00%
Equity Method Investments	$ 12,449	$ 12,754

Investments in Unconsolidated_4

Investments in Unconsolidated Affiliated Entities - Condensed Income Statement (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Schedule of Equity Method Investments [Line Items]
Company's share of net (loss)/income (50.00%)		$ 157	$ 88	$ (157)	$ 147
Brownmill, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Revenue		865	918	1,774	1,879
Property operating expenses		334	333	796	794
Depreciation and amortization		175	179	350	357
Operating (loss)/income		356	406	628	728
Interest expense and other, net		(170)	(172)	(360)	(384)
Net (loss)/income		186	234	268	344
Company's share of net (loss)/income (50.00%)		90	114	130	167
Additional depreciation and amortization expense	[1]	(31)	(33)	(63)	(65)
Company's earnings from investment		59	81	67	102
Hilton Garden Inn Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Revenue		3,086	3,015	5,094	3,185
Property operating expenses		1,765	1,901	3,270	1,971
General and administrative costs		(22)	2	(22)	2
Depreciation and amortization		627	636	1,269	635
Operating (loss)/income		716	476	577	577
Interest expense and other, net		(520)	(463)	(1,026)	(488)
Net (loss)/income		196	13	(449)	89
Company's share of net (loss)/income (50.00%)		$ 98	$ 7	$ (225)	$ 45
[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.

Investments in Unconsolidated_5

Investments in Unconsolidated Affiliated Entities - Condensed Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Brownmill, LLC [Member]
Equity method investment, assets	$ 16,306	$ 16,520
Members' capital	1,638	1,712
Total liabilities and members' capital	16,306	16,520
Brownmill, LLC [Member] | Real estate, at cost (net) [Member]
Equity method investment, assets	13,948	14,239
Brownmill, LLC [Member] | Cash and restricted cash [Member]
Equity method investment, assets	1,018	1,055
Brownmill, LLC [Member] | Other assets [Member]
Equity method investment, assets	1,340	1,226
Brownmill, LLC [Member] | Mortgages payable [Member]
Equity method investment, liabilities	14,170	14,278
Brownmill, LLC [Member] | Other liabilities [Member]
Equity method investment, liabilities	498	530
Hilton Garden Inn Joint Venture [Member]
Equity method investment, assets	60,167	60,571
Members' capital	24,329	24,938
Total liabilities and members' capital	60,167	60,571
Hilton Garden Inn Joint Venture [Member] | Real estate, at cost (net) [Member]
Equity method investment, assets	57,716	58,799
Hilton Garden Inn Joint Venture [Member] | Cash and restricted cash [Member]
Equity method investment, assets	927	554
Hilton Garden Inn Joint Venture [Member] | Other assets [Member]
Equity method investment, assets	1,524	1,218
Hilton Garden Inn Joint Venture [Member] | Mortgages payable [Member]
Equity method investment, liabilities	34,793	34,766
Hilton Garden Inn Joint Venture [Member] | Other liabilities [Member]
Equity method investment, liabilities	$ 1,045	$ 867

Investments in Unconsolidated_6

Investments in Unconsolidated Affiliated Entities - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended	15 Months Ended	36 Months Ended
	Mar. 27, 2018	Jun. 30, 2019	Jun. 30, 2019	Dec. 31, 2012	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Equity Method Investments		$ 17,317	$ 17,317		$ 17,721
Brownmill, LLC [Member]
Schedule of Equity Method Investments [Line Items]
Equity investment, percentage ownership purchased				48.60%
Subordinated general partner participation, per unit cost				$ 100,000
Subordinated General Partner Participation Units		177,000		48,000
Subordinate Profit Interest Value				$ 4,800
Equity Method Investment, Ownership Percentage		48.58%	48.58%
Equity Method Investments		$ 4,868	$ 4,868		4,967
Proceeds from Distributions Received from Real Estate Partnerships		$ 200
Hilton Garden Inn Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	50.00%	50.00%	50.00%
Business Combination, Consideration Transferred	$ 60,000
Payments to Acquire Businesses, Net of Cash Acquired	25,000
Payments for (Proceeds from) Businesses and Interest in Affiliates	$ 35,000
Equity Method Investments		$ 12,449	$ 12,449		$ 12,754
Proceeds from Distributions Received from Real Estate Partnerships		100
Hilton Garden Inn Joint Venture [Member] | Additional Contribution [Member]
Schedule of Equity Method Investments [Line Items]
Business Combination, Consideration Transferred		$ 100	$ 700

Marketable Securities, Fair V_3

Marketable Securities, Fair Value Measurements and Margin Loan - Available for sale securities (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Schedule of Available-for-sale Securities [Line Items]
Fair Value	$ 8,672	$ 7,901
Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Adjusted Cost	8,718	8,718
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(46)	(817)
Fair Value	$ 8,672	$ 7,901

Marketable Securities, Fair V_4

Marketable Securities, Fair Value Measurements and Margin Loan - Classification by contractual maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Marketable Securities, Fair Value Measurements and Margin Loan
Due in 1 year	$ 0
Due in 1 year through 5 years	5,100
Due in 5 year through 10 years	0
Due after 10 years	3,572
Total	$ 8,672	$ 7,901

Marketable Securities, Fair V_5

Marketable Securities, Fair Value Measurements and Margin Loan - Additional Information (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Interest rate, Libor plus	3.15%
Other Loans Payable		$ 4,908	$ 5,060
Margin Loan [Member]
Debt Instrument [Line Items]
Libor		3.25%
Interest rate, Libor plus		0.85%
Other Loans Payable		$ 4,900	$ 5,100

Disposition of Alabama Hotels (

Disposition of Alabama Hotels (Details) $ in Millions	1 Months Ended		6 Months Ended
	May 09, 2019USD ($)	Feb. 11, 2019USD ($)	Jun. 30, 2019item
Number of Hotels | item			7
Revolving Credit Facility [Member]
Repayments of Lines of Credit	$ 8.2
Alabama Hotel Agreements [Member]
Proceeds from Sale of Investment Projects	13.3	$ 13.3
Net gain on disposition of real estate	$ 0.1

Mortgages payable, net (Details

Mortgages payable, net (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Weighted Average Interest Rate	5.82%
Amount Due at Maturity	$ 144,853
Total mortgages payable	145,726	$ 153,985
Less: Deferred financing costs	(879)	(1,085)
Total mortgages payable, net	$ 144,847	152,900
Revolving Loan, secured by thirteen properties [Member]
Debt Instrument [Line Items]
Variable interest rate basis	LIBOR + 3.15
Weighted Average Interest Rate	5.86%
Maturity Date	May 1, 2021
Amount Due at Maturity	$ 131,831
Total mortgages payable	$ 131,831	140,000
Courtyard - Paso Robles [Member]
Debt Instrument [Line Items]
Interest Rate	5.49%
Weighted Average Interest Rate	5.49%
Maturity Date	Nov. 1, 2023
Amount Due at Maturity	$ 13,022
Total mortgages payable	$ 13,895	$ 13,985

Mortgages payable, net - Princi

Mortgages payable, net - Principal maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Mortgages payable, net
2019	$ 89
2020	187
2021	132,031
2022	211
2023	13,208
Thereafter	0
Total	145,726	$ 153,985
Less: Deferred financing costs	(879)	(1,085)
Total mortgages payable, net	$ 144,847	$ 152,900

Mortgages payable, net - Additi

Mortgages payable, net - Additional information (Details) $ in Millions	May 09, 2019item	Mar. 31, 2019	May 17, 2019	May 09, 2019USD ($)	May 17, 2018USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Line of Credit Facility, Covenant Terms			The Revolving Credit Facility provides for borrowings up to 65.0% of the loan-to-value ratio of properties designated as collateral and also requires the maintenance of certain financial ratios, including a minimum debt yield ratio, which may also be achieved through principal paydowns on the outstanding balance of the Revolving Credit Facility
Debt Instrument, Basis Spread on Variable Rate		3.15%
Credit Agreement [Member]
Debt Instrument [Line Items]
Restricted escrows						$ 2.8	$ 3.4
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 140
Number of Properties Previously Designated as Collateral | item	2
Repayments of Lines of Credit				$ 8.2
Line of credit facility, outstanding balance						$ 131.8
Western Alliance [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Description					initial term of three years, subject to two, one-year extension options at the sole discretion of Western Alliance
Debt Instrument, Basis Spread on Variable Rate					3.50%
Debt Instrument, Term					3 years

Related Party Transactions (Det

Related Party Transactions (Details) - Related Party [Member] - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Related Party Transaction [Line Items]
Acquisition fees	[1]	$ 0	$ 0	$ 0	$ 285
Development fees	[2]	57	0	62	0
Asset management fees (general and administrative costs)		758	755	1,534	1,441
Total		$ 815	$ 755	$ 1,596	$ 1,726
[1]	The acquisition fee for the Hilton Garden Inn Joint Venture of $285 was capitalized and included in investment in unconsolidated affiliated entities on the consolidated balance sheets.
[2]	Generally, capitalized and amortized over the estimated useful life of the associated asset.

Related Party Transactions - Ad

Related Party Transactions - Additional information (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		36 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2012
Related Party Transaction [Line Items]
Dividends, Cash	[1]	$ 3,088	$ 3,154	$ 6,157	$ 6,285
Brownmill, LLC [Member]
Related Party Transaction [Line Items]
Subordinated General Partner Participation Units				177,000		48,000
Subordinate Profit Interest Value						$ 4,800
Lightstone SLP II LLC [Member]
Related Party Transaction [Line Items]
Subordinate Profit Interest Value				$ 17,700
Proceeds from Contributions from Affiliates				12,900
Contributions From Affiliates In Kind		4,800		4,800
Related Party [Member]
Related Party Transaction [Line Items]
Business Combination, Acquisition Related Costs	[2]	$ 0	$ 0	$ 0	$ 285
[1]	Distributions per share were $0.175.
[2]	The acquisition fee for the Hilton Garden Inn Joint Venture of $285 was capitalized and included in investment in unconsolidated affiliated entities on the consolidated balance sheets.

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Carrying Amount	$ 145,726	$ 153,985
Mortgages payable [Member]
Debt Instrument [Line Items]
Carrying Amount	145,726	153,985
Estimated Fair Value	$ 146,231	$ 154,134

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions	Aug. 13, 2019	Jul. 15, 2019
Subsequent Event [Line Items]
Distribution payment		$ 3.1
Quarterly Dividend Declared	$ 0.175
Annualized Dividend	$ 0.70
Annualized rate of dividend	7.00%
Share price	$ 10