Lightstone Value Plus REIT III (LVVR) 10-Q 14 Aug 23 2023 Q2 Quarterly report Financial data

Cover

Cover - shares shares in Thousands	6 Months Ended
	Jun. 30, 2023	Aug. 07, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2023
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2023
Current Fiscal Year End Date	--12-31
Entity File Number	000-55619
Entity Registrant Name	LIGHTSTONE VALUE PLUS REIT III, INC.
Entity Central Index Key	0001563756
Entity Tax Identification Number	46-1140492
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	1985 Cedar Bridge Avenue
Entity Address, Address Line Two	Suite 1
Entity Address, City or Town	Lakewood
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	08701
City Area Code	(732)
Local Phone Number	367-0129
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,000

CONSOLIDATED BALANCE SHEETS (U

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Investment property:
Land and improvements	$ 21,713	$ 21,711
Building and improvements	92,132	91,987
Furniture and fixtures	16,538	16,463
Construction in progress	131	47
Gross investment property	130,514	130,208
Less: accumulated depreciation	(34,700)	(32,438)
Net investment property	95,814	97,770
Investments in unconsolidated affiliated real estate entities	20,577	21,755
Cash and cash equivalents	9,310	18,391
Marketable securities, available for sale	9,308	3,314
Accounts receivable and other assets	2,599	1,585
Total Assets	137,608	142,815
Liabilities and Stockholders’ Equity
Accounts payable and other accrued expenses	3,358	2,960
Mortgages payable, net	60,921	60,814
Distributions payable	970
Due to related parties	396	302
Total Liabilities	65,645	64,076
Company’s stockholders’ equity:
Preferred stock, $0.01 par value; 50.0 million shares authorized, none issued and outstanding
Common stock, $0.01 par value; 200.0 million shares authorized, 13.0 million shares issued and outstanding	129	130
Additional paid-in-capital	110,721	111,585
Accumulated other comprehensive loss	(226)	(250)
Accumulated deficit	(50,753)	(44,818)
Total Company stockholders’ equity	59,871	66,647
Noncontrolling interests	12,092	12,092
Total Stockholders’ Equity	71,963	78,739
Total Liabilities and Stockholders’ Equity	$ 137,608	$ 142,815

CONSOLIDATED BALANCE SHEETS _2

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, per share	$ 0.01	$ 0.01
Preferred stock, shares authorized	50,000	50,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, per share	$ 0.01	$ 0.01
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	13,000	13,000
Common stock, shares outstanding	13,000	13,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Revenues	$ 7,966	$ 7,986	$ 14,332	$ 13,731
Expenses:
Property operating expenses	5,103	4,756	9,682	8,528
Real estate taxes	267	357	597	707
General and administrative costs	672	592	1,315	1,278
Depreciation and amortization	1,114	1,214	2,294	2,482
Total expenses	7,156	6,919	13,888	12,995
Interest expense	(1,333)	(709)	(2,571)	(1,370)
Gain on forgiveness of debt		899		1,131
Earnings from investments in unconsolidated affiliated real estate entities	(1,002)	75	(2,180)	(99)
Other income/(expense), net	242	(30)	317	(88)
Net (loss)/income	(1,283)	1,302	(3,990)	310
Less: net loss/(income) attributable to noncontrolling interests
Net (loss)/income applicable to Company’s common shares	$ (1,283)	$ 1,302	$ (3,990)	$ 310
Net loss per Company's common share, basic	$ (0.10)	$ 0.10	$ (0.31)	$ 0.02
Net loss per Company's common share, diluted	$ (0.10)	$ 0.10	$ (0.31)	$ 0.02
Weighted average number of common shares outstanding, basic	12,973	13,084	12,998	13,107
Weighted average number of common shares outstanding, diluted	12,973	13,084	12,998	13,107

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net (loss)/income	$ (1,283)	$ 1,302	$ (3,990)	$ 310
Other comprehensive income/(loss):
Holding gain/(loss) on marketable securities, available for sale	24	(44)	24	(76)
Comprehensive (loss)/income	(1,259)	1,258	(3,966)	234
Less: Comprehensive loss/(income) attributable to noncontrolling interests
Comprehensive (loss)/income attributable to the Company’s common shares	$ (1,259)	$ 1,258	$ (3,966)	$ 234

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands		Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Dec. 31, 2021		$ 131	$ 112,581	$ (107)	$ (44,603)	$ 12,092	$ 80,094
Beginning balance, shares at Dec. 31, 2021		13,152
Net loss					310		310
Other comprehensive income				(76)			(76)
Redemption and cancellation of shares		$ (1)	(742)				(743)
Redemption and cancellation of shares, shares		(83)
Ending balance, value at Jun. 30, 2022		$ 130	111,839	(183)	(44,293)	12,092	79,585
Ending balance, shares at Jun. 30, 2022		13,069
Beginning balance, value at Mar. 31, 2022		$ 131	112,330	(139)	(45,595)	12,092	78,819
Beginning balance, shares at Mar. 31, 2022		13,121
Net loss					1,302		1,302
Other comprehensive income				(44)			(44)
Redemption and cancellation of shares		$ (1)	(491)				(492)
Redemption and cancellation of shares, shares		(52)
Ending balance, value at Jun. 30, 2022		$ 130	111,839	(183)	(44,293)	12,092	79,585
Ending balance, shares at Jun. 30, 2022		13,069
Beginning balance, value at Dec. 31, 2022		$ 130	111,585	(250)	(44,818)	12,092	78,739
Beginning balance, shares at Dec. 31, 2022		13,043
Net loss					(3,990)		(3,990)
Other comprehensive income				24			24
Distributions declared	[1]				(1,945)		(1,945)
Redemption and cancellation of shares		$ (1)	(864)				(865)
Redemption and cancellation of shares, shares		(86)
Ending balance, value at Jun. 30, 2023		$ 129	110,721	(226)	(50,753)	12,092	71,963
Ending balance, shares at Jun. 30, 2023		12,957
Beginning balance, value at Mar. 31, 2023		$ 130	111,336	(250)	(48,500)	12,092	74,808
Beginning balance, shares at Mar. 31, 2023		13,017
Net loss					(1,283)		(1,283)
Other comprehensive income				24			24
Distributions declared	[2]				(970)		(970)
Redemption and cancellation of shares		$ (1)	(615)				(616)
Redemption and cancellation of shares, shares		(60)
Ending balance, value at Jun. 30, 2023		$ 129	$ 110,721	$ (226)	$ (50,753)	$ 12,092	$ 71,963
Ending balance, shares at Jun. 30, 2023		12,957
[1]Distributions per share were $0.150.[2]Distributions per share were $0.075.

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)/income	$ (3,990)	$ 310
Adjustments to reconcile net (loss)/income to net cash provided by operating activities:
Loss from investments in unconsolidated affiliated real estate entities	2,180	99
Depreciation and amortization	2,294	2,482
Amortization of deferred financing costs	107	119
Gain on forgiveness of debt		(1,131)
Other non-cash adjustments	31	132
Changes in assets and liabilities:
Increase in accounts receivable and other assets	(1,077)	(1,982)
Increase in accounts payable and other accrued expenses	399	1,141
Increase in due to related parties	94	1
Net cash provided by operating activities	38	1,171
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of investment property	(307)	(134)
Purchase of marketable securities	(10,373)	(1)
Proceeds from sale of marketable securities	4,403
Distributions from unconsolidated affiliated real estate entity		1,225
Investments in unconsolidated affiliated real estate entities	(1,002)	(293)
Net cash (used in)/provided by investing activities	(7,279)	797
CASH FLOWS FROM FINANCING ACTIVITIES:
Redemption and cancellation of common shares	(865)	(743)
Distributions paid to Company’s common stockholders	(975)
Net cash used in financing activities	(1,840)	(743)
Change in cash and cash equivalents	(9,081)	1,225
Cash and cash equivalents, beginning of year	18,391	16,639
Cash and cash equivalents, end of period	9,310	17,864
Supplemental cash flow information for the periods indicated is as follows:
Cash paid for interest	2,419	1,209
Distributions declared, but not paid	970
Holding gain/loss on marketable securities, available for sale	$ 24	$ 76

Business and Structure

Business and Structure	6 Months Ended
	Jun. 30, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business and Structure	1. Business and Structure Lightstone Value Plus REIT III, Inc. (“Lightstone REIT III”), which was formerly known as Lightstone Value Plus Real Estate Investment Trust III, Inc., before September 16, 2021, 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. 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 June 30, 2023, Lightstone REIT III had a 99% 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 in these consolidated financial statements refers to Lightstone REIT III, its Operating Partnership or the Company as required by the context in which such pronoun is used. Through the Operating Partnership, the Company owns, operates and develops commercial properties and makes real estate-related investments. Since its inception, the Company has primarily acquired and operated commercial hospitality properties, principally consisting of limited-service-hotels all located in the United States. However, its commercial holdings may also consist of full-service hotels, and to a lesser extent, retail (primarily multi-tenanted shopping centers), industrial and office properties. The Company’s real estate investments are held by it alone or jointly with other parties. In addition, the Company may invest up to 20% of its net assets in collateralized debt obligations, commercial mortgage-backed securities (“CMBS”) and mortgage and mezzanine loans secured, directly or indirectly, by the same types of properties which it may acquire directly. Although most of its investments are these types, the Company may invest in whatever types of real estate or real estate-related investments that it believes are in its best interests. The Company evaluates all of its real estate investments as one operating segment. The Company currently intends to hold its investments until such time as it determines that a sale or other disposition appears to be advantageous to achieve its investment objectives or until it appears that the objectives will not be met. As of June 30, 2023, the Company (i) majority owned and consolidated the operating results and financial condition of eight limited-service hotels containing a total of 872 rooms, (ii) held an unconsolidated 50.0% membership interest in LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”) and (iii) held an unconsolidated 25.0% membership interest in Bedford Avenue Holdings LLC (the “Williamsburg Moxy Hotel Joint Venture”). The Company accounts for its unconsolidated membership interests in the Hilton Garden Inn Joint Venture and the Williamsburg Moxy Hotel Joint Venture under the equity method of accounting. The Hilton Garden Inn Joint Venture owns a 183-room, limited-service hotel (the “Hilton Garden Inn – Long Island City) located in the Long Island City neighborhood in the Queens borough of New York City. The Williamsburg Moxy Hotel Joint Venture developed, constructed and owns a 216-room branded hotel (the “Williamsburg Moxy Hotel”) located in the Williamsburg neighborhood in the Brooklyn borough of New York City, which opened on March 7, 2023. Both the Hilton Garden Inn Joint Venture and the Williamsburg Moxy Hotel Joint Venture are between the Company and related parties. 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 20,000 200 10.00 222,222 2.0 9.00 242 12.1 The Company has no employees. The Company’s Advisor and its affiliates perform a full range of real estate services for it, including asset management, accounting, legal, and property management, as well as investor relations services. The Company is dependent on the Advisor and its affiliates for services that are essential to it, including asset management and acquisition, disposition and financing activities, and other general administrative responsibilities. If the Advisor and its affiliates are unable to provide these services to the Company, it would be required to provide the services itself or obtain the services from other parties. The Company also uses 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. On January 17, 2023, the Company’s stockholders approved an amendment and restatement to the Company’s charter pursuant to which the Company is no longer required to either (a) amend its charter to extend the deadline to begin the process of achieving a liquidity event, or (b) hold 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 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, the Special Limited Partner purchased from the Operating Partnership an aggregate of 242 Subordinated Participation Interests for consideration of $12.1 million. The Subordinated Participation Interests were each purchased for $50 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 June 30, 2023, no distributions have been declared or paid on the Subordinated Participation Interests. Related Parties The Company’s Sponsor, Advisor and its affiliates, including the Special Limited Partner, are related parties of the Company as well as the other public REITs also sponsored and/or advised by these entities. Certain of these entities are entitled to compensation and reimbursement for services and costs incurred 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. See Note 7 – Related Party Transactions for additional information.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies 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 Lightstone REIT III exercises financial and operating control). As of June 30, 2023, Lightstone REIT III had a 99% 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, 2022. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Value Plus REIT III, Inc. and its Subsidiaries have been prepared in accordance with 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, 2022 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. Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2009. If the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. To maintain its qualification as a REIT, the Company may engage in certain activities through taxable REIT subsidiaries (“TRSs”). As such, it may be subject to U.S. federal and state income and franchise taxes from these activities. As of June 30, 2023 and December 31, 2022, the Company had no Revenues The following table represents the total revenues from hotel operations on a disaggregated basis: Schedule of revenues from hotel operations For the For the Revenues 2023 2022 2023 2022 Room $ 7,726 $ 7,791 $ 13,856 $ 13,389 Food, beverage and other 240 195 476 342 Total revenues $ 7,966 $ 7,986 $ 14,332 $ 13,731 Gain on Forgiveness of Debt During the three and six months ended June 30, 2022, notice was received from the U.S. Small Business Administration that $ 0.9 1.1 Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board issued an accounting standards update, “Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments,” which changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The updated standard replaces the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For trade receivables and held to maturity debt securities, entities are required to use a new forward looking expected loss model that generally will result in the earlier recognition of allowances for losses. The Company has adopted this standard noting that it did not have a material impact on the Company’s financial statements or related disclosures. Adverse Developments Affecting the Financial Services Industry and Concentration of Risk As of June 30, 2023 and December 31, 2022, the Company had cash deposited in certain financial institutions in excess of federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents. However, in March and April 2023, certain U.S. government banking regulators took steps to intervene in the operations of certain financial institutions due to liquidity concerns, which caused general heightened uncertainties in financial markets. While these events have not had a material direct impact on the Company’s operations, if further liquidity and financial stability concerns arise with respect to banks and financial institutions, either nationally or in specific regions, the Company’s ability to access cash or enter into new financing arrangements may be threatened, which could have a material adverse effect on its business, financial condition and results of operations. Current Environment The Company’s operating results and financial condition are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, its business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility and uncertainty as a result of recent banking failures, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, certain labor and supply chain challenges and other changes in economic conditions may adversely affect the Company’s results of operations and financial performance.

Investments in Unconsolidated A

Investments in Unconsolidated Affiliated Real Estate Entities	6 Months Ended
	Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract]
Investments in Unconsolidated Affiliated Real Estate Entities	3. Investments in Unconsolidated Affiliated Real Estate Entities The entities 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 unconsolidated affiliated real estate entities is as follows: Schedule of investments in the unconsolidated affiliated real estate As of Entity Date of Ownership % June 30, December 31, LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”) March 27, 2018 50.00% $ 9,520 $ 9,604 Bedford Avenue Holdings LLC (the “Williamsburg Moxy Hotel Joint Venture”) August 5, 2021 25.00% 11,057 12,151 Total investments in unconsolidated affiliated real estate entities $ 20,577 $ 21,755 Hilton Garden Inn Joint Venture On March 27, 2018, the Company and Lightstone Value Plus REIT II, Inc. (“Lightstone REIT II”), a REIT also sponsored by the Company’s Sponsor and a related party, acquired, through the newly formed Hilton Garden Inn Joint Venture, the Hilton Garden Inn – Long Island City from an unrelated third party, for aggregate consideration of $ 60.0 25.0 35.0 12.9 50.0% Except as discussed below, the Hilton Garden Inn Mortgage bore interest at LIBOR plus 3.15%, subject to a 5.03% floor On June 2, 2020, the Hilton Garden Inn Mortgage was amended to provide for the deferral of the six monthly debt service payments aggregating $ 0.9 On March 27, 2023, the Hilton Garden Inn Joint Venture and the lender amended the Hilton Garden Inn Mortgage to extend the maturity date for 90 days, through June 25, 2023, to provide additional time to finalize the terms of a long-term extension. Subsequently, on May 31, 2023, the Hilton Garden Inn Mortgage was further amended to provide for (i) an extension of the maturity date for an additional five years, (ii) the interest rate to be adjusted to SOFR plus 3.25% (8.39% as of June 30, 2023), subject to a 6.41% floor, interest-only payments for the first two years of its extended term with principal and interest payments pursuant to a 300-month amortization schedule thereafter and the remaining unpaid balance due in full at its maturity date of May 31, 2028, (iii) the ability to draw up to an additional $3.0 million of principal, subject to the satisfaction of certain conditions, and (iv) certain changes to its financial covenants. Additionally, the Hilton Garden Inn Joint Venture will fund $1.3 million, through monthly payments of $37 from May 31, 2023 through June 1, 2026, into a cash collateral reserve account which may be drawn upon for specified capital expenditures. The Company and Lightstone REIT II each have a 50.0% The Hilton Garden Inn Joint Venture is currently in compliance with respect to all of its financial debt covenants. Subsequent to the Company’s acquisition of its 50.0% 3.2 4.0 Hilton Garden Inn Joint Venture Financial Information The following table represents the condensed statements of operations for the Hilton Garden Inn Joint Venture for the periods indicated: Schedule of condensed statement of operations For the For the For the For the Revenues $ 3,115 $ 2,910 $ 5,144 $ 5,078 Property operating expenses 1,907 1,518 3,414 2,946 General and administrative costs 106 6 132 16 Depreciation and amortization 596 606 1,205 1,226 Operating income 506 780 393 890 Interest expense (825 ) (448 ) (1,451 ) (875 ) Net (loss)/income $ (319 ) $ 332 $ (1,058 ) $ 15 Company’s share of net (loss)/income (50.00%) $ (159 ) $ 166 $ (529 ) $ 8 The following table represents the condensed balance sheets for the Hilton Garden Inn Joint Venture as of the dates indicated: Schedule of condensed balance sheet As of As of June 30, December 31, Investment property, net $ 49,131 $ 50,254 Cash 1,042 1,231 Other assets 1,677 1,276 Total assets $ 51,850 $ 52,761 Mortgage payable, net $ 32,231 $ 32,233 Other liabilities 1,178 1,920 Members’ capital 18,441 18,608 Total liabilities and members’ capital $ 51,850 $ 52,761 Williamsburg Moxy Hotel Joint Venture On August 5, 2021, the Company formed a joint venture with Lightstone Value Plus REIT IV, Inc. (“Lightstone REIT IV”), a REIT also sponsored by the Company’s Sponsor and a related party, pursuant to which the Company acquired 25% of Lightstone REIT IV’s membership interest in Bedford Avenue Holdings LLC, which effective on that date became the Williamsburg Moxy Hotel Joint Venture, for aggregate consideration of $ 7.9 5.3 0.6 In July 2019, Lightstone REIT IV, through its then wholly owned subsidiary, Bedford Avenue Holdings LLC, previously acquired four adjacent parcels of land located at 353-361 Bedford Avenue in the Williamsburg neighborhood in the Brooklyn borough of New York City, from unrelated third parties, for the development of the Williamsburg Moxy Hotel. As a result, the Company and Lightstone REIT IV have 25% and 75% membership interests, respectively, in the Williamsburg Moxy Hotel Joint Venture. The Company has determined that the Williamsburg Moxy Hotel Joint Venture is a variable interest entity and the Company is not the primary beneficiary, as it was determined that REIT IV is the primary beneficiary. Therefore, the Company accounts for its membership interest in the Williamsburg Moxy Hotel Joint Venture in accordance with the equity method because it exerts significant influence over but does not control the Williamsburg Moxy Hotel Joint Venture. All capital contributions and distributions of earnings from the Williamsburg Moxy Hotel 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 Williamsburg Moxy Hotel Joint Venture are made to the members pursuant to the terms of the Williamsburg Moxy Hotel Joint Venture’s operating agreement. The Williamsburg Moxy Hotel was substantially completed and opened for business on March 7, 2023. In connection with the opening of the hotel, including its food and beverage venues, the Williamsburg Moxy Hotel Joint Venture incurred pre-opening costs of $ 0.5 2.2 An adjacent land owner has filed a claim questioning the Williamsburg Moxy Hotel Joint Venture’s right to develop and construct the Williamsburg Moxy Hotel without his consent. The Williamsburg Moxy Hotel Joint Venture is currently responding to this claim and management believes it will, in due course, be recognized that the adjacent owner waived his right to object in 2017 when he signed a waiver, consent and subordination allowing the future development of our property as it exists today. While this matter is currently pending in the court system, the continued use of the property will ultimately be determined by the government of New York City and management has a number of avenues that it believes are viable paths to unfettered certificates of occupancy. While any dispute has an element of uncertainty, management currently believes that the likelihood of an unfavorable outcome with respect to any of the aforementioned proceedings is remote. No provision for loss has been recorded in connection therewith. See Note 9 for additional information. Moxy Construction Loan On August 5, 2021, the Williamsburg Moxy Hotel Joint Venture entered into a recourse construction loan facility for up to $ 77.0 LIBOR plus 9.00%, subject to a 9.50% floor 5.22% 4.39% As of June 30, 2023 and December 31, 2022, the outstanding principal balance of the Moxy Construction Loan was $ 78.4 4.0 1.0 65.6 1.7 2.0 2.6 14.22% In connection with the Moxy Construction Loan, the Williamsburg Moxy Hotel Joint Venture has provided certain completion and carry cost guarantees. Furthermore, in connection with the Moxy Construction Loan, the Williamsburg Moxy Hotel Joint Venture paid $ 3.7 0.8 The Williamsburg Moxy Hotel Joint Venture currently intends to refinance the Moxy Construction Loan on or before its initial maturity date of February 5, 2024; however, there can be no assurances that it will be successful in such endeavors. If the Williamsburg Moxy Hotel Joint Venture is unable to refinance the Moxy Construction Loan on or before its initial maturity date, it will then seek to exercise the first of its two six-month extension options. Williamsburg Moxy Hotel Joint Venture Financial Information The following table represents the condensed statements of operations for the Williamsburg Moxy Joint Venture for the periods indicated: Schedule of investments in the unconsolidated affiliated real estate For the For the For the For the Revenues $ 7,106 $ - $ 8,059 $ - Property operating expenses 5,905 - 7,245 - Pre-opening costs 493 357 2,228 419 General and administrative costs 47 7 79 7 Depreciation and amortization 869 - 1,140 - Operating loss (208 ) (364 ) (2,633 ) (426 ) Interest expense (3,162 ) - (3,970 ) - Net loss $ (3,370 ) $ (364 ) $ (6,603 ) $ (426 ) Company’s share of net loss (25.00%) $ (843 ) $ (91 ) $ (1,651 ) $ (107 ) The following table represents the condensed balance sheets for the Williamsburg Moxy Hotel Joint Venture as of the dates indicated: Schedule of condensed balance sheet As of As of June 30, December 31, Investment property, net $ 123,859 $ 114,615 Cash 1,630 752 Other assets 3,285 2,346 Total assets $ 128,774 $ 117,713 Mortgage payable, net $ 77,403 $ 63,631 Other liabilities 7,731 6,064 Members’ capital 43,640 48,018 Total liabilities and members’ capital $ 128,774 $ 117,713

Marketable Securities and Fair

Marketable Securities and Fair Value Measurements	6 Months Ended
	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
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: Schedule of available-for-sale securities reconciliation As of June 30, 2023 Adjusted Gross Gross Fair Marketable Securities Equity securities Preferred Equity Securities $ 4,417 $ 2 $ (47 ) $ 4,372 Mutual Funds 4,416 - - 4,416 8,833 2 (47 ) 8,788 Debt securities Corporate Bonds 746 - (226 ) 520 Total $ 9,579 $ 2 $ (273 ) $ 9,308 As of December 31, 2022 Adjusted Gross Gross Fair Marketable Securities Equity securities Preferred Equity Securities $ 961 $ - $ (45 ) $ 916 Mutual Funds 222 - (5 ) 217 1,183 - (50 ) 1,133 Debt securities Corporate Bonds 746 - (263 ) 483 United States Treasury Bills 1,685 13 - 1,698 2,431 13 (263 ) 2,181 Total $ 3,614 $ 13 $ (313 ) $ 3,314 The Company may be exposed to credit losses through its available-for-sale debt securities. Unrealized losses or impairments resulting from the amortized cost basis of any available-for-sale debt security exceeding its fair value are evaluated for identification of credit and non-credit related factors. Any difference between the fair value of the debt security and the amortized cost basis not attributable to credit related factors are reported in other comprehensive income. A credit-related impairment is recognized as an allowance on the balance sheet with a corresponding adjustment to earnings. When evaluating the investments for impairment at each reporting period, the Company reviews factors such as the extent of the unrealized loss, current and future economic market conditions and the economic and financial condition of the issuer and any changes thereto. As of June 30, 2023, the Company has not recognized an allowance for expected credit losses related to available-for-sale debt securities as the Company has not identified any unrealized losses for these investments attributable to credit factors. The Company’s unrealized loss on investments in corporate bonds was primarily caused by recent rising interest rates. The Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell the investment before recovery of its amortized cost basis. 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 June 30, 2023 and December 31, 2022, the Company’s mutual funds and United States Treasury Bills were classified as Level 1 assets and the Company’s preferred equity securities and corporate bonds were classified as Level 2 assets. There were no transfers between the level classifications during the six months ended June 30, 2023 and 2022. The fair values of the Company’s investments in mutual funds and United States Treasury Bills are measured using quoted prices in active markets for identical assets and its preferred equity securities and corporate bonds are measured using readily available quoted prices for these securities; however, the markets for these securities are not active. 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: Schedule of available-for-sale securities As of Due in 1 year $ - Due in 1 year through 5 years - Due in 5 year through 10 years - Due after 10 years 520 Total $ 520 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, 2023
Debt Disclosure [Abstract]
Mortgages payable, net	5. Mortgages payable, net Mortgages payable, net consists of the following: Schedule of mortgages payable, net Weighted Description Interest for the Maturity Amount As of As of Revolving Credit Facility AMERIBOR + 3.15% 7.87% July 2024 $ 34,573 $ 34,573 $ 34,573 Home2 Suites Tukwila Loan LIBOR + 3.50% 8.40% December 2026 15,006 16,210 16,210 Home2 Suites Salt Lake City Loan LIBOR + 3.50% 8.40% December 2026 9,757 10,540 10,540 Total mortgages payable 8.10% $ 59,336 61,323 61,323 Less: Deferred financing costs (402 ) (509 ) Total mortgage payable, net $ 60,921 $ 60,814 LIBOR as of June 30, 2023 and December 31, 2022 was 5.22% 4.39% 5.17% 4.64% Revolving Credit Facility The Company, through certain subsidiaries, has a non-recourse revolving credit facility (the “Revolving Credit Facility”) with a financial institution. The Revolving Credit Facility provides the Company with a line of credit of up to $ 60.0 65.0% As a result of the impact of the COVID-19 pandemic on the operating results and financial condition of the Company’s hotels designated as collateral under the Revolving Credit Facility, its terms were amended by the lender in June 2020 to provide for a reduced interest rate, the deferral of interest payments and a waiver and/or modification of financial covenants during certain prescribed periods during 2020 and 2021. 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 0.7 Except as discussed above, the Revolving Credit Facility, which was scheduled to mature on July 13, 2022, bore interest at LIBOR plus 3.15% 4.00% 3.15% 4.00% Additionally, in connection with the extension of the Revolving Credit facility on July 13, 2023, the Company was required to deposit $ 1.4 million into a cash collateral reserve account to achieve compliance with one of the Revolving Credit Facility’s financial debt covenants as of March 31, 2023. As of June 30, 2023, the Company did not achieve compliance with this financial debt covenant and is required to make a principal paydown of $ 2.3 As of both June 30, 2023 and December 31, 2022, the Revolving Credit Facility had an outstanding principal balance of $ 34.6 Home2 Suites Financings On December 6, 2021, the Company entered into a non-recourse loan facility providing for up to $ 19.1 16.2 2.9 3.50% 3.75% 0.1 3.50% 3.75% On December 6, 2021, the Company entered into a non-recourse loan facility providing for up to $ 12.5 10.5 2.0 3.50% 3.75% 0.1 3.50% 3.75% Principal Maturities The following table sets forth the aggregate estimated contractual principal maturities of the Company’s mortgages payable, including balloon payments due at maturity, as of June 30, 2023: Schedule of principal maturities 2023 2024 2025 2026 2027 Thereafter Total Principal maturities $ - $ 35,229 $ 684 $ 25,410 $ - $ - $ 61,323 Less: Deferred financing costs (402 ) Total principal maturities, net $ 60,921 Certain of the Company’s debt agreements also contain clauses providing for prepayment penalties. As of June 30, 2023, the Company did not meet one of the financial debt covenants with respect to the Revolving Credit Facility (see “Revolving Credit Facility” above). As of June 30, 2023, the Company was in compliance with respect to its remaining financial debt covenants.

Company_s Stockholder_s Equity

Company’s Stockholder’s Equity	6 Months Ended
	Jun. 30, 2023
Equity [Abstract]
Company’s Stockholder’s Equity	6. Company’s Stockholder’s Equity Distributions on Common Shares On May 11, 2023, the Board of Directors authorized and the Company declared a Common Share distribution of $ 0.075 0.30 3% 10.00 1.0 On August 14, 2023, the Board of Directors authorized and the Company declared a Common Share distribution of $ 0.075 0.30 3% 10.00 Future distributions declared, if any, will be at the discretion of the Board of Directors based on their analysis of the Company’s performance over the previous periods and expectations of performance for future periods. The Board of Directors will consider various factors in its determination, including but not limited to, the sources and availability of capital, revenues and other sources of income, operating and interest expenses and the Company’s ability to refinance near-term debt as well as the IRS’s annual distribution requirement that REITs distribute no less than 90% of their taxable income. The Company cannot assure that any future distributions will be made or that it will maintain any particular level of distributions that it has previously established or may establish. SRP The Company’s share repurchase program (the “SRP”) may provide eligible stockholders with limited, interim liquidity by enabling them to sell their Common Shares back to the Company, subject to restrictions and applicable law. On March 19, 2020, the Board of Directors amended the SRP to remove stockholder notice requirements and also approved the suspension of all redemptions. Effective May 10, 2021, the Board of Directors partially reopened the SRP to allow, subject to various conditions as set forth below, for redemptions submitted in connection with a stockholder’s death and hardship, respectively, and set the price for all such purchases to the Company’s current estimated net asset value per share of common stock, as determined by the Board of Directors and reported by the Company from time to time. Deaths that occurred subsequent to January 1, 2020 were eligible for consideration, subject to certain conditions. Beginning January 1, 2022, requests for redemptions in connection with a stockholder’s death must be submitted and received by the Company within one year of the stockholder’s date of death for consideration. On the above noted date, the Board of Directors established that on an annual basis, the Company would not redeem in excess of 0.5% For the six months ended June 30, 2023, the Company repurchased 86,223 10.03 83,226 8.93 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 net income/(loss) 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, 2023
Related Party Transactions [Abstract]
Related Party Transactions	7. Related Party Transactions The Company’s Sponsor, Advisor and their affiliates, including the Special Limited Partner, are related parties of the Company as well as other public REITs also sponsored and/or advised by these entities. Pursuant to the terms of various agreements, certain of these entities are entitled to compensation and reimbursement of costs incurred for services related to the investment, development, management and disposition of the Company’s assets. The compensation is generally 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. Additionally, the Company’s ability to secure financing and its real estate operations are dependent upon its Advisor and its affiliates to perform such services as provided in these agreements. Amounts the Company owes to the Advisor and its affiliated entities are principally for asset management fees, and are classified as due to related parties on the consolidated balance sheets. The following table represents the fees incurred associated with the payments to the Company’s Advisor for the periods indicated: Schedule of fees payments to company's advisor For the For the 2023 2022 2023 2022 Asset management fees (general and administrative costs) $ 360 $ 301 $ 677 $ 603 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	6 Months Ended
	Jun. 30, 2023
Investments, All Other Investments [Abstract]
Financial Instruments	8. Financial Instruments The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents, accounts receivable and other assets, accounts payable and other accrued expenses and due to related parties approximate their fair values because of the short maturity of these instruments. The carrying amount of the mortgages payable approximate fair value because the interest rates are variable and reflective of market rates.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Management Agreements The Company’s hotels operate pursuant to management agreements (the “Management Agreements”) with various third-party management companies. The management companies perform management functions including, but not limited to, hiring and supervising employees, establishing room prices, establishing administrative policies and procedures, managing expenditures and arranging and supervising public relations and advertising. The Management Agreements are for initial terms ranging from one year to 10 60 The Management Agreements provide for the payment of a base management fee equal to 3% 3.5% Franchise Agreements As of June 30, 2023, the Company’s hotels operated pursuant to various franchise agreements. Under the franchise agreements, the Company generally pays a fee equal to 3% 5.5% 2.0% 2.5% The franchise agreements are generally for initial terms ranging from 15 20 Legal Proceedings From time to time in the ordinary course of business, the Company may become subject to legal proceedings, claims or disputes. See Note 3 for additional information. As of the date hereof, the Company is not a party to any material pending legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
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 Lightstone REIT III exercises financial and operating control). As of June 30, 2023, Lightstone REIT III had a 99% 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, 2022. The unaudited interim consolidated financial statements include all adjustments (consisting only of normal recurring adjustments) and accruals necessary in the judgment of management for a fair presentation of the results for the periods presented. The accompanying unaudited consolidated financial statements of the Lightstone Value Plus REIT III, Inc. and its Subsidiaries have been prepared in accordance with 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, 2022 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.
Income Taxes	Income Taxes The Company has elected to be taxed as a REIT commencing with the taxable year ended December 31, 2009. If the Company qualifies as a REIT, it generally will not be subject to U.S. federal income tax on its taxable income or capital gain that it distributes to its stockholders. To maintain its REIT qualification, the Company must meet a number of organizational and operational requirements, including a requirement that it annually distribute to its stockholders at least 90% of its REIT taxable income (which does not equal net income, as calculated in accordance with GAAP), determined without regard to the deduction for dividends paid and excluding any net capital gain. If the Company fails to remain qualified for taxation as a REIT in any subsequent year and does not qualify for certain statutory relief provisions, its income for that year will be taxed at the regular corporate rate, and it may be precluded from qualifying for treatment as a REIT for the four-year period following its failure to qualify as a REIT. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to stockholders. To maintain its qualification as a REIT, the Company may engage in certain activities through taxable REIT subsidiaries (“TRSs”). As such, it may be subject to U.S. federal and state income and franchise taxes from these activities. As of June 30, 2023 and December 31, 2022, the Company had no
Revenues	Revenues The following table represents the total revenues from hotel operations on a disaggregated basis: Schedule of revenues from hotel operations For the For the Revenues 2023 2022 2023 2022 Room $ 7,726 $ 7,791 $ 13,856 $ 13,389 Food, beverage and other 240 195 476 342 Total revenues $ 7,966 $ 7,986 $ 14,332 $ 13,731
Gain on Forgiveness of Debt	Gain on Forgiveness of Debt During the three and six months ended June 30, 2022, notice was received from the U.S. Small Business Administration that $ 0.9 1.1
Recently Adopted Accounting Standards	Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board issued an accounting standards update, “Financial Instruments-Credit Losses-Measurement of Credit Losses on Financial Instruments,” which changes how entities measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The updated standard replaces the current “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For trade receivables and held to maturity debt securities, entities are required to use a new forward looking expected loss model that generally will result in the earlier recognition of allowances for losses. The Company has adopted this standard noting that it did not have a material impact on the Company’s financial statements or related disclosures.
Adverse Developments Affecting the Financial Services Industry and Concentration of Risk	Adverse Developments Affecting the Financial Services Industry and Concentration of Risk As of June 30, 2023 and December 31, 2022, the Company had cash deposited in certain financial institutions in excess of federally insured levels. The Company regularly monitors the financial stability of these financial institutions and believes that it is not exposed to any significant credit risk in cash and cash equivalents. However, in March and April 2023, certain U.S. government banking regulators took steps to intervene in the operations of certain financial institutions due to liquidity concerns, which caused general heightened uncertainties in financial markets. While these events have not had a material direct impact on the Company’s operations, if further liquidity and financial stability concerns arise with respect to banks and financial institutions, either nationally or in specific regions, the Company’s ability to access cash or enter into new financing arrangements may be threatened, which could have a material adverse effect on its business, financial condition and results of operations.
Current Environment	Current Environment The Company’s operating results and financial condition are substantially impacted by the overall health of local, U.S. national and global economies and may be influenced by market and other challenges. Additionally, its business and financial performance may be adversely affected by current and future economic and other conditions; including, but not limited to, availability or terms of financings, financial markets volatility and uncertainty as a result of recent banking failures, political upheaval or uncertainty, natural and man-made disasters, terrorism and acts of war, unfavorable changes in laws and regulations, outbreaks of contagious diseases, cybercrime, loss of key relationships, inflation and recession. The Company’s overall performance depends in part on worldwide economic and geopolitical conditions and their impacts on consumer behavior. Worsening economic conditions, increases in costs due to inflation, higher interest rates, certain labor and supply chain challenges and other changes in economic conditions may adversely affect the Company’s results of operations and financial performance.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Schedule of revenues from hotel operations	Schedule of revenues from hotel operations For the For the Revenues 2023 2022 2023 2022 Room $ 7,726 $ 7,791 $ 13,856 $ 13,389 Food, beverage and other 240 195 476 342 Total revenues $ 7,966 $ 7,986 $ 14,332 $ 13,731

Investments in Unconsolidated_2

Investments in Unconsolidated Affiliated Real Estate Entities (Tables)	6 Months Ended
	Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]
Schedule of investments in the unconsolidated affiliated real estate	Schedule of investments in the unconsolidated affiliated real estate As of Entity Date of Ownership % June 30, December 31, LVP LIC Hotel JV LLC (the “Hilton Garden Inn Joint Venture”) March 27, 2018 50.00% $ 9,520 $ 9,604 Bedford Avenue Holdings LLC (the “Williamsburg Moxy Hotel Joint Venture”) August 5, 2021 25.00% 11,057 12,151 Total investments in unconsolidated affiliated real estate entities $ 20,577 $ 21,755
Hilton Garden Inn Joint Venture [Member]
Restructuring Cost and Reserve [Line Items]
Schedule of condensed statement of operations	Schedule of condensed statement of operations For the For the For the For the Revenues $ 3,115 $ 2,910 $ 5,144 $ 5,078 Property operating expenses 1,907 1,518 3,414 2,946 General and administrative costs 106 6 132 16 Depreciation and amortization 596 606 1,205 1,226 Operating income 506 780 393 890 Interest expense (825 ) (448 ) (1,451 ) (875 ) Net (loss)/income $ (319 ) $ 332 $ (1,058 ) $ 15 Company’s share of net (loss)/income (50.00%) $ (159 ) $ 166 $ (529 ) $ 8
Schedule of condensed balance sheet	Schedule of condensed balance sheet As of As of June 30, December 31, Investment property, net $ 49,131 $ 50,254 Cash 1,042 1,231 Other assets 1,677 1,276 Total assets $ 51,850 $ 52,761 Mortgage payable, net $ 32,231 $ 32,233 Other liabilities 1,178 1,920 Members’ capital 18,441 18,608 Total liabilities and members’ capital $ 51,850 $ 52,761
Williamsburg Moxy Hotel Joint Venture [Member]
Restructuring Cost and Reserve [Line Items]
Schedule of investments in the unconsolidated affiliated real estate	Schedule of investments in the unconsolidated affiliated real estate For the For the For the For the Revenues $ 7,106 $ - $ 8,059 $ - Property operating expenses 5,905 - 7,245 - Pre-opening costs 493 357 2,228 419 General and administrative costs 47 7 79 7 Depreciation and amortization 869 - 1,140 - Operating loss (208 ) (364 ) (2,633 ) (426 ) Interest expense (3,162 ) - (3,970 ) - Net loss $ (3,370 ) $ (364 ) $ (6,603 ) $ (426 ) Company’s share of net loss (25.00%) $ (843 ) $ (91 ) $ (1,651 ) $ (107 )
Schedule of condensed balance sheet	Schedule of condensed balance sheet As of As of June 30, December 31, Investment property, net $ 123,859 $ 114,615 Cash 1,630 752 Other assets 3,285 2,346 Total assets $ 128,774 $ 117,713 Mortgage payable, net $ 77,403 $ 63,631 Other liabilities 7,731 6,064 Members’ capital 43,640 48,018 Total liabilities and members’ capital $ 128,774 $ 117,713

Marketable Securities and Fai_2

Marketable Securities and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of available-for-sale securities reconciliation	Schedule of available-for-sale securities reconciliation As of June 30, 2023 Adjusted Gross Gross Fair Marketable Securities Equity securities Preferred Equity Securities $ 4,417 $ 2 $ (47 ) $ 4,372 Mutual Funds 4,416 - - 4,416 8,833 2 (47 ) 8,788 Debt securities Corporate Bonds 746 - (226 ) 520 Total $ 9,579 $ 2 $ (273 ) $ 9,308 As of December 31, 2022 Adjusted Gross Gross Fair Marketable Securities Equity securities Preferred Equity Securities $ 961 $ - $ (45 ) $ 916 Mutual Funds 222 - (5 ) 217 1,183 - (50 ) 1,133 Debt securities Corporate Bonds 746 - (263 ) 483 United States Treasury Bills 1,685 13 - 1,698 2,431 13 (263 ) 2,181 Total $ 3,614 $ 13 $ (313 ) $ 3,314
Schedule of available-for-sale securities	Schedule of available-for-sale securities As of Due in 1 year $ - Due in 1 year through 5 years - Due in 5 year through 10 years - Due after 10 years 520 Total $ 520

Mortgages payable, net (Tables)

Mortgages payable, net (Tables)	6 Months Ended
	Jun. 30, 2023
Debt Disclosure [Abstract]
Schedule of mortgages payable, net	Schedule of mortgages payable, net Weighted Description Interest for the Maturity Amount As of As of Revolving Credit Facility AMERIBOR + 3.15% 7.87% July 2024 $ 34,573 $ 34,573 $ 34,573 Home2 Suites Tukwila Loan LIBOR + 3.50% 8.40% December 2026 15,006 16,210 16,210 Home2 Suites Salt Lake City Loan LIBOR + 3.50% 8.40% December 2026 9,757 10,540 10,540 Total mortgages payable 8.10% $ 59,336 61,323 61,323 Less: Deferred financing costs (402 ) (509 ) Total mortgage payable, net $ 60,921 $ 60,814
Schedule of principal maturities	Schedule of principal maturities 2023 2024 2025 2026 2027 Thereafter Total Principal maturities $ - $ 35,229 $ 684 $ 25,410 $ - $ - $ 61,323 Less: Deferred financing costs (402 ) Total principal maturities, net $ 60,921

Related Party Transactions (Tab

Related Party Transactions (Tables)	6 Months Ended
	Jun. 30, 2023
Related Party Transactions [Abstract]
Schedule of fees payments to company's advisor	Schedule of fees payments to company's advisor For the For the 2023 2022 2023 2022 Asset management fees (general and administrative costs) $ 360 $ 301 $ 677 $ 603

Business and Structure (Details

Business and Structure (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended		6 Months Ended
	Dec. 11, 2014	Jul. 16, 2014	Dec. 24, 2012	Jun. 30, 2023	Dec. 31, 2022
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Common stock, shares, issued				13,000,000	13,000,000
Lichtenstein [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Common stock, shares, issued	222,222
Lightstone Value Plus REIT III LLC [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Issuance of common shares, shares			20,000
Issuance of common shares, value			$ 200
Shares issued, price per share			$ 10
Company Owned By David Lichtenstein [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Shares reserved for issuance, price per share	$ 9
General Partner [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Contribution from advisor		$ 2
Number of limited partner units issued to advisor	$ 2,000
Limited Partner [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
Partners' capital account, units, contributed				242
Partners' capital account, contributions				$ 12,100
Lightstone REIT III [Member]
Consolidation, Less than Wholly Owned Subsidiary, Parent Ownership Interest, Effects of Changes, Net [Line Items]
General partner ownership interest				99%

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Product Information [Line Items]
Total revenues	$ 7,966	$ 7,986	$ 14,332	$ 13,731
Room [Member]
Product Information [Line Items]
Total revenues	7,726	7,791	13,856	13,389
Food and Beverage [Member]
Product Information [Line Items]
Total revenues	$ 240	$ 195	$ 476	$ 342

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Uncertain income tax positions		$ 0		$ 0
Proceed from loans	$ 900		$ 1,100
Lightstone REIT III [Member]
General partnership interest		99%

Investments in Unconsolidated_3

Investments in Unconsolidated Affiliated Real Estate Entities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Schedule of Equity Method Investments [Line Items]
Total investments in unconsolidated affiliated real estate entities	$ 20,577	$ 21,755
LVP LIC Hotel JV LLC [Member]
Schedule of Equity Method Investments [Line Items]
Date of ownership	Mar. 27, 2018
Ownership Percentage	50%
Total investments in unconsolidated affiliated real estate entities	$ 9,520	9,604
Bedford Avenue Holdings LLC [Member]
Schedule of Equity Method Investments [Line Items]
Date of ownership	Aug. 05, 2021
Ownership Percentage	25%
Total investments in unconsolidated affiliated real estate entities	$ 11,057	$ 12,151

Investments in Unconsolidated_4

Investments in Unconsolidated Affiliated Real Estate Entities (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Revenues	$ 7,966	$ 7,986	$ 14,332	$ 13,731
Net (loss)/income	1,283	(1,302)	3,990	(310)
Hilton Garden Inn Joint Venture [Member]
Restructuring Cost and Reserve [Line Items]
Revenues	3,115	2,910	5,144	5,078
Property operating expenses	1,907	1,518	3,414	2,946
General and administrative costs	106	6	132	16
Depreciation and amortization	596	606	1,205	1,226
Operating income	(506)	(780)	(393)	(890)
Interest expense	(825)	(448)	(1,451)	(875)
Net (loss)/income	(319)	332	(1,058)	15
Company’s share of net (loss)/income (50.00%)	$ (159)	$ 166	$ (529)	$ 8

Investments in Unconsolidated_5

Investments in Unconsolidated Affiliated Real Estate Entities (Details 2) - Hilton Garden Inn Joint Venture [Member] - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Investment property, net	$ 49,131	$ 50,254
Cash	1,042	1,231
Other assets	1,677	1,276
Total assets	51,850	52,761
Mortgage payable, net	32,231	32,233
Other liabilities	1,178	1,920
Members’ capital	18,441	18,608
Total liabilities and members’ capital	$ 51,850	$ 52,761

Investments in Unconsolidated_6

Investments in Unconsolidated Affiliated Real Estate Entities (Details 3) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Revenues	$ 7,966	$ 7,986	$ 14,332	$ 13,731
Pre-opening costs	500		2,200
Depreciation and amortization	1,114	1,214	2,294	2,482
Net loss	1,283	(1,302)	3,990	(310)
Williamsburg Moxy Hotel Joint Venture [Member]
Restructuring Cost and Reserve [Line Items]
Revenues	7,106		8,059
Property operating expenses	5,905		7,245
Pre-opening costs	493	357	2,228	419
General and administrative costs	47	7	79	7
Depreciation and amortization	869		1,140
Operating loss	(208)	(364)	(2,633)	(426)
Interest expense	(3,162)		(3,970)
Net loss	(3,370)	(364)	(6,603)	(426)
Company’s share of net loss (25.00%)	$ (843)	$ (91)	$ (1,651)	$ (107)

Investments in Unconsolidated_7

Investments in Unconsolidated Affiliated Real Estate Entities (Details 4) - Williamsburg Moxy Hotel Joint Venture [Member] - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Investment property, net	$ 123,859	$ 114,615
Cash	1,630	752
Other assets	3,285	2,346
Total assets	128,774	117,713
Mortgage payable, net	77,403	63,631
Other liabilities	7,731	6,064
Members’ capital	43,640	48,018
Total liabilities and members’ capital	$ 128,774	$ 117,713

Investments in Unconsolidated_8

Investments in Unconsolidated Affiliated Real Estate Entities (Details Narrative) - USD ($) $ in Thousands		1 Months Ended		3 Months Ended	6 Months Ended
	Aug. 05, 2021	Mar. 27, 2018	Mar. 27, 2018	Jun. 30, 2023	Jun. 30, 2023	Sep. 30, 2020	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Pre-opening costs				$ 500	$ 2,200
Accrued loan fees and expenses				$ 3,700	$ 3,700		$ 800
LIBOR [Member]
Restructuring Cost and Reserve [Line Items]
Interest rate				5.22%	5.22%		4.39%
Williamsburg Moxy Hotel [Member]
Restructuring Cost and Reserve [Line Items]
Aggregate consideration amount	$ 7,900
Additional paid in capital	$ 5,300				$ 600
Moxy Construction Loan [Member]
Restructuring Cost and Reserve [Line Items]
Debt instrument, interest rate, basis for effective rate	LIBOR plus 9.00%, subject to a 9.50% floor
Outstanding principal amount	$ 77,000			$ 78,400	$ 78,400		$ 65,600
Interest rate				14.22%	14.22%
Amount after interest capitalized				$ 4	$ 4		1,700
Deferred financing fees				1,000	1,000		$ 2,000
Remaining balance				$ 2,600	$ 2,600
Hilton Garden Inn [Member]
Restructuring Cost and Reserve [Line Items]
Aggregate purchase price			$ 60,000
Acquisition cash			25,000
Proceeds from issuance of debt			35,000
Offering funds used in acquisition			$ 12,900
Debt instrument, interest rate, basis for effective rate			LIBOR plus 3.15%, subject to a 5.03% floor
Proceeds from mortgage						$ 900
Membership interest		50%	50%
Membership intersts				50%	50%
Aggregate amount					$ 3,200
Aggregate distributions recieved				$ 4,000	$ 4,000
Hilton Garden Inn [Member] | Reportable Legal Entities [Member]
Restructuring Cost and Reserve [Line Items]
Business acquisition percent age of voting interest acquired		50%

Marketable Securities and Fai_3

Marketable Securities and Fair Value Measurements (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Marketable Securities [Line Items]
Debt securities, Adjusted Cost		$ 2,431
Debt securities, Gross Unrealized Gains		13
Debt securities, Gross Unrealized Losses		(263)
Debt securities, Fair Value		2,181
Total, Adjusted Cost	$ 9,579	3,614
Total, Gross Unrealized Gains	2	13
Total, Gross Unrealized Losses	(273)	(313)
Total, Fair Value	9,308	3,314
Equity Securities [Member]
Marketable Securities [Line Items]
Equity securities, Adjusted Cost	8,833	1,183
Equity securities, Gross Unrealized Gains	2
Equity securities, Gross Unrealized Losses	(47)	(50)
Equity securities, Fair Value	8,788	1,133
Preferred Equity Securities [Member]
Marketable Securities [Line Items]
Equity securities, Adjusted Cost	4,417	961
Equity securities, Gross Unrealized Gains	2
Equity securities, Gross Unrealized Losses	(47)	(45)
Equity securities, Fair Value	4,372	916
Mutual Fund [Member]
Marketable Securities [Line Items]
Equity securities, Adjusted Cost	4,416	222
Equity securities, Gross Unrealized Gains
Equity securities, Gross Unrealized Losses		(5)
Equity securities, Fair Value	4,416	217
Corporate Bonds [Member]
Marketable Securities [Line Items]
Debt securities, Adjusted Cost	746	746
Debt securities, Gross Unrealized Gains
Debt securities, Gross Unrealized Losses	(226)	(263)
Debt securities, Fair Value	$ 520	483
US Treasury Bill Securities [Member]
Marketable Securities [Line Items]
Debt securities, Adjusted Cost		1,685
Debt securities, Gross Unrealized Gains		13
Debt securities, Gross Unrealized Losses
Debt securities, Fair Value		$ 1,698

Marketable Securities and Fai_4

Marketable Securities and Fair Value Measurements (Details 1) $ in Thousands	Jun. 30, 2023 USD ($)
Investments, Debt and Equity Securities [Abstract]
Due in 1 year
Due in 1 year through 5 years
Due in 5 year through 10 years
Due after 10 years	520
Total	$ 520

Mortgages payable, net (Details

Mortgages payable, net (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Line of Credit Facility [Line Items]
Weighted Average Interest Rate	8.10%
Amount Due at Maturity	$ 59,336
Total mortgages payable	61,323	$ 61,323
Less: Deferred financing costs	(402)	(509)
Total mortgages payable, net	$ 60,921	60,814
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Interest Rate	AMERIBOR + 3.15% (floor of 4.00%)
Weighted Average Interest Rate	7.87%
Maturity Date	July 2024
Amount Due at Maturity	$ 34,573
Total mortgages payable	$ 34,573	34,573
Home 2 Suites Tukwila Loan [Member]
Line of Credit Facility [Line Items]
Interest Rate	LIBOR + 3.50% (floor of 3.75%)
Weighted Average Interest Rate	8.40%
Maturity Date	December 2026
Amount Due at Maturity	$ 15,006
Total mortgages payable	$ 16,210	16,210
Home 2 Suites Salt Lake City Loan [Member]
Line of Credit Facility [Line Items]
Interest Rate	LIBOR + 3.50% (floor of 3.75%)
Weighted Average Interest Rate	8.40%
Maturity Date	December 2026
Amount Due at Maturity	$ 9,757
Total mortgages payable	$ 10,540	$ 10,540

Mortgages payable, net (Detai_2

Mortgages payable, net (Details 1) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Disclosure [Abstract]
2023
2024	35,229
2025	684
2026	25,410
2027
Thereafter
Principal maturities	61,323	$ 61,323
Less: Deferred financing costs	(402)	(509)
Total mortgages payable, net	$ 60,921	$ 60,814

Mortgages payable, net (Detai_3

Mortgages payable, net (Details Narrative) - USD ($) $ in Thousands		5 Months Ended		6 Months Ended
	Dec. 06, 2021	Jun. 13, 2023	Jun. 13, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Prinipal paydown				$ 2,300
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity				$ 60,000
Line of credit facility current borrowing capacity percentage				65%
Principal amount				$ 34,600		$ 34,600	$ 3,800
Cash collateral							$ 700
Cash collateral reserves				$ 1,400
Home 2 Tukwila Loan [Member]
Debt Instrument [Line Items]
Principal amount	$ 100
Non resource loan	19,100
Closing amount	16,200
Avaliable amount to be drawn	2,900
Home 2 Salt Lake City Loan [Member]
Debt Instrument [Line Items]
Principal amount	100
Non resource loan	12,500
Closing amount	10,500
Avaliable amount to be drawn	$ 2,000
LIBOR [Member]
Debt Instrument [Line Items]
Interest rate				5.22%		4.39%
LIBOR [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Spread on variable rate		3.15%	3.15%
Floor rate		4%	4%
LIBOR [Member] | Home 2 Tukwila Loan [Member]
Debt Instrument [Line Items]
Spread on variable rate	3.50%
Floor rate	3.75%
LIBOR [Member] | Home 2 Salt Lake City Loan [Member]
Debt Instrument [Line Items]
Spread on variable rate	3.50%
Floor rate	3.75%
AMERIBOR [Member]
Debt Instrument [Line Items]
Interest rate				5.17%		4.64%
AMERIBOR [Member] | Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Spread on variable rate					3.15%
Floor rate					4%
AMERIBOR [Member] | Home 2 Suites Tukwila Loan [Member]
Debt Instrument [Line Items]
Spread on variable rate	3.50%
Floor rate	3.75%
AMERIBOR [Member] | Home 2 Suites Salt Lake City Loan [Member]
Debt Instrument [Line Items]
Spread on variable rate	3.75%
Floor rate	3.50%

Company_s Stockholder_s Equity

Company’s Stockholder’s Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	6 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Jun. 30, 2022
Subsequent Event [Line Items]
Common share distribution per share		$ 0.075
Annual distributions paid per share		$ 0.30
Annualized Distribution Rate		3%
Share Price		$ 10
Distribution paid in cash		$ 1,000
Share redemption program, annual limitation, percentage of weighted average shares outstanding		0.50%
Repurchase of shares		86,223	83,226
Weighted average price per share		$ 10.03	$ 8.93
Subsequent Event [Member]
Subsequent Event [Line Items]
Common share distribution per share	$ 0.075
Annual distributions paid per share	$ 0.30
Annualized Distribution Rate	3%
Share Price	$ 10

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Advisor [Member]
Related Party Transaction [Line Items]
Asset management fees (general and administrative costs)	$ 360	$ 301	$ 677	$ 603

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	6 Months Ended
	Jun. 30, 2023
Maximum [Member]
Loss Contingencies [Line Items]
Management agreement term	10 years
Property management fee, percent fee	3.50%
Franchise fee percentage	5.50%
Marketing fund charge percent	2.50%
Franchise agreement term	20 years
Minimum [Member]
Loss Contingencies [Line Items]
Management agreement term	60 days
Property management fee, percent fee	3%
Franchise fee percentage	3%
Marketing fund charge percent	2%
Franchise agreement term	15 years