Lightstone Value Plus REIT II (LVPR) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares shares in Thousands	9 Months Ended
	Sep. 30, 2022	Nov. 07, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	000-54047
Entity Registrant Name	LIGHTSTONE VALUE PLUS REIT II, INC.
Entity Central Index Key	0001436975
Entity Tax Identification Number	83-0511223
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	1985 Cedar Bridge Avenue
Entity Address, Address Line Two	Suite 1
Entity Address, City or Town	Lakewood
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08701
City Area Code	(732)
Local Phone Number	367-0129
Entity Current Reporting Status	Yes
Entity Interactive Data Current	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		17,200

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Investment property:
Land and improvements	$ 32,208	$ 36,709
Building and improvements	177,344	203,660
Furniture and fixtures	32,876	36,313
Construction in progress	130	119
Gross investment property	242,558	276,801
Less accumulated depreciation	(60,963)	(61,626)
Net investment property	181,595	215,175
Investments in unconsolidated affiliated entities	14,247	17,958
Cash and cash equivalents	43,025	15,126
Marketable securities, available for sale	3,281	6,777
Restricted cash	189	1,833
Accounts receivable and other assets	4,616	3,867
Total Assets	246,953	260,736
Liabilities and Stockholders’ Equity
Accounts payable and other accrued expenses	7,092	6,525
Margin loan		2,292
Mortgages payable, net	118,079	136,167
Notes payable	318	3,746
Due to related party	461	538
Total liabilities	125,950	149,268
Company’s stockholders’ equity:
Preferred shares, $0.01 par value, 10.0 million shares authorized, none issued and outstanding
Common stock, $0.01 par value; 100.0 million shares authorized, 17.2 million and 17.3 million shares issued and outstanding, respectively	172	173
Additional paid-in-capital	145,110	146,308
Accumulated deficit	(35,750)	(46,506)
Total Company stockholders’ equity	109,532	99,975
Noncontrolling interests	11,471	11,493
Total Stockholders’ Equity	121,003	111,468
Total Liabilities and Stockholders’ Equity	$ 246,953	$ 260,736

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - $ / shares shares in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Preferred Stock, par value per share	$ 0.01	$ 0.01
Preferred Stock, shares authorized	10,000	10,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, shares authorized	100,000	100,000
Common Stock, shares issued	17,200	17,300
Common Stock, shares outstanding	17,200	17,300

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Revenues	$ 13,461	$ 14,648	$ 41,690	$ 33,813
Expenses:
Property operating expenses	9,696	9,396	29,292	23,094
Real estate taxes	620	795	2,110	2,523
General and administrative costs	1,325	1,139	3,874	3,554
Depreciation and amortization	1,878	2,566	6,069	7,818
Total expenses	13,519	13,896	41,345	36,989
Interest and dividend income	90	68	201	205
Interest expense	(1,732)	(1,557)	(4,591)	(4,461)
Gain on forgiveness of debt	2,622	937	3,474	2,418
Gain on sale of investment property	843		8,524
Earnings from investments in unconsolidated affiliated entities	3,082	118	3,291	(64)
Other income/(loss), net	73	(5)	(433)	13
Net income/(loss)	4,920	313	10,811	(5,065)
Less: net (income)/loss attributable to noncontrolling interests	(56)	(15)	(55)	78
Net income/(loss) applicable to Company’s common shares	$ 4,864	$ 298	$ 10,756	$ (4,987)
Net income/(loss) per Company’s common share, basic and diluted	$ 0.28	$ 0.02	$ 0.62	$ (0.29)
Weighted average number of common shares outstanding, basic and diluted	17,207	17,415	17,247	17,424

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Statement [Abstract]
Net income/(loss)	$ 4,920	$ 313	$ 10,811	$ (5,065)
Other comprehensive loss:
Holding loss on marketable debt securities, available for sale		(26)		(67)
Other comprehensive loss:		(26)		(67)
Comprehensive income/(loss)	4,920	287	10,811	(5,132)
Less: Comprehensive (income)/loss attributable to noncontrolling interests	(56)	(15)	(55)	78
Comprehensive income/(loss) attributable to the Company’s common shares	$ 4,864	$ 272	$ 10,756	$ (5,054)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (unaudited) - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Dec. 31, 2020	$ 174	$ 147,100	$ 82	$ (41,186)	$ 11,599	$ 117,769
Beginning balance, shares at Dec. 31, 2020	17,430
Net income				(4,987)	(78)	(5,065)
Other comprehensive loss			(67)			(67)
Contributions of noncontrolling interests					12	12
Distributions to noncontrolling interests					(93)	(93)
Redemption and cancellation of shares		(139)				(139)
Redemption and cancellation of shares, Shares	(17)
Ending balance, value at Sep. 30, 2021	$ 174	146,961	15	(46,173)	11,440	112,417
Ending balance,Shares at Sep. 30, 2021	17,413
Beginning balance, value at Jun. 30, 2021	$ 174	147,100	41	(46,471)	11,464	112,308
Beginning balance, shares at Jun. 30, 2021	17,430
Net income				298	15	313
Other comprehensive loss			(26)			(26)
Distributions to noncontrolling interests					(39)	(39)
Redemption and cancellation of shares		(139)				(139)
Redemption and cancellation of shares, Shares	(17)
Ending balance, value at Sep. 30, 2021	$ 174	146,961	$ 15	(46,173)	11,440	112,417
Ending balance,Shares at Sep. 30, 2021	17,413
Beginning balance, value at Dec. 31, 2021	$ 173	146,308		(46,506)	11,493	111,468
Beginning balance, shares at Dec. 31, 2021	17,331
Net income				10,756	55	10,811
Distributions to noncontrolling interests					(77)	(77)
Redemption and cancellation of shares	$ (1)	(1,198)				(1,199)
Redemption and cancellation of shares, Shares	(136)
Ending balance, value at Sep. 30, 2022	$ 172	145,110		(35,750)	11,471	121,003
Ending balance,Shares at Sep. 30, 2022	17,195
Beginning balance, value at Jun. 30, 2022	$ 172	145,545		(40,614)	11,434	116,537
Beginning balance, shares at Jun. 30, 2022	17,241
Net income				4,864	56	4,920
Distributions to noncontrolling interests					(19)	(19)
Redemption and cancellation of shares		(435)				(435)
Redemption and cancellation of shares, Shares	(46)
Ending balance, value at Sep. 30, 2022	$ 172	$ 145,110		$ (35,750)	$ 11,471	$ 121,003
Ending balance,Shares at Sep. 30, 2022	17,195

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/(loss)	$ 10,811	$ (5,065)
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Depreciation and amortization	6,069	7,818
Amortization of deferred financing costs	236	284
Gain on sale of investment property	(8,524)
Gain on forgiveness of debt	(3,474)	(2,418)
Earnings from investments in unconsolidated affiliated entities	(3,291)	64
Other non-cash adjustments	796	89
Changes in assets and liabilities:
Increase in accounts receivable and other assets	(1,227)	(1,747)
Increase in accounts payable and other accrued expenses	609	1,559
Decrease in due to related party	(77)	(73)
Net cash provided by operating activities	1,928	511
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(481)	(335)
Proceeds from the sale of marketable debt securities	3,015
Proceeds from sale of investment property, net of closing costs	36,744
Investments in unconsolidated affiliated entity		(1,417)
Distributions from unconsolidated affiliated entities	7,002	636
Net cash provided by/(used in) investing activities	46,280	(1,116)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on mortgages payable	(17,979)	(148)
Payment on margin loan	(2,292)	(226)
Proceeds received from notes payable		3,745
Payment of loan fees and expenses	(406)	(402)
Redemption and cancellation of common shares	(1,199)	(139)
Distributions to noncontrolling interests	(77)	(93)
Contributions of noncontrolling interests		12
Net cash (used in)/provided by financing activities	(21,953)	2,749
Net change in cash, cash equivalents and restricted cash	26,255	2,144
Cash, cash equivalents and restricted cash, beginning of year	16,959	18,423
Cash, cash equivalents and restricted cash, end of period	43,214	20,567
Supplemental cash flow information for the periods indicated is as follows:
Cash paid for interest	4,252	4,031
Holding loss on marketable securities, available for sale		67
Cash	43,025	18,093
Restricted cash	189	2,474
Total cash and restricted cash	$ 43,214	$ 20,567

Structure

Structure	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Structure	1. Structure Lightstone Value Plus REIT II, Inc. (“Lightstone REIT II”), which was formerly known as Lightstone Value Plus Real Estate Investment Trust II, Inc. before September 16, 2021, is a Maryland corporation formed on April 28, 2008, which elected to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2009. Lightstone REIT II is structured as an umbrella partnership REIT, or UPREIT, and substantially all of its current and future business will be conducted through Lightstone Value Plus REIT II LP, a Delaware limited partnership (the “Operating Partnership”). As of September 30, 2022, Lightstone REIT II held an approximately 99 Lightstone REIT II and the Operating Partnership and its subsidiaries are collectively referred to as the “Company” and the use of “we,” “our,” “us” or similar pronouns refers to Lightstone REIT II, its Operating Partnership or the Company as required by the context in which such pronoun is used. The Company has and will continue to seek to acquire a diverse portfolio of real estate assets and real estate-related investments, including hotels, other commercial and/or residential properties, primarily located in the United States. All such properties may be acquired and operated by the Company alone or jointly with another party. The Company may also originate or acquire mortgage loans secured by real estate. Although the Company expects that most of its investments will be of these types, it may invest in whatever types of real estate-related investments that it believes are in its best interests. The Company currently has one operating segment. As of September 30, 2022, we (i) majority owned and consolidated the operating results and financial condition of 12 limited service hotels containing a total of 1,582 rooms, (ii) held an unconsolidated 48.6 As of September 30, 2022, seven of the Company’s consolidated limited service hotels are held in a joint venture (the “Joint Venture”) formed between us and Lightstone Value Plus REIT, Inc. (“Lightstone REIT I”), a related party REIT also sponsored by The Lightstone Group, LLC. The Company and Lightstone I have 97.5% and 2.5% membership interests in the Joint Venture, respectively. Additionally, as of September 30, 2022, certain of the Company’s consolidated hotels also have ownership interests held by unrelated minority owners. The membership interests of Lightstone I and the unrelated minority owners are accounted for as noncontrolling interests. The Company’s advisor is Lightstone Value Plus REIT II LLC (the “Advisor”), which is majority owned by David Lichtenstein. On May 20, 2008, the Advisor contributed $ 2 20,000 200 10.00 17.7 The Company does not have any employees. The Advisor receives compensation and fees for services related to the investment and management of the Company’s assets. The Company’s Advisor has certain affiliates which may manage the properties the Company acquires. However, the Company also contracts with other unaffiliated third-party property managers, principally for the management of its hospitality properties. The Company’s Common Shares are not currently listed on a national securities exchange. The Company may seek to list its Common Shares for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its shares at this time. The Company does not anticipate that there would be any market for its Common Shares until they are listed for trading. In the event the Company does not obtain listing prior to September 27, 2024, which is the tenth anniversary of the termination of its Follow-On Offering, its charter requires that the Board of Directors must either (i) seek stockholder approval of an extension or amendment of this listing deadline; or (ii) seek stockholder approval to adopt a plan of liquidation of the corporation. Noncontrolling Interests Limited Partner On May 20, 2008, the Advisor contributed $ 2 200 Associate General Partner In connection with the Company’s Offerings, which concluded on September 27, 2014, the Associate General Partner contributed (i) cash of $ 12.9 48.6 4.8 177.0 17.7 As the indirect majority owner of the Associate General Partner, Mr. Lichtenstein is the beneficial owner of a 99% interest in such Subordinated Profits Interests and thus receives an indirect benefit from any distributions made in respect thereof. These Subordinated Profits Interests may entitle the Associate General Partner to a portion of any regular and liquidation distributions that the Company makes to its stockholders, but only after its stockholders have received a stated preferred return. There were no distributions declared on the Subordinated Profits Interests during the three and nine months ended September 30, 2022 and 2021. Since the Company’s inception through September 30, 2022, the cumulative distributions declared and paid on the Subordinated Profits Interests were $7.9 million. Any future distributions on the Subordinated Profits Interests will always be subordinated until stockholders receive a stated preferred return, as described above. See Note 9 for additional information with respect to the Subordinated Profits Interests. Other Noncontrolling Interests in Consolidated Subsidiaries Other noncontrolling interests consist of the (i) membership interest in the Joint Venture held by Lightstone I and (ii) membership interests held by minority owners in certain of the Company’s hotels. The Advisor and its affiliates and Associate General Partner are related parties of the Company. Certain of these entities are entitled to compensation and fees for services related to the investment, management and disposition of the Company’s assets during its acquisition, operational and liquidation stages. The compensation levels during the Company’s acquisition and operational stages are based on the cost of acquired properties/investments and the annual revenue earned from such properties/investments, and other such fees and reimbursements as outlined in each of the respective agreements. See Note 9 for additional information.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
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 September 30, 2022, Lightstone REIT II had a 99% general partnership interest in the common units of the Operating Partnership. All inter-company balances and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The unaudited interim consolidated 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 REIT 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 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP 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 and investments in other real estate entities and depreciable lives of long-lived assets. 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, 2021 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. To qualify or maintain our qualification as a REIT, the Company engages in certain activities through wholly-owned taxable REIT subsidiaries (“TRS”). As such, it is subject to U.S. federal and state income and franchise taxes from these activities. Revenue Recognition The following table represents the total revenues from hotel operations on a disaggregated basis: Schedule of revenues from hotel operations For the For the Revenues 2022 2021 2022 2021 Room $ 12,830 $ 13,924 $ 39,853 $ 32,391 Food, beverage and other 631 724 1,837 1,422 Total revenues $ 13,461 $ 14,648 $ 41,690 $ 33,813 COVID-19 Pandemic Operations and Liquidity Update On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and it remains highly unpredictable and dynamic and its ultimate duration and extent continue to be dependent on various developments, such as the emergence of variants to the virus that may cause additional strains of COVID-19, and the ongoing development, administration and ultimate effectiveness of vaccines, including booster shots. Accordingly, the ongoing COVID-19 pandemic may continue to have negative effects on the U.S. and global economies for the foreseeable future. The extent to which the Company’s business may be affected by the ongoing COVID-19 pandemic will largely depend on both current and future developments, all of which are highly uncertain and cannot be reasonably predicted. Furthermore, as a result of the COVID-19 pandemic, room demand and rental rates for the Company’s consolidated and unconsolidated hotels significantly declined starting in March 2020 at the onset of the pandemic; and while these metrics have improved since then (beginning late 2020 and continuing through the third quarter of 2022); room demand and rental rates still remain below their pre-pandemic historical levels for some of the Company’s hotels. Accordingly, the COVID-19 pandemic has negatively impacted the Company’s operations, financial position and cash flow; and while the severity of the impact has lessened considerably, the Company may experience a negative impact for the foreseeable future. The Company cannot currently estimate if and when room demand and rental rates will return to historical pre-pandemic levels for all of its hotels. The Company also has an unconsolidated 48.6% membership interest in the Brownmill Joint Venture, which owns two retail properties located in New Jersey that are subject to similar risks related to the COVID-19 pandemic. If the Brownmill Joint Venture’s retail properties are negatively impacted from the ongoing COVID-19 pandemic for an extended period because its tenants are unable to pay their rent, the Company’s equity earnings and the carrying value of its investment in the Brownmill Joint Venture could be materially and adversely impacted. In light of the past, present and potential future impact of the COVID-19 pandemic on the operating results of its hotels, the Company has taken various actions to preserve its liquidity, including the following: ● The Company has implemented cost reduction strategies for all of its hotels, leading to reductions in certain operating expenses and capital expenditures. ● During 2020 and 2021, the Company obtained certain amendments to its revolving credit facility (the “Revolving Credit Facility”). See Note 6 for additional information. ● In April 2020 and during the first quarter of 2021, the Company’s consolidated hotels received an aggregate of $ 3.3 3.7 ● Previously in March 2020, the Board of Directors determined to suspend regular quarterly distributions on the Company’s Common Shares and the Subordinated Profits Interests and has not declared any distributions since the suspension. Additionally, in March 2020, the Board of Directors approved the suspension of all redemptions under the Company’s shareholder repurchase program (the “SRP”). Subsequently on May 10, 2021, the Board of Directors partially reopened the SRP to allow, subject to various conditions, for redemptions submitted in connection with a stockholder’s death or hardship. See Note 8 for additional information. ● During 2020 and 2021, the Hilton Garden Inn Joint Venture obtained various amendments to its non-recourse mortgage loan secured by the Hilton Garden Inn – Long Island City. See Note 4 for additional information. The Company believes that these actions, along with its available on hand cash and cash equivalents and marketable securities, as well as its intention to seek to extend or refinance the Revolving Credit Facility on or before its maturity date of September 15, 2023, will provide it with sufficient liquidity to meet its obligations for at least 12 months from the date of issuance of these consolidated financial statements. New Accounting Pronouncements The Company has reviewed and determined that recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations.

Disposition Activities

Disposition Activities	9 Months Ended
	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Disposition Activities	3. Disposition Activities Disposition of the Courtyard – Paso Robles On March 22, 2022, the Company completed the disposition of a 130-room hotel located in Paso Robles, California, which operates as a Courtyard by Marriott (the “Courtyard – Paso Robles”), to an unaffiliated third party, for a contractual sales price of $ 32.3 13.4 14.1 17.8 7.6 Disposition of the TownePlace Suites - Little Rock On July 14, 2022, the Company completed the disposition of a 92-room hotel located in Little Rock, Arkansas, which operates as a TownePlace Suites (the “TownePlace Suites - Little Rock”) to an unaffiliated third party, for a contractual sales price of $ 5.9 4.6 on the Revolving Credit Facility 1.2 . 1.0 The dispositions of the Courtyard – Paso Robles and the TownePlace Suites - Little Rock did not qualify to be reported as discontinued operations since the dispositions 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 Courtyard – Paso Robles and the TownePlace Suites - Little Rock are reflected in the Company’s results from continuing operations for all periods presented through their respective dates of disposition.

Investments in Unconsolidated A

Investments in Unconsolidated Affiliated Entities	9 Months Ended
	Sep. 30, 2022
Equity Method Investments and Joint Ventures [Abstract]
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: Schedule of investments in the unconsolidated affiliated real estate As of Entity Date of Ownership September 30, December 31, Brownmill Joint Venture Various 48.6 % $ 4,219 $ 6,793 Hilton Garden Inn Joint Venture March 27, 2018 50.0 % 10,028 11,165 Total investments in unconsolidated affiliated real estate entities $ 14,247 $ 17,958 Brownmill Joint Venture During 2010 through 2012, the Company entered into various contribution agreements with Lightstone Holdings LLC (“LGH”), a wholly-owned subsidiary of the Sponsor, pursuant to which LGH contributed to the Company an aggregate 48.6% membership interest in the Brownmill Joint Venture in exchange for the Company issuing an aggregate of 48 units of Subordinated Profits Interests, at $ 100,000 As of September 30, 2022, the Company owns a 48.6 5.5 136 The Brownmill Joint Venture owns two retail properties known as Browntown Shopping Center, located in Old Bridge, New Jersey, and Millburn Mall, located in Vauxhaull, New Jersey. Brownmill Joint Venture Financial Information The Company’s carrying value of its interest in the Brownmill Joint Venture differs from its share of member’s equity reported in the condensed balance sheet of the Brownmill Joint Venture because the basis of the Company’s investment is in excess of the historical net book value of the Brownmill Joint Venture. The Company’s additional basis, which has been allocated to depreciable assets, is being recognized on a straight-line basis over the estimated useful lives of the appropriate assets. The following table represents the condensed statements of operations for the Brownmill Joint Venture for the periods indicated: Schedule of condensed income statement For the For the 2022 2021 2022 2021 Revenue $ 1,015 $ 946 $ 3,163 $ 2,971 Property operating expenses 389 534 1,256 1,255 Depreciation and amortization 197 197 629 564 Operating income 429 215 1,278 1,152 Gain on disposition of real estate (1) 5,816 - 5,816 - Interest expense and other, net (166 ) (167 ) (473 ) (495 ) Net income $ 6,079 $ 48 $ 6,621 $ 657 Company’s share of net income $ 2,953 $ 24 $ 3,216 $ 319 Additional depreciation and amortization expense (2) (233 ) (31 ) (295 ) (93 ) Company’s earnings from investment $ 2,720 $ (7 ) $ 2,921 $ 22 6 (1) On August 12, 2022, The Brownmill Joint Venture recognized a gain on disposition of real estate of $5.8 million in connection with the sale of an outparcel of land and the buildings and improvements thereon at Browntown Shopping Center for a contractual sales price of $10.5 million. (2) Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Brownmill Joint Venture and the amount of the underlying equity in net assets of the Brownmill Joint Venture. The following table represents the condensed balance sheets for the Brownmill Joint Venture as of the dates indicated: Schedule of condensed balance sheet As of As of September 30, December 31, Real estate, at cost (net) $ 12,998 $ 17,830 Cash and restricted cash 1,328 1,152 Other assets 1,283 1,518 Total assets $ 15,609 $ 20,500 Mortgage payable, net $ 13,406 $ 13,594 Other liabilities 652 666 Members’ capital 1,551 6,240 Total liabilities and members’ capital $ 15,609 $ 20,500 Hilton Garden Inn Joint Venture On March 27, 2018, the Company and Lightstone Value Plus REIT III, Inc. (“Lightstone REIT III”), a related party REIT also sponsored by the Company’s Sponsor, acquired, through the Hilton Garden Inn Joint Venture, a 183-room, limited-service hotel located at 29-21 41 st 60.0 25.0 35.0 50.0 The Company paid $ 12.9 In light of the impact of the COVID-19 pandemic on the operating results of the Hilton Garden Inn – Long Island City, the Hilton Garden Inn Joint Venture previously entered into certain amendments with respect to the Hilton Garden Inn Mortgage as discussed below. On June 2, 2020, the Hilton Garden Inn Mortgage was amended to provide for (i) the deferral of the six monthly debt service payments aggregating $ 0.9 LIBOR plus 2.15%, subject to a 4.03% 1.2 Additionally, on April 7, 2021, the Hilton Garden Inn Joint Venture and the lender further amended the terms of the Hilton Garden Inn Mortgage to provide for (i) the Hilton Garden Inn Joint Venture to make a principal paydown of $ 1.7 0.7 The Hilton Garden Inn Joint Venture is currently in compliance with respect to all of its financial debt covenants. Subsequent to the Company’s acquisition of its 50.0 2.8 3.5 Hilton Garden Inn Joint Venture Financial Information The following table represents the condensed statements of operations for the Hilton Garden Inn Joint Venture for the periods indicated: Schedule of condensed income statement For the 2022 For the For the For the Revenues $ 3,130 $ 2,043 $ 8,208 $ 5,226 Property operating expenses 1,844 1,107 4,790 3,016 General and administrative costs 2 10 18 27 Depreciation and amortization 609 620 1,835 1,876 Operating income 675 306 1,565 307 Gain on forgiveness of debt 516 381 516 381 Interest expense (466 ) (437 ) (1,341 ) (1,268 ) Net income/(loss) $ 725 $ 250 $ 740 $ (580 ) Company’s share of net income/(loss) (50.00%) $ 362 $ 125 $ 370 $ (290 ) The following table represents the condensed balance sheets for the Hilton Garden Inn Joint Venture as of the dates indicated: Schedule of condensed balance sheet As of As of (amounts in thousands) September 30, December 31, Investment property, net $ 50,844 $ 52,415 Cash 1,370 2,841 Other assets 1,479 1,204 Total assets $ 53,693 $ 56,460 Mortgage payable, net $ 32,322 $ 33,115 Other liabilities 1,885 1,585 Members’ capital 19,486 21,760 Total liabilities and members’ capital $ 53,693 $ 56,460

Marketable Securities, Fair Val

Marketable Securities, Fair Value Measurements and Margin Loan	9 Months Ended
	Sep. 30, 2022
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: Schedule of available-for-sale Securities Reconciliation As of September 30, 2022 Adjusted Gross Unrealized Gross Unrealized Fair Value Marketable Securities Equity Securities $ 3,620 $ - $ (339 ) $ 3,281 As of December 31, 2021 Adjusted Gross Unrealized Gross Unrealized Fair Value Marketable Securities Equity Securities $ 6,718 $ 59 $ - $ 6,777 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, 2022 and December 31, 2021, all of the Company’s marketable securities were classified as Level 2 assets and there were no transfers between the level classifications during the nine months ended September 30, 2022. The fair values of the Company’s equity securities are measured using readily available quoted prices for these securities; however, the markets for these securities are not active. The Company did not have any other significant financial assets or liabilities, which would require revised valuations that are recognized at fair value. Margin loan The Company has access to a margin loan from a financial institution that holds custody of certain of the Company’s marketable securities. The margin loan is collateralized by the marketable securities in the Company’s account. The amounts available to the Company under the margin loan are at the discretion of the financial institution and not limited to the amount of collateral in its account. The amount outstanding under this margin loan was $ 2.3 LIBOR plus 0.85%

Mortgages payable, net

Mortgages payable, net	9 Months Ended
	Sep. 30, 2022
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Mortgages payable, net	6. Mortgages payable, net Mortgages payable, net consisted of the following: Schedule of mortgages Payable, Net Weighted As of As of Description Interest September 30, Maturity Amount Due September 30, December 31, Revolving Credit Facility AMERIBOR plus 3.15% 4.50 % September 2023 $ 118,485 $ 118,485 $ 123,045 Courtyard – Paso Robles Repaid in full - - 13,419 Total mortgages payable 4.50 % $ 118,485 118,485 136,464 Less: Deferred financing costs (406 ) (297 ) Total mortgages payable, net $ 118,079 $ 136,167 LIBOR as of September 30, 2022 and December 31, 2021 was 2.52 0.10 2.40 Revolving Credit Facility The Company, through certain subsidiaries, has a non-recourse Revolving Credit Facility with a financial institution. The Revolving Credit Facility provides a line of credit of up to $ 140 65.0 Except as discussed below, the Revolving Credit Facility, which was scheduled to mature on September 15, 2022 bore interest at LIBOR + 3.15%, subject to a 4.00% floor. September 15, 2023 the interest rate was prospectively changed to AMERIBOR + 3.15%, subject to a 4.00% floor. On June 2, 2020, the Revolving Credit Facility was amended to provide for (i) the deferral of the six monthly debt service payments aggregating $2.6 million from April 1, 2020 through September 30, 2020, until November 15, 2021; (ii) a 100 bps reduction in the interest rate spread to LIBOR plus 2.15%, subject to a 3.00% floor, for the six-month period from September 1, 2020 through February 28, 2021; (iii) the Company pre-funding $2.5 million into a cash collateral reserve account to cover the six monthly debt service payments which were due from October 1, 2020 through March 1, 2021; and (iv) a waiver of all financial covenants for quarter-end periods before June 30, 2021. Subsequently, on March 31, 2021, the Revolving Credit Facility was further amended providing for (i) the Company to pledge the membership interests in another hotel as additional collateral within 45 days, (ii) the Company to fund an additional $ 2.5 On July 14, 2022, in connection with the disposition of the TownePlace Suites - Little Rock, the Company used proceeds of $ 4.6 118.5 on or before its maturity date of September 15, 2023 Courtyard – Paso Robles Mortgage Loan In connection with the Company’s acquisition of the Courtyard – Paso Robles on December 14, 2017, it assumed the Courtyard – Paso Robles Mortgage Loan. The Courtyard – Paso Robles Mortgage Loan was scheduled to mature in November 2023, bore interest at a fixed rate of 5.49 % and required monthly principal and interest payments of $ 79 with a balloon payment of $ 13.0 million due at maturity. On March 22, 2022, the Courtyard – Paso Robles Mortgage Loan was fully defeased in connection with the disposition of the Courtyard – Paso Robles (See Note 3) and the Company was legally released from any ongoing obligation. Principal Maturities The following table, based on the terms of the mortgages, sets forth their aggregate estimated contractual principal maturities, including balloon payments due at maturity, as of September 30, 2022: Schedule of principal maturities 2022 2023 2024 2025 2026 Thereafter Total Principal maturities $ - $ 118,485 $ - $ - $ - $ - $ 118,485 Less: deferred financing costs (406 ) Total principal maturities, net $ 118,079 Pursuant to the Company’s loan agreements, escrows in the amount of $ 0.2 1.8

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Notes Payable	7 Notes Payable During the first quarter of 2021, the Company, through various subsidiaries (each such entity, a “Borrower” and collectively, the “Borrowers”), received aggregate funding of $ 3.7 The PPP Loans each have a term of five years and provide for an interest rate of 1.00 The promissory note for each of the PPP Loans contains customary events of default relating to, among other things, payment defaults and breach of representations and warranties or of provisions of the relevant promissory note. Under the terms of the CARES Act, each Borrower can apply for and be granted forgiveness for all or a portion of the PPP Loans. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds in accordance with the terms of the CARES Act. Although the Company intends for each Borrower to apply for loan forgiveness, no assurance can be given that each Borrower will ultimately obtain forgiveness under its PPP Loan, in whole or in part. In the event all or any portion of a PPP Loan is forgiven, the amount forgiven will be applied to outstanding principal and recorded as income. The PPP Loans are subject to audit by the SBA for up to six years after the date the loans are forgiven. The PPP Loans are classified as Notes Payable in the consolidated balance sheets. During the year ended December 31, 2021, the Company received notices from the SBA that all of the PPP Loans received in April 2020 totaling $ 3.3 0.1 3.7 0.9 and $ 2.4 notices from the SBA that $ 2.6 3.5 0.3

Equity

Equity	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Equity	8. Equity Distributions on Common Shares On March 19, 2020, the Company’s Board of Directors determined to suspend regular quarterly distributions and, as a result, has not declared any distributions on the Company’s Common Shares since the suspension. Future distributions declared, if any, will be at the discretion of the Board of Directors based on their analysis of the Company’s performance over the previous periods and expectations of performance for future periods. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, revenues and other sources of income, operating and interest expenses and the Company’s ability to refinance near-term debt as well as the IRS’s annual distribution requirement that REITs distribute no less than 90% of their taxable income. The Company cannot assure that any future distributions will be made or that it will maintain any particular level of distributions that it has previously established or may establish. Share Repurchase Program The Company’s SRP may provide its eligible stockholders with limited, interim liquidity by enabling them to sell their Common Shares back to the Company, subject to restrictions and applicable law. On March 19, 2020, the Board of Directors amended the SRP to remove stockholder notice requirements and also approved the suspension of all redemptions effective immediately. Effective May 10, 2021, the Board of Directors reopened the SRP to allow, subject to various conditions as set forth below, for redemptions submitted in connection with a stockholder’s death or hardship and set the price for all such purchases to the Company’s current estimated net asset value per share, as determined by the Board of Directors and reported by the Company from time to time. Deaths that occurred subsequent to January 1, 2020 were eligible for consideration, subject to certain conditions. Beginning January 1, 2022, requests for redemptions in connection with a stockholder’s death must be submitted and received by the Company within one year of the stockholder’s date of death for consideration. On the above noted date, the Board of Directors established that on an annual basis, the Company would not redeem in excess of 0.5 For the nine months ended September 30, 2022 the Company repurchased 136,298 8.80 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/loss 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	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Related Party Transactions	9. Related Party Transactions The Company has various agreements, including an advisory agreement, with the Advisor to pay certain fees in exchange for services performed by the Advisor and/or its affiliated entities. Additionally, the Company’s ability to secure financing and its real estate operations are dependent upon its Advisor and its affiliates to perform such services as provided in these agreements. Amounts the Company owes to the Advisor and its affiliated entities are principally for asset management fees, and are classified as due to related parties on the consolidated balance sheets. The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: Schedule of fees payments to Company's Advisor For the For the 2022 2021 2022 2021 Asset management fees (general and administrative costs) $ 663 $ 739 $ 2,081 $ 2,214 The advisory agreement has a one-year term and is renewable for an unlimited number of successive one-year periods upon the mutual consent of the Advisor and the Company’s independent directors. Payments to the Advisor or its affiliates may include asset acquisition fees and the reimbursement of acquisition-related expenses, development fees and the reimbursement of development-related costs, financing coordination fees, asset management fees or asset management participation, and construction management fees. The Company may also reimburse the Advisor and its affiliates for actual expenses it incurs for administrative and other services provided for it. Upon the liquidation of the Company’s assets, it may pay the Advisor or its affiliates a disposition commission. 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 $ 12.9 4.8 17.7

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2022
Investments, All Other Investments [Abstract]
Financial Instruments	10. Financial Instruments The carrying amounts of cash and cash equivalents, restricted cash, accounts receivable and other assets, accounts payable and other accrued expenses, margin loan, notes payable, and due to related party As of September 30, 2022, the estimated fair value our mortgage payable approximated its carrying value because of the floating interest rate. The carrying amount and estimated fair value of our mortgages payable as of December 31, 2021 are as follows: Schedule of Mortgages payable and the related estimated fair value Carrying Estimated Mortgages payable $ 136,464 $ 136,592 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, 2022
Commitments and Contingencies Disclosure [Abstract]
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.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
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, 2022, Lightstone REIT II had a 99% general partnership interest in the common units of the Operating Partnership. All inter-company balances and transactions have been eliminated in consolidation. In determining whether the Company has a controlling financial interest in a joint venture and the requirement to consolidate the accounts of that entity, management considers factors such as ownership interest, authority to make decisions and contractual and substantive participating rights of the other partners or members as well as whether the entity is a variable interest entity for which the Company is the primary beneficiary. The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The unaudited interim consolidated 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 REIT 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 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP 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 and investments in other real estate entities and depreciable lives of long-lived assets. 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, 2021 included herein has been derived from the consolidated balance sheet included in the Company’s Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. To qualify or maintain our qualification as a REIT, the Company engages in certain activities through wholly-owned taxable REIT subsidiaries (“TRS”). As such, it is subject to U.S. federal and state income and franchise taxes from these activities.
Revenue Recognition	Revenue Recognition The following table represents the total revenues from hotel operations on a disaggregated basis: Schedule of revenues from hotel operations For the For the Revenues 2022 2021 2022 2021 Room $ 12,830 $ 13,924 $ 39,853 $ 32,391 Food, beverage and other 631 724 1,837 1,422 Total revenues $ 13,461 $ 14,648 $ 41,690 $ 33,813
COVID-19 Pandemic Operations and Liquidity Update	COVID-19 Pandemic Operations and Liquidity Update On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and it remains highly unpredictable and dynamic and its ultimate duration and extent continue to be dependent on various developments, such as the emergence of variants to the virus that may cause additional strains of COVID-19, and the ongoing development, administration and ultimate effectiveness of vaccines, including booster shots. Accordingly, the ongoing COVID-19 pandemic may continue to have negative effects on the U.S. and global economies for the foreseeable future. The extent to which the Company’s business may be affected by the ongoing COVID-19 pandemic will largely depend on both current and future developments, all of which are highly uncertain and cannot be reasonably predicted. Furthermore, as a result of the COVID-19 pandemic, room demand and rental rates for the Company’s consolidated and unconsolidated hotels significantly declined starting in March 2020 at the onset of the pandemic; and while these metrics have improved since then (beginning late 2020 and continuing through the third quarter of 2022); room demand and rental rates still remain below their pre-pandemic historical levels for some of the Company’s hotels. Accordingly, the COVID-19 pandemic has negatively impacted the Company’s operations, financial position and cash flow; and while the severity of the impact has lessened considerably, the Company may experience a negative impact for the foreseeable future. The Company cannot currently estimate if and when room demand and rental rates will return to historical pre-pandemic levels for all of its hotels. The Company also has an unconsolidated 48.6% membership interest in the Brownmill Joint Venture, which owns two retail properties located in New Jersey that are subject to similar risks related to the COVID-19 pandemic. If the Brownmill Joint Venture’s retail properties are negatively impacted from the ongoing COVID-19 pandemic for an extended period because its tenants are unable to pay their rent, the Company’s equity earnings and the carrying value of its investment in the Brownmill Joint Venture could be materially and adversely impacted. In light of the past, present and potential future impact of the COVID-19 pandemic on the operating results of its hotels, the Company has taken various actions to preserve its liquidity, including the following: ● The Company has implemented cost reduction strategies for all of its hotels, leading to reductions in certain operating expenses and capital expenditures. ● During 2020 and 2021, the Company obtained certain amendments to its revolving credit facility (the “Revolving Credit Facility”). See Note 6 for additional information. ● In April 2020 and during the first quarter of 2021, the Company’s consolidated hotels received an aggregate of $ 3.3 3.7 ● Previously in March 2020, the Board of Directors determined to suspend regular quarterly distributions on the Company’s Common Shares and the Subordinated Profits Interests and has not declared any distributions since the suspension. Additionally, in March 2020, the Board of Directors approved the suspension of all redemptions under the Company’s shareholder repurchase program (the “SRP”). Subsequently on May 10, 2021, the Board of Directors partially reopened the SRP to allow, subject to various conditions, for redemptions submitted in connection with a stockholder’s death or hardship. See Note 8 for additional information. ● During 2020 and 2021, the Hilton Garden Inn Joint Venture obtained various amendments to its non-recourse mortgage loan secured by the Hilton Garden Inn – Long Island City. See Note 4 for additional information. The Company believes that these actions, along with its available on hand cash and cash equivalents and marketable securities, as well as its intention to seek to extend or refinance the Revolving Credit Facility on or before its maturity date of September 15, 2023, will provide it with sufficient liquidity to meet its obligations for at least 12 months from the date of issuance of these consolidated financial statements.
New Accounting Pronouncements	New Accounting Pronouncements The Company has reviewed and determined that recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Schedule of revenues from hotel operations	Schedule of revenues from hotel operations For the For the Revenues 2022 2021 2022 2021 Room $ 12,830 $ 13,924 $ 39,853 $ 32,391 Food, beverage and other 631 724 1,837 1,422 Total revenues $ 13,461 $ 14,648 $ 41,690 $ 33,813

Investments in Unconsolidated_2

Investments in Unconsolidated Affiliated Entities (Tables)	9 Months Ended
	Sep. 30, 2022
Restructuring Cost and Reserve [Line Items]
Schedule of investments in the unconsolidated affiliated real estate	Schedule of investments in the unconsolidated affiliated real estate As of Entity Date of Ownership September 30, December 31, Brownmill Joint Venture Various 48.6 % $ 4,219 $ 6,793 Hilton Garden Inn Joint Venture March 27, 2018 50.0 % 10,028 11,165 Total investments in unconsolidated affiliated real estate entities $ 14,247 $ 17,958
Brownmill Joint Venture [Member]
Restructuring Cost and Reserve [Line Items]
Schedule of condensed income statement	Schedule of condensed income statement For the For the 2022 2021 2022 2021 Revenue $ 1,015 $ 946 $ 3,163 $ 2,971 Property operating expenses 389 534 1,256 1,255 Depreciation and amortization 197 197 629 564 Operating income 429 215 1,278 1,152 Gain on disposition of real estate (1) 5,816 - 5,816 - Interest expense and other, net (166 ) (167 ) (473 ) (495 ) Net income $ 6,079 $ 48 $ 6,621 $ 657 Company’s share of net income $ 2,953 $ 24 $ 3,216 $ 319 Additional depreciation and amortization expense (2) (233 ) (31 ) (295 ) (93 ) Company’s earnings from investment $ 2,720 $ (7 ) $ 2,921 $ 22 6 (1) On August 12, 2022, The Brownmill Joint Venture recognized a gain on disposition of real estate of $5.8 million in connection with the sale of an outparcel of land and the buildings and improvements thereon at Browntown Shopping Center for a contractual sales price of $10.5 million. (2) Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Brownmill Joint Venture and the amount of the underlying equity in net assets of the Brownmill Joint Venture.
Schedule of condensed balance sheet	Schedule of condensed balance sheet As of As of September 30, December 31, Real estate, at cost (net) $ 12,998 $ 17,830 Cash and restricted cash 1,328 1,152 Other assets 1,283 1,518 Total assets $ 15,609 $ 20,500 Mortgage payable, net $ 13,406 $ 13,594 Other liabilities 652 666 Members’ capital 1,551 6,240 Total liabilities and members’ capital $ 15,609 $ 20,500
Hilton Garden Inn Joint Venture [Member]
Restructuring Cost and Reserve [Line Items]
Schedule of condensed income statement	Schedule of condensed income statement For the 2022 For the For the For the Revenues $ 3,130 $ 2,043 $ 8,208 $ 5,226 Property operating expenses 1,844 1,107 4,790 3,016 General and administrative costs 2 10 18 27 Depreciation and amortization 609 620 1,835 1,876 Operating income 675 306 1,565 307 Gain on forgiveness of debt 516 381 516 381 Interest expense (466 ) (437 ) (1,341 ) (1,268 ) Net income/(loss) $ 725 $ 250 $ 740 $ (580 ) Company’s share of net income/(loss) (50.00%) $ 362 $ 125 $ 370 $ (290 )
Schedule of condensed balance sheet	Schedule of condensed balance sheet As of As of (amounts in thousands) September 30, December 31, Investment property, net $ 50,844 $ 52,415 Cash 1,370 2,841 Other assets 1,479 1,204 Total assets $ 53,693 $ 56,460 Mortgage payable, net $ 32,322 $ 33,115 Other liabilities 1,885 1,585 Members’ capital 19,486 21,760 Total liabilities and members’ capital $ 53,693 $ 56,460

Marketable Securities, Fair V_2

Marketable Securities, Fair Value Measurements and Margin Loan (Tables)	9 Months Ended
	Sep. 30, 2022
Marketable Securities Fair Value Measurements And Margin Loan
Schedule of available-for-sale Securities Reconciliation	Schedule of available-for-sale Securities Reconciliation As of September 30, 2022 Adjusted Gross Unrealized Gross Unrealized Fair Value Marketable Securities Equity Securities $ 3,620 $ - $ (339 ) $ 3,281 As of December 31, 2021 Adjusted Gross Unrealized Gross Unrealized Fair Value Marketable Securities Equity Securities $ 6,718 $ 59 $ - $ 6,777

Mortgages payable, net (Tables)

Mortgages payable, net (Tables)	9 Months Ended
	Sep. 30, 2022
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
Schedule of mortgages Payable, Net	Schedule of mortgages Payable, Net Weighted As of As of Description Interest September 30, Maturity Amount Due September 30, December 31, Revolving Credit Facility AMERIBOR plus 3.15% 4.50 % September 2023 $ 118,485 $ 118,485 $ 123,045 Courtyard – Paso Robles Repaid in full - - 13,419 Total mortgages payable 4.50 % $ 118,485 118,485 136,464 Less: Deferred financing costs (406 ) (297 ) Total mortgages payable, net $ 118,079 $ 136,167
Schedule of principal maturities	Schedule of principal maturities 2022 2023 2024 2025 2026 Thereafter Total Principal maturities $ - $ 118,485 $ - $ - $ - $ - $ 118,485 Less: deferred financing costs (406 ) Total principal maturities, net $ 118,079

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Schedule of fees payments to Company's Advisor	Schedule of fees payments to Company's Advisor For the For the 2022 2021 2022 2021 Asset management fees (general and administrative costs) $ 663 $ 739 $ 2,081 $ 2,214

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2022
Investments, All Other Investments [Abstract]
Schedule of Mortgages payable and the related estimated fair value	Schedule of Mortgages payable and the related estimated fair value Carrying Estimated Mortgages payable $ 136,464 $ 136,592

Structure (Details Narrative)

Structure (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		9 Months Ended
	Sep. 27, 2014	May 20, 2008	Sep. 30, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Business acquired assets			$ 17,700
Cash	$ 12,900		12,900
Equity interests	48.60%
Noncontrolling interests	$ 4,800		$ 17,700
Lightstone Value Plus Reit Iii Llc [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Issuance of common shares, shares			20,000
Issuance of common shares, value			$ 200
Shares issued, price per share			$ 10
General Partner [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Contribution from advisor		$ 2
Number of limited partner units issued to advisor		200
Limited Partner [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Partners Capital Account, Units, Contributed	177
Partners Capital Account, Contributions	$ 17,700
Brownmill Joint Venture [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Ownership interest			48.60%
Lightstone Reit Iii [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
General partner ownership interest			99%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended		12 Months Ended
	Apr. 30, 2020	Sep. 30, 2022	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Product Information [Line Items]
Total revenues		$ 13,461	$ 14,648		$ 41,690	$ 33,813
Proceed from loans		2,600			3,500		$ 3,300
Paycheck Protection Program [Member]
Product Information [Line Items]
Proceed from loans	$ 3,300			$ 3,700
Occupancy [Member]
Product Information [Line Items]
Total revenues		12,830	13,924		39,853	32,391
Food and Beverage [Member]
Product Information [Line Items]
Total revenues		$ 631	$ 724		$ 1,837	$ 1,422

Disposition Activities (Details

Disposition Activities (Details Narrative) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 14, 2022	Sep. 30, 2022	Mar. 22, 2022	Sep. 30, 2022
Property, Plant and Equipment [Abstract]
Contractual sales price	$ 5,900		$ 3,230
Payments for Loans				$ 13,400
Total cost				14,100
Working capital	1,200	$ 17,800		17,800
Sale of investment property		$ 1,000		$ 7,600
Principal amount	$ 4,600

Investments in Unconsolidated_3

Investments in Unconsolidated Affiliated Entities (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]
Total investments in unconsolidated affiliated real estate entities	$ 14,247	$ 17,958
Hilton Garden Inn Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Business Acquisition, Date of Acquisition Agreement	Mar. 27, 2018
Brownmill Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	48.60%
Total investments in unconsolidated affiliated real estate entities	$ 4,219	6,793
Hilton Garden Inn Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Ownership Percentage	50%
Total investments in unconsolidated affiliated real estate entities	$ 10,028	$ 11,165

Investments in Unconsolidated_4

Investments in Unconsolidated Affiliated Entities (Details 1) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring Cost and Reserve [Line Items]
Revenue		$ 13,461	$ 14,648	$ 41,690	$ 33,813
Depreciation and amortization		1,878	2,566	6,069	7,818
Net income		4,864	298	10,756	(4,987)
Brownmill Joint Venture [Member]
Restructuring Cost and Reserve [Line Items]
Revenue		1,015	946	3,163	2,971
Property operating expenses		389	534	1,256	1,255
Depreciation and amortization		197	197	629	564
Operating income		429	215	1,278	1,152
Gain on disposition of real estate	[1]	5,816		5,816
Interest expense and other, net		(166)	(167)	(473)	(495)
Net income		6,079	48	6,621	657
Company’s share of net income		2,953	24	3,216	319
Additional depreciation and amortization expense	[2]	(233)	(31)	(295)	(93)
Company’s earnings from investment		$ 2,720	$ (7)	$ 2,921	$ 22
[1]On August 12, 2022, The Brownmill Joint Venture recognized a gain on disposition of real estate of $5.8 million in connection with the sale of an outparcel of land and the buildings and improvements thereon at Browntown Shopping Center for a contractual sales price of $10.5 million.[2]Additional depreciation and amortization expense relates to the amortization of the difference between the cost of the interest in the Brownmill Joint Venture and the amount of the underlying equity in net assets of the Brownmill Joint Venture.

Investments in Unconsolidated_5

Investments in Unconsolidated Affiliated Entities (Details 2) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 27, 2014
Restructuring Cost and Reserve [Line Items]
Cash and restricted cash	$ 12,900		$ 12,900
Total assets	246,953	$ 260,736
Members’ capital	109,532	99,975
Total liabilities and members’ capital	246,953	260,736
Brownmill Joint Venture [Member]
Restructuring Cost and Reserve [Line Items]
Real estate, at cost (net)	12,998	17,830
Cash and restricted cash	1,328	1,152
Other assets	1,283	1,518
Total assets	15,609	20,500
Mortgage payable, net	13,406	13,594
Other liabilities	652	666
Members’ capital	1,551	6,240
Total liabilities and members’ capital	$ 15,609	$ 20,500

Investments in Unconsolidated_6

Investments in Unconsolidated Affiliated Entities (Details 3) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Restructuring Cost and Reserve [Line Items]
Revenues	$ 13,461	$ 14,648	$ 41,690	$ 33,813
General and administrative costs	1,325	1,139	3,874	3,554
Depreciation and amortization	1,878	2,566	6,069	7,818
Gain on forgiveness of debt			(3,474)	(2,418)
Net income/(loss)	4,864	298	10,756	(4,987)
Hilton Garden Inn [Member]
Restructuring Cost and Reserve [Line Items]
Revenues	3,130	2,043	8,208	5,226
Property operating expenses	1,844	1,107	4,790	3,016
General and administrative costs	2	10	18	27
Depreciation and amortization	609	620	1,835	1,876
Operating income	675	306	1,565	307
Gain on forgiveness of debt	516	381	516	381
Interest expense	(466)	(437)	(1,341)	(1,268)
Net income/(loss)	725	250	740	(580)
Company’s share of net income/(loss) (50.00%)	$ 362	$ 125	$ 370	$ (290)

Investments in Unconsolidated_7

Investments in Unconsolidated Affiliated Entities (Details 4) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 27, 2014
Restructuring Cost and Reserve [Line Items]
Investment property, net	$ 242,558	$ 276,801
Cash	12,900		$ 12,900
Total assets	246,953	260,736
Members’ capital	109,532	99,975
Total liabilities and members’ capital	246,953	260,736
Hilton Garden Inn [Member]
Restructuring Cost and Reserve [Line Items]
Investment property, net	50,844	52,415
Cash	1,370	2,841
Other assets	1,479	1,204
Total assets	53,693	56,460
Mortgage payable, net	32,322	33,115
Other liabilities	1,885	1,585
Members’ capital	19,486	21,760
Total liabilities and members’ capital	$ 53,693	$ 56,460

Investments in Unconsolidated_8

Investments in Unconsolidated Affiliated Entities (Details Narrative) - USD ($) $ in Thousands			1 Months Ended	6 Months Ended	9 Months Ended
	Apr. 07, 2021	Jun. 02, 2020	Mar. 27, 2018	Feb. 28, 2021	Sep. 30, 2022	Sep. 30, 2021
Hilton Garden Inn Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Venture pre-funding		$ 12,900		$ 1,200
Proceeds from mortgage		$ 900
Debt Instrument, Interest Rate, Basis for Effective Rate		LIBOR plus 2.15%, subject to a 4.03%
Brownmill Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Proceeds from Sale of Interest in Corporate Unit					$ 100,000
Business Acquisition Percentage Of Voting Interest Acquired					48.60%
Proceeds from Equity Method Investment, Distribution, Return of Capital					$ 5,500	$ 136
Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Proceeds from Equity Method Investment, Distribution, Return of Capital					$ 3,500
Aggregate purchase price			$ 60,000
Proceeds from Issuance of Debt			$ 35,000
Business Acquisition Percentage Of Voting Interest Acquired			50%		50%
Principal paydown	$ 1,700
Cash collateral	$ 700
Payments to Acquire Interest in Joint Venture					$ 2,800
Hilton Garden Inn [Member] | Reportable Legal Entities [Member]
Schedule of Equity Method Investments [Line Items]
Offering funds used in acquisition			$ 25,000

Marketable Securities, Fair V_3

Marketable Securities, Fair Value Measurements and Margin Loan (Details) - Mutual Fund [Member] - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]
Equity securities, Adjusted Cost	$ 3,620	$ 6,718
Equity securities, Gross Unrealized Gains		59
Equity securities, gross unrealized losses	(339)
Equity securities, Fair Value	$ 3,281	$ 6,777

Marketable Securities, Fair V_4

Marketable Securities, Fair Value Measurements and Margin Loan (Details Narrative) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Marketable Securities Fair Value Measurements And Margin Loan
Margin loan		$ 2,300
Debt Instrument, Interest Rate Terms	LIBOR plus 0.85%

Mortgages payable, net (Details

Mortgages payable, net (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Line of Credit Facility [Line Items]
Interest Rate	LIBOR plus 0.85%
Weighted Average Interest Rate	4.50%
Amount Due at Maturity	$ 118,485
Total mortgages payable	118,485	$ 136,464
Less: Deferred financing costs	(406)	(297)
Total mortgages payable, net	$ 118,079	136,167
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Interest Rate	AMERIBOR plus 3.15% (floor of 4.00%)
Weighted Average Interest Rate	4.50%
Maturity Date	September 2023
Amount Due at Maturity	$ 118,485
Total mortgages payable	118,485	123,045
Courtyard Paso Robles [Member]
Line of Credit Facility [Line Items]
Amount Due at Maturity
Total mortgages payable		$ 13,419

Mortgages payable, net (Detai_2

Mortgages payable, net (Details 1) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract]
2022
2023	118,485
2024
2025
2026
Thereafter
Principal maturities	118,485	$ 136,464
Less: Deferred financing costs	(406)	(297)
Total mortgages payable, net	$ 118,079	$ 136,167

Mortgages payable, net (Detai_3

Mortgages payable, net (Details Narrative) - USD ($) $ in Thousands				1 Months Ended	6 Months Ended
	Sep. 06, 2022	Jul. 14, 2022	Dec. 14, 2017	Sep. 15, 2022	Feb. 28, 2021	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021	Jul. 13, 2016
Debt Instrument [Line Items]
Principal amount		$ 4,600
Face amount							$ 200	$ 1,800
Long-term Debt							118,079	$ 136,167
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity									$ 140,000
Current borrowing capacity percentage									65%
Cash collateral							2,500
Face amount							$ 118,500
Paso Robles Mortgage Loan [Member]
Debt Instrument [Line Items]
Interest rate			5.49%
Periodic payment			$ 79,000
Long-term Debt			$ 13,000
London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Interest rate						0.10%	2.52%
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maturity date				Sep. 15, 2022
Basis for effective rate, description				bore interest at LIBOR + 3.15%, subject to a 4.00% floor.	On June 2, 2020, the Revolving Credit Facility was amended to provide for (i) the deferral of the six monthly debt service payments aggregating $2.6 million from April 1, 2020 through September 30, 2020, until November 15, 2021; (ii) a 100 bps reduction in the interest rate spread to LIBOR plus 2.15%, subject to a 3.00% floor, for the six-month period from September 1, 2020 through February 28, 2021; (iii) the Company pre-funding $2.5 million into a cash collateral reserve account to cover the six monthly debt service payments which were due from October 1, 2020 through March 1, 2021; and (iv) a waiver of all financial covenants for quarter-end periods before June 30, 2021.
Ameribor Unsecured Overnight Rate [Member]
Debt Instrument [Line Items]
Interest rate							2.40%
Ameribor Unsecured Overnight Rate [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Maturity date	Sep. 15, 2023
Basis for effective rate, description	the interest rate was prospectively changed to AMERIBOR + 3.15%, subject to a 4.00% floor.

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			9 Months Ended		12 Months Ended
	Apr. 30, 2020	Sep. 30, 2022	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Line of Credit Facility [Line Items]
Proceeds from notes payable						$ 3,745
Proceeds from PPP Loans		$ 2,600			3,500		$ 3,300
Accrued interest							100
Notes Payable		318			318		3,746
Forgiveness of debt			$ 900			$ 2,400
Paycheck Protection Program [Member]
Line of Credit Facility [Line Items]
Proceeds from PPP Loans	$ 3,300			$ 3,700
Notes Payable		$ 300			$ 300		$ 3,700
Paycheck Protection Program [Member]
Line of Credit Facility [Line Items]
Proceeds from notes payable				$ 3,700
Debt Instrument, Interest Rate During Period					100%

Equity (Details Narrative)

Equity (Details Narrative)	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Equity [Abstract]
Share redemption program, annual limitation, percentage of weighted average shares outstanding	0.50%
Stock Repurchased | shares	136,298
Repurchase price per share | $ / shares	$ 8.80

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Advisor [Member]
Related Party Transaction [Line Items]
Asset management fees (general and administrative costs)	$ 663	$ 739	$ 2,081	$ 2,214

Related Party Transactions (D_2

Related Party Transactions (Details Narrative) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 27, 2014
Related Party Transactions [Abstract]
Cash	$ 12,900	$ 12,900
Equity interests	4,800
Noncontrolling interests	$ 17,700	$ 4,800

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Investments, All Other Investments [Abstract]
Mortgages payable-Carrying Amount	$ 118,485	$ 136,464
Mortgages payable-Estimated Fair Value		$ 136,592