Lightstone Value Plus REIT III (LVVR) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares shares in Millions	3 Months Ended
	Mar. 31, 2016	May. 10, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	Lightstone Value Plus Real Estate Investment Trust III, Inc.
Entity Central Index Key	1,563,756
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		6.7

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Investment property:
Land and improvements	$ 4,724,864	$ 2,205,864
Building and improvements	41,494,087	22,258,087
Furniture and fixtures	3,659,750	2,501,282
Construction in progress	2,148,380	1,175,110
Gross investment property	52,027,081	28,140,343
Less accumulated depreciation	(1,003,972)	(731,289)
Net investment property	51,023,109	27,409,054
Cash	9,337,080	6,747,401
Deposits	500,000	1,000,000
Prepaid expenses and other assets	1,152,175	459,105
Total Assets	62,012,364	35,615,560
Liabilities and Stockholders' Equity
Accounts payable and other accrued expenses	1,961,083	1,285,160
Revolving promissory notes payable, net - related party	10,044,448	2,003,614
Due to related parties	246,998	1,159,314
Distributions payable	274,467	188,253
Total liabilities	$ 12,526,996	$ 4,636,341
Commitments and Contingencies
Company's stockholders' equity:
Preferred stock, $0.01 par value; 50,000,000 shares authorized, none issued and outstanding	$ 0	$ 0
Common stock, $0.01 par value; 200,000,000 shares authorized, 5,751,430 and 4,009,656 shares issued and outstanding, respectively	57,514	40,097
Additional paid-in-capital	47,635,042	32,081,648
Subscription receivable	(228,100)	(344,371)
Accumulated deficit	(2,623,733)	(1,499,970)
Total Company stockholders' equity	44,840,723	30,277,404
Noncontrolling interests	4,644,645	701,815
Total Stockholders' Equity	49,485,368	30,979,219
Total Liabilities and Stockholders' Equity	$ 62,012,364	$ 35,615,560

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Preferred Stock, par value per share	$ 0.01	$ 0.01
Preferred Stock, shares authorized	50,000,000	50,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value per share	$ 0.01	$ 0.01
Common Stock, shares authorized	200,000,000	200,000,000
Common Stock, shares issued	5,751,430	4,009,656
Common Stock, shares outstanding	5,751,430	4,009,656

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues	$ 1,971,445	$ 553,422
Expenses:
Property operating expenses	1,299,141	313,255
Real estate taxes	99,354	31,734
General and administrative costs	604,928	270,948
Depreciation and amortization	278,316	57,445
Total operating expenses	2,281,739	673,382
Operating loss	(310,294)	(119,960)
Interest expense	(89,964)	(96,293)
Other expense, net	(1,353)	(375)
Net loss	(401,611)	(216,628)
Less: net loss attributable to noncontrolling interests	10	34
Net loss applicable to Company's common shares	$ (401,601)	$ (216,594)
Net loss per Company's common shares, basic and diluted	$ (0.08)	$ (0.41)
Weighted average number of common shares outstanding, basic and diluted	4,827,293	528,564

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2016 - USD ($)	Total	Common Shares [Member]	Additional Paid-In Capital [Member]	Subscription Receivable [Member]	Accumulated Deficit [Member]	Total Noncontrolling Interests [Member]
BALANCE at Dec. 31, 2015	$ 30,979,219	$ 40,097	$ 32,081,648	$ (344,371)	$ (1,499,970)	$ 701,815
BALANCE, shares at Dec. 31, 2015		4,009,656
Net loss	(401,611)	$ 0	0	0	(401,601)	(10)
Distributions declared	(722,162)	0	0	0	(722,162)	0
Distributions paid to noncontrolling interests	(30)	0	0	0	0	(30)
Contributions from noncontrolling interests	3,942,870	0	0	0	0	3,942,870
Proceeds from offering	17,112,280	$ 17,090	16,978,919	116,271	0	0
Proceeds from offering, shares		1,709,033
Selling commissions and dealer manager fees	(1,611,877)	$ 0	(1,611,877)	0	0	0
Other offering costs	(124,360)	0	(124,360)	0	0	0
Shares issued from distribution reinvestment program	311,039	$ 327	310,712	0	0	0
Shares issued from distribution reinvestment program, Shares		32,741
BALANCE at Mar. 31, 2016	$ 49,485,368	$ 57,514	$ 47,635,042	$ (228,100)	$ (2,623,733)	$ 4,644,645
BALANCE, shares at Mar. 31, 2016		5,751,430

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (401,611)	$ (216,628)
Adjustments to reconcile net loss to net cash provided by/(used in) operating activities:
Depreciation and amortization	278,316	57,445
Amortization of deferred financing costs	40,834	16,667
Other non-cash adjustments	2,849	66
Changes in assets and liabilities:
Increase in prepaid expenses and other assets	(401,551)	(130,635)
Increase in accounts payable and other accrued expenses	588,667	147,240
Increase in due to related party	134,823	19,536
Net cash provided by/(used in) operating activities	242,327	(106,309)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(23,088,810)	(10,192,950)
Refundable escrow deposits	(500,000)	0
Cash used in investing activities	(23,588,810)	(10,192,950)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from revolving promissory notes payable - related party	8,000,000	8,200,000
Payments on revolving promissory notes payable - related party	0	(1,200,000)
Payment of loan fees and expenses	0	(100,000)
Proceeds from issuance of common stock	17,112,280	5,313,399
Payment of commissions and offering costs	(2,794,050)	(867,489)
Contributions from noncontrolling interests	3,942,870	0
Distributions to noncontrolling interests	(30)	(26)
Distributions to common stockholders	(324,908)	(42,253)
Net cash provided by financing activities	25,936,162	11,303,631
Net change in cash	2,589,679	1,004,372
Cash, beginning of year	6,747,401	1,738,026
Cash, end of period	9,337,080	2,742,398
Supplemental cash flow information for the periods indicated is as follows:
Cash paid for interest	5,476	78,408
Distributions declared, but not paid	274,467	36,987
Commissions and other offering costs accrued but not paid	409,704	296,122
Subscription receivable	228,100	161,500
Value of shares issued from distribution reinvestment program	311,039	8,286
Application of deposit to acquisition of investment property	1,000,000	500,000
Investment property acquired but not paid	$ 393,968	$ 0

Organization

Organization	3 Months Ended
	Mar. 31, 2016
Organization [Abstract]
Organization	1. Organization Lightstone Value Plus Real Estate Investment Trust III, Inc. (‘‘Lightstone REIT III’’), incorporated on October 5, 2012 The Lightstone REIT III 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 III LP, a Delaware limited partnership (the ‘‘Operating Partnership’’). Lightstone REIT III and the Operating Partnership are collectively referred to as the “Company” and the use of “we,” “our,” “us” or similar pronouns refers to Lightstone REIT III, its Operating Partnership or the Company as required by the context in such pronoun used. Lightstone REIT III sold 20,000 10.00 Lightstone REIT III invested the proceeds received from the Advisor in the Operating Partnership, and as a result, held a 99 The Company’s registration statement on Form S-11 (the “Offering”), pursuant to which it is offering to sell up to 30,000,000 par value $ 0.01 10.00 10,000,000 9.50 56.0 5.7 2.0 9.00 The Company has no employees. The Company has retained the Advisor to manage its affairs on a day-to-day basis. Beacon Property Management Limited Liability Company and Paragon Retail Property Management LLC (the ‘‘Property Managers’’) may serve as property managers. Orchard Securities, LLC (the ‘‘Dealer Manager’’), a third party not affiliated with the Company, the Sponsor or the Advisor, serves as the dealer manager of the Company’s public offering. The Advisor and Property Managers are affiliates of the Sponsor. These related parties receive compensation and fees for services related to the investment and management of the Company’s assets. Noncontrolling Interests Partners of Operating Partnership On July 16, 2014, the Advisor contributed $ 2,000 200 Lightstone SLP III LLC (the ‘‘Special Limited Partner’’), a Delaware limited liability company of which Mr. Lichtenstein is the majority owner, is a special limited partner in the Operating Partnership and has committed to make a significant equity investment in the Company of up to $ 36.0 12.0 300.0 50,000 (i) the termination of our Offering; (ii) the Special Limited Partner’s purchase of an aggregate of $ 36.0 300.0 Through March 31, 2016, the Special Limited Partner has purchased an aggregate of approximately 93 4.6 79 3.9

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies 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, 2015. 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 III, Inc. and its Subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 8-03 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. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). 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 unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. To qualify or maintain our qualification as a REIT, we engage in certain activities through wholly-owned taxable REIT subsidiaries (“TRS”). As such, we are subject to U.S. federal and state income and franchise taxes from these activities. The consolidated financial statements include the accounts of Lightstone REIT III and the Operating Partnership 99 All inter-company accounts 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. Certain prior period amounts may have been reclassified to conform to the current year presentation. In September 2015, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update to simplify the accounting for adjustments made to provisional amounts during the measurement period of a business combination. The amendment requires the acquirer to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective with earlier application permitted for financial statements that have not been issued. The adoption of this standard did not have a material In May 2014, the FASB issued an accounting standards update that completes the joint effort by the FASB and International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. The update applies to all companies that enter into contracts with customers to transfer goods or services and is effective for us for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted and companies have the choice to apply the update either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the update at the date of initial application (January 1, 2017) and not adjusting comparative information. In August 2015, the FASB decided to delay the effective date of the new revenue standard by one year. The Company is currently evaluating the requirements and impact of this update on its consolidated financial statements. In April 2015, the FASB issued an accounting standards update to simplify the presentation of debt issuance costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The SEC staff noted that this update did not address situations where a company has debt issuance costs related to line-of-credit arrangements. As a result, the FASB issued an additional update which states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted this standard during the quarter ended March 31, 2016. As a result of adopting this standard on a retrospective basis, approximately $51,667 was reclassified out of prepaid expenses and other assets and was reclassified into revolving promissory notes payable, net - related party on the consolidated balance sheet as of December 31, 2015.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Acquisitions	3. Acquisitions Hampton Inn – Lansing On March 10, 2016, the Company completed the acquisition of an 86-room select service hotel located in Lansing, Michigan (the “Hampton Inn – Lansing”) from an unrelated third party, for an aggregate purchase price of approximately $ 10.5 1.0 0.1 The acquisition of the Hampton Inn – Lansing was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Hampton Inn – Lansing has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. The allocation of the purchase price of the is based upon certain preliminary valuations and other analyses that have not been completed as of the date of this filing. Any changes in the estimated fair values of the net assets recorded for these acquisitions upon the finalization of more detailed analyses will change the allocation of the purchase price. As such, the purchase price allocations for this transaction are preliminary estimates, which are subject to change within the measurement period. Any subsequent changes to the purchase price allocations that are material will be adjusted prospectively. 1.2 8.8 0.5 The capitalization rate for the acquisition of the Hampton Inn — Lansing was approximately 12.0 Courtyard – Warwick On March 23, 2016, the Company completed the acquisition of a 92-room select service hotel located in Warwick, Rhode Island 12.4 1.0 0.1 The acquisition of the Courtyard – Warwick was accounted for under the purchase method of accounting with the Company treated as the acquiring entity. Accordingly, the consideration paid by the Company to complete the acquisition of the Courtyard – Warwick has been allocated to the assets acquired based upon their fair values as of the date of the acquisition. The allocation of the purchase price of the is based upon certain preliminary valuations and other analyses that have not been completed as of the date of this filing. Any changes in the estimated fair values of the net assets recorded for these acquisitions upon the finalization of more detailed analyses will change the allocation of the purchase price. As such, the purchase price allocations for this transaction are preliminary estimates, which are subject to change within the measurement period. Any subsequent changes to the purchase price allocations that are material will be adjusted prospectively. 1.4 10.4 0.6 The capitalization rate for the acquisition of the Courtyard – Warwick was approximately 8.3 Financial Information For the Three Months Ended March 31, 2016 2015 Rental revenue $ 1,971,445 $ 553,422 Net loss $ (185,251) $ (167,689) For the Three Months Ended March 31, 2016 2015 Pro forma rental revenue $ 3,155,123 $ 3,546,022 Pro forma net (loss)/income (1) $ (379,151) $ 203,356 Pro forma net (loss)/income per Company's common share, basic and diluted (1) $ 0.08 $ 0.38 (1) Includes acquisition related expenses of $ 465,840 192,616

Selling Commissions, Dealer Man

Selling Commissions, Dealer Manager Fees and Other Offering Costs	3 Months Ended
	Mar. 31, 2016
Selling Commission, Dealer Manager Fees And Other Offering Costs [Abstract]
Selling Commissions, Dealer Manager Fees and Other Offering Costs	4. Selling Commissions, Dealer Manager Fees and Other Offering Costs Selling commissions and dealer manager fees are paid to the Dealer Manager, pursuant to various agreements, and other third-party offering costs such as registration fees, due diligence fees, marketing costs, and professional fees are accounted for as a reduction against additional paid-in capital (“APIC”) as costs are incurred. Organizational costs are expensed as general and administrative costs. For the Three Months Ended March 31, 2016 2015 Selling commissions and dealer manager fees $ 1,611,877 $ 511,107 Other offering costs $ 124,360 $ 394,656 Since the Company’s inception through March 31, 2016, it has incurred approximately $ 5.0 4.1

Earnings per Share

Earnings per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Earnings per Share	5. Earnings per Share The Company had no potentially dilutive securities outstanding during the periods presented. Accordingly, basic and diluted earnings per share is calculated by dividing earnings attributable to common shareholders by the weighted-average number of shares of common stock outstanding during the applicable period.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	6. Related Party Transactions Revolving promissory notes payable, net – related party On May 15, 2015, the Company entered into a $ 13.0 three-month 6.0 6.6 130,000 The outstanding principal balance and remaining availability under the Durham Promissory Note were $ 10.1 2.9 2.1 10.9 10,833 51,667 During the three months ended March 31, 2016, the Company incurred interest of $ 49,131 100,000 79,626 10.0 Due to related parties In addition to certain agreements with the Sponsor (see Note 1) and Dealer Manager (see Note 4), the Company has agreements 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. Furthermore, the Advisor has and is expected to continue to advance certain organization and offering costs on behalf of the Company to the extent the Company does not have sufficient funds to pay such costs. As of December 31, 2015, the Company owed the Advisor and its affiliated entities an aggregate of approximately $ 1.2 43,771 36,298 1.2 17,998 83,719 During the three months ended March 31, 2016, the Advisor charged the Company acquisition fees of $ 229,000 109,000 From time to time, the Company may purchase title insurance from an agent in which its Sponsor owns a 50 34,875 8,320

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2016
Financial Instruments, Owned, at Fair Value [Abstract]
Financial Instruments	7. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash, deposits, accounts receivable (included in prepaid expenses and other assets), accounts payable and accrued expenses and due to related parties approximated their fair values because of the short maturity of these instruments. As of March 31, 2016 the estimated fair value of the Revolving Promissory Note Payable – Related Party approximated its carrying value ($ 10.1

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	8. 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, we are not a party to any material pending legal proceedings.

Distributions

Distributions	3 Months Ended
	Mar. 31, 2016
Distributions [Abstract]
Distributions	9. Distributions Distribution Payments On February 15, 2016, March 15, 2016 and April 15, 2016, the Company paid distributions for the months ended January 31, 2016, February 29, 2016 and March 31, 2016, respectively, of $ 722,162 37,817 9.50 120,577 17 242,327 34 359,258 49 Distribution Declaration On May 12, 2016 0.00164383 365 6.0 10.00

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	10. Subsequent Events Acquisition of SpringHill Suites, Green Bay, Wisconsin (the “SpringHill Suites – Green Bay”) On May 2, 2016, the Company completed the acquisition of a 120-room select service hotel located in Green Bay, Wisconsin (the “SpringHill Suites – Green Bay”) from an unrelated third party, for an aggregate purchase price of approximately $ 18.3 0.5 1.0 183,000 8.1 10.2 14.5 The Green Bay Promissory Note was entered into on May 2, 2016, has a term of one year (with an option for an additional year), bears interest at a floating rate of three-month 6.0 145,000 Lansing Promissory Note On May 2, 2016, the Company entered into an $ 8.0 6.0 three-month 6.0 80,000

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation and Basis of Presentation	The consolidated financial statements include the accounts of Lightstone REIT III and the Operating Partnership 99 All inter-company accounts 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.
Reclassifications	Certain prior period amounts may have been reclassified to conform to the current year presentation.
New Accounting Pronouncements	In September 2015, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update to simplify the accounting for adjustments made to provisional amounts during the measurement period of a business combination. The amendment requires the acquirer to recognize adjustments to provisional amounts identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period’s financial statements, the effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments should be applied prospectively to adjustments to provisional amounts that occur after the effective with earlier application permitted for financial statements that have not been issued. The adoption of this standard did not have a material In May 2014, the FASB issued an accounting standards update that completes the joint effort by the FASB and International Accounting Standards Board to improve financial reporting by creating common revenue recognition guidance for GAAP and International Financial Reporting Standards. The update applies to all companies that enter into contracts with customers to transfer goods or services and is effective for us for interim and annual reporting periods beginning after December 15, 2016. Early application is not permitted and companies have the choice to apply the update either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying the update at the date of initial application (January 1, 2017) and not adjusting comparative information. In August 2015, the FASB decided to delay the effective date of the new revenue standard by one year. The Company is currently evaluating the requirements and impact of this update on its consolidated financial statements. In April 2015, the FASB issued an accounting standards update to simplify the presentation of debt issuance costs. This update requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The SEC staff noted that this update did not address situations where a company has debt issuance costs related to line-of-credit arrangements. As a result, the FASB issued an additional update which states that the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted this standard during the quarter ended March 31, 2016. As a result of adopting this standard on a retrospective basis, approximately $51,667 was reclassified out of prepaid expenses and other assets and was reclassified into revolving promissory notes payable, net - related party on the consolidated balance sheet as of December 31, 2015.

Acquisitions (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2016
Business Combinations [Abstract]
Schedule of Revenue and Net Income Included in Consolidated Statements of Operations	The following table provides the total amount of rental revenue and net loss included in the Company’s consolidated statements of operations from the Hampton Inn — Lansing, the Courtyard – Warwick, the Hampton Inn — Des Moines (acquired February 4, 2015) and the Courtyard – Durham (acquired May 15, 2015) since their respective dates of acquisition for the period indicated: For the Three Months Ended March 31, 2016 2015 Rental revenue $ 1,971,445 $ 553,422 Net loss $ (185,251) $ (167,689)
Schedule of Pro Forma Results of Operations	For the Three Months Ended March 31, 2016 2015 Pro forma rental revenue $ 3,155,123 $ 3,546,022 Pro forma net (loss)/income (1) $ (379,151) $ 203,356 Pro forma net (loss)/income per Company's common share, basic and diluted (1) $ 0.08 $ 0.38 (1) Includes acquisition related expenses of $ 465,840 192,616

Selling Commissions, Dealer M19

Selling Commissions, Dealer Manager Fees and Other Offering Costs (Tables)	3 Months Ended
	Mar. 31, 2016
Selling Commission, Dealer Manager Fees And Other Offering Costs [Abstract]
Summary of Selling Commission, Dealer Manager Fees and Other Offering Costs	For the Three Months Ended March 31, 2016 2015 Selling commissions and dealer manager fees $ 1,611,877 $ 511,107 Other offering costs $ 124,360 $ 394,656

Organization (Details Textual)

Organization (Details Textual) - USD ($)	Jul. 15, 2014	Jul. 16, 2014	Dec. 24, 2012	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Date of incorporation				Oct. 5, 2012
Issuance of common shares, value				$ 17,112,280
Gross proceeds from sale of common stock				17,112,280	$ 5,313,399
Amount in subscriptions accepted required for the Special Limited Partner to purchase one unit				$ 36,000,000
Common Stock, Par Value				$ 0.01		$ 0.01
Equity Method investment ,Percentage of Maximum Offering cost				12.00%
Maximum Amount of Offering				$ 300,000,000
Equity Method Investment, Description of Principal Activities				(i) $10.00 minus our then current estimated net asset value (“NAV”) per Common Share, multiplied by (ii) the number of our Common Shares outstanding. The Operating Partnership will issue one Subordinated Participation Interest for each $50,000 in cash or interests in real property of equivalent value that the Special Limited Partner contributes. The Special Limited Partner’s obligation will continue until the earlier of: (i) the termination of our Offering; (ii) the Special Limited Partner’s purchase of an aggregate of $36.0 million of Subordinated Participation Interests and (iii) our receipt of gross offering proceeds of $300.0 million. The Special Limited Partner may elect to purchase the Subordinated Participation Interests for cash or may contribute interests in real property of equivalent value. The Subordinated Participation Interests may be entitled to receive liquidation distributions upon our liquidation.
Proceeds from Issuance of Limited partner Interest				$ 3,900,000
Limited Partners' Capital Account, Units Issued				79
Issuance of Subordinated Participation Interest for Each Partner				$ 50,000
General Partner [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Contribution from advisor		$ 2,000
Number of limited partner units issued to advisor		200
Limited Partner [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Amount in subscriptions accepted required for the Special Limited Partner to purchase one unit				36,000,000
Threshhold Gross Proceeds From Equity Issuance				300,000,000
Partners' Capital Account, Contributions				$ 4,600,000
Partners' Capital Account, Units, Contributed				93
Lightstone Value Plus REIT III LLC [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Issuance of common shares, shares			20,000
Shares issued, price per share			$ 10
General partner ownership interest				99.00%
Stock Offering [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Shares reserved for issuance	30,000,000
Shares reserved for issuance, price per share	$ 10
Issuance of common shares, shares				5,700,000
Gross proceeds from sale of common stock				$ 56,000,000
Common Stock, Par Value	$ 0.01
Stock Offering [Member] | Company owned by David Lichtenstein [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Issuance of common shares, value				$ 2,000,000
Shares issued, price per share				$ 9
Distribution Reinvestment Plan [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Shares reserved for issuance	10,000,000
Shares reserved for issuance, price per share	$ 9.50

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Accounting Policies [Line Items]
Notes Payable, Total	$ 10,044,448	$ 2,003,614
Prepaid Expenses and Other Current Assets [Member]
Accounting Policies [Line Items]
Notes Payable, Total		$ 51,667
Lightstone Value Plus REIT III LLC [Member]
Accounting Policies [Line Items]
General partner ownership interest	99.00%

Acquisitions (Details)

Acquisitions (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Business Acquisition [Line Items]
Rental revenue	$ 1,971,445	$ 553,422
Net loss	$ (185,251)	$ (167,689)

Acquisitions (Details 1)

Acquisitions (Details 1) - USD ($)		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Business Acquisition [Line Items]
Pro forma rental revenue		$ 3,155,123	$ 3,546,022
Pro forma net (loss)/income	[1]	$ (379,151)	$ 203,356
Pro forma net (loss)/income per Company's common share, basic and diluted	[1]	$ 0.08	$ 0.38
[1]	Includes acquisition related expenses of $465,840 and $192,616 for the three months ended March 31, 2016 and 2015, in connection with the acquisition of the Hampton Inn — Lansing, the Courtyard – Warwick and the Hampton Inn — Des Moines.

Acquisitions (Details Textual)

Acquisitions (Details Textual) - USD ($)	Mar. 10, 2016	Mar. 23, 2016	Mar. 31, 2016	Mar. 31, 2015
Business Acquisition [Line Items]
Acquisition fees received by the advisor			$ 465,840	$ 192,616
Hampton Inn Des Moines [Member]
Business Acquisition [Line Items]
Cash consideration paid	$ 10,500,000
Acquisition fees received by the advisor	100,000
Purchase price allocation, land and improvements	1,200,000
Purchase price allocation, building and improvements	8,800,000
Purchase price allocation, furnitures and fixtures	$ 500,000
Asset Capitalization Rate	12.00%
Acquisition fees received by the advisor as percentage of acquisition price	1.00%
Courtyard, Durham North Carolina [Member]
Business Acquisition [Line Items]
Cash consideration paid		$ 12,400,000
Acquisition fees received by the advisor		100,000
Purchase price allocation, land and improvements		1,400,000
Purchase price allocation, building and improvements		10,400,000
Purchase price allocation, furnitures and fixtures		$ 600,000
Asset Capitalization Rate		8.30%
Acquisition fees received by the advisor as percentage of acquisition price		1.00%

Selling Commissions, Dealer M25

Selling Commissions, Dealer Manager Fees and Other Offering Costs (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Selling Commission, Dealer Manager Fees and Other Offering Costs [Line Items]
Selling commissions and dealer manager fees	$ 1,611,877	$ 511,107
Other offering costs	$ 124,360	$ 394,656

Selling Commissions, Dealer M26

Selling Commissions, Dealer Manager Fees and Other Offering Costs (Details Textual) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Selling Commission, Dealer Manager Fees and Other Offering Costs [Line Items]
Selling commissions and dealer manager fees	$ 5
Debt Issuance Cost	$ 4.1

Related Party Transactions (Det

Related Party Transactions (Details Textual) - USD ($)	May. 15, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Related Party Transaction [Line Items]
Business Combination, Acquisition Related Costs		$ 465,840	$ 192,616
Due to Related Parties		246,998		$ 1,159,314
Debt Issuance Cost		4,100,000
Advisor [Member]
Related Party Transaction [Line Items]
Business Combination, Acquisition Related Costs		229,000	109,000
Sponsor [Member]
Related Party Transaction [Line Items]
General Insurance Expense		$ 34,875	8,320
Sponsor [Member] | Partnership Interest [Member]
Related Party Transaction [Line Items]
Subsidiary of Limited Liability Company or Limited Partnership, Ownership Interest		50.00%
Lightstone II [Member] | Promissory Note [Member]
Related Party Transaction [Line Items]
Notes Payable, Related Parties			10,000,000
Interest Expense, Related Party			79,626
Lightstone II [Member] | Revolving Promissory Note Durham [Member]
Related Party Transaction [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 13,000,000
Debt Instrument, Interest Rate, Stated Percentage	6.00%	6.60%
Payments of Debt Issuance Costs	$ 130,000		100,000
Notes Payable, Related Parties		$ 10,100,000		2,100,000
Line of Credit Facility, Remaining Borrowing Capacity		2,900,000		10,900,000
Interest Expense, Related Party		49,131
Debt Instrument, Term	1 year
Debt Instrument, Description of Variable Rate Basis	three-month
Debt Issuance Cost		10,833		51,667
Advisors And Affiliated Entities [Member]
Related Party Transaction [Line Items]
Due to Related Parties		17,998		$ 1,200,000
Debt Related Commitment Fees and Debt Issuance Costs		43,771
Noninterest Expense Offering Cost		36,298	$ 83,719
Repayments of Related Party Debt		$ 1,200,000

Financial Instruments (Details

Financial Instruments (Details Textual) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Notes Payable, Total	$ 10,044,448	$ 2,003,614

Distributions (Details Textual)

Distributions (Details Textual) - USD ($)	May. 12, 2016	Mar. 31, 2016	Mar. 31, 2015
Distributions [Line Items]
Distribution paid		$ 324,908	$ 42,253
Proceeds from offering		17,112,280
Value of common stock issued pursuant to Distribution Reinvestment Program		311,039
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		242,327	$ (106,309)
Subsequent Event [Member]
Distributions [Line Items]
Distribution on per day basis	$ 0.00164383
Number of days used to calculate daily amount of distribution	365 days
Annualized rate of dividend	6.00%
Face value of share	$ 10
Distribution declared	May 12, 2016
Dividend Paid [Member]
Distributions [Line Items]
Distribution paid		$ 722,162
Shares of common stock issued pursuant to Distribution Reinvestment Program		37,817
Discounted price per share		$ 9.50
Proceeds from offering		$ 120,577
Value of common stock issued pursuant to Distribution Reinvestment Program		$ 359,258
Percentage Of Distribution Paid From Offering Proceeds		17.00%
Percentage Of Distribution Paid From Issuance Of Common Stock Through DRIP		49.00%
Net Cash Provided by (Used in) Operating Activities, Continuing Operations		$ 242,327
Percentage Of Distribution Paid From Operations Proceeds		34.00%

Subsequent Events (Details Text

Subsequent Events (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	May. 02, 2016	Mar. 31, 2016	Mar. 31, 2015
Subsequent Event [Line Items]
Amount of acquisition fees to company's advisor		$ 465,840	$ 192,616
Subsequent Event [Member] | SpringHill Suites - Green Bay [Member]
Subsequent Event [Line Items]
Amount of acquisition fees to company's advisor	$ 183,000
Subsequent Event [Member] | Lightstone II [Member] | SpringHill Suites - Green Bay [Member]
Subsequent Event [Line Items]
Aggregate purchase price	18,300,000
Proceeds from Issuance Initial Public Offering	8,100,000
Proceeds from Issuance of Long-term Debt, Total	10,200,000
Long-term Debt, Total	14,500,000
Deposits For Business Acquisition	$ 500,000
Business Acquisition Fee, Percentage	1.00%
Subsequent Event [Member] | Lightstone II [Member] | Lasing Promissory Note [Member]
Subsequent Event [Line Items]
Term	1 year
Debt Instrument, Basis Spread on Variable Rate	6.00%
Payments of Debt Issuance Costs	$ 80,000
Debt Instrument, Face Amount	8,000,000
Payments to Fund Long-term Loans to Related Parties	$ 6,000,000
Debt Instrument, Description of Variable Rate Basis	three-month
Subsequent Event [Member] | Lightstone II [Member] | Green Bay Promissory Note [Member]
Subsequent Event [Line Items]
Term	1 year
Debt Instrument, Basis Spread on Variable Rate	6.00%
Payments of Debt Issuance Costs	$ 145,000
Debt Instrument, Description of Variable Rate Basis	three-month