Lightstone Value Plus REIT III (LVVR) 10-Q 13 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 10, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
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 Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	MD
Entity File Number	000-55619
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		13,200,000
Entity Shell Company	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Small Business	true

CONSOLIDATED BALANCE SHEETS (Un

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Investment property:
Land and improvements	$ 21,662,328	$ 21,662,328
Building and improvements	91,775,860	91,764,252
Furniture and fixtures	16,217,882	16,214,763
Construction in progress	38,516	10,900
Gross investment property	129,694,586	129,652,243
Less accumulated depreciation	(23,847,507)	(22,588,429)
Net investment property	105,847,079	107,063,814
Investments in unconsolidated affiliated real estate entities	10,416,310	10,663,655
Cash and cash equivalents	25,577,902	26,998,685
Marketable securities, available for sale	1,811,361	3,226,853
Restricted cash	3,196,223	2,972,561
Accounts receivable and other assets	1,572,357	1,352,047
Total Assets	148,421,232	152,277,615
Liabilities and Stockholders' Equity
Accounts payable and other accrued expenses	2,667,422	2,442,210
Mortgages payable, net	60,797,067	64,754,449
Due to related parties	3,319,180	1,450,230
Distributions payable	292,621	292,447
Total liabilities	67,076,290	68,939,336
Commitments and Contingencies
Company's stockholders' equity:
Preferred stock, $0.01 par value; 50.0 million shares authorized, none issued and outstanding	0	0
Common stock, $0.01 par value; 200.0 million shares authorized, 13.2 million shares issued and outstanding	132,298	132,298
Additional paid-in-capital	113,205,240	113,205,240
Accumulated other comprehensive loss	(114,151)	(221,217)
Accumulated deficit	(43,970,499)	(41,870,122)
Total Company stockholders' equity	69,252,888	71,246,199
Noncontrolling interests	12,092,054	12,092,080
Total Stockholders' Equity	81,344,942	83,338,279
Total Liabilities and Stockholders' Equity	$ 148,421,232	$ 152,277,615

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
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	13,200,000	13,200,000
Common Stock, shares outstanding	13,200,000	13,200,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Income Statement [Abstract]
Revenues	$ 3,710,545	$ 5,276,400
Expenses:
Property operating expenses	2,665,481	4,009,180
Real estate taxes	369,300	376,117
General and administrative costs	633,610	698,698
Depreciation and amortization	1,275,148	1,272,082
Total operating expenses	4,943,539	6,356,077
Operating loss	(1,232,994)	(1,079,677)
Interest expense	(670,165)	(839,827)
Loss from investments in unconsolidated affiliated real estate entities	(247,344)	(612,813)
Gain on disposition of investment in unconsolidated affiliated real estate entity	0	7,876,639
Other income, net	50,099	96,790
Net (loss)/income	(2,100,404)	5,441,112
Less: net loss/(income) attributable to noncontrolling interests	27	(82)
Net (loss)/income applicable to Company's common shares	$ (2,100,377)	$ 5,441,030
Net (loss)/income per Company's common shares, basic and diluted	$ (0.16)	$ 0.41
Weighted average number of common shares outstanding, basic and diluted	13,229,791	13,244,817

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Statement of Other Comprehensive Income [Abstract]
Net (loss)/income	$ (2,100,404)	$ 5,441,112
Other comprehensive income/(loss):
Holding gain/(loss) on marketable securities, available for sale	84,562	(504,887)
Reclassification adjustment for loss included in net loss	22,505	0
Other comprehensive income/(loss)	107,067	(504,887)
Comprehensive (loss)/income	(1,993,337)	4,936,225
Less: Comprehensive income attributable to noncontrolling interests	(26)	(74)
Comprehensive (loss)/income attributable to the Company's common shares	$ (1,993,363)	$ 4,936,151

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid In Capital [Member]	Accumulated Other Comprehensive loss [Member]	Accumulated Deficit [Member]	Total Noncontrolling Interest [Member]	Total
BALANCE at Dec. 31, 2019	$ 133,102	$ 114,002,133	$ (78,676)	$ (38,983,377)	$ 12,092,112	$ 87,165,294
BALANCE (in shares) at Dec. 31, 2019	13,310,227
Net loss				5,441,030	82	5,441,112
Other comprehensive income			(504,879)		(8)	(504,887)
Redemption and cancellation of shares	$ (804)	(796,893)				(797,697)
Redemption and cancellation of shares (in shares)	(80,436)
BALANCE at Mar. 31, 2020	$ 132,298	113,205,240	(583,555)	(33,542,347)	12,092,186	91,303,822
BALANCE (in shares) at Mar. 31, 2020	13,229,791
BALANCE at Dec. 31, 2020	$ 132,298	113,205,240	(221,217)	(41,870,122)	12,092,080	83,338,279
BALANCE (in shares) at Dec. 31, 2020	13,229,791
Net loss				(2,100,377)	(27)	(2,100,404)
Other comprehensive income			107,066		1	107,067
BALANCE at Mar. 31, 2021	$ 132,298	$ 113,205,240	$ (114,151)	$ (43,970,499)	$ 12,092,054	$ 81,344,942
BALANCE (in shares) at Mar. 31, 2021	13,229,791

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)/income	$ (2,100,404)	$ 5,441,112
Adjustments to reconcile net (loss)/income to net cash used in operating activities:
Loss from investments in unconsolidated affiliated real estate entities	247,344	612,813
Depreciation and amortization	1,275,148	1,272,082
Amortization of deferred financing costs	29,996	45,232
Gain on disposition of investment in unconsolidated affiliated entity	0	(7,876,639)
Other non-cash adjustments	26,491	19,529
Changes in assets and liabilities:
Increase in accounts receivable and other assets	(240,147)	(196,874)
Increase/(decrease) in accounts payable and other accrued expenses	225,212	(157,311)
Increase/(decrease) in due to related parties	174	(72,078)
Net cash used in operating activities	(536,186)	(912,134)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(42,344)	(139,630)
Purchase of marketable securities	(163)	(28,686)
Proceeds from sale of marketable securities	1,500,000	0
Distributions from unconsolidated affiliated real estate entities	0	44,000
Proceeds from disposition of investment in unconsolidated affiliated real estate entity	0	21,869,246
Net cash provided by investing activities	1,457,493	21,744,930
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments on mortgages payable	(3,971,878)	(121,089)
Proceeds received from notes payable	1,868,950	0
Payment of loan fees and expenses	(15,500)	0
Redemption and cancellation of common shares	0	(797,697)
Net cash used in financing activities	(2,118,428)	(918,786)
Net change in cash, cash equivalents and restricted cash	(1,197,121)	19,914,010
Cash, cash equivalents and restricted cash, beginning of year	29,971,246	13,543,193
Cash, cash equivalents and restricted cash, end of period	28,774,125	33,457,203
Supplemental cash flow information for the periods indicated is as follows:
Cash paid for interest	595,794	803,508
Investment property acquired but not paid	0	5,650
Holding gain/loss on marketable securities, available for sale	107,067	504,887
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	25,577,902	25,759,893
Restricted cash	3,196,223	7,697,310
Total cash, cash equivalents and restricted cash	$ 28,774,125	$ 33,457,203

Structure

Structure	3 Months Ended
	Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Structure	1. Structure Lightstone Value Plus Real Estate Investment Trust III, Inc. (“Lightstone REIT III”), is a Maryland corporation, formed on October 5, 2012, which elected to qualify as a real estate investment trust (“REIT”) for U.S. federal income tax purposes beginning with the taxable year ended December 31, 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”). As of March 31, 2021, Lightstone REIT III held an approximately 99% general partnership interest in the Operating Partnership’s common units. 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 currently has one operating segment. As of March 31, 2021, the Company (i) majority owned and consolidated the operating results and financial condition of eight limited service hotels containing a total of 872 rooms and an unconsolidated 50.0% membership interest in LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”). The Company accounts for its unconsolidated membership interest in the Hilton Garden Inn Joint Venture under the equity method of accounting. The Company’s advisor is Lightstone Value Plus REIT III LLC (the “Advisor”), which is majority owned by David Lichtenstein. 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 Advisor also owns 20,000 shares of our common stock (“Common Shares”) which were issued on December 24, 2012 for $200,000, or $10.00 per share. 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 initial public offering (the “Offering”) which terminated on March 31, 2017. Mr. Lichtenstein owns 222,222 Common Shares which were issued on December 11, 2014 for $2.0 million, or $9.00 per share. Pursuant to the terms of an advisory agreement and subject to the oversight of the Company’s board of directors (the “Board of Directors”), the Advisor has primary responsibility for making investment decisions on behalf of the Company and managing its day-to-day operations. Through his ownership and control of the Lightstone Group, LLC, Mr. Lichtenstein is the indirect owner and manager of Lightstone SLP III LLC, a Delaware limited liability company (the “Special Limited Partner”), which owns 242 subordinated participation interests (“Subordinated Participation Interests”) in the Operating Partnership which were acquired for $12.1 million in connection with the Offering. 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 Company’s Advisor has certain affiliates which may which may manage the properties the Company acquires. However, the Company also contracts with other unaffiliated third-party property managers, principally for the management of its hospitality properties. The Company’s Common Shares are not currently listed on a national securities exchange. The Company may seek to list its Common Shares for trading on a national securities exchange only if a majority of its independent directors believe listing would be in the best interest of its stockholders. The Company does not intend to list its Common Shares at this time. The Company does not anticipate that there would be any market for its Common Shares until they are listed for trading. In the event the Company does not begin the process of achieving a liquidity event prior to March 31, 2025, which is the eighth anniversary of the termination of its Offering, 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 the Operating Partnership Limited Partner 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 Advisor has the right to convert limited partner units into cash or, at the Company’s option, an equal number of its Common Shares. 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 entitle the Special Limited Partner to a portion of any regular and liquidation distributions that the Company makes to its stockholders, but only after its stockholders have received a stated preferred return. From the Company’s inception through March 31, 2021, no distributions have been declared or paid on the Subordinated Participation Interests. The Advisor and its affiliates and the Special Limited Partner are related parties of the Company. Certain of these entities are entitled to compensation for services related to the investment, management and disposition of our assets during the Company’s acquisition, operational and liquidation stages. The compensation levels during the acquisition and operational stages are based on the cost of acquired properties/investments and the annual revenue earned from such properties/investments, and other such fees and expense reimbursements as outlined in each of the respective agreements.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
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, 2020. 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 (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses during a reporting period. The most significant assumptions and estimates relate to the valuation of real estate and depreciable lives. 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, 2020 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 Revenues 2021 2020 Room $ 3,584,760 $ 5,046,817 Food, beverage and other 125,785 229,583 Total revenues $ 3,710,545 $ 5,276,400 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 March 31, 2021, 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. COVID-19 Pandemic Operations and Liquidity Update On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic leading many countries, including the United States, particularly at the individual state level, to subsequently impose various degrees of restrictions and other measures, including, but not limited to, mandatory temporary closures, quarantine guidelines, limitations on travel, and “shelter in place” rules in an effort to reduce its duration and the severity of its spread. Although the COVID-19 pandemic has continued to evolve, most of these previously imposed restrictions and other measures have now been reduced and/or lifted. However, the COVID-19 pandemic remains highly unpredictable and dynamic and its duration and extent is likely dependent on numerous developments such as the regulatory approval, mass production, administration and ultimate effectiveness of vaccines, as well as the timeline to achieve a level of sufficient herd immunity amongst the general population. Accordingly, the COVID-19 pandemic may continue to have negative effects on the overall health of the U.S. economy for the foreseeable future. The extent to which the Company’s business may be affected by the ongoing COVID-19 pandemic will largely depend on both current and future developments, all of which are highly uncertain and cannot be reasonably predicted. As a result of the COVID-19 pandemic, room demand for the Company’s consolidated and unconsolidated hotels began to significantly decline in March 2020 and while there has been slight sequential improvement since then; room demand continues to be substantially below historical levels. Since March 2020, the COVID-19 pandemic has had a significant negative impact on the Company’s operations, financial position and cash flow and the Company currently expects that it will continue to do so for the foreseeable future. The Company cannot currently estimate if and when room demand will fully recover to pre-pandemic levels for its hotels. In light of the past, present and potential future impact of the COVID-19 pandemic on the operating results of its hotels, the Company has taken various actions to preserve its liquidity, including, but not limited to, those described below: ● The Company implemented cost reduction strategies for all of its hotels, leading to reductions in certain operating expenses and capital expenditures. ● Amendments to Revolving Credit Facility – On June 2, 2020, the Company’s revolving credit facility (the “Revolving Credit Facility”) was amended to provide for (i) the deferral of the six monthly debt service payments aggregating $0.8 million for the period from April 1, 2020 through September 30, 2020 until July 13, 2022; (ii) a 100 bps reduction in the interest rate spread to LIBOR + 2.15%, subject to a 3.00% floor, for the six-month period from September 1, 2020 through February 28, 2021; (iii) the Company pre-funding $0.7 million into a cash collateral reserve account to cover the six monthly debt service payments due from October 1, 2020 through March 1, 2021; and (iv) a waiver of all financial covenants for quarter-end periods before June 30, 2021. Additionally, a principal paydown of $0.6 million, which was previously due on April 1, 2020 was bifurcated into two separate principal paydowns, each one $0.3 million, which were made in June 2020 and September 2020. Subsequently, on March 31, 2021, the Revolving Credit Facility was further amended providing for (i) the Company to make another principal paydown of $3.8 million, (ii) the Company to fund an additional $0.7 million into the cash collateral reserve account; (iii) a waiver of all financial covenants for quarter-end periods through September 30, 2021 with a phased-in gradual return to the full financial covenant requirements over the quarter-end periods beginning December 31, 2021 through March 31, 2023; (iv) two one-year extension options at the lender’s sole discretion; and (v) certain limitations and restrictions on asset sales and additional borrowings related to the pledged collateral. See Note 5 for additional information. ● In April 2020, the Company’s hotels received $1.5 million from loans provided under the federal Paycheck Protection Program (“PPP Loans”). Subsequently, during the first quarter of 2021, the Company’s hotels received an additional $1.9 million from PPP Loans. See Note 6 for additional information. ● On June 19, 2019, the Board of Directors had previously determined to suspend regular monthly distributions and, as a result, has not declared any distributions on the Company’s Common Shares since the suspension. Additionally, on March 19, 2020, the Board of Directors approved the suspension of all redemptions under the Company’s shareholder redemption program. ● The Company had $5.2 million of funds previously held in escrow with a qualified intermediary to facilitate a potential like-kind exchange transaction in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended, released to it in May 2020. ● The Hilton Garden Inn Joint Venture has obtained various amendments to its non-recourse mortgage loan secured by the Hilton Garden Inn – Long Island City. See Note 3 for additional information. The Company believes that these actions, along with its available cash on hand, restricted cash and marketable securities will provide it with sufficient liquidity to meet its obligations for at least 12 months from the date of issuance of these financial statements. 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	3 Months Ended
	Mar. 31, 2021
Equity Method Investments and Joint Ventures [Abstract]
Investments in Unconsolidated Affiliated Real Estate Entities	3. Investments in Unconsolidated Affiliated Real Estate Entities The entity below is partially owned by the Company. The Company accounts for this investment under the equity method of accounting as the Company exercises significant influence, but does not exercise financial and operating control over this entity. A summary of the Company’s investment in the unconsolidated affiliated real estate entity is as follows: As of Entity Date Acquired Ownership % March 31, 2021 December 31, LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”) March 27, 2018 50.00 % $ 10,416,310 $ 10,663,655 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 the Hilton Garden Inn Joint Venture, a 183-room, limited-service hotel located at 29-21 41 st The Company paid $12.9 million for a 50.0% membership interest in the Hilton Garden Inn Joint Venture. The Company’s membership interest in the Hilton Garden Inn Joint Venture is a co-managing interest. The Company accounts for its membership 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. In light of the impact of the COVID-19 pandemic on the operating results of the Hilton Garden Inn – Long Island City, the Hilton Garden Inn Joint Venture has entered into certain amendments with respect the Hilton Garden Inn Mortgage as discussed below. On June 2, 2020, the Hilton Garden Inn Mortgage was amended to provide for (i) the deferral of the six monthly debt service payments aggregating $0.9 million for the period from April 1, 2020 through September 30, 2020 until March 27, 2023; (ii) a 100 bps reduction in the interest rate spread to LIBOR + 2.15%, subject to a 4.03% floor, for the six-month period from September 1, 2020 through February 28, 2021; (iii) the Hilton Garden Inn Joint Venture pre-funding $1.2 million into a cash collateral reserve account to cover the six monthly debt service payments due from October 1, 2020 through March 1, 2021; and (iv) waiver of all financial covenants for quarter-end periods before June 30, 2021. Additionally, on April 7, 2021, the Hilton Garden Inn Joint Venture and the lender further amended the terms of the Hilton Garden Inn Mortgage to provide for (i) the Hilton Garden Inn Joint Venture to make a principal paydown of $1.7 million; (ii) the Hilton Garden Inn Joint Venture to fund an additional $0.7 million into the cash collateral reserve account; (iii) a waiver of all financial covenants for quarter-end periods through September 30, 2021 with a phased-in gradual return to the full financial covenant requirements over the quarter-end periods beginning December 31, 2021 through December 31, 2022; (iv) a 11-month interest-only payment period from May 1, 2021 through March 31, 2022; and (v) certain restrictions on distributions to the members of the Hilton Garden Inn Joint Venture during the interest-only payment period. Subsequent to the Company’s acquisition of its 50.0% membership interest in the Hilton Garden Joint Venture through March 31, 2021, it has made an aggregate of $1.5 million of additional capital contributions and received aggregate distributions of $1.5 million. All of these additional capital contributions and distributions were made prior to 2021. 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: (amounts in thousands) For the Three Months Ended For the Three Months Ended Revenues $ 1,419 $ 1,540 Property operating expenses 872 1,344 General and administrative costs 10 18 Depreciation and amortization 635 630 Operating loss (98 ) (452 ) Interest expense (397 ) (457 ) Net loss $ (495 ) $ (909 ) Company’s share of net loss (50.00%) $ (247 ) $ (455 ) The following table represents the condensed balance sheet for the Hilton Garden Inn Joint Venture: As of As of (amounts in thousands) March 31, 2021 December 31, Investment property, net $ 54,215 $ 54,826 Cash 2,081 885 Other assets 552 1,211 Total assets $ 56,848 $ 56,922 Loans payable, net $ 35,239 $ 34,988 Other liabilities 1,376 1,207 Members’ capital 20,233 20,727 Total liabilities and members’ capital $ 56,848 $ 56,922 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 $255.0 million (the “Cove Transaction”). Excluding mortgage financing obtained by the Cove Joint Venture in connection with the Cove Transaction, the Company paid $20.0 million for a 22.5% non-managing membership interest in the Cove Joint Venture. The Cove Joint Venture owned and operated The Cove at Tiburon (“the Cove”), a 281-unit, luxury waterfront multifamily residential property located in Tiburon, California from January 31, 2017 through February 12, 2020. As discussed below, the Company disposed of its 22.5% membership interest in the Cove Joint Venture on February 12, 2020. The Company accounted for its 22.5% membership interest in the Cove Joint Venture in accordance with the equity method of accounting. For the period from January 1, 2020 through February 12, 2020, the Company’s share of the Cove Joint Venture’s loss of $0.7 million was $0.2 million, which is included in the loss from investments in unconsolidated affiliated real estate entities on the consolidated statements of operations. On February 12, 2020, REIT IV Cove LLC, LSG Cove LLC and REIT III COVE LLC each redeemed their respective membership interests in the Cove Joint Venture for an aggregate redemption price of $87.6 million. In connection, with the redemption of the Company’s 22.5% membership interest in the Cove Joint Venture, it received proceeds of $21.9 million which resulted in the recognition of a gain on the disposition of unconsolidated affiliated real estate entity of $7.9 million during the first quarter of 2020. As a result of the redemption of the Company’s 22.5% membership interest in the Cove Joint Venture on February 12, 2020, it no longer has an ownership interest in the Cove Joint Venture. During August 2020, the Company received $0.1 million of additional proceeds related to the redemption of its membership interest in the Cove Joint Venture and recognized a gain on the disposition of investment in unconsolidated affiliated real estate entity of $0.1 million during the third quarter of 2020. As a result, the Company recognized an aggregate gain on the disposition of investment in unconsolidated affiliated real estate entity of $8.0 million during the year ended December 31, 2020.

Marketable Securities and Fair

Marketable Securities and Fair Value Measurements	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable Securities: Equity securities: Mutual funds $ 218,369 $ 47 $ - $ 218,416 Debt securities: Corporate Bonds 1,707,096 9,598 (123,749 ) 1,592,945 Total $ 1,925,465 $ 9,645 $ (123,749 ) $ 1,811,361 As of December 31, 2020 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable Securities: Equity securities: Mutual funds $ 218,206 $ 258 $ - $ 218,464 Debt securities: Corporate Bonds 3,229,608 10,039 (231,258 ) 3,008,389 Total $ 3,447,814 $ 10,297 $ (231,258 ) $ 3,226,853 The Company considers the declines in market value of its investments in debt securities to be temporary in nature. When evaluating its investments in debt securities 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 debt security before recovery of its amortized cost basis. During the three months ended March 31, 2021 and 2020, the Company did not recognize any impairment charges on its investments in debt securities. As of March 31, 2021, the Company does not consider any of its investments in debt securities to be other-than-temporarily impaired. The Company may sell certain of its investments in marketable debt securities prior to their stated maturities for strategic purposes, in anticipation of credit deterioration, or for duration management. 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 March 31, 2021 and December 31, 2020, the Company’s equity securities were classified as Level 1 assets and the Company’s debt securities were classified as Level 2 assets. There were no transfers between the level classifications during the during the three months ended March 31, 2021. The fair values of the Company’s investments in equity securities are measured using quoted prices in active markets for identical assets and debt securities 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 Due in 1 year $ - Due in 1 year through 5 years 970,445 Due in 5 year through 10 years - Due after 10 years 622,500 Total $ 1,592,945 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	3 Months Ended
	Mar. 31, 2021
Loans Payable [Abstract]
Mortgage payable, net	5. Mortgages payable, net Mortgages payable, net consists of the following: Weighted Description Interest as of Maturity Amount Due at Maturity As of As of Revolving Credit Facility LIBOR + 3.15% (floor of 4.00%) 3.47 % July 2022 $ 34,573,333 $ 34,573,333 $ 38,414,814 Promissory Note, secured by two properties 4.73% 4.73 % October 2021 26,127,572 26,379,216 26,509,613 Total mortgages payable 4.02 % $ 60,700,905 60,952,549 64,924,427 Less: Deferred financing costs (155,482 ) (169,978 ) Total mortgage payable, net $ 60,797,067 $ 64,754,449 Revolving Credit Facility The Company, through certain subsidiaries, has a non-recourse Revolving Credit Facility with a financial institution. The Revolving Credit Facility provides the Company with a line of credit of up to $60.0 million pursuant to which it may designate properties as collateral that allow borrowings up to a 65.0% loan-to-value ratio subject to also meeting certain financial covenants, including a prescribed minimum debt yield. The Revolving Credit Facility provides for monthly interest-only payments and the entire principal balance is due upon its expiration. The Revolving Credit Facility, which was entered into on July 13, 2016, had an initial maturity date of July 13, 2019, subject to two one-year options to extend at the sole discretion of the lender. The initial interest rate on the Revolving Credit Facility was LIBOR+ 4.95% until it was reduced to LIBOR + 3.50% effective June 18, 2018. On July 11, 2019, the Company and the lender amended the Revolving Credit Facility to extend the initial maturity date for 60 days to provide additional time to finalize the terms of a long-term extension. In connection with this amendment, the interest rate on the Revolving Credit Facility was reduced from LIBOR + 3.50% to LIBOR + 3.15%, effective July 1, 2019 and the requirements under the minimum debt yield ratio were modified effective as of March 31, 2019. On August 22, 2019, the Company and the lender further amended the Revolving Credit Facility to extend the maturity date to July 13, 2022, subject to two, one-year options to extend at the sole discretion of the lender. In connection with this amendment, the Company made principal paydowns of $0.6 million on both August 22, 2019 and December 31, 2019, respectively, and in certain circumstances would be required to make an additional principal paydown of $0.6 million on April 1, 2020. On June 2, 2020, the Company’s Revolving Credit Facility was amended to provide for (i) the deferral of the six monthly debt service payments aggregating $0.8 million for the period from April 1, 2020 through September 30, 2020 until July 13, 2022; (ii) a 100 bps reduction in the interest rate spread to LIBOR + 2.15%, subject to a 3.00% floor, for the six-month period from September 1, 2020 through February 28, 2021; (iii) the Company pre-funding $0.8 million into a cash collateral reserve account (of which $0.3 million was included in restricted cash on the Company’s consolidated balance sheet as of December 31, 2020) to cover the six monthly debt service payments due from October 1, 2020 through March 1, 2021; and (iv) a waiver of all financial covenants for quarter-end periods before June 30, 2021. Additionally, a principal paydown of $0.6 million, which was previously due on April 1, 2020 was bifurcated into two separate principal paydowns, each one $0.3 million, which were made in June 2020 and September 2020. Subsequently, on March 31, 2021, the Revolving Credit Facility was further amended providing for (i) the Company to make another principal paydown of $3.8 million, (ii) the Company to fund an additional $0.7 million into the cash collateral reserve account (which was included in restricted cash on the Company’s consolidated balance sheet as of March 31, 2021); (iii) a waiver of all financial covenants for quarter-end periods through September 30, 2021 with a phased-in gradual return to the full financial covenant requirements over the quarter-end periods beginning December 31, 2021 through March 31, 2023; (iv) two one-year extension options at the lender’s sole discretion; and (v) certain limitations and restrictions on asset sales and additional borrowings related to the pledged collateral. As of March 31, 2021, the Revolving Credit Facility had an outstanding principal balance of $34.6 million and six of the Company’s hotel properties were pledged as collateral. Additionally, no additional borrowings were available under the Revolving Credit Facility as of March 31, 2021. Home2 Suites Promissory Note On October 5, 2016, the Company entered into a non-recourse promissory note (the “Home2 Suites Promissory Note”) for $28.4 million. The Promissory Note has a term of five years, bears interest at 4.73% and requires monthly interest and principal payments of $147,806 through its stated maturity with the then remaining unpaid balance of $26.1 million due upon maturity. The Home2 Suites Promissory Note is cross-collateralized by two of the Company’s hotel properties (Home2 Suites – Tukwila and Home2 Suites – Salt Lake City). The Home2 Suites Promissory Note matures on October 5, 2021. The Company currently intends to refinance Home2 Suites Promissory Note on or before its maturity date. Although the Company is current with respect to the payment of debt service on its nonrecourse Home2 Suites Promissory Note, it did not meet the required minimum debt service coverage ratio for the third and fourth quarters of 2020 and the first quarter of 2021because of the impact of the COVID-19 pandemic on the operating performance of these two hotels. As a result, the lender may elect to retain any excess cash flow from these two hotels until such time as a prescribed minimum debt service coverage ratio is achieved for two successive quarters. If the lender elects to retain any excess cash flow from these two hotels, the Company does not believe it would have a material effect on its liquidity or financial condition. 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 March 31, 2021: 2021 2022 2023 2024 2025 Thereafter Total Principal maturities $ 26,379,216 $ 34,573,333 $ - $ - $ - $ - $ 60,952,549 Less: Deferred financing costs (155,482 ) Total principal maturities, net $ 60,797,067 Pursuant to the Company’s debt agreements, $3.2 million and $3.0 million of funds were held in restricted escrow accounts as of March 31, 2021 and December 31, 2020, respectively. Such escrows are subject to release in accordance with the applicable debt agreement for the payment of real estate taxes, debt service payments, insurance and capital improvements, as required. Certain of our debt agreements also contain clauses providing for prepayment penalties.

Notes Payable

Notes Payable	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Notes Payable	6 Notes Payable During April 2020, the Company, through various subsidiaries (each such entity, a “Borrower”), received aggregate funding of $1.5 million through loans (the “PPP Loans”) originated under the federal Paycheck Protection Program, which was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. During March 2021, the Borrower received an additional aggregate funding of $1.9 million of PPP Loans. The PPP Loans each have a term of five years and provide for an interest rate of 1.00%. The payment of principal and interest on the PPP loan is deferred until the day that the forgiven amount is remitted to the lender (approximately five months after the forgiveness application is submitted to the lender, unless the Borrower appeals a denial of forgiveness) or ten months after the end of the Borrower’s covered period, whichever is earlier. Pursuant to the terms of the CARES Act, the proceeds of the PPP Loans may be used for payroll costs, mortgage interest, rent or utility costs. The promissory note for each of the PPP Loans contains customary events of default relating to, among other things, payment defaults and breach of representations and warranties or of provisions of the relevant promissory note. Under the terms of the CARES Act, each Borrower can apply for and be granted forgiveness for all or a portion of the PPP Loans. Such forgiveness will be determined, subject to limitations, based on the use of loan proceeds in accordance with the terms of the CARES Act. Although the Company intends for each Borrower to apply for loan forgiveness, no assurance can be given that any Borrower will ultimately obtain forgiveness under any relevant PPP Loan, in whole or in part. As of March 31, 2021 and December 31, 2020, the PPP Loans had an outstanding balance of $3.3 million and $1.5 million, respectively, and are classified as Notes Payable on the consolidated balance sheets.

Company's Stockholder's Equity

Company's Stockholder's Equity	3 Months Ended
	Mar. 31, 2021
Stockholders' Equity Note [Abstract]
Company's Stockholder's Equity	7. Company’s Stockholder’s Equity Distributions on Common Shares On June 19, 2019, the Board of Directors determined to suspend regular monthly distributions on the Company’s Common Shares and as a result, no distributions have been declared since the suspension. Previously, distributions on the Company’s Common Shares in an amount equal to a 6.0% annualized rate, based on a share price of $10.00, 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 on the Company’s Common Shares, if any, will be at the discretion of the Board of Directors based on their analysis of the Company’s performance over the previous periods and expectations of performance for future periods. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, revenues and other sources of income, operating and interest expenses and the Company’s ability to refinance near-term debt as well as the IRS’s annual distribution requirement that REITs distribute no less than 90% of their taxable income. The Company cannot assure that any future distributions will be made or that it will maintain any particular level of distributions that it has previously established or may establish. Share Repurchase Program The Company’s share repurchase program may provide its stockholders with limited, interim liquidity by enabling them to sell their Common Shares back to the Company, subject to restrictions. On March 19, 2020, the Board of Directors amended the share repurchase program to remove stockholder notice requirements and also approved the suspension of all redemptions effective immediately. On March 25, 2020, the Board of Directors determined to suspend the share repurchase program effective immediately. Effective May 10, 2021, the Board of Directors reopened the share repurchase program for redemptions submitted in connection with a stockholder’s death or hardship and set the price for all such purchases to 100% of the NAV per Share ($8.05 as of December 31, 2020). Deaths that occurred subsequent to January 1, 2020 are eligible for consideration. Beginning January 1, 2022, requests for redemptions in connection with a stockholder’s death must be submitted and received by the Company within one year of the stockholder’s date of death for consideration. On an annual basis, the Company will not redeem in excess of 0.5% of the number of shares outstanding as of the end of the preceding year for either death or hardship redemptions, respectively. Redemption requests are expected to be processed on a quarterly basis and may be subject to pro ration if either type of redemption requests exceed the annual limitation. Earnings per Share Net earnings per common share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding

Due to related parties and othe

Due to related parties and other transactions	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Due to related parties and other transactions	8. Due to related parties and other transactions The Company has various agreements, including an advisory agreement, with the Advisor to pay certain fees in exchange for services performed by the Advisor and/or its affiliated entities. Additionally, the Company’s ability to secure financing and its real estate operations are dependent upon its Advisor and its affiliates to perform such services as provided in these agreements. Amounts the Company owes to the Advisor and its affiliated entities are principally for asset management fees, and are classified as due to related parties on the consolidated balance sheets. The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: For the Three Months 2021 2020 Asset management fees (general and administrative costs) $ 300,994 $ 355,818 The advisory agreement has a one-year term and is renewable for an unlimited number of successive one-year periods upon the mutual consent of the Advisor and the Company’s independent directors. Payments to the Advisor or its affiliates may include asset acquisition fees and the reimbursement of acquisition-related expenses, development fees and the reimbursement of development-related costs, financing coordination fees, asset management fees or asset management participation, and construction management fees. The Company may also reimburse the Advisor and its affiliates for actual expenses it incurs for administrative and other services provided for it. Upon the liquidation of the Company’s assets, it may pay the Advisor or its affiliates a disposition commission.

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2021
Investments, All Other Investments [Abstract]
Financial Instruments	9. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, restricted cash, accounts receivable and other assets, accounts payable and other accrued expenses, due to related parties and notes payable approximate their fair values because of the short maturity of these instruments. The carrying amount and estimated fair value of our mortgages payable are as follows: As of March 31, 2021 As of December 31, 2020 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Mortgages payable $ 60,952,549 $ 61,002,342 $ 64,924,427 $ 64,823,777 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	3 Months Ended
	Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. 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 of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Revenues	Revenue The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Revenues 2021 2020 Room $ 3,584,760 $ 5,046,817 Food, beverage and other 125,785 229,583 Total revenues $ 3,710,545 $ 5,276,400
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 March 31, 2021, 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.
COVID-19 Pandemic Operations and Liquidity Update	COVID-19 Pandemic Operations and Liquidity Update On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic leading many countries, including the United States, particularly at the individual state level, to subsequently impose various degrees of restrictions and other measures, including, but not limited to, mandatory temporary closures, quarantine guidelines, limitations on travel, and “shelter in place” rules in an effort to reduce its duration and the severity of its spread. Although the COVID-19 pandemic has continued to evolve, most of these previously imposed restrictions and other measures have now been reduced and/or lifted. However, the COVID-19 pandemic remains highly unpredictable and dynamic and its duration and extent is likely dependent on numerous developments such as the regulatory approval, mass production, administration and ultimate effectiveness of vaccines, as well as the timeline to achieve a level of sufficient herd immunity amongst the general population. Accordingly, the COVID-19 pandemic may continue to have negative effects on the overall health of the U.S. economy for the foreseeable future. The extent to which the Company’s business may be affected by the ongoing COVID-19 pandemic will largely depend on both current and future developments, all of which are highly uncertain and cannot be reasonably predicted. As a result of the COVID-19 pandemic, room demand for the Company’s consolidated and unconsolidated hotels began to significantly decline in March 2020 and while there has been slight sequential improvement since then; room demand continues to be substantially below historical levels. Since March 2020, the COVID-19 pandemic has had a significant negative impact on the Company’s operations, financial position and cash flow and the Company currently expects that it will continue to do so for the foreseeable future. The Company cannot currently estimate if and when room demand will fully recover to pre-pandemic levels for its hotels. In light of the past, present and potential future impact of the COVID-19 pandemic on the operating results of its hotels, the Company has taken various actions to preserve its liquidity, including, but not limited to, those described below: ● The Company implemented cost reduction strategies for all of its hotels, leading to reductions in certain operating expenses and capital expenditures. ● Amendments to Revolving Credit Facility – On June 2, 2020, the Company’s revolving credit facility (the “Revolving Credit Facility”) was amended to provide for (i) the deferral of the six monthly debt service payments aggregating $0.8 million for the period from April 1, 2020 through September 30, 2020 until July 13, 2022; (ii) a 100 bps reduction in the interest rate spread to LIBOR + 2.15%, subject to a 3.00% floor, for the six-month period from September 1, 2020 through February 28, 2021; (iii) the Company pre-funding $0.7 million into a cash collateral reserve account to cover the six monthly debt service payments due from October 1, 2020 through March 1, 2021; and (iv) a waiver of all financial covenants for quarter-end periods before June 30, 2021. Additionally, a principal paydown of $0.6 million, which was previously due on April 1, 2020 was bifurcated into two separate principal paydowns, each one $0.3 million, which were made in June 2020 and September 2020. Subsequently, on March 31, 2021, the Revolving Credit Facility was further amended providing for (i) the Company to make another principal paydown of $3.8 million, (ii) the Company to fund an additional $0.7 million into the cash collateral reserve account; (iii) a waiver of all financial covenants for quarter-end periods through September 30, 2021 with a phased-in gradual return to the full financial covenant requirements over the quarter-end periods beginning December 31, 2021 through March 31, 2023; (iv) two one-year extension options at the lender’s sole discretion; and (v) certain limitations and restrictions on asset sales and additional borrowings related to the pledged collateral. See Note 5 for additional information. ● In April 2020, the Company’s hotels received $1.5 million from loans provided under the federal Paycheck Protection Program (“PPP Loans”). Subsequently, during the first quarter of 2021, the Company’s hotels received an additional $1.9 million from PPP Loans. See Note 6 for additional information. ● On June 19, 2019, the Board of Directors had previously determined to suspend regular monthly distributions and, as a result, has not declared any distributions on the Company’s Common Shares since the suspension. Additionally, on March 19, 2020, the Board of Directors approved the suspension of all redemptions under the Company’s shareholder redemption program. ● The Company had $5.2 million of funds previously held in escrow with a qualified intermediary to facilitate a potential like-kind exchange transaction in accordance with Section 1031 of the Internal Revenue Code of 1986, as amended, released to it in May 2020. ● The Hilton Garden Inn Joint Venture has obtained various amendments to its non-recourse mortgage loan secured by the Hilton Garden Inn – Long Island City. See Note 3 for additional information. The Company believes that these actions, along with its available cash on hand, restricted cash and marketable securities will provide it with sufficient liquidity to meet its obligations for at least 12 months from the date of issuance of these financial statements.
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)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Schedule of revenues from hotel operations	The following table represents the total revenues from hotel operations on a disaggregated basis: For the Three Months Revenues 2021 2020 Room $ 3,584,760 $ 5,046,817 Food, beverage and other 125,785 229,583 Total revenues $ 3,710,545 $ 5,276,400

Investments in Unconsolidated_2

Investments in Unconsolidated Affiliated Real Estate Entities (Tables)	3 Months Ended
	Mar. 31, 2021
Schedule of investments in the unconsolidated affiliated real estate	A summary of the Company’s investment in the unconsolidated affiliated real estate entity is as follows: As of Entity Date Acquired Ownership % March 31, 2021 December 31, LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”) March 27, 2018 50.00 % $ 10,416,310 $ 10,663,655
Hilton Garden Inn [Member]
Schedule of condensed income statement	The following table represents the condensed income statement for the Hilton Garden Inn Joint Venture for the period indicated: (amounts in thousands) For the Three Months Ended For the Three Months Ended Revenues $ 1,419 $ 1,540 Property operating expenses 872 1,344 General and administrative costs 10 18 Depreciation and amortization 635 630 Operating loss (98 ) (452 ) Interest expense (397 ) (457 ) Net loss $ (495 ) $ (909 ) Company’s share of net loss (50.00%) $ (247 ) $ (455 )
Schedule of 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) March 31, 2021 December 31, Investment property, net $ 54,215 $ 54,826 Cash 2,081 885 Other assets 552 1,211 Total assets $ 56,848 $ 56,922 Loans payable, net $ 35,239 $ 34,988 Other liabilities 1,376 1,207 Members’ capital 20,233 20,727 Total liabilities and members’ capital $ 56,848 $ 56,922

Marketable Securities and Fai_2

Marketable Securities and Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2021
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 March 31, 2021 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable Securities: Equity securities: Mutual funds $ 218,369 $ 47 $ - $ 218,416 Debt securities: Corporate Bonds 1,707,096 9,598 (123,749 ) 1,592,945 Total $ 1,925,465 $ 9,645 $ (123,749 ) $ 1,811,361 As of December 31, 2020 Adjusted Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Marketable Securities: Equity securities: Mutual funds $ 218,206 $ 258 $ - $ 218,464 Debt securities: Corporate Bonds 3,229,608 10,039 (231,258 ) 3,008,389 Total $ 3,447,814 $ 10,297 $ (231,258 ) $ 3,226,853
Schedule of estimated fair value of investments	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 Due in 1 year $ - Due in 1 year through 5 years 970,445 Due in 5 year through 10 years - Due after 10 years 622,500 Total $ 1,592,945

Mortgages payable, net (Tables)

Mortgages payable, net (Tables)	3 Months Ended
	Mar. 31, 2021
Loans Payable [Abstract]
Schedule of mortgages Payable, Net	Mortgages payable, net consists of the following: Weighted Description Interest as of Maturity Amount Due at Maturity As of As of Revolving Credit Facility LIBOR + 3.15% (floor of 4.00%) 3.47 % July 2022 $ 34,573,333 $ 34,573,333 $ 38,414,814 Promissory Note, secured by two properties 4.73% 4.73 % October 2021 26,127,572 26,379,216 26,509,613 Total mortgages payable 4.02 % $ 60,700,905 60,952,549 64,924,427 Less: Deferred financing costs (155,482 ) (169,978 ) Total mortgage payable, net $ 60,797,067 $ 64,754,449
Schedule of 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 March 31, 2021: 2021 2022 2023 2024 2025 Thereafter Total Principal maturities $ 26,379,216 $ 34,573,333 $ - $ - $ - $ - $ 60,952,549 Less: Deferred financing costs (155,482 ) Total principal maturities, net $ 60,797,067

Due to related parties and ot_2

Due to related parties and other transactions (Tables)	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Schedule of fees payments to Company's Advisor	The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: For the Three Months 2021 2020 Asset management fees (general and administrative costs) $ 300,994 $ 355,818

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2021
Investments, All Other Investments [Abstract]
Schedule of Mortgages payable and the related estimated fair value	The carrying amount and estimated fair value of our mortgages payable are as follows: As of March 31, 2021 As of December 31, 2020 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Mortgages payable $ 60,952,549 $ 61,002,342 $ 64,924,427 $ 64,823,777

Structure (Details Narrative)

Structure (Details Narrative) - USD ($)	1 Months Ended		2 Months Ended	3 Months Ended
	Jul. 16, 2014	Jul. 16, 2014	Mar. 31, 2017	Mar. 31, 2021	Dec. 31, 2020	Dec. 11, 2014
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Common Stock, Shares, Issued				13,200,000	13,200,000
Issuance of Subordinated Participation Interest for Each Partner			$ 50,000
Lichtenstein [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Common Stock, Shares, Issued						222,222
General Partner [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Contribution from advisor	$ 2,000	$ 2,000
Number of limited partner units issued to advisor	200	200
Limited Partner [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Partners' Capital Account, Contributions			$ 12,100,000	$ 12,100,000
Partners' Capital Account, Units, Contributed			242	242
Hilton Garden Inn [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Ownership interest				50.00%
Lightstone Value Plus Reit Iii Llc [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Issuance of common shares, shares				20,000
Issuance of common shares, value				$ 200,000
Shares issued, price per share				$ 10
Lightstone Reit Iii [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
General partner ownership interest				99.00%
Rp Maximus Cove Llc [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
General partner ownership interest				99.00%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - (Details - Summary of total revenues) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Total revenues	$ 3,710,545	$ 5,276,400
Food And Beverage [Member]
Total revenues	3,584,760	5,046,817
Occupancy [Member]
Total revenues	$ 125,785	$ 229,583

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Apr. 02, 2020	May 11, 2021	Mar. 31, 2021	Apr. 30, 2020	Aug. 22, 2019	Mar. 31, 2021	Jun. 02, 2020
Accounting Policies [Line Items]
Escrow deposit			$ 5,200,000			$ 5,200,000
Paycheck Protection Program [Member]
Accounting Policies [Line Items]
Proceed from loans				$ 1,500,000		$ 1,900,000
Revolving Credit Facility [Member]
Accounting Policies [Line Items]
Debt service payments							$ 800,000
Cash collateral reserve account							$ 700,000
Principal paydown			$ 3,800,000		$ 600,000
Revolving Credit Facility [Member] | Subsequent Event [Member]
Accounting Policies [Line Items]
Cash collateral reserve account		$ 700,000
Principal paydown		$ 3,800,000
Revolving Credit Facility [Member] | Scenario Forecast [Member]
Accounting Policies [Line Items]
Principal paydown	$ 600,000
Lightstone Reit Iii [Member]
Accounting Policies [Line Items]
General partner ownership interest						99.00%

Investments in Unconsolidated_3

Investments in Unconsolidated Affiliated Real Estate Entities (Details - Real estate entities) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Total investments in unconsolidated affiliated real estate entities	$ 10,416,310	$ 10,663,655
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	$ 10,416,310	$ 10,663,655

Investments in Unconsolidated_4

Investments in Unconsolidated Affiliated Real Estate Entities (Details - Condensed income statements for Cove Joint Venture) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Schedule of Equity Method Investments [Line Items]
Revenues	$ 3,710,545	$ 5,276,400
General and administrative costs	633,610	698,698
Depreciation and amortization	1,275,148	1,272,082
Operating loss	(1,232,994)	(1,079,677)
Net loss	(2,100,377)	5,441,030
Company's share of net income/(loss) (50.00%)	(2,100,404)	5,441,112
Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Revenues	1,419,000	1,540,000
Property operating expenses	872,000	1,344,000
General and administrative costs	10,000	18,000
Depreciation and amortization	635,000	630,000
Operating loss	(98,000)	(452,000)
Interest expense	(397,000)	(457,000)
Net loss	(495,000)	(909,000)
Company's share of net income/(loss) (50.00%)	$ (247,000)	$ (455,000)

Investments in Unconsolidated_5

Investments in Unconsolidated Affiliated Real Estate Entities (Details - Condensed balance sheets for Cove Joint Venture - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Schedule of Equity Method Investments [Line Items]
Investment property, net	$ 129,694,586	$ 129,652,243
Total assets	148,421,232	152,277,615
Members' capital	69,252,888	71,246,199
Total liabilities and members' capital	148,421,232	152,277,615
Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Investment property, net	54,215,000	54,826,000
Cash	2,081,000	885,000
Other assets	552,000	1,211,000
Total assets	56,848,000	56,922,000
Loans payable, net	35,239,000	34,988,000
Other liabilities	1,376,000	1,207,000
Members' capital	20,233,000	20,727,000
Total liabilities and members' capital	$ 56,848,000	$ 56,922,000

Investments in Unconsolidated_6

Investments in Unconsolidated Affiliated Real Estate Entities (Details Narrative)	Apr. 07, 2021USD ($)	Jun. 02, 2020USD ($)	Feb. 12, 2020USD ($)	Aug. 31, 2020USD ($)	Dec. 17, 2019USD ($)	Mar. 27, 2018USD ($)room	Mar. 27, 2018room	Jan. 31, 2017USD ($)	Mar. 31, 2021USD ($)	Mar. 31, 2020USD ($)
Schedule of Equity Method Investments [Line Items]
Joint Venture Investment Property Description								The Cove Joint Venture owned and operated The Cove at Tiburon (“the Cove”), a 281-unit, luxury waterfront multifamily residential property located in Tiburon, California from January 31, 2017 through February 12, 2020. As discussed below, the Company disposed of its 22.5% membership interest in the Cove Joint Venture on February 12, 2020.
Proceeds from Divestiture of Interest in Joint Venture			$ 21,900,000
Gain on disposition of investment in unconsolidated affiliated entity									$ 0	$ (7,876,639)
Refurbishment Guarantee [Member]
Schedule of Equity Method Investments [Line Items]
Redemption of Joint Venture, Amount			87,600,000
Gain on disposition of investment in unconsolidated affiliated entity			$ 7,900,000
Refurbishment Guarantee [Member] | Revolving Promissory Note [Member]
Schedule of Equity Method Investments [Line Items]
Business Acquisition Percent age Of Voting Interest Acquired			22.50%
Hilton Garden Inn Joint Venture [Member]
Schedule of Equity Method Investments [Line Items]
Debt Instrument, Interest Rate, Basis for Effective Rate		LIBOR + 2.15%, subject to a 4.03%
Proceeds from mortgage		$ 900
Venture pre-funding		$ 1,200
Reportable Legal Entities [Member]
Schedule of Equity Method Investments [Line Items]
Redemption of Joint Venture, Amount					$ 87,600,000
Hilton Garden Inn [Member]
Schedule of Equity Method Investments [Line Items]
Aggregate purchase price						$ 60,000,000
Offering funds used in acquisition						12,900,000
Proceeds from Issuance of Debt						$ 35,000,000
Business Acquisition, Percentage of Voting Interests Acquired						50.00%	50.00%
Business Acquisition Percent age Of Voting Interest Acquired									50.00%
Payments to Acquire Interest in Joint Venture									$ 1,500,000
Proceeds from Equity Method Investment, Distribution, Return of Capital									$ 1,500,000
Number Of Rooms | room						183	183
Hilton Garden Inn [Member] | Subsequent Event [Member]
Schedule of Equity Method Investments [Line Items]
Cash collateral	$ 700,000
Principal paydown	$ 1,700,000
Hilton Garden Inn [Member] | Reportable Legal Entities [Member]
Schedule of Equity Method Investments [Line Items]
Offering funds used in acquisition						$ 25,000,000
Business Acquisition Percent age Of Voting Interest Acquired							50.00%
Cove Transaction [Member]
Schedule of Equity Method Investments [Line Items]
Aggregate purchase price								$ 255,000,000
Offering funds used in acquisition								$ 20,000,000
Business Acquisition, Percentage of Voting Interests Acquired								22.50%
Payments to Acquire Interest in Joint Venture								$ 2,600,000
Rp Maximus Cove Llc [Member] | Reportable Legal Entities [Member]
Schedule of Equity Method Investments [Line Items]
Proceeds from Equity Method Investment, Distribution, Return of Capital				$ 100,000
Gain on disposition of investment in unconsolidated affiliated entity				$ 8,000,000

Marketable Securities and Fai_3

Marketable Securities and Fair Value Measurements (Details - Available for Sale Securities) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Debt securities, Fair Value	$ 1,592,945	$ 3,008,382
Marketable securities, Adjusted cost	1,925,465	3,447,814
Marketable securities, Gross Unrealized Gain	9,645	10,297
Marketable securities, Gross Unrealized Loss	(123,749)	(231,258)
Marketable securities, Fair Value	1,811,361	3,226,853
Mutual Fund [Member]
Equity securities, Adjusted Cost	218,369	218,206
Equity securities, Gross Unrealized Gains	47	258
Equity securities, gross unrealized losses	0	0
Equity securities, Fair Value	218,416	218,464
Corporate Bonds [Member]
Debt securities, Adjusted Cost	1,707,096	3,229,608
Debt securities, Gross Unrealized Gains	9,598	10,039
Debt securities, Gross Unrealized Losses	(123,749)	(231,258)
Debt securities, Fair Value	$ 1,592,945	$ 3,008,389

Marketable Securities and Fai_4

Marketable Securities and Fair Value Measurements (Details - Estimated fair value of marketable debt securities) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Marketable Securities and Fair Value Measurements
Due in 1 year	$ 0
Due in 1 year through 5 years	970,445
Due in 5 year through 10 years	0
Due after 10 years	622,500
Total	$ 1,592,945	$ 3,008,382

Mortgages payable, net (Details

Mortgages payable, net (Details -Summary of Mortgages payable, net) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Oct. 05, 2016
Total mortgages payable	$ 60,952,549	$ 64,924,427
Less: Deferred financing costs	(155,482)	(169,978)
Total mortgages payable, net	$ 60,797,067	64,754,449
Weighted Average Interest Rate	4.02%
Amount Due at Maturity	$ 60,700,905
Revolving Credit Facility [Member]
Total mortgages payable	$ 34,573,333	38,414,814
Total mortgages payable, net			$ 26,100,000
Interest Rate	LIBOR + 3.15% (floor of 4.00%)
Interest Rate			4.73%
Weighted Average Interest Rate	3.47%
Maturity Date	July 2022
Amount Due at Maturity	$ 34,573,333
Promissory Note [Member]
Total mortgages payable	$ 26,379,216	$ 26,509,613
Interest Rate	4.73%
Weighted Average Interest Rate	4.73%
Maturity Date	October 2021
Amount Due at Maturity	$ 26,127,572

Mortgages payable, net (Detai_2

Mortgages payable, net (Details - Summary of principal maturities) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Loans Payable [Abstract]
2021	$ 26,379,216
2022	34,573,333
2023	0
2024	0
2025	0
Thereafter	0
Principal maturities	60,952,549	$ 64,924,427
Less: Deferred financing costs	(155,482)	(169,978)
Total mortgages payable, net	$ 60,797,067	$ 64,754,449

Mortgages payable, net (Detai_3

Mortgages payable, net (Details Narrative) - USD ($)	Apr. 02, 2020	Jul. 01, 2019	Oct. 05, 2016	Mar. 31, 2021	Aug. 22, 2019	Jun. 19, 2018	Mar. 31, 2021	Mar. 31, 2018	Feb. 28, 2021	Mar. 01, 2021	Dec. 31, 2020	Jul. 13, 2016
Long-term Debt				$ 60,797,067			$ 60,797,067				$ 64,754,449
Revolving Credit Facility [Member]
Escrow Deposits Related to Debt Compliance				3,200,000			3,200,000				$ 3,000,000
Line of Credit Facility, Maximum Borrowing Capacity												$ 60,000,000
Line Of Credit Facility Current Borrowing Capacity Percentage												3.50%
Debt Instrument, Face Amount			$ 28,400,000	34,600,000			$ 34,600,000
Debt Instrument, Interest Rate, Stated Percentage			4.73%
Debt Instrument, Periodic Payment			$ 147,806
Spread on variable rate						3.50%	4.95%	65.00%
Principal paydown				3,800,000	$ 600,000
Long-term Debt			$ 26,100,000
Cash collateral				$ 700,000			$ 700,000		$ 800,000	$ 800,000
Revolving Credit Facility [Member] | London Interbank Offered Rate L I B O R [Member]
Spread on variable rate		3.15%
Floor rate									3.00%
Debt Instrument, Interest Rate, Basis for Effective Rate									2.15%
Promissory Note [Member]
Debt Instrument, Interest Rate, Stated Percentage				4.73%			4.73%
Scenario Forecast [Member] | Revolving Credit Facility [Member]
Principal paydown	$ 600,000

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Proceeds from notes payable	$ 1,868,950	$ 0
Borrower [Member]
Proceeds from notes payable	1,900,000
Paycheck Protection Program [Member]
Proceeds from notes payable	$ 1,500,000
Interest rate	1.00%
Term	5 years
Maximum period to start equal payment of principal and interest from loan origination date	10 months
Notes payable	$ 3,300,000		$ 1,500,000

Company's Stockholder's Equity

Company's Stockholder's Equity (Details Narrative) - $ / shares	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020	Jan. 14, 2015
Annualized rate of dividend			6.00%
Share Price			$ 10
Share redemption program, annual limitation, percentage of weighted average shares outstanding	0.50%
Share Repurchase Program [Member]
Share Price		$ 8.05

Due to related parties and ot_3

Due to related parties and other transactions (Details - Summary of fees incurred associated with the payments) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Advisor [Member]
Related Party Transaction [Line Items]
Asset Management Fees (general and administrative costs)	$ 300,994	$ 355,818

Financial Instruments (Details

Financial Instruments (Details - Carrying amount and estimated fair value) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Investments, All Other Investments [Abstract]
Mortgages payable-Carrying Amount	$ 60,952,549	$ 64,924,427
Mortgages payable-Estimated Fair Value	$ 61,002,342	$ 64,823,777