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

Document and Entity Information

Document and Entity Information - shares shares in Millions	6 Months Ended
	Jun. 30, 2019	Aug. 10, 2019
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Entity Current Reporting Status	Yes
Entity Registrant Name	Lightstone Value Plus Real Estate Investment Trust III, Inc.
Entity Central Index Key	0001563756
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Small Business	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13.4

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Investment property:
Land and improvements	$ 22,487,919	$ 22,446,179
Building and improvements	107,658,856	106,017,613
Furniture and fixtures	19,325,498	17,801,356
Construction in progress	70,559	792,307
Gross investment property	149,542,832	147,057,455
Less accumulated depreciation	(17,495,746)	(14,639,315)
Net investment property	132,047,086	132,418,140
Investments in unconsolidated affiliated real estate entities	28,144,798	29,983,987
Cash and cash equivalents	4,450,336	9,965,724
Marketable securities, available for sale	2,939,786	3,708,223
Restricted cash	2,066,020	1,672,957
Accounts receivable and other assets	3,214,686	2,178,388
Total Assets	172,862,712	179,927,419
Liabilities and Stockholders' Equity
Accounts payable and other accrued expenses	4,082,229	3,529,293
Mortgages payable, net	79,306,725	79,336,807
Due to related parties	773,436	157,114
Distributions payable	659,851	685,449
Total liabilities	84,822,241	83,708,663
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, 13.4 million and 13.5 million shares issued and outstanding, respectively	133,804	134,515
Additional paid-in-capital	114,688,187	115,380,181
Accumulated other comprehensive loss	(198,737)	(450,285)
Accumulated deficit	(38,674,900)	(30,937,879)
Total Company stockholders' equity	75,948,354	84,126,532
Noncontrolling interests	12,092,117	12,092,224
Total Stockholders' Equity	88,040,471	96,218,756
Total Liabilities and Stockholders' Equity	$ 172,862,712	$ 179,927,419

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2019	Dec. 31, 2018
CONSOLIDATED BALANCE SHEETS
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	13,400,000	13,500,000
Common Stock, shares outstanding	13,400,000	13,500,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues	$ 8,789,508	$ 9,367,673	$ 15,961,171	$ 16,953,971
Expenses:
Property operating expenses	5,359,526	5,404,396	10,236,205	10,377,785
Real estate taxes	406,708	396,162	813,016	769,927
General and administrative costs	706,218	690,631	1,459,399	1,422,969
Depreciation and amortization	1,465,753	1,405,613	2,895,547	2,756,890
Total operating expenses	7,938,205	7,896,802	15,404,167	15,327,571
Operating income	851,303	1,470,871	557,004	1,626,400
Interest expense	(1,238,409)	(1,354,143)	(2,421,670)	(2,801,656)
Loss from investments in unconsolidated affiliated real estate entities	(859,630)	(507,281)	(1,948,380)	(1,244,609)
Other income, net	34,311	582,601	57,616	587,638
Net (loss)/income	(1,212,425)	192,048	(3,755,430)	(1,832,227)
Less: net loss/(income) attributable to noncontrolling interests	15	(5)	50	21
Net (loss)/income applicable to Company's common shares	$ (1,212,410)	$ 192,043	$ (3,755,380)	$ (1,832,206)
Net (loss)/income per Company's common shares, basic and diluted	$ (0.09)	$ 0.01	$ (0.28)	$ (0.13)
Weighted average number of common shares outstanding, basic and diluted	13,381,201	13,565,950	13,388,924	13,583,311

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME
Net (loss)/income	$ (1,212,425)	$ 192,048	$ (3,755,430)	$ (1,832,227)
Other comprehensive (loss)/income:
Holding (loss)/gain on marketable securities, available for sale	(18,288)	(167,799)	213,192	(167,799)
Reclassification adjustment for loss included in net loss			38,359
Other comprehensive (loss)/income	(18,288)	(167,799)	251,551	(167,799)
Comprehensive (loss)/income	(1,230,713)	24,249	(3,503,879)	(2,000,026)
Less: Comprehensive loss/(income) attributable to noncontrolling interests	15	(5)	50	21
Comprehensive (loss)/income attributable to the Company's common shares	$ (1,230,698)	$ 24,244	$ (3,503,829)	$ (2,000,005)

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Loss [Member]	Accumulated Deficit [Member]	Total Noncontrolling Interests [Member]	Total
BALANCE at Dec. 31, 2017	$ 136,258	$ 117,061,644		$ (18,548,148)	$ 12,092,402	$ 110,742,156
BALANCE (in shares) at Dec. 31, 2017	13,625,769
Net loss				(1,832,206)	(21)	(1,832,227)
Other comprehensive (loss)/income			$ (167,799)			(167,799)
Distributions declared				(4,039,524)		(4,039,524)
Distributions paid to noncontrolling interests					(60)	(60)
Redemption and cancellation of shares	$ (697)	(675,787)				(676,484)
Redemption and cancellation of shares (in shares)	(69,645)
BALANCE at Jun. 30, 2018	$ 135,561	116,385,857	(167,799)	(24,419,878)	12,092,321	104,026,062
BALANCE (in shares) at Jun. 30, 2018	13,556,124
BALANCE at Mar. 31, 2018	$ 135,820	116,633,887		(22,583,603)	12,092,346	106,278,450
BALANCE (in shares) at Mar. 31, 2018	13,581,976
Net loss				192,043	5	192,048
Other comprehensive (loss)/income			(167,799)			(167,799)
Distributions declared				(2,028,318)		(2,028,318)
Distributions paid to noncontrolling interests					(30)	(30)
Redemption and cancellation of shares	$ (259)	(248,030)				(248,289)
Redemption and cancellation of shares (in shares)	(25,852)
BALANCE at Jun. 30, 2018	$ 135,561	116,385,857	(167,799)	(24,419,878)	12,092,321	104,026,062
BALANCE (in shares) at Jun. 30, 2018	13,556,124
BALANCE at Dec. 31, 2018	$ 134,515	115,380,181	(450,285)	(30,937,879)	12,092,224	96,218,756
BALANCE (in shares) at Dec. 31, 2018	13,451,431
Net loss				(3,755,380)	(50)	(3,755,430)
Other comprehensive (loss)/income			251,548		3	251,551
Distributions declared				(3,981,641)		(3,981,641)
Distributions paid to noncontrolling interests					(60)	(60)
Redemption and cancellation of shares	$ (711)	(691,994)				(692,705)
Redemption and cancellation of shares (in shares)	(71,069)
BALANCE at Jun. 30, 2019	$ 133,804	114,688,187	(198,737)	(38,674,900)	12,092,117	88,040,471
BALANCE (in shares) at Jun. 30, 2019	13,380,362
BALANCE at Mar. 31, 2019	$ 133,841	114,724,495	(180,449)	(35,460,942)	12,092,163	91,309,108
BALANCE (in shares) at Mar. 31, 2019	13,383,997
Net loss				(1,212,410)	(15)	(1,212,425)
Other comprehensive (loss)/income			(18,288)			(18,288)
Distributions declared				(2,001,548)		(2,001,548)
Distributions paid to noncontrolling interests					(31)	(31)
Redemption and cancellation of shares	$ (37)	(36,308)				(36,345)
Redemption and cancellation of shares (in shares)	(3,635)
BALANCE at Jun. 30, 2019	$ 133,804	$ 114,688,187	$ (198,737)	$ (38,674,900)	$ 12,092,117	$ 88,040,471
BALANCE (in shares) at Jun. 30, 2019	13,380,362

CONSOLIDATED STATEMENTS OF ST_2

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Annual distribution (in dollars per share)	$ 0.15	$ 0.15	$ 0.30	$ 0.30

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,755,430)	$ (1,832,227)
Adjustments to reconcile net loss to net cash provided by operating activities:
Loss from investments in unconsolidated affiliated real estate entities	1,948,380	1,244,609
Depreciation and amortization	2,895,547	2,756,890
Amortization of deferred financing costs	202,352	239,523
Other non-cash adjustments	53,152	7,544
Changes in assets and liabilities:
Increase in accounts receivable and other assets	(1,090,206)	(1,241,395)
Increase in accounts payable and other accrued expenses	392,303	535,688
Increase in due to related parties	616,322	39,227
Net cash provided by operating activities	1,262,420	1,749,859
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(2,324,744)	(1,819,098)
Purchase of marketable securities	(37,236)	(5,990,267)
Proceeds from sale of marketable securities	1,018,865
Investment in unconsolidated affiliated real estate entities	(246,692)	(14,266,607)
Distributions from unconsolidated affiliated real estate entities	137,500
Net cash used in investing activities	(1,452,307)	(22,075,972)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on mortgages payable	(232,434)	(7,660,499)
Payment of loan fees and expenses		(60,002)
Distributions to noncontrolling interests	(60)	(60)
Distributions to common stockholders	(4,007,239)	(4,065,326)
Redemption and cancellation of common shares	(692,705)	(676,484)
Net cash used in financing activities	(4,932,438)	(12,462,371)
Net change in cash, cash equivalents and restricted cash	(5,122,325)	(32,788,484)
Cash, cash equivalents and restricted cash, beginning of year	11,638,681	46,730,079
Cash, cash equivalents and restricted cash, end of period	6,516,356	13,941,595
Supplemental cash flow information for the periods indicated is as follows:
Cash paid for interest	2,239,665	2,734,942
Distributions declared, but not paid	659,851	668,532
Investment property acquired but not paid	160,633	153,447
Holding gain on marketable securities, available for sale	251,551	167,799
The following is a summary of the Company's cash, cash equivalents, and restricted cash total as presented in our statements of cash flows for the periods presented:
Cash and cash equivalents	4,450,336	12,481,860
Restricted cash	2,066,020	1,459,735
Total cash, cash equivalents and restricted cash	$ 11,638,681	$ 46,730,079

Organization

Organization	6 Months Ended
	Jun. 30, 2019
Organization
Organization	1. Organization Lightstone Value Plus Real Estate Investment Trust III, Inc. (‘‘Lightstone REIT III’’), incorporated in Maryland on October 5, 2012, elected to qualify and be taxed as a real estate investment trust (‘‘REIT’’) for U.S. federal income tax purposes beginning with the taxable year ended December 31, 2015. 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 and its subsidiaries 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 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 make other investments. In fact, it may invest in whatever types of real estate-related investments that it believes are in its best interests. The Company’s advisor is Lightstone Value Plus REIT III LLC (the “Advisor”), which is majority owned by David Lichtenstein. Mr. Lichtenstein also is a majority owner of the equity interests of The Lightstone Group, LLC. The Lightstone Group, LLC served as the Company’s sponsor (the ‘‘Sponsor’’) during its public offering which terminated on March 31, 2017. Subject to the oversight of the Company’s board of directors (the “Board of Directors”), the Advisor has primary responsibility for making investment decisions and managing the Company’s day-to-day operations. Through his ownership and control of the The Lightstone Group, LLC, Mr. Lichtenstein is the indirect owner of the Advisor and the indirect owner and manager of Lightstone SLP III LLC, a Delaware limited liability company (the “Special Limited Partner”), which has subordinated participation interests in the Operating Partnership (“Subordinated Participation Interests”). Mr. Lichtenstein also acts as the Company’s Chairman and Chief Executive Officer. As a result, he exerts influence over but does not control Lightstone REIT III or the Operating Partnership. The Company does not have any employees. The Advisor receives compensation and fees for services related to the investment and management of the Company’s assets. The Sponsor has various majority owned and controlled affiliated property managers, which may manage certain of the properties the Company acquires. However, the Company also contracts with other unaffiliated third-party property managers, principally for the management of its hospitality properties. The Company’s registration statement on Form S-11 (the “Offering”), pursuant to which it offered to sell up to 30.0 million shares of its common stock, par value $0.01 per share (which may be referred to herein as “shares of common stock” or as “Common Shares”) at an initial price of $10.00 per share, subject to certain volume and other discounts (the “Primary Offering”) (exclusive of 10.0 million shares of common stock which were available pursuant to our distribution reinvestment program (the “DRIP”) at an initial purchase price of $9.50 per share) was declared effective on July 15, 2014 by the United States Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933. The Offering, which terminated on March 31, 2017, raised aggregate gross proceeds of approximately $131.7 million from the sale of approximately 13.4 million shares of common stock (including $2.0 million in Common Shares at a purchase price of $9.00 per Common Share to an entity 100% owned by David Lichtenstein, who also owns a majority interest in the Company’s Sponsor). After including the purchase of an aggregate of $12.1 million of Subordinated Participation Interests in the Operating Partnership by the Special Limited Partner and allowing for the payment of approximately $12.2 million in selling commissions and dealer manager fees and $4.8 million in organization and other offering expenses, the Offering generated aggregate net proceeds of approximately $126.8 million. On April 21, 2017, the Company’s Board of Directors approved the termination of the DRIP effective May 15, 2017. Previously, the Company’s stockholders had an option to elect the receipt of shares of the Company’s common stock in lieu of cash distributions under the Company’s DRIP. As a result, all subsequent distributions have been in the form of cash. In addition, through May 15, 2017 (the termination date of the DRIP), the Company had issued approximately 0.3 million shares of common stock under its DRIP, representing approximately $3.2 million of additional proceeds under the Offering. As of June 30, 2019, our Advisor owned 20,000 shares of common stock which were issued on December 24, 2012 for $200,000 or $10.00 per share. The Company’s shares of common stock are not currently listed on a national securities exchange. The Company may seek to list its shares of common stock for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its shares of common stock at this time. The Company does not anticipate that there would be any market for its shares of common stock until they are listed for trading. In the event the Company does not begin the process of achieving a liquidity event prior to the eighth anniversary of the termination of its Offering which occurred on March 31, 2017, its charter requires either (a) an amendment to its charter to extend the deadline to begin the process of achieving a liquidity event, or (b) the holding of a stockholders meeting to vote on a proposal for an orderly liquidation of its portfolio. Noncontrolling Interests Partners of Operating Partnership On July 16, 2014, the Advisor contributed $2,000 to the Operating Partnership in exchange for 200 limited partner units in the Operating Partnership. The limited partner has the right to convert operating partnership units into cash or, at the option of the Company, an equal number of common shares of the Company, as allowed by the limited partnership agreement. Lightstone REIT III invested the proceeds received from the Offering and the Advisor in the Operating Partnership, and as a result, held an approximately 99% general partnership interest as of both June 30, 2019 and December 31, 2018 in the Operating Partnership’s common units. Special Limited Partner In connection with the Company’s Offering, which terminated on March 31, 2017, the Special Limited Partner purchased from the Operating Partnership an aggregate of approximately 242 Subordinated Participation Interests for consideration of $12.1 million. The Subordinated Participation Interests were each purchased for $50,000 in consideration and may be entitled to receive liquidation distributions upon the liquidation of Lightstone REIT III. As the majority owner of the Special Limited Partner, Mr. Lichtenstein is the beneficial owner of a 99% interest in such Subordinated Participation Interests and will thus receive an indirect benefit from any distributions made in respect thereof. These Subordinated Participation Interests will entitle the Special Limited Partner to a portion of any regular and liquidation distributions that the Company makes to stockholders, but only after stockholders have received a stated preferred return. Although the actual amounts are dependent upon results of operations and, therefore, cannot be determined at the present time, distributions to the Special Limited Partner, as holder of the Subordinated Participation Interests, could be substantial. The Advisor and its affiliates and the Special Limited Partner are related parties of the Company. Certain of these entities have and/or will receive compensation for services related to the Offering (which was completed on March 31, 2017) and will continue to receive compensation and services for the investment, management and disposition of our assets. These entities have and/or will receive compensation during the offering, acquisition, operational and liquidation stages. The compensation levels during the offering stage were based on percentages of the offering proceeds raised and the compensation levels during the acquisition and operational stages are based the cost of acquired properties and the annual revenue earned from such properties, and other such fees outlined in each of the respective agreements. See Note 7 – Related Party Transactions for additional information.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The accompanying unaudited interim consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements of the Company and related notes as contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018. The unaudited interim financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair statement of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Value Plus Real Estate Investment Trust 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 consolidated balance sheet as of December 31, 2018 included herein has been derived from the consolidated balance sheet included in the Company's Annual Report on Form 10-K. The unaudited consolidated statements of operations for interim periods are not necessarily indicative of results for the full year or any other period. To qualify or maintain our qualification as a REIT, we engage in certain activities through wholly-owned taxable REIT subsidiaries (“TRS”). As such, we are subject to U.S. federal and state income and franchise taxes from these activities. Revenue The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenues Room $ 8,387,461 $ 9,040,202 $ 15,266,553 $ 16,332,969 Food, beverage and other 402,047 327,471 694,618 621,002 Total revenues $ 8,789,508 $ 9,367,673 $ 15,961,171 $ 16,953,971 Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT III and the Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of June 30, 2019, Lightstone REIT III had an approximate 99% general partnership interest in the common units of the Operating Partnership. 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. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued an accounting standards update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. The standard became effective for the Company on January 1, 2019. The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. The Company did not recognize any right-of-use assets or lease liabilities upon adoption of the standard. The Company does not have any material leases such as ground leases or building leases or any material leases with a term greater than one year. From time to time the Company will enter into immaterial leases for miscellaneous office equipment such as copiers. The resulting right-of-use assets or lease liabilities would be immaterial in the aggregate and are recognized in the period they are incurred as lease expense. The adoption of this standard did not have a material effect on our consolidated financial position or our results of operations. New Accounting Pronouncements The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations.

Investments in Unconsolidated A

Investments in Unconsolidated Affiliated Real Estate Entities	6 Months Ended
	Jun. 30, 2019
Investments in Unconsolidated Affiliated Real Estate Entities
Investments in Unconsolidated Affiliated Real Estate Entities	3. Investments in Unconsolidated Affiliated Real Estate 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 real estate entities is as follows: As of Entity Date of Ownership Ownership % June 30, 2019 December 31, 2018 RP Maximus Cove, L.L.C. (the "Cove Joint Venture") January 31, 2017 22.50 % $ 15,680,402 $ 17,214,909 LVP LIC Hotel JV LLC (the "Hilton Garden Inn Joint Venture") March 27, 2018 50.00 % 12,464,396 12,769,078 Total investments in unconsolidated affiliated real estate entities $ 28,144,798 $ 29,983,987 The Cove Joint Venture On January 31, 2017, the Company, through its wholly owned subsidiary, REIT III COVE LLC along with LSG Cove LLC, an affiliate of the Sponsor and a related party, REIT IV COVE LLC, a wholly owned subsidiary of Lightstone Real Estate Income Trust, Inc. (“Lightstone IV”), a real estate investment trust also sponsored by the Sponsor and a related party and Maximus Cove Investor LLC (“Maximus”), an unrelated third party, completed the acquisition of all of RP Cove, L.L.C’s membership interest in RP Maximus Cove, L.L.C. (the “Cove Joint Venture”) for aggregate consideration of approximately $255.0 million (the “Cove Transaction”). The Cove Joint Venture owns and operates The Cove at Tiburon (“the Cove”), a 281-unit, luxury waterfront multifamily residential property located in Tiburon, California. Prior to entering into The Cove Transaction, Maximus previously owned a separate noncontrolling interest in the Cove Joint Venture. The Company paid approximately $20.0 million for a 22.5% membership interest in the Cove Joint Venture. The Company’s ownership interest in the Cove Joint Venture is a non-managing interest. The Company has determined that the Cove Joint Venture is a variable interest entity but the Company is not the primary beneficiary. The Company accounts for its ownership interest in the Cove Joint Venture in accordance with the equity method of accounting because it exerts significant influence over but does not control the Cove Joint Venture. All capital contributions and distributions of earnings from the Cove Joint Venture are made on a pro rata basis in proportion to each member’s equity interest percentage. Any distributions in excess of earnings from the Cove Joint Venture are made to the members pursuant to the terms of the Cove Joint Venture’s operating agreement. An affiliate of Maximus is the asset manager of the Cove and receives certain fees as defined in the Property Management Agreement for the management of the Cove. The Company commenced recording its allocated portion of profit/loss and cash distributions beginning as of January 31, 2017 with respect to its membership interest of 22.5% in the Cove Joint Venture. Subsequent to the Company’s acquisition through June 30, 2019, the Company has made an aggregate of $2.3 million (including $0.1 million during the six months ended June 30, 2019) of additional capital contributions to the Cove Joint Venture. In connection with the closing of the Cove Transaction, the Cove Joint Venture simultaneously entered into a $175.0 million loan (the “Loan”) which was initially scheduled to mature on January 31, 2020. The Loan required monthly interest payments through its maturity date. The Loan bore interest at Libor plus 3.85%. The Loan was collateralized by the Cove and an affiliate of the Company’s Sponsor (the “Guarantor”) had guaranteed the Cove Joint Venture’s obligation to pay the outstanding balance of the Loan up to approximately $43.8 million (the “Loan Guarantee”). The members had agreed to reimburse the Guarantor for any balance that may become due under the Loan Guarantee, of which the Company’s share was up to approximately $10.9 million. On May 8, 2019, the Cove Joint Venture entered into loans aggregating $180.0 million (the “Cove Loans”). The Cove Loans mature in five years and require monthly interest payments through their maturity dates. The Cove Loans bear interest at a weighted average of LIBOR (with a floor of 2.0%) plus 2.15% and are collateralized by the Cove. The Cove Joint Venture used the proceeds from the Cove Loans to fully repay the Loan. In connection with the refinancing, the Cove Joint Venture incurred a loss on the early extinguishment of debt of approximately $1.5 million during the second quarter of 2019, of which the Company's proportionate share was approximately $0.3 million. The Cove Joint Venture Financial Information The Company’s carrying value of its interest in the Cove Joint Venture differs from its share of member’s equity reported in the condensed balance sheet of the Cove Joint Venture due to the Company’s basis of its investment in excess of the historical net book value of the Cove Joint Venture. The Company’s additional basis allocated to depreciable assets is being recognized on a straight-line basis over the lives of the appropriate assets. The following table represents the unaudited condensed income statements for the Cove Joint Venture: For the For the For the For the Three Months Three Months Six Months Six Months Ended Ended Ended Ended (amounts in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Revenue $ 3,992 $ 3,637 $ 7,685 $ 7,233 Property operating expenses 1,237 1,193 2,477 2,421 General and administrative costs 24 47 66 95 Depreciation and amortization 2,899 2,398 5,736 4,794 Operating loss (168) (1) (594) (77) Loss on debt extinguishment (1,526) — (1,526) — Interest expense and other, net (2,517) (2,741) (5,451) (5,311) Net loss $ (4,211) $ (2,742) $ (7,571) $ (5,388) Company's share of net loss (22.50%) $ (947) $ (617) $ (1,703) $ (1,213) Additional depreciation and amortization expense (1) (10) 103 (20) (76) Company's loss from investment $ (957) $ (514) $ (1,723) $ (1,289) The following table represents the unaudited condensed balance sheets for the Cove Joint Venture: As of As of (amounts in thousands) June 30, 2019 December 31, 2018 Real estate, at cost (net) $ 143,512 $ 148,441 Cash and restricted cash 3,335 2,138 Other assets 1,274 1,810 Total assets $ 148,121 $ 152,389 Mortgage payable, net $ 178,161 $ 174,098 Other liabilities 1,176 2,776 Members' deficit (1) (31,216) (24,485) Total liabilities and members' deficit $ 148,121 $ 152,389 1) The adjustment to depreciation and amortization expense relates to the difference between the Company’s basis in the CoveJoint Venture and the amount of the underlying equity in net assets of the Cove Joint Venture. Hilton Garden Inn Joint Venture On March 27, 2018, the Company and its Sponsor’s other public program, Lightstone Value Plus Real Estate Investment Trust II, Inc. (“Lightstone REIT II”), acquired, through LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”) a 183-room, limited-service hotel located at 29-21 41 st Avenue, Long Island City, New York (the “Hilton Garden Inn - Long Island City”) from an unrelated third party, for aggregate consideration of approximately $60.0 million, which consisted of $25.0 million of cash and $35.0 million of proceeds from a loan from a financial institution, excluding closing and other related transaction costs. The Company and Lightstone REIT II each have 50.0% joint venture ownership interests, respectively, in the Hilton Garden Inn Joint Venture. The Company paid approximately $12.9 million for a 50.0% membership interest in the Hilton Garden Inn Joint Venture. The Company’s ownership interest in the Hilton Garden Inn Joint Venture is a co-managing interest. The Company accounts for its ownership interest in the Hilton Garden Inn Joint Venture in accordance with the equity method of accounting because it exerts significant influence over but does not control the Hilton Garden Inn Joint Venture. All capital contributions and distributions of earnings from the Hilton Garden Inn Joint Venture are made on a pro rata basis in proportion to each member’s equity interest percentage. Any distributions in excess of earnings from the Hilton Garden Inn Joint Venture are made to the members pursuant to the terms of the Hilton Garden Inn Joint Venture’s operating agreement. The Company commenced recording its allocated portion of profit/loss and cash distributions beginning as of March 27, 2018 with respect to its membership interest of 50.0% in the Hilton Garden Inn Joint Venture. During the six months ended June 30, 2019, the Company received distributions from the Hilton Garden Inn Joint Venture aggregating $0.1 million. Subsequent to the Company’s acquisition through June 30, 2019, the Company has made an aggregate of $0.7 million (including $0.1 million during the six months ended June 30, 2019) of additional capital contributions to the Hilton Garden Inn Joint Venture. Hilton Garden Inn Joint Venture Financial Information The following table represents the condensed income statement for the Hilton Garden Inn Joint Venture for the period indicated: For the For the For the For the Three Months Three Months Six Months Six Months Ended Ended Ended Ended (amounts in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Revenues $ 3,086 $ 3,015 $ 5,094 $ 3,185 Property operating expenses 1,765 1,902 3,270 1,971 General and administrative costs (22) 2 (22) 2 Depreciation and amortization 627 635 1,269 635 Operating income 716 476 577 577 Interest expense (520) (463) (1,026) (488) Net (loss)/income $ 196 $ 13 $ (449) $ 89 Company's share of net (loss)/income (50.00%) $ 98 $ 7 $ (225) $ 45 The following table represents the condensed balance sheet for the Hilton Garden Inn Joint Venture: As of As of (amounts in thousands) June 30, 2019 December 31, 2018 Investment property, net $ 57,716 $ 58,799 Cash 927 554 Other assets 1,524 1,218 Total assets $ 60,167 $ 60,571 Mortgage payable, net $ 34,793 $ 34,766 Other liabilities 1,045 867 Members' capital 24,329 24,938 Total liabilities and members' capital $ 60,167 $ 60,571

Marketable Securities and Fair

Marketable Securities and Fair Value Measurements	6 Months Ended
	Jun. 30, 2019
Marketable Securities and Fair Value Measurements
Marketable Securities and Fair Value Measurements	4. Marketable Securities and Fair Value Measurements Marketable Securities The following is a summary of the Company’s available for sale securities as of the dates indicated: As of June 30, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 3,138,526 $ 5,079 $ (203,819) $ 2,939,786 As of December 31, 2018 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 4,158,515 $ — $ (450,292) $ 3,708,223 When evaluating the investments for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and any changes thereto, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of the investment’s amortized cost basis. As of June 30, 2019, the Company did not recognize any impairment charges. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: · Level 1 – Quoted prices in active markets for identical assets or liabilities. · Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of June 30, 2019 and December 31, 2018, all of the Company’s debt securities and were classified as Level 2 assets and there were no transfers between the level classifications during the six months ended June 30, 2019. The fair values of the Company’s investments in Corporate Bonds are measured using readily available quoted prices for similar assets. The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: As of June 30, 2019 Due in 1 year $ 220,015 Due in 1 year through 5 years 2,176,021 Due in 5 year through 10 years — Due after 10 years 543,750 Total $ 2,939,786 The Company did not have any other significant financial assets or liabilities, which would require revised valuations that are recognized at fair value.

Mortgages payable, net

Mortgages payable, net	6 Months Ended
	Jun. 30, 2019
Mortgages payable, net
Mortgage payable, net	5. Mortgages payable, net Mortgages payable, net consists of the following: Weighted Average Interest Rate Interest as of Maturity Amount Due As of As of Description Rate June 30, 2019 Date at Maturity June 30, 2019 December 31, 2018 Revolving Credit Facility, secured by seven properties LIBOR + 3.50 % 5.98 % September 2019 $ 52,159,414 $ 52,159,414 $ 52,159,414 Promissory Note, secured by two properties 4.73 % 4.73 % October 2021 26,127,572 27,230,141 27,462,575 Total mortgages payable 5.55 % $ 78,286,986 79,389,555 79,621,989 Less: Deferred financing costs (82,830) (285,182) Total mortgage payable, net $ 79,306,725 $ 79,336,807 Revolving Credit Facility On July 13, 2016, the Company, through certain subsidiaries, entered into a nonrecourse revolving credit facility (the “Revolving Credit Facility”) with a bank. The Revolving Credit Facility initially bore interest at Libor plus 4.95% and provided a line of credit of up to $60.0 million over three years, with two, one-year options to extend solely at the discretion of the bank. Interest is payable monthly and the entire unpaid principal balance is due upon expiration of the Revolving Credit Facility. On June 19, 2018, the Company made a required principal payment of $7.4 million on the Revolving Credit Facility and the lender reduced the interest rate to Libor plus 3.50 % from Libor plus 4.95 %. Under the terms of the Revolving Credit Facility, the Company could designate properties as collateral that allowed it to borrow up to a 65.0% loan-to-value ratio of the properties and also subject to meeting certain financial covenants, including a prescribed minimum debt yield. As of June 30, 2019, the Company had pledged seven of its hotel properties as collateral under the Revolving Credit Facility. The Revolving Credit Facility (outstanding principal balance of $52.2 million as of June 30, 2019) was initially scheduled to mature on July 11, 2019 but on July 1, 2019 was further extended an additional 60 days to September 11, 2019. During the 60-day extension period, the Revolving Credit Facility will bear interest at Libor plus 3.15%. The Company and the existing lender are in the process of finalizing a new facility to replace the Revolving Credit Facility on or before the extended maturity date. Principal Maturities The following table, based on the initial terms of the mortgage, sets forth their aggregate estimated contractual principal maturities, including balloon payments due at maturity, as of June 30, 2019: 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 52,393,851 $ 486,092 $ 26,509,612 $ — $ — $ — $ 79,389,555 Less: Deferred financing costs (82,830) Total principal maturiteis, net $ 79,306,725 Debt Compliance Pursuant to the Company’s debt agreements, approximately $2.1 million and $1.7 million was held in restricted cash accounts as of June 30, 2019 and December 31, 2018, respectively. Such escrows are subject to release in accordance with the applicable debt agreement for the payment of real estate taxes, insurance and capital improvements, as required. Certain of our debt agreements contain clauses providing for prepayment penalties and requiring the maintenance of certain ratios including debt service coverage and fixed leverage charge ratio. The Company is currently in compliance with respect to all of its financial debt covenants.

Earnings per Share

Earnings per Share	6 Months Ended
	Jun. 30, 2019
Earnings per Share
Earnings per Share	6. 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	6 Months Ended
	Jun. 30, 2019
Related Party Transactions
Related Party Transactions	7. Related Party Transactions Due to related parties and other transactions In addition to certain agreements with the Sponsor (see Note 1), 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. 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: For the For the Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Acquisition Fees (1) $ — $ — $ — $ 300,000 Development fees (2) 4,954 — 4,954 51,419 Asset Management Fees (general and administrative costs) 457,214 438,392 910,782 824,732 Total $ 462,168 $ 438,392 $ 915,736 $ 1,176,151 (1) (2)

Financial Instruments

Financial Instruments	6 Months Ended
	Jun. 30, 2019
Financial Instruments
Financial Instruments	8. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash, accounts receivable and other assets, accounts payable and other accrued expenses and due to/from related parties approximated their fair values because of the short maturity of these instruments. The estimated fair value of our mortgages payable is as follows: As of June 30, 2019 As of December 31, 2018 Estimated Estimated Carrying Fair Carrying Fair Amount Value Amount Value Mortgages payable $ 79,389,555 $ 79,011,329 $ 79,621,989 $ 78,692,677 The fair value of our mortgages payable was determined by discounting the future contractual interest and principal payments by market interest rates.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies.
Commitments and Contingencies	9. Commitments and Contingencies Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. As of the date hereof, we are not a party to any material pending legal proceedings.

Distributions

Distributions	6 Months Ended
	Jun. 30, 2019
Distributions
Distributions	10. Distributions On June 19, 2019, our Board of Directors determined to suspend regular monthly distributions. Previously, distributions in an amount equal to a 6.0% annualized rate were declared on a monthly basis beginning on January 14, 2015 through June 30, 2019 and were paid on or about the 15th day following each month end. Future distributions declared will be at the discretion of the Board of Directors based on their analysis of our performance over the previous periods and expectations of performance for future periods and may differ from the amount of the distribution determined for this period. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, current revenues, operating and interest expenses and our ability to refinance near-term debt. In addition, the Company currently intends to continue to comply with the REIT distribution requirement that it annually distribute no less than 90% of its taxable income. The Company cannot assure that regular distributions will continue to be made or that it will maintain any particular level of distributions that it has established or may establish. On May 15, 2019, June 15, 2019 and July 16, 2019, the Company paid distributions for the months ended April 30, 2019, May 31, 2019 and June 30, 2019, respectively, totaling $2.0 million. The distributions were paid in cash.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
Revenue	Revenue The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenues Room $ 8,387,461 $ 9,040,202 $ 15,266,553 $ 16,332,969 Food, beverage and other 402,047 327,471 694,618 621,002 Total revenues $ 8,789,508 $ 9,367,673 $ 15,961,171 $ 16,953,971
Principles of Consolidation and Basis of Presentation	Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of Lightstone REIT III and the Operating Partnership and its subsidiaries (over which the Company exercises financial and operating control). As of June 30, 2019, Lightstone REIT III had an approximate 99% general partnership interest in the common units of the Operating Partnership. 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.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board issued an accounting standards update (“ASU”) that amends the existing lease accounting guidance and requires lessees to recognize a lease liability and a right-of-use asset for all leases on their balance sheets. Lessees of operating leases will continue to recognize lease expense in a manner similar to current accounting. The standard became effective for the Company on January 1, 2019. The Company elected the following package of practical expedients provided by the standard: (i) an entity need not reassess whether any expired or existing contract is a lease or contains a lease, (ii) an entity need not reassess the lease classification of any expired or existing leases, and (iii) an entity need not reassess initial direct costs for any existing leases. The Company also elected the short-term lease exception provided for in the standard and therefore will only recognize right-of-use assets and lease liabilities for leases with a term greater than one year. The Company did not recognize any right-of-use assets or lease liabilities upon adoption of the standard. The Company does not have any material leases such as ground leases or building leases or any material leases with a term greater than one year. From time to time the Company will enter into immaterial leases for miscellaneous office equipment such as copiers. The resulting right-of-use assets or lease liabilities would be immaterial in the aggregate and are recognized in the period they are incurred as lease expense. The adoption of this standard did not have a material effect on our consolidated financial position or our results of operations.
New Accounting Pronouncements	New Accounting Pronouncements The Company has reviewed and determined that other recently issued accounting pronouncements will not have a material impact on its financial position, results of operations and cash flows, or do not apply to its current operations.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
Revenues From Hotel Operations	The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Ended For the Six Months Ended June 30, June 30, 2019 2018 2019 2018 Revenues Room $ 8,387,461 $ 9,040,202 $ 15,266,553 $ 16,332,969 Food, beverage and other 402,047 327,471 694,618 621,002 Total revenues $ 8,789,508 $ 9,367,673 $ 15,961,171 $ 16,953,971

Investments in Unconsolidated_2

Investments in Unconsolidated Affiliated Real Estate Entities (Tables)	6 Months Ended
	Jun. 30, 2019
Investment in Unconsolidated Affiliated Entity	A summary of the Company’s investments in the unconsolidated affiliated real estate entities is as follows: As of Entity Date of Ownership Ownership % June 30, 2019 December 31, 2018 RP Maximus Cove, L.L.C. (the "Cove Joint Venture") January 31, 2017 22.50 % $ 15,680,402 $ 17,214,909 LVP LIC Hotel JV LLC (the "Hilton Garden Inn Joint Venture") March 27, 2018 50.00 % 12,464,396 12,769,078 Total investments in unconsolidated affiliated real estate entities $ 28,144,798 $ 29,983,987
RP Maximus Cove LLC [Member]
Condensed Income Statement	The following table represents the unaudited condensed income statements for the Cove Joint Venture: For the For the For the For the Three Months Three Months Six Months Six Months Ended Ended Ended Ended (amounts in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Revenue $ 3,992 $ 3,637 $ 7,685 $ 7,233 Property operating expenses 1,237 1,193 2,477 2,421 General and administrative costs 24 47 66 95 Depreciation and amortization 2,899 2,398 5,736 4,794 Operating loss (168) (1) (594) (77) Loss on debt extinguishment (1,526) — (1,526) — Interest expense and other, net (2,517) (2,741) (5,451) (5,311) Net loss $ (4,211) $ (2,742) $ (7,571) $ (5,388) Company's share of net loss (22.50%) $ (947) $ (617) $ (1,703) $ (1,213) Additional depreciation and amortization expense (1) (10) 103 (20) (76) Company's loss from investment $ (957) $ (514) $ (1,723) $ (1,289)
Condensed Balance Sheet	The following table represents the unaudited condensed balance sheets for the Cove Joint Venture: As of As of (amounts in thousands) June 30, 2019 December 31, 2018 Real estate, at cost (net) $ 143,512 $ 148,441 Cash and restricted cash 3,335 2,138 Other assets 1,274 1,810 Total assets $ 148,121 $ 152,389 Mortgage payable, net $ 178,161 $ 174,098 Other liabilities 1,176 2,776 Members' deficit (1) (31,216) (24,485) Total liabilities and members' deficit $ 148,121 $ 152,389 1) The adjustment to depreciation and amortization expense relates to the difference between the Company’s basis in the CoveJoint Venture and the amount of the underlying equity in net assets of the Cove Joint Venture.
Hilton Garden Inn [Member]
Condensed Income Statement	The following table represents the condensed income statement for the Hilton Garden Inn Joint Venture for the period indicated: For the For the For the For the Three Months Three Months Six Months Six Months Ended Ended Ended Ended (amounts in thousands) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Revenues $ 3,086 $ 3,015 $ 5,094 $ 3,185 Property operating expenses 1,765 1,902 3,270 1,971 General and administrative costs (22) 2 (22) 2 Depreciation and amortization 627 635 1,269 635 Operating income 716 476 577 577 Interest expense (520) (463) (1,026) (488) Net (loss)/income $ 196 $ 13 $ (449) $ 89 Company's share of net (loss)/income (50.00%) $ 98 $ 7 $ (225) $ 45
Condensed Balance Sheet	The following table represents the condensed balance sheet for the Hilton Garden Inn Joint Venture: As of As of (amounts in thousands) June 30, 2019 December 31, 2018 Investment property, net $ 57,716 $ 58,799 Cash 927 554 Other assets 1,524 1,218 Total assets $ 60,167 $ 60,571 Mortgage payable, net $ 34,793 $ 34,766 Other liabilities 1,045 867 Members' capital 24,329 24,938 Total liabilities and members' capital $ 60,167 $ 60,571

Marketable Securities and Fai_2

Marketable Securities and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2019
Marketable Securities and Fair Value Measurements
Schedule of Available-for-sale Securities Reconciliation	The following is a summary of the Company’s available for sale securities as of the dates indicated: As of June 30, 2019 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 3,138,526 $ 5,079 $ (203,819) $ 2,939,786 As of December 31, 2018 Gross Gross Unrealized Unrealized Adjusted Cost Gains Losses Fair Value Debt securities: Corporate Bonds $ 4,158,515 $ — $ (450,292) $ 3,708,223
Available-for-sale Securities	The following table summarizes the estimated fair value of our investments in marketable debt securities with stated contractual maturity dates, accounted for as available-for-sale securities and classified by the contractual maturity date of the securities: As of June 30, 2019 Due in 1 year $ 220,015 Due in 1 year through 5 years 2,176,021 Due in 5 year through 10 years — Due after 10 years 543,750 Total $ 2,939,786

Mortgages payable, net (Tables)

Mortgages payable, net (Tables)	6 Months Ended
	Jun. 30, 2019
Mortgages payable, net
Mortgages Payable, Net	Mortgages payable, net consists of the following: Weighted Average Interest Rate Interest as of Maturity Amount Due As of As of Description Rate June 30, 2019 Date at Maturity June 30, 2019 December 31, 2018 Revolving Credit Facility, secured by seven properties LIBOR + 3.50 % 5.98 % September 2019 $ 52,159,414 $ 52,159,414 $ 52,159,414 Promissory Note, secured by two properties 4.73 % 4.73 % October 2021 26,127,572 27,230,141 27,462,575 Total mortgages payable 5.55 % $ 78,286,986 79,389,555 79,621,989 Less: Deferred financing costs (82,830) (285,182) Total mortgage payable, net $ 79,306,725 $ 79,336,807
Schedule of Maturities of Long-term Debt	The following table, based on the initial terms of the mortgage, sets forth their aggregate estimated contractual principal maturities, including balloon payments due at maturity, as of June 30, 2019: 2019 2020 2021 2022 2023 Thereafter Total Principal maturities $ 52,393,851 $ 486,092 $ 26,509,612 $ — $ — $ — $ 79,389,555 Less: Deferred financing costs (82,830) Total principal maturiteis, net $ 79,306,725

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2019
Related Party Transactions
Schedule of Related Party Transactions	The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: For the For the Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Acquisition Fees (1) $ — $ — $ — $ 300,000 Development fees (2) 4,954 — 4,954 51,419 Asset Management Fees (general and administrative costs) 457,214 438,392 910,782 824,732 Total $ 462,168 $ 438,392 $ 915,736 $ 1,176,151 (1) (2)

Financial Instruments (Tables)

Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2019
Financial Instruments
Schedule Of Mortgage Payable	The estimated fair value of our mortgages payable is as follows: As of June 30, 2019 As of December 31, 2018 Estimated Estimated Carrying Fair Carrying Fair Amount Value Amount Value Mortgages payable $ 79,389,555 $ 79,011,329 $ 79,621,989 $ 78,692,677

Organization (Details)

Organization (Details) - USD ($)	May 15, 2017	Mar. 31, 2017	Jul. 16, 2014	Mar. 31, 2017	Jun. 30, 2019	Dec. 31, 2018	Jul. 15, 2014
Organization Consolidation And Presentation Of Financial Statements [Line Items]
General partner ownership interest					99.00%
Common Stock, Par Value					$ 0.01	$ 0.01	$ 0.01
Issuance of Subordinated Participation Interest for Each Partner		$ 50,000		$ 50,000
Stock Issued During Period, Shares, Dividend Reinvestment Plan	300,000
Proceeds from Issuance of Common Stock, Dividend Reinvestment Plan	$ 3,200,000
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
Proceeds from Contributions from Affiliates		12,200,000
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs		12,100,000
Payments of Stock Issuance Costs		4,800,000
Proceeds from Issuance Initial Public Offering		$ 126,800,000
Distribution Reinvestment Plan [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Shares reserved for issuance							10,000,000
Shares issued, price per share							$ 9.50
Lightstone Value Plus REIT III LLC [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Issuance of common shares, shares		13,400,000			20,000
Issuance of common shares, value		$ 131,700,000			$ 200,000
Shares issued, price per share					$ 10
General partner ownership interest					99.00%	99.00%
Company owned by David Lichtenstein [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Shares reserved for issuance, price per share		$ 9		$ 9
Issuance of common shares, value		$ 2,000,000
Equity Method investment ,Percentage of Maximum Offering cost		100.00%
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]
Partners' Capital Account, Contributions				$ 12,100,000
Partners' Capital Account, Units, Contributed				242

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Summary of total revenues from hotel operations on a disaggregated basis (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Total revenues	$ 8,789,508	$ 9,367,673	$ 15,961,171	$ 16,953,971
Room [Member]
Total revenues	8,387,461	9,040,202	15,266,553	16,332,969
Food, beverage and other [Member]
Total revenues	$ 402,047	$ 327,471	$ 694,618	$ 621,002

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Additional Information (Details)	6 Months Ended
	Jun. 30, 2019
Summary of Significant Accounting Policies
General partner ownership interest	99.00%

Investments in Unconsolidated_3

Investments in Unconsolidated Affiliated Real Estate Entities - Summary of investments in the unconsolidated affiliated real estate entities (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Schedule of Equity Method Investments [Line Items]
Total investments in unconsolidated affiliated real estate entities	$ 28,144,798	$ 29,983,987
RP Maximus Cove LLC [Member]
Schedule of Equity Method Investments [Line Items]
Business Acquisition, Date of Acquisition Agreement	Jan. 31, 2017
Ownership Percentage	22.50%
Total investments in unconsolidated affiliated real estate entities	$ 15,680,402	17,214,909
LVP LIC Hotel JV LLC [Member]
Schedule of Equity Method Investments [Line Items]
Business Acquisition, Date of Acquisition Agreement	Mar. 27, 2018
Ownership Percentage	50.00%
Total investments in unconsolidated affiliated real estate entities	$ 12,464,396	$ 12,769,078

Investments in Unconsolidated_4

Investments in Unconsolidated Affiliated Real Estate Entities - Summary of unaudited condensed income statements for the Cove Joint Venture (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Schedule of Equity Method Investments [Line Items]
Company's loss from investment	$ (859,630)	$ (507,281)	$ (1,948,380)	$ (1,244,609)
Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Revenues	3,086,000	3,015,000	5,094,000	3,185,000
Property operating expenses	1,765,000	1,902,000	3,270,000	1,971,000
General and administrative costs	(22,000)	2,000	(22,000)	2,000
Depreciation and amortization	627,000	635,000	1,269,000	635,000
Operating (loss)/income	716,000	476,000	577,000	577,000
Interest expense and other, net	(520,000)	(463,000)	(1,026,000)	(488,000)
Net loss	196,000	13,000	(449,000)	89,000
Company's share of net loss	98,000	7,000	(225,000)	45,000
RP Maximus Cove LLC [Member]
Schedule of Equity Method Investments [Line Items]
Revenues	3,992,000	3,637,000	7,685,000	7,233,000
Property operating expenses	1,237,000	1,193,000	2,477,000	2,421,000
General and administrative costs	24,000	47,000	66,000	95,000
Depreciation and amortization	2,899,000	2,398,000	5,736,000	4,794,000
Operating (loss)/income	(168,000)	(1,000)	(594,000)	(77,000)
Loss on debt extinguishment	(1,526,000)		(1,526,000)
Interest expense and other, net	(2,517,000)	(2,741,000)	(5,451,000)	(5,311,000)
Net loss	(4,211,000)	(2,742,000)	(7,571,000)	(5,388,000)
Company's share of net loss	(947,000)	(617,000)	(1,703,000)	(1,213,000)
Additional depreciation and amortization expense	(10,000)	103,000	(20,000)	(76,000)
Company's loss from investment	$ (957,000)	$ (514,000)	$ (1,723,000)	$ (1,289,000)

Investments in Unconsolidated_5

Investments in Unconsolidated Affiliated Real Estate Entities - Summary of unaudited condensed balance sheets for the Cove Joint Venture (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Members' capital (deficit)		$ 24,329	$ 24,938
Total liabilities and members' deficit		60,167	60,571
Real Estate [Member] | Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Total assets		57,716	58,799
Cash and restricted cash [Member] | Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Total assets		927	554
Other Assets [Member] | Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Total assets		1,524	1,218
Total assets [Member] | Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Total assets		60,167	60,571
Mortgage payable [Member] | Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Other liabilities		34,793	34,766
Other Liabilities [Member] | Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Other liabilities		1,045	867
RP Maximus Cove LLC [Member]
Schedule of Equity Method Investments [Line Items]
Members' capital (deficit)	[1]	(31,216)	(24,485)
Total liabilities and members' deficit		148,121	152,389
RP Maximus Cove LLC [Member] | Real Estate [Member]
Schedule of Equity Method Investments [Line Items]
Total assets		143,512	148,441
RP Maximus Cove LLC [Member] | Cash and restricted cash [Member]
Schedule of Equity Method Investments [Line Items]
Total assets		3,335	2,138
RP Maximus Cove LLC [Member] | Other Assets [Member]
Schedule of Equity Method Investments [Line Items]
Total assets		1,274	1,810
RP Maximus Cove LLC [Member] | Total assets [Member]
Schedule of Equity Method Investments [Line Items]
Total assets		148,121	152,389
RP Maximus Cove LLC [Member] | Mortgage payable [Member]
Schedule of Equity Method Investments [Line Items]
Other liabilities		178,161	174,098
RP Maximus Cove LLC [Member] | Other Liabilities [Member]
Schedule of Equity Method Investments [Line Items]
Other liabilities		$ 1,176	$ 2,776
[1]	The adjustment to depreciation and amortization expense relates to the difference between the Company’s basis in the CoveJoint Venture and the amount of the underlying equity in net assets of the Cove Joint Venture.

Investments in Unconsolidated_6

Investments in Unconsolidated Affiliated Real Estate Entities - Additional Information (Details) - USD ($)	May 08, 2019	Jan. 31, 2017	Jun. 30, 2019	Jun. 30, 2019	Mar. 27, 2019	Jul. 01, 2019	Dec. 31, 2018	Mar. 27, 2018
Schedule of Equity Method Investments [Line Items]
Debt Instrument, Term	5 years
Guarantor Obligations, Current Carrying Value		$ 43,800,000
Debt Instrument, Description of Variable Rate Basis		The Loan bore interest at Libor plus 3.85%.
Additional Paid in Capital			$ 114,688,187	$ 114,688,187			$ 115,380,181
Joint Venture Investment Property Description		The Cove Joint Venture owns and operates The Cove at Tiburon ("the Cove"), a 281-unit, luxury waterfront multifamily residential property located in Tiburon, California. Prior to entering into The Cove Transaction, Maximus previously owned a separate noncontrolling interest in the Cove Joint Venture.
Cove Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Face amount	$ 180,000,000
Debt Instrument, Description of Variable Rate Basis	LIBOR (with a floor of 2.0%) plus 2.15%
Additional Paid in Capital			100,000	100,000		$ 2,300,000
Debt Instrument, Interest Rate, Stated Percentage	2.00%
Parent Company [Member]
Schedule of Equity Method Investments [Line Items]
Guarantor Obligations, Current Carrying Value		$ 10,900,000
Cove Transaction [Member]
Schedule of Equity Method Investments [Line Items]
Aggregate purchase price		255,000,000
Cove Transaction [Member] | Parent Company [Member]
Schedule of Equity Method Investments [Line Items]
Offering funds used in acquisition		$ 20,000,000
Business Acquisition, Percentage of Voting Interests Acquired		22.50%
Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Aggregate purchase price					$ 60,000,000
Offering funds used in acquisition					25,000,000
Proceeds from Issuance of Debt					35,000,000
Business Acquisition, Percentage of Voting Interests Acquired								50.00%
Hilton Garden Inn [Member] | Parent Company [Member]
Schedule of Equity Method Investments [Line Items]
Aggregate purchase price				100,000
Offering funds used in acquisition					$ 12,900,000
Business Acquisition, Percentage of Voting Interests Acquired								50.00%
Loan [Member]
Schedule of Equity Method Investments [Line Items]
Face amount		$ 175,000,000
Debt Instrument, Maturity Date		Jan. 31, 2020
Loss on debt extinguishment			300,000
Loan [Member] | Cove Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Loss on debt extinguishment			1,500,000
Hilton Garden Inn Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Additional Paid in Capital			$ 100,000	$ 100,000		$ 700,000

Marketable Securities and Fai_3

Marketable Securities and Fair Value Measurements - Summary of the Company's available for sale securities (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Debt securities, Fair Value	$ 2,939,786	$ 3,708,223
Corporate Bonds [Member]
Debt securities, Adjusted Cost	3,138,526	4,158,515
Debt securities, Gross Unrealized Gains	5,079	0
Debt securities, Gross Unrealized Losses	(203,819)	(450,292)
Debt securities, Fair Value	$ 2,939,786	$ 3,708,223

Marketable Securities and Fai_4

Marketable Securities and Fair Value Measurements - Estimated fair value of our investments in marketable debt securities (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Marketable Securities and Fair Value Measurements
Due in 1 year	$ 220,015
Due in 1 year through 5 years	2,176,021
Due in 5 year through 10 years	0
Due after 10 years	543,750
Total	$ 2,939,786	$ 3,708,223

Mortgages payable, net - Summar

Mortgages payable, net - Summary of Mortgages payable, net (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Total mortgages payable	$ 79,389,555	$ 79,621,989
Less: Deferred financing costs	(82,830)	(285,182)
Total mortgages payable, net	$ 79,306,725	79,336,807
Weighted Average Interest Rate	5.55%
Amount Due at Maturity	$ 78,286,986
Revolving Credit Facility [Member]
Total mortgages payable	$ 52,159,414	52,159,414
Interest Rate	LIBOR + 3.50
Weighted Average Interest Rate	5.98%
Maturity Date	September 2019
Amount Due at Maturity	$ 52,159,414
Promissory Note [Member]
Total mortgages payable	$ 27,230,141	$ 27,462,575
Interest Rate	4.73%
Weighted Average Interest Rate	4.73%
Maturity Date	October 2021
Amount Due at Maturity	$ 26,127,572

Mortgages payable, net - Summ_2

Mortgages payable, net - Summary of principal maturities (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Mortgages payable, net
2019	$ 52,393,851
2020	486,092
2021	26,509,612
2022	0
2023	0
Thereafter	0
Principal maturities	79,389,555	$ 79,621,989
Less: Deferred financing costs	(82,830)	(285,182)
Total mortgages payable, net	$ 79,306,725	$ 79,336,807

Mortgages payable, net - Additi

Mortgages payable, net - Additional Information (Details) $ in Millions	Jul. 01, 2019	Jul. 13, 2016USD ($)	Jun. 19, 2018USD ($)	Jun. 30, 2019USD ($)property	Dec. 31, 2018USD ($)
Debt Instrument, Basis Spread on Variable Rate	3.15%
Line of Credit Facility, Maximum Amount Outstanding During Period				$ 52.2
Number of Hotel Properties Pledged as Collateral | property				7
Additional extended period	60 days
Spread	3.15%
Revolving Credit Facility [Member]
Escrow Deposits Related to Debt Compliance				$ 2.1	$ 1.7
Debt Instrument, Basis Spread on Variable Rate			3.50%	4.95%
Repayments of Secured Debt			$ 7.4
Line of Credit Facility, Maximum Borrowing Capacity		$ 60
Line of Credit Facility, Interest Rate Description		Libor plus 4.95%
Line Of Credit Facility Current Borrowing Capacity Percentage		65.00%
Spread			3.50%	4.95%

Related Party Transactions - Su

Related Party Transactions - Summary of fees incurred associated with the payments (Details) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Related Party Transaction [Line Items]
Acquisition fees	[1]				$ 300,000
Development fees	[2]	$ 4,954,000		$ 4,954	51,419
Advisor [Member]
Related Party Transaction [Line Items]
Asset Management Fees (general and administrative costs)		457,214,000	$ 438,392,000	910,782	824,732
Total		$ 462,168,000	$ 438,392,000	$ 915,736	$ 1,176,151
[1]	Acquisition fees of $300,000 were capitalized and are reflected in the carrying value of our investment in the Hilton Garden Inn Joint Venture which is included in investments in unconsolidated affiliated real estate entities on the consolidated balance sheets.
[2]	Generally, capitalized and amortized over the estimated useful life of the associated asset.

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details)	Jun. 30, 2019USD ($)
Hilton Garden Inn Joint Venture [Member]
Related Party Transaction [Line Items]
Business Acquisition, Transaction Costs	$ 300,000

Financial Instruments - Summary

Financial Instruments - Summary of estimated fair value of our mortgages payable (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018
Financial Instruments
Mortgages payable, Carrying Amount	$ 79,389,555	$ 79,621,989
Mortgages payable, Estimated Fair Value	$ 79,011,329	$ 78,692,677

Distributions - Additional Info

Distributions - Additional Information (Details) - USD ($)	1 Months Ended			3 Months Ended		6 Months Ended
	Jun. 30, 2019	May 31, 2019	Apr. 30, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Distributions [Line Items]
Distribution paid						$ 4,007,239	$ 4,065,326
Annual distribution (in dollars per share)				$ 0.15	$ 0.15	$ 0.30	$ 0.30
Annualized rate (as a percent)						6.00%
Dividend Paid [Member]
Distributions [Line Items]
Distribution paid	$ 2,000,000	$ 2,000,000	$ 2,000,000