Moody National REIT II (MNRTII) 10-K 30 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - $ / shares	12 Months Ended
	Dec. 31, 2015	Mar. 02, 2016	Jun. 30, 2015
Document And Entity Information
Entity Registrant Name	Moody National REIT II, Inc.
Entity Central Index Key	1,615,222
Document Type	10-K
Trading Symbol	MNRTII
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Shares held by non-affiliates			0
Entity Common Stock, Shares Outstanding		908,586
Entity Share Price	$ 25		$ 25
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
ASSETS
Investment in hotel property, net	$ 27,366,160
Cash and cash equivalents	1,580,967	$ 198,624
Restricted cash	288,084
Accounts receivable	46,759
Prepaid expenses and other assets	48,853
Deferred costs, net of accumulated amortization of $8,632 and $0 at December 31, 2015 and 2014, respectively	467,602
Total Assets	29,798,425	198,624
Liabilities:
Note payable	16,575,000
Accounts payable and accrued expenses	552,285
Due to related parties	342,175
Dividends payable	67,754
Total Liabilities	17,537,214
Special Limited Partnership Interests	$ 1,000	$ 1,000
Commitments and Contingencies – Note 9
Stockholders' equity:
Preferred stock, $0.01 par value per share; 100,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.01 par value per share; 1,000,000,000 shares authorized, 520,969 and 8,000 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively	$ 5,210	$ 80
Additional paid-in capital	10,990,045	199,920
Retained earnings (accumulated deficit)	1,264,956	(2,376)
Total stockholders' equity	12,260,211	197,624
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 29,798,425	$ 198,624

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Accumulated amortization	$ 8,632	$ 0
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized	100,000,000	100,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	1,000,000,000	1,000,000,000
Common stock, issued	520,969	8,000
Common stock, outstanding	520,969	8,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	5 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2015
Revenue
Room revenue		$ 1,053,476
Other hotel revenue		23,598
Total revenue		1,077,074
Expenses
Hotel operating expenses		522,586
Property taxes, insurance and other		101,214
Depreciation and amortization		135,540
Property acquisition expenses		496,165
Corporate general and administrative	$ 2,376	171,461
Total expenses	2,376	1,426,966
Operating loss	(2,376)	(349,892)
Other income (expenses)
Gain on acquisition of hotel property		2,000,000
Interest expense and amortization of deferred loan costs		(171,411)
Total other income (expenses)		1,828,589
Income (loss) before income taxes	(2,376)	1,478,697
Income tax benefit		6,000
Net income (loss)	$ (2,376)	$ 1,484,697
Net income (loss) per share - basic and diluted (in dollars per share)	$ (0.3)	$ 10.93
Weighted average common shares outstanding (in shares)	8,000	135,854

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Total
Balance, beginning at Jul. 24, 2014
Balance, beginning, shares at Jul. 24, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of offering costs		$ 80	$ 199,920		$ 200,000
Issuance of common stock, net of offering costs, shares		8,000
Net income (loss)				$ (2,376)	(2,376)
Balance, ending at Dec. 31, 2014		$ 80	199,920	(2,376)	197,624
Balance, ending, shares at Dec. 31, 2014		8,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of offering costs		$ 5,010	10,634,814		10,639,824
Issuance of common stock, net of offering costs, shares		501,024
Issuance of common stock pursuant to dividend reinvestment plan		$ 20	46,180		46,200
Issuance of common stock pursuant to dividend reinvestment plan, shares		1,945
Stock-based compensation		$ 100	109,131		109,231
Stock-based compensation, shares		10,000
Net income (loss)				1,484,697	1,484,697
Dividends declared				(217,365)	(217,365)
Balance, ending at Dec. 31, 2015		$ 5,210	$ 10,990,045	$ 1,264,956	$ 12,260,211
Balance, ending, shares at Dec. 31, 2015		520,969

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	5 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2015
Cash flows from operating activities
Net income (loss)	$ (2,376)	$ 1,484,697
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Gain on acquisition of hotel property		(2,000,000)
Depreciation and amortization		135,540
Amortization of deferred loan costs		6,932
Deferred income tax		(6,000)
Stock-based compensation		109,231
Changes in operating assets and liabilities
Restricted cash		(254,566)
Accounts receivable		(46,759)
Prepaid expenses and other assets		(42,853)
Accounts payable and accrued expenses		552,285
Due to related parties		42,500
Net cash used in operating activities	(2,376)	(18,993)
Cash flows from investing activities
Increase in restricted cash		(33,518)
Payment of deferred franchise costs		(150,000)
Acquisition of hotel property		(25,500,000)
Net cash used in investing activities		(25,683,518)
Cash flows from financing activities
Proceeds from issuance of common stock	200,000	12,525,592
Proceeds from issuance of Special Limited Partnership Interests	1,000
Offering costs paid		(1,586,093)
Proceeds from note payable		16,575,000
Payment of deferred loan costs		(326,234)
Dividends paid		(103,411)
Net cash provided by financing activities	201,000	27,084,854
Net change in cash and cash equivalents	198,624	1,382,343
Cash and cash equivalents at beginning of period		198,624
Cash and cash equivalents at end of period	$ 198,624	1,580,967
Supplemental Disclosure of Cash Flow Activity
Interest paid		99,109
Supplemental Disclosure of Non-Cash Financing Activity
Increase in accrued offering costs due to related party		299,675
Issuance of common stock from dividend reinvestment plan		46,200
Dividends payable		$ 67,754

Organization

Organization	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Moody National REIT II, Inc. (the “Company”) was formed on July 25, 2014, as a Maryland corporation and intends to qualify as a real estate investment trust (“REIT”) beginning with the year ending December 31, 2016. The Company expects to use the proceeds from its initial public offering to invest in a portfolio of hospitality properties focusing primarily on the premier-brand, select-service segment of the hospitality sector. To a lesser extent, the Company may also invest in hospitality-related real estate securities and debt investments. As discussed in Note 5, the Company was initially capitalized by Moody National REIT Sponsor, LLC (the “Sponsor”). The Company’s fiscal year end is December 31. As of December 31, 2015, the Company owned a 112-room hotel property located in Austin, Texas. For more information on the Company’s portfolio see Note 3. The Company is offering $1,100,000,000 in shares of its common stock to the public in its initial public offering, of which $1,000,000,000 in shares are offered at $25.00 per share in the primary offering (the “offering”), with discounts available to certain purchasers, and $100,000,000 in shares are offered pursuant to the Company’s distribution reinvestment plan (the “DRP”) at $23.75 per share. The Company may reallocate the shares between the offering and the DRP. In addition, the Company’s board of directors may, from time to time, in its sole discretion, change the price at which the Company offers shares to the public in the offering or to its stockholders pursuant to the DRP to reflect changes in the Company’s estimated value per share and other factors that the Company’s board of directors deems relevant. Pursuant to the terms of the offering, the Company was required to deposit all subscription proceeds in escrow pursuant to the terms of the Company’s escrow agreement with UMB Bank, N.A. until the earlier of the date that the Company received subscriptions aggregating at least $2,000,000 or January 20, 2016. On July 2, 2015, the Company received subscriptions aggregating $2,000,000, and the subscription proceeds held in escrow were released to the Company. As of December 31, 2015, the Company had received and accepted investors’ subscriptions for and issued 502,969 shares of the Company’s common stock in the offering, including 1,945 shares of common stock pursuant to the DRP, resulting in gross offering proceeds of $12,525,592. The Company’s advisor is Moody National Advisor II, LLC (the “Advisor”), a Delaware limited liability company and an affiliate of the Sponsor. Subject to certain restrictions and limitations, the Advisor is responsible for managing the Company’s affairs on a day-to-day basis and for identifying and making acquisitions and investments on behalf of the Company. Substantially all of the Company’s business is conducted through Moody National Operating Partnership II, LP, a Delaware limited partnership (the “OP”). The Company is the sole general partner of the OP. The initial limited partners of the OP are Moody OP Holdings II, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company (“Moody Holdings II”), and Moody National LPOP II, LLC (“Moody LPOP II”), an affiliate of the Advisor. Moody Holdings II initially invested $1,000 in the OP in exchange for limited partner interests, and Moody LPOP II has invested $1,000 in the OP in exchange for a separate class of limited partnership interests (the “Special Limited Partnership Interests”). As the Company accepts subscriptions for shares of common stock, it transfers substantially all of the net proceeds of the offering to the OP as a capital contribution. The partnership agreement provides that the OP will be operated in a manner that will enable the Company to (1) satisfy the requirements for being classified as a REIT for tax purposes, (2) avoid any federal income or excise tax liability, and (3) ensure that the OP will not be classified as a “publicly traded partnership” for purposes of Section 7704 of the Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”), which classification could result in the OP being taxed as a corporation, rather than as a partnership. In addition to the administrative and operating costs and expenses incurred by the OP in acquiring and operating real properties, the OP will pay all of the Company’s administrative costs and expenses, and such expenses will be treated as expenses of the OP.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements include its accounts and the accounts of its subsidiaries over which it has control. All intercompany balances and transactions are eliminated in consolidation. The Company includes the accounts of its consolidated subsidiaries in its consolidated financial statements when the Company is the primary beneficiary for entities deemed to be variable interest entities (“VIEs”) through which the Company has a controlling interest. Interests in entities acquired are evaluated based on U.S. generally accepted accounting principles (“GAAP”), which require the consolidation of VIEs in which the Company is deemed to have the controlling financial interest. The Company has the controlling financial interest if the Company has the power to direct the activities of the VIE that most significantly impact its economic performance and the obligation to absorb losses or receive benefits from the VIE that could be significant to the Company. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which the Company has control and/or substantive participating rights under the respective ownership agreement. There are judgments and estimates involved in determining if an entity in which the Company has an investment is a VIE. The entity is evaluated to determine if it is a VIE by, among other things, determining if the equity investors as a group have a controlling financial interest in the entity and if the entity has sufficient equity at risk to finance its activities without additional subordinated financial support. The Company did not have a VIE interest as of either December 31, 2015 or 2014. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Actual results could differ from those estimates. Organization and Offering Costs Organization and offering costs of the Company are paid directly by the Company or may be incurred by the Advisor on behalf of the Company. Pursuant to the Advisory Agreement between the Company and the Advisor, the Company is obligated to reimburse the Advisor or its affiliates, as applicable, for organization and offering costs incurred by the Advisor associated with each of the Company’s public offerings, provided that within 60 days of the last day of the month in which a public offering ends, the Advisor is obligated to reimburse the Company to the extent organization and offering costs incurred by the Company in connection with the completed public offering exceed 15.0% of the gross offering proceeds from the sale of the Company’s shares of common stock in the completed public offering. Such organization and offering costs include selling commissions and dealer manager fees paid to a dealer manager, legal, accounting, printing and other offering expenses, including marketing, salaries and direct expenses of the Advisor’s employees and employees of the Advisor’s affiliates and others. Any reimbursement of the Advisor or its affiliates for organization and offering costs will not exceed actual expenses incurred by the Advisor. All offering costs, including selling commissions and dealer manager fees, are recorded as an offset to additional paid-in-capital, and all organization costs are recorded as an expense when the Company has an obligation to reimburse the Advisor. As of December 31, 2015, total offering costs were $1,885,768, which comprised $1,252,558 of offering costs incurred directly by the Company and $633,210 in offering costs incurred by and reimbursable to the Advisor. As of December 31, 2015, the Company had $299,675 payable to the Advisor for reimbursable offering costs. Income Taxes The Company intends to make an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with the taxable year ending December 31, 2016. The Company did not meet all of the qualifications to be a REIT under the Internal Revenue Code for the years ended December 31, 2015 and 2014, including not having 100 shareholders for a sufficient number of days in 2015. Prior to qualifying to be taxed as a REIT, the Company is subject to normal federal and state corporation income taxes. The Company accounts for income taxes using the asset and liability method under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company records a valuation allowance for net deferred tax assets that are not expected to be realized. As a REIT, the Company generally will not be subject to federal corporate income tax to the extent it distributes its REIT taxable income to its stockholders, so long as it distributes at least 90% of its REIT taxable income (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP) and satisfies the other organizational and operational requirements for qualification as a REIT. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. The Company leases the hotels it acquires to wholly owned taxable REIT subsidiaries that are subject to federal, state and local income taxes. The Company has reviewed tax positions under GAAP guidance that clarify the relevant criteria and approach for the recognition and measurement of uncertain tax positions. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken, or expected to be taken, in a tax return. A tax position may only be recognized in the consolidated financial statements if it is more likely than not that the tax position will be sustained upon examination. The Company has no material uncertain tax positions as of December 31, 2015. The preparation of the Company’s various tax returns requires the use of estimates for federal and state income tax purposes. These estimates may be subjected to review by the respective taxing authorities. A revision to an estimate may result in an assessment of additional taxes, penalties and interest. At this time, a range in which the Company’s estimates may change is not expected to be material. The Company will account for interest and penalties relating to uncertain tax provisions in the current period results of operations, if necessary. The Company has tax years 2014 and 2015 remaining subject to examination by various federal and state tax jurisdictions. Fair Value Measurement Fair value measures are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market data, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future income amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). The Company’s estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. The Company classifies assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The Company elected not to use the fair value option for cash and cash equivalents, restricted cash, accounts receivable, note payable, accounts payable and accrued expenses. With the exception of the Company’s fixed-rate note payable, the carrying amounts of these financial instruments approximate their fair values due to their short-term nature or variable interest rates. For the fair value of the Company’s note payable, see Note 4. Concentration of Credit Risk As of December 31, 2015, the Company had cash and cash equivalents and restricted cash deposited in certain financial institutions in excess of federally insured levels. The Company diversifies its cash and cash equivalents with several banking institutions in an attempt to minimize exposure to any one of these institutions. 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 or restricted cash. Valuation and Allocation of Hotel Property — Acquisition Upon acquisition, the purchase price of hotel properties is allocated to the tangible assets acquired, consisting of land, buildings and furniture, fixtures and equipment, any assumed debt, identified intangible assets and asset retirement obligations based on their fair values. Acquisition costs are charged to expense as incurred. Initial valuations are subject to change during the measurement period, but the measurement period ends as soon as the information is available. The measurement period shall not exceed one year from the acquisition date. The tangible assets acquired consists of land, buildings, furniture, fixtures and equipment. Land values are derived from appraisals, and buildings are calculated as replacement cost less depreciation or estimates of the relative fair value of these assets using discounted cash flow analyses or similar methods. The value of furniture, fixtures and equipment is based on their fair value using replacement costs less depreciation. Any difference between the fair value of the hotel property acquired and the purchase price of the hotel property is recorded as goodwill or gain on acquisition of hotel property. The Company determines the fair value of any assumed debt by calculating the net present value of the scheduled mortgage payments using interest rates for debt with similar terms and remaining maturities that the Company believes it could obtain at the date of acquisition. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan as interest expense. In allocating the purchase price of each of the Company’s properties, the Company makes assumptions and uses various estimates, including, but not limited to, the estimated useful lives of the assets, the cost of replacing certain assets and discount rates used to determine present values. Many of these estimates are obtained from independent third party appraisals. However, the Company is responsible for the source and use of these estimates. These estimates are judgmental and subject to being imprecise; accordingly, if different estimates and assumptions were derived, the valuation of the various categories of the Company’s hotel properties or related intangibles could in turn result in a difference in the depreciation or amortization expense recorded in the Company’s consolidated financial statements. These variances could be material to the Company’s results of operations and financial condition. Valuation and Allocation of Hotel Property — Ownership Investment in hotel property is recorded at cost less accumulated depreciation. Major improvements that extend the life of an asset are capitalized and depreciated over a period equal to the shorter of the life of the improvement or the remaining useful life of the asset. The cost of ordinary repairs and maintenance are charged to expense when incurred. Depreciation expense is computed using the straight-line and accelerated methods based upon the following estimated useful lives: Estimated Useful Lives (years) Buildings and improvements 39-40 Exterior improvements 10-20 Furniture, fixtures and equipment 5-10 Impairments The Company monitors events and changes in circumstances indicating that the carrying amounts of the hotel properties may not be recoverable. When such events or changes in circumstances are present, the Company assesses potential impairment by comparing estimated future undiscounted cash flows expected to be generated over the life of the asset from operating activities and from its eventual disposition, to the carrying amount of the asset. In the event that the carrying amount exceeds the estimated future undiscounted cash flows, the Company recognizes an impairment loss to adjust the carrying amount of the asset to estimated fair value for assets held for use and fair value less costs to sell for assets held for sale. There were no such impairment losses for the year ended December 31, 2015. In evaluating the Company’s hotel properties for impairment, the Company makes several estimates and assumptions, including, but not limited to, the projected date of disposition of the properties, the estimated future cash flows of the properties during the Company’s ownership and the projected sales price of each of the properties. A change in these estimates and assumptions could result in a change in the estimated undiscounted cash flows or fair value of the Company’s hotel properties which could then result in different conclusions regarding impairment and material changes to the Company’s consolidated financial statements. Revenue Recognition Hotel revenues, including room, food, beverage and other ancillary revenues, are recognized as the related services are delivered. Revenue is recorded net of any sales and other taxes collected from customers. Cash and Cash Equivalents Cash and cash equivalents represent cash on hand or held in banks and short-term investments with an initial maturity of three months or less at the date of purchase. Restricted Cash Restricted cash includes reserves for property taxes, as well as reserves for property improvements and replacement of furniture, fixtures, and equipment, as required by certain management or mortgage debt agreement restrictions and provisions. Accounts Receivable The Company takes into consideration certain factors that require judgments to be made as to the collectability of receivables. Collectability factors taken into consideration are the amounts outstanding, payment history and financial strength of the customer, which taken as a whole determines the valuation. Ongoing credit evaluations are performed and an allowance for potential credit losses is provided against the portion of accounts receivable that is estimated to be uncollectible. Prepaid Expenses and Other Assets Prepaid expenses include prepaid property insurance and hotel operating expenses. Other assets include the deferred income tax asset. Deferred Costs Deferred costs consist of deferred loan costs and franchise costs. Deferred loan costs are recorded at cost and are amortized to interest expense using a method that approximates the effective interest method over the life of the related debt. The deferred franchise costs are recorded at cost and amortized over the term of the franchise contract on a straight-line basis. Accumulated amortization of deferred costs was $8,632 and $0 as of December 31, 2015 and 2014, respectively. Expected future amortization of deferred loan costs and franchise costs is as follows: Years Ending December 31 Total Loan Costs Franchise Costs 2016 $ 40,726 $ 32,526 $ 8,200 2017 40,637 32,437 8,200 2018 40,637 32,437 8,200 2019 40,637 32,437 8,200 Thereafter 304,965 189,465 115,500 Total $ 467,602 $ 319,302 $ 148,300 Earnings (Loss) per Share Earnings (loss) per share (“EPS”) is calculated based on the weighted average number of shares outstanding during each period. Basic and diluted EPS are the same for all periods presented. Non-vested shares of restricted common stock totaling 7,500 and 0 shares as of December 31, 2015 and 2014, respectively, held by the Company’s independent directors are included in the calculation of earnings per share. Restricted stock was included in basic earnings per share because such restricted stock participates in dividends. Comprehensive Income For the periods presented, there were no differences between reported net income (loss) and comprehensive income (loss). Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 changes the criteria for reporting discontinued operations and enhances the related disclosure requirements. Pursuant to ASU 2014-08, only disposals representing a strategic shift in operations, such as a major line of business, a major geographical area or a major equity investment, should be presented as a discontinued operation. The Company implemented the provisions of ASU 2014-08 as of January 1, 2015. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability. This standard is effective for periods beginning after December 15, 2015, with early adoption permitted, and will be applied on a retrospective basis. The new standard will be effective for the Company on January 1, 2016 and is not expected to have a material effect on the Company’s consolidated financial position or consolidated results of operations. On May 28, 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promise goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2018 and early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on the Company’s consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has the Company determined the effect of the standard on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which changes the way reporting enterprises evaluate the consolidation of limited partnerships, variable interests and similar entities. This standard will be effective for the first annual reporting period beginning after December 15, 2015 with early adoption permitted. The Company is evaluating the effect that ASU No. 2015-2 will have on the Company’s consolidated financial statements and related disclosures, but the Company does not anticipate that adoption of this accounting standard will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In September 2015, the FASB issued ASU No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which illustrates certain guidance governing adjustments to the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. Such adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement amounts initially recognized or would have resulted in the recognition of additional assets and liabilities. ASU No. 2015-16 eliminates the requirement to retrospectively account for such adjustments. ASU No. 2015-16 is effective for the Company’s fiscal year commencing on January 1, 2016. The Company does not anticipate that the adoption of ASU No. 2015-16 will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires that deferred tax liabilities and assets be classified on the Company’s consolidated balance sheets as noncurrent based on an analysis of each taxpaying component within a jurisdiction. ASU No. 2015-17 is effective for the Company’s fiscal year commencing on January 1, 2017. The Company does not anticipate that the adoption of ASU No. 2015-17 will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations.

Investment in Hotel Property

Investment in Hotel Property	12 Months Ended
	Dec. 31, 2015
Real Estate [Abstract]
Investment in Hotel Properties	3. Investment in Hotel Property The following table sets forth summary information regarding the Company’s investment in hotel property as of December 31, 2015: Property Name Date Acquired Location Ownership Interest Purchase Price(1) Rooms Mortgage Debt Outstanding(2) Austin Hotel (Residence Inn) October 15, 2015 Austin, Texas 100 % $ 27,500,000 112 $ 16,575,000 (1) Excludes closing costs and includes gain on acquisition. (2) As of December 31, 2015. Investments in hotel properties consisted of the following at December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Land $ 4,310,000 $ — Buildings and improvements 21,690,000 — Furniture, fixtures and equipment 1,500,000 — Total cost 27,500,000 — Accumulated depreciation (133,840 ) — Investment in hotel property, net $ 27,366,160 $ — Fourth Quarter Acquisition Residence Inn Austin Hotel On October 15, 2015, Moody National Lancaster-Austin Holding, LLC, a wholly owned subsidiary of the OP (“Moody Residence Inn Austin Holding”), acquired fee simple title to the Residence Inn Austin Hotel from a third-party seller, for an aggregate purchase price of $25,500,000, excluding acquisition costs. The Company recorded the Residence Inn Austin Hotel at its fair value as of the date of acquisition of $27,500,000. The Company recognized a gain on acquisition of hotel property of $2,000,000. The Company financed the acquisition of the Residence Inn Austin Hotel with proceeds from its public offering and $16,575,000 of indebtedness secured by the Residence Inn Austin Hotel. The purchase price of the Residence Inn Austin Hotel, excluding acquisition expenses, was preliminarily allocated to land, buildings and improvements and furniture, fixtures and equipment in the amounts of $4,310,000, $21,690,000, and $1,500,000, respectively. Acquisition costs of $496,165 were expensed when incurred in connection with the acquisition of the Residence Inn Austin Hotel. The Company has recognized approximately $1,077,000 in revenues and a $344,000 net loss, which includes acquisition costs and excludes gain on acquisition of hotel property, for the Residence Inn Austin Hotel for the year ended December 31, 2015. In connection with the acquisition of the Residence Inn Austin Hotel, the Company formed a taxable REIT subsidiary (the “Residence Inn Austin Hotel TRS”). Upon the closing of the acquisition of the Residence Inn Austin Hotel, Moody National Lancaster-Austin MT, LLC, a wholly owned subsidiary of the Residence Inn Austin Hotel TRS (the “Residence Inn Austin Master Tenant”), entered into a Hotel Lease Agreement pursuant to which Moody Residence Inn Austin Holding leases the Residence Inn Austin Hotel to the Residence Inn Austin Hotel Master Tenant. Moody National Hospitality Management, LLC, an affiliate of the Company, manages the Residence Inn Austin Hotel pursuant to a Hotel Management Agreement with the Residence Inn Austin Master Tenant.

Debt

Debt	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Debt	4. Debt The Company’s aggregate borrowings are reviewed by the Company’s board of directors at least quarterly. Under the Company’s Articles of Amendment and Restatement (as amended, the “Charter”), the Company is prohibited from borrowing in excess of 300% of the value of the Company’s net assets. “Net assets” for purposes of this calculation is defined to be the Company’s total assets (other than intangibles), valued at cost prior to deducting depreciation, reserves for bad debts and other non-cash reserves, less total liabilities. However, the Company may temporarily borrow in excess of these amounts if such excess is approved by a majority of the Company’s independent directors and disclosed to stockholders in the Company’s next quarterly report, along with an explanation for such excess. As of December 31, 2015, the Company’s debt levels did not exceed 300% of the value of the Company’s net assets, as defined above. As of December 31, 2015 and 2014, the Company’s note payable consisted of the following: Principal as of December 31, 2015 Principal as of December 31, 2014 Interest Rate at December 31, 2015 Maturity Date Residence Inn Austin Loan $ 16,575,000 $ — 4.580 % November 1, 2025 The note payable is secured by the Residence Inn Austin Hotel and is payable in monthly installments of principal and interest. Maturities of the note payable as of December 31, 2015 is as follows: Year ending December 31, 2016 $ — 2017 21,512 2018 253,982 2019 266,031 2020 276,544 Thereafter 15,756,931 Total $ 16,575,000 The estimated fair value of the Company’s note payable as of December 31, 2015 and 2014 was $16,575,000 and $0, respectively. The fair value of the note payable was estimated based on discounted cash flow analyses using the current incremental borrowing rates for similar types of borrowing arrangements as of the respective reporting dates. The discounted cash flow method of assessing fair value results in a general approximation of value, and such value may never actually be realized.

Capitalization

Capitalization	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Capitalization	5. Capitalization Capitalization Under the Charter, the Company has the authority to issue 1,000,000,000 shares of common stock and 100,000,000 shares of preferred stock. All shares of such stock have a par value of $0.01 per share. On August 15, 2014, the Company sold 8,000 shares of common stock to the Sponsor at a purchase price of $25.00 per share for an aggregate purchase price of $200,000, which was paid in cash. As of December 31, 2015, there were a total of 520,969 shares of the Company’s common stock issued and outstanding, including 8,000 shares sold to Sponsor and 10,000 shares of restricted stock, as discussed in Note 7. The Company’s board of directors is authorized to amend its Charter, without the approval of the stockholders, to increase the aggregate number of authorized shares of capital stock or the number of shares of any class or series that the Company has authority to issue. Distributions The Company’s board of directors has authorized and declared a distribution to its stockholders that (1) accrues daily to the Company’s stockholders of record as of the close of business on each day; (2) is payable in cumulative amounts on or before the 15 th The following table summarizes distributions paid in cash and pursuant to the DRP for the year ended December 31, 2015. Period Cash Distribution Distribution Paid Pursuant to DRP (1) Total Amount of Distribution Third Quarter 2015 $ 16,959 $ 5,838 $ 22,797 Fourth Quarter 2015 86,452 40,362 126,814 Total $ 103,411 $ 46,200 $ 149,611 (1) Amount of distributions paid in shares of common stock pursuant to our distribution reinvestment plan.

Related Party Arrangements

Related Party Arrangements	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Arrangements	6. Related Party Arrangements The Advisor and certain affiliates of Advisor will receive fees and compensation in connection with the offering, and the acquisition, management and sale of the Company’s real estate investments. In addition, in exchange for $1,000 and in consideration of services to be provided by the Advisor, the OP has issued an affiliate of the Advisor, Moody LPOP II, a separate, special limited partnership interest, in the form of Special Limited Partnership Interests. For further detail on the Special Limited Partnership Interests, please see Note 8 (“Subordinated Participation Interest”) below. Sales Commissions and Dealer Manager Fees Moody National Securities, LLC (“Moody Securities”), the dealer manager of the Company’s initial public offering and an affiliate of the Advisor, receives a commission of up to 7.0% of gross offering proceeds. Moody Securities may reallow all or a portion of such sales commissions earned to participating broker-dealers. In addition, the Company pays Moody Securities a dealer manager fee of up to 3.0% of gross offering proceeds, a portion of which may be reallowed to participating broker-dealers. No selling commissions or dealer manager fees are paid for sales under the DRP. As of December 31, 2015, the Company had paid Moody Securities $939,752 in selling commissions related to the offering and $229,885 in dealer manager fees related to the offering, which has been recorded as a reduction to additional paid-in capital in the consolidated balance sheets. Organization and Offering Expenses The Advisor will receive reimbursement for organizational and offering expenses incurred on the Company’s behalf, but only to the extent that such reimbursements do not exceed actual expenses incurred by the Advisor and do not cause the cumulative sales commission, the dealer manager fee and other organization and offering expenses borne by the Company to exceed 15.0% of gross offering proceeds from the sale of shares in the Company’s public offering as of the date of reimbursement. As of December 31, 2015, total offering costs were $1,885,768, which comprised $1,252,558 of offering costs incurred directly by the Company and $633,210 in offering costs incurred by and reimbursable to Advisor. As of December 31, 2015, the Company had $299,675 payable to the Advisor for reimbursable offering costs. Acquisition Fees The Advisor, or its affiliates, receives an acquisition fee equal to 1.5% of (1) the cost of all investments the Company acquires (including the Company’s pro rata share of any indebtedness assumed or incurred in respect of the investment and exclusive of acquisition and financing coordination fees), (2) the Company’s allocable cost of investments acquired in a joint venture (including Financing Coordination Fee The Advisor receives financing coordination fees of 1% of the amount available under any loan or line of credit made available to the Company and 0.75% of the amount available or outstanding under any refinanced loan or line of credit. The Advisor will pay some or all of these fees to third parties with whom it subcontracts to coordinate financing for the Company. For the year ended December 31, 2015, the Company paid the Advisor financing coordination fees of $165,750 in connection with the acquisition of the Austin Hotel. Property Management Fee The Company pays Moody National Hospitality Management, LLC (the “Property Manager”) a monthly hotel management fee equal to 4.0% of the monthly gross receipts from the properties managed by the Property Manager for services it provides in connection with operating and managing properties. The Property Manager may pay some or all of the compensation it receives from the Company to a third-party property manager for management or leasing services. In the event that the Company contracts directly with a non-affiliated third-party property manager, the Company will pay the Property Manager a market-based oversight fee. The Company reimburses the costs and expenses incurred by the Property Manager on the Company’s behalf, including legal, travel and other out-of-pocket expenses that are directly related to the management of specific properties, but the Company will not reimburse the Property Manager for general overhead costs or personnel costs other than employees or subcontractors who are engaged in the on-site operation, management, maintenance or access control of the properties. For the year ended December 31, 2015, the Company paid the Property Manager property management fees of $42,723. The Company also pays an annual incentive fee to the Property Manager. Such annual incentive fee is equal to 15% of the amount by which the operating profit from the properties managed by the Property Manager for such fiscal year (or partial fiscal year) exceeds 8.5% of the total investment of such properties. The Property Manager may pay some or all of this annual fee to third-party sub-property managers for management services. Asset Management Fee The Company pays the Advisor a monthly asset management fee of one-twelfth of 1.0% of the cost of investment of all real estate investments the Company acquires. For the year ended December 31, 2015, the Company incurred asset management fees of $42,500 payable to the Advisor that are recorded in corporate general and administrative expenses in the accompanying consolidated statements of operations. Disposition Fee The Advisor or its affiliates will also receive a disposition fee in an amount of up to one-half of the brokerage commission paid but in no event greater than 3.0% of the contract sales price of each property or other investment sold; provided, however, in no event may the aggregate disposition fees paid to the Advisor and any real estate commissions paid to unaffiliated third parties exceed 6.0% of the contract sales price. As of December 31, 2015, the Company had not paid any disposition fees to the Advisor. Operating Expense Reimbursement The Company reimburses the Advisor for all expenses paid or incurred by the Advisor in connection with the services provided to the Company, subject to the limitation that, beginning after the quarter in which the Company makes its first investment, the Company will not reimburse the Advisor for any amount by which its operating expenses (including the asset management fee) at the end of the four preceding fiscal quarters exceeds the greater of: (1) 2% of its average invested assets, or (2) 25% of its net income determined without reduction for any additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of the Company’s assets for that period (the “2%/25% Limitation”). Notwithstanding the above, the Company may reimburse the Advisor for expenses in excess of this limitation if a majority of the independent directors determines that such excess expenses are justified based on unusual and non-recurring factors. For the four fiscal quarters ended December 31, 2015, total operating expenses of the Company were $473,186, which included $171,461 in operating expenses incurred directly by the Company and $301,725 incurred by the Advisor on behalf of the Company. Of the $473,186 in total operating expenses incurred during the four fiscal quarters ended December 31, 2015, $335,686 exceeded the 2%/25% Limitation, which amount may be reimbursable to the Advisor, subject to a future determination by the Company’s independent directors. The Company reimbursed the Advisor $0 in operating expenses during the four fiscal quarters ended December 31, 2015.

Incentive Award Plan

Incentive Award Plan	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Incentive Award Plan	7. Incentive Award Plan The Company has adopted an incentive plan (the “Long Term Incentive Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Long Term Incentive Plan authorizes the grant of non-qualified and incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and other stock-based awards or cash-based awards. Shares of common stock will be authorized and reserved for issuance under the Long Term Incentive Plan. The Company has adopted an independent directors compensation plan (the “Independent Directors Compensation Plan”), a sub-plan of the Long Term Incentive Plan, pursuant to which each of the Company’s independent directors received, subject to the plan’s conditions and restrictions, an initial grant of 5,000 shares of restricted stock when the Company raised the minimum offering amount of $2,000,000 in the offering. Each new independent director that subsequently joins the Company’s board of directors will receive a grant of 5,000 shares of restricted stock upon his or her election to the Company’s board of directors. In addition, on the date of each of the first four annual meetings of the Company’s stockholders at which an independent director is re-elected to the Company’s board of directors, he or she will receive an additional grant of 2,500 shares of restricted stock. Subject to certain conditions, the non-vested shares of restricted stock granted pursuant to the Independent Directors Compensation Plan will vest and become non-forfeitable in four equal quarterly installments beginning on the first day of the first quarter following the date of grant; provided, however, that the restricted stock will become fully vested on the earlier to occur of (1) the termination of the independent director’s service as a director due to his or her death or disability, or (2) a change in control of the Company. 10,000 shares of restricted stock were granted pursuant to the Independent Directors Compensation Plan during the year ended December 31, 2015. The weighted average grant date fair value of the shares of restricted stock was $25.00 per share, which was based on observable market transactions occurring near the dates of the grants. The Company recorded compensation expense related to such shares of restricted stock ratably from the grant date to the date the shares become fully vested based on the fair market value of such shares at the date they were granted. The Company recorded compensation expense related to such shares of restricted stock of $109,231 and $0 for the year ended December 31, 2015 and the period from July 25, 2014 (inception) and December 31, 2014, respectively. As of December 31, 2015, there were 7,500 non-vested shares of restricted common stock granted pursuant to the Independent Directors Compensation Plan which were granted August 12, 2015. The remaining unrecognized compensation expense of $140,769 will be recognized during the first, second and third quarters of 2016.

Subordinated Participation Inte

Subordinated Participation Interest	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Subordinated Participation Interest	8. Subordinated Participation Interest Pursuant to the Limited Partnership Agreement for the OP, Moody LPOP II, the holder of the Special Limited Partnership Interests, is entitled to receive distributions equal to 15.0% of the OP’s net cash flows, whether from continuing operations, the repayment of loans, the disposition of assets or otherwise, but only after the Company’s stockholders have received, in the aggregate, cumulative distributions equal to their total invested capital plus a 6.0% cumulative, non-compounded annual pre-tax return on such aggregated invested capital. In addition, Moody LPOP II is entitled to a separate payment if it redeems its Special Limited Partnership Interests. The Special Limited Partnership Interests may be redeemed upon: (1) the listing of the Company’s common stock on a national securities exchange; or (2) the occurrence of certain events that result in the termination or non-renewal of the Company’s advisory agreement, in each case for an amount that Moody LPOP II would have been entitled to receive had the OP disposed of all of its assets at the enterprise valuation as of the date of the event triggering the redemption.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Restricted Cash Under certain management and debt agreements existing at December 31, 2015, the Company escrows payments required for real estate taxes, hotel furniture and fixtures and rent holdback. The composition of the Company’s restricted cash as of December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Real estate taxes $ 239,846 $ — Hotel furniture and fixtures 33,518 — Rent holdback 14,720 — Total restricted cash $ 288,084 $ — Franchise Agreements As of December 31, 2015, the Company’s hotel property is operated under a franchise agreement with an initial term of 20 years. The franchise agreement allows the property to operate under its brand. Pursuant to the franchise agreement, the Company pays a royalty fee of 6.0% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs of 2.5% of room revenue. The Company incurred franchise fee expense of approximately $88,000 for the year ended December 31, 2015, which is included in hotel operating expenses in the accompanying consolidated statements of operations.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	10. Income Taxes The Company uses the asset and liability method of accounting for income taxes. Tax return positions are recognized in the consolidated financial statements when they are “more-likely-than-not” to be sustained upon examination by the taxing authority. Deferred income tax assets and liabilities result from temporary differences. Temporary differences are differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future periods. A valuation allowance may be placed on deferred income tax assets, if it is determined that it is more likely than not that a deferred tax asset may not be realized. The provision for income taxes for the Company (other than the TRS) was offset by a full valuation allowance for the years ended December 31, 2015 and 2014 as the Company had net operating losses for those years and the Company does not expect to be able to utilize them after it elects REIT status. As of December 31, 2015, the Company had operating loss carry-forwards of $34,000. The Company had deferred tax assets of $6,000 and $0 as of December 31, 2015 and 2014 related to net operating loss carry forwards. The income tax benefit for the years ended December, 2015 and 2014 consisted of the following: Years ended December, 2015 2014 Current expense $ — $ — Deferred benefit (6,000 ) — Total benefit $ (6,000 ) $ — Federal $ (6,000 ) $ — State — — Total tax benefit $ (6,000 ) $ — The reconciliation of income tax expense (benefit) to the expected amount computed by applying federal statutory rate to income before income taxes is as follows: Years ended December 31, 2015 2014 Expected federal tax at statutory rate $ 560,000 $ — Gain on acquisition (757,000 ) — Valuation allowance for deferred income tax asset 191,000 — Income tax benefit $ (6,000 ) $ —

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events Distributions Declared On December 31, 2015, the Company declared a distribution in the aggregate amount of $67,754, of which $46,147 was paid in cash on January 15, 2016 and $21,607 was paid pursuant to the DRP in the form of additional shares of the Company’s common stock. On January 31, 2016, the Company declared a distribution in the aggregate amount of $90,033, of which $61,629 was paid in cash on February 15, 2016 and $28,404 was paid pursuant to the DRP in the form of additional shares of the Company’s common stock. On February 29, 2016, the Company declared a distribution in the aggregate amount of $112,630 which is scheduled to be paid in cash and through the DRP in the form of additional shares of the Company’s common stock on March 15, 2016. Springhill Suites Seattle On January 28, 2016, Moody National Companies L.P. (“Moody LP”) assigned to the Company all of Moody LP’s rights to and interests in the Agreement of Purchase and Sale, dated as of October 26, 2015 (the “Purchase Agreement”), for the acquisition of a hotel property located in Seattle, Washington commonly known as the Springhill Suites Seattle Downtown (the “Springhill Suites Seattle”) for an aggregate purchase price of $74,100,000, excluding acquisition and other costs. The Company paid $2,000,000 in compensation to Moody LP in connection with the assignment of the Purchase Agreement. The acquisition of the Springhill Suites Seattle by the Company is subject to substantial conditions to closing and there is no assurance that the Company will close the acquisition. Amendment to Advisory Agreement On January 19, 2016, the Company entered into an amendment to its Advisory Agreement with the Advisor, which extended the term of the Advisory Agreement for an additional one-year term expiring on January 20, 2017. Changes in Directors On February 22, 2016, Douglas Y. Bech, one of the Company’s independent directors, notified the Company of his resignation from the Company’s board and as a member of the Company’s audit committee. On February 23, 2016, the board elected Clifford P. McDaniel to the Company’s board as an independent director and appointed Mr. McDaniel to the Company’s audit committee. Mr. Bech forfeited his 2,500 unvested shares of our common stock upon his resignation.

REAL ESTATE ASSETS AND ACCUMULA

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION	12 Months Ended
	Dec. 31, 2015
Real Estate Assets And Accumulated Depreciation
REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION	MOODY NATIONAL REIT II, INC. REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION December 31, 2015 (in thousands) Initial Cost to Company Gross Amount at which Carried at Close of Period Description Location Ownership Percent Encumbrances Land Building, Improvements, and FF&E Total Cost Capitalized Subsequent to Acquisition Land Building, Improvements and FF&E (1) Total (1) Accumulated Depreciation and Amortization Original Date of Construction Date Acquired Residence Inn Austin Austin, 100.0 % $ 16,575,000 $ 4,310,000 $ 23,190,000 $ 27,500,000 $ — $ 4,310,000 $ 23,190,000 $ 27,500,000 $ 133,840 2014 October 15, 2015 Total $ 16,575,000 $ 4,310,000 $ 23,190,000 $ 27,500,000 $ — $ 4,310,000 $ 23,190,000 $ 27,500,000 $ 133,840 (1) The aggregate cost of real estate for federal income tax purposes was $27,815,995 as of December 31, 2015. 2015 2014 Real estate: Balance at the beginning of the year $ — $ — Acquisitions 27,500,000 — Improvements and additions — — Dispositions — — Balance at the end of the year $ 27,500,000 $ — Accumulated depreciation: Balance at the beginning of the year $ — $ — Depreciation 133,840 — Dispositions — — Balance at the end of the year $ 133,840 $ —

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements include its accounts and the accounts of its subsidiaries over which it has control. All intercompany balances and transactions are eliminated in consolidation. The Company includes the accounts of its consolidated subsidiaries in its consolidated financial statements when the Company is the primary beneficiary for entities deemed to be variable interest entities (“VIEs”) through which the Company has a controlling interest. Interests in entities acquired are evaluated based on U.S. generally accepted accounting principles (“GAAP”), which require the consolidation of VIEs in which the Company is deemed to have the controlling financial interest. The Company has the controlling financial interest if the Company has the power to direct the activities of the VIE that most significantly impact its economic performance and the obligation to absorb losses or receive benefits from the VIE that could be significant to the Company. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which the Company has control and/or substantive participating rights under the respective ownership agreement. There are judgments and estimates involved in determining if an entity in which the Company has an investment is a VIE. The entity is evaluated to determine if it is a VIE by, among other things, determining if the equity investors as a group have a controlling financial interest in the entity and if the entity has sufficient equity at risk to finance its activities without additional subordinated financial support. The Company did not have a VIE interest as of either December 31, 2015 or 2014.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the accompanying consolidated financial statements. Actual results could differ from those estimates.
Organization and Offering Costs	Organization and Offering Costs Organization and offering costs of the Company are paid directly by the Company or may be incurred by the Advisor on behalf of the Company. Pursuant to the Advisory Agreement between the Company and the Advisor, the Company is obligated to reimburse the Advisor or its affiliates, as applicable, for organization and offering costs incurred by the Advisor associated with each of the Company’s public offerings, provided that within 60 days of the last day of the month in which a public offering ends, the Advisor is obligated to reimburse the Company to the extent organization and offering costs incurred by the Company in connection with the completed public offering exceed 15.0% of the gross offering proceeds from the sale of the Company’s shares of common stock in the completed public offering. Such organization and offering costs include selling commissions and dealer manager fees paid to a dealer manager, legal, accounting, printing and other offering expenses, including marketing, salaries and direct expenses of the Advisor’s employees and employees of the Advisor’s affiliates and others. Any reimbursement of the Advisor or its affiliates for organization and offering costs will not exceed actual expenses incurred by the Advisor. All offering costs, including selling commissions and dealer manager fees, are recorded as an offset to additional paid-in-capital, and all organization costs are recorded as an expense when the Company has an obligation to reimburse the Advisor. As of December 31, 2015, total offering costs were $1,885,768, which comprised $1,252,558 of offering costs incurred directly by the Company and $633,210 in offering costs incurred by and reimbursable to the Advisor. As of December 31, 2015, the Company had $299,675 payable to the Advisor for reimbursable offering costs.
Income Taxes	Income Taxes The Company intends to make an election to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code commencing with the taxable year ending December 31, 2016. The Company did not meet all of the qualifications to be a REIT under the Internal Revenue Code for the years ended December 31, 2015 and 2014, including not having 100 shareholders for a sufficient number of days in 2015. Prior to qualifying to be taxed as a REIT, the Company is subject to normal federal and state corporation income taxes. The Company accounts for income taxes using the asset and liability method under which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. The Company records a valuation allowance for net deferred tax assets that are not expected to be realized. As a REIT, the Company generally will not be subject to federal corporate income tax to the extent it distributes its REIT taxable income to its stockholders, so long as it distributes at least 90% of its REIT taxable income (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP) and satisfies the other organizational and operational requirements for qualification as a REIT. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income. The Company leases the hotels it acquires to wholly owned taxable REIT subsidiaries that are subject to federal, state and local income taxes. The Company has reviewed tax positions under GAAP guidance that clarify the relevant criteria and approach for the recognition and measurement of uncertain tax positions. The guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken, or expected to be taken, in a tax return. A tax position may only be recognized in the consolidated financial statements if it is more likely than not that the tax position will be sustained upon examination. The Company has no material uncertain tax positions as of December 31, 2015. The preparation of the Company’s various tax returns requires the use of estimates for federal and state income tax purposes. These estimates may be subjected to review by the respective taxing authorities. A revision to an estimate may result in an assessment of additional taxes, penalties and interest. At this time, a range in which the Company’s estimates may change is not expected to be material. The Company will account for interest and penalties relating to uncertain tax provisions in the current period results of operations, if necessary. The Company has tax years 2014 and 2015 remaining subject to examination by various federal and state tax jurisdictions.
Fair Value Measurement	Fair Value Measurement Fair value measures are classified into a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets. Level 2: Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market data, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future income amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). The Company’s estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. The Company classifies assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The Company elected not to use the fair value option for cash and cash equivalents, restricted cash, accounts receivable, note payable, accounts payable and accrued expenses. With the exception of the Company’s fixed-rate note payable, the carrying amounts of these financial instruments approximate their fair values due to their short-term nature or variable interest rates. For the fair value of the Company’s note payable, see Note 4.
Concentration of Credit Risk	Concentration of Credit Risk As of December 31, 2015, the Company had cash and cash equivalents and restricted cash deposited in certain financial institutions in excess of federally insured levels. The Company diversifies its cash and cash equivalents with several banking institutions in an attempt to minimize exposure to any one of these institutions. 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 or restricted cash.
Valuation and Allocation of Hotel Property - Acquisition	Valuation and Allocation of Hotel Property — Acquisition Upon acquisition, the purchase price of hotel properties is allocated to the tangible assets acquired, consisting of land, buildings and furniture, fixtures and equipment, any assumed debt, identified intangible assets and asset retirement obligations based on their fair values. Acquisition costs are charged to expense as incurred. Initial valuations are subject to change during the measurement period, but the measurement period ends as soon as the information is available. The measurement period shall not exceed one year from the acquisition date. The tangible assets acquired consists of land, buildings, furniture, fixtures and equipment. Land values are derived from appraisals, and buildings are calculated as replacement cost less depreciation or estimates of the relative fair value of these assets using discounted cash flow analyses or similar methods. The value of furniture, fixtures and equipment is based on their fair value using replacement costs less depreciation. Any difference between the fair value of the hotel property acquired and the purchase price of the hotel property is recorded as goodwill or gain on acquisition of hotel property. The Company determines the fair value of any assumed debt by calculating the net present value of the scheduled mortgage payments using interest rates for debt with similar terms and remaining maturities that the Company believes it could obtain at the date of acquisition. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan as interest expense. In allocating the purchase price of each of the Company’s properties, the Company makes assumptions and uses various estimates, including, but not limited to, the estimated useful lives of the assets, the cost of replacing certain assets and discount rates used to determine present values. Many of these estimates are obtained from independent third party appraisals. However, the Company is responsible for the source and use of these estimates. These estimates are judgmental and subject to being imprecise; accordingly, if different estimates and assumptions were derived, the valuation of the various categories of the Company’s hotel properties or related intangibles could in turn result in a difference in the depreciation or amortization expense recorded in the Company’s consolidated financial statements. These variances could be material to the Company’s results of operations and financial condition.
Valuation and Allocation of Hotel Property - Ownership	Valuation and Allocation of Hotel Property — Ownership Investment in hotel property is recorded at cost less accumulated depreciation. Major improvements that extend the life of an asset are capitalized and depreciated over a period equal to the shorter of the life of the improvement or the remaining useful life of the asset. The cost of ordinary repairs and maintenance are charged to expense when incurred. Depreciation expense is computed using the straight-line and accelerated methods based upon the following estimated useful lives: Estimated Useful Lives (years) Buildings and improvements 39-40 Exterior improvements 10-20 Furniture, fixtures and equipment 5-10
Impairments	Impairments The Company monitors events and changes in circumstances indicating that the carrying amounts of the hotel properties may not be recoverable. When such events or changes in circumstances are present, the Company assesses potential impairment by comparing estimated future undiscounted cash flows expected to be generated over the life of the asset from operating activities and from its eventual disposition, to the carrying amount of the asset. In the event that the carrying amount exceeds the estimated future undiscounted cash flows, the Company recognizes an impairment loss to adjust the carrying amount of the asset to estimated fair value for assets held for use and fair value less costs to sell for assets held for sale. There were no such impairment losses for the year ended December 31, 2015. In evaluating the Company’s hotel properties for impairment, the Company makes several estimates and assumptions, including, but not limited to, the projected date of disposition of the properties, the estimated future cash flows of the properties during the Company’s ownership and the projected sales price of each of the properties. A change in these estimates and assumptions could result in a change in the estimated undiscounted cash flows or fair value of the Company’s hotel properties which could then result in different conclusions regarding impairment and material changes to the Company’s consolidated financial statements.
Revenue Recognition	Revenue Recognition Hotel revenues, including room, food, beverage and other ancillary revenues, are recognized as the related services are delivered. Revenue is recorded net of any sales and other taxes collected from customers.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents represent cash on hand or held in banks and short-term investments with an initial maturity of three months or less at the date of purchase.
Restricted Cash	Restricted Cash Restricted cash includes reserves for property taxes, as well as reserves for property improvements and replacement of furniture, fixtures, and equipment, as required by certain management or mortgage debt agreement restrictions and provisions.
Accounts Receivable	Accounts Receivable The Company takes into consideration certain factors that require judgments to be made as to the collectability of receivables. Collectability factors taken into consideration are the amounts outstanding, payment history and financial strength of the customer, which taken as a whole determines the valuation. Ongoing credit evaluations are performed and an allowance for potential credit losses is provided against the portion of accounts receivable that is estimated to be uncollectible.
Prepaid Expenses and Other Assets	Prepaid Expenses and Other Assets Prepaid expenses include prepaid property insurance and hotel operating expenses. Other assets include the deferred income tax asset.
Deferred Costs	Deferred Costs Deferred costs consist of deferred loan costs and franchise costs. Deferred loan costs are recorded at cost and are amortized to interest expense using a method that approximates the effective interest method over the life of the related debt. The deferred franchise costs are recorded at cost and amortized over the term of the franchise contract on a straight-line basis. Accumulated amortization of deferred costs was $8,632 and $0 as of December 31, 2015 and 2014, respectively. Expected future amortization of deferred loan costs and franchise costs is as follows: Years Ending December 31 Total Loan Costs Franchise Costs 2016 $ 40,726 $ 32,526 $ 8,200 2017 40,637 32,437 8,200 2018 40,637 32,437 8,200 2019 40,637 32,437 8,200 Thereafter 304,965 189,465 115,500 Total $ 467,602 $ 319,302 $ 148,300
Earnings (Loss) per Share	Earnings (Loss) per Share Earnings (loss) per share (“EPS”) is calculated based on the weighted average number of shares outstanding during each period. Basic and diluted EPS are the same for all periods presented. Non-vested shares of restricted common stock totaling 7,500 and 0 shares as of December 31, 2015 and 2014, respectively, held by the Company’s independent directors are included in the calculation of earnings per share. Restricted stock was included in basic earnings per share because such restricted stock participates in dividends.
Comprehensive Income	Comprehensive Income For the periods presented, there were no differences between reported net income (loss) and comprehensive income (loss).
Recent Accounting Pronouncements	Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360) - Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” ASU 2014-08 changes the criteria for reporting discontinued operations and enhances the related disclosure requirements. Pursuant to ASU 2014-08, only disposals representing a strategic shift in operations, such as a major line of business, a major geographical area or a major equity investment, should be presented as a discontinued operation. The Company implemented the provisions of ASU 2014-08 as of January 1, 2015. In April 2015, the FASB issued ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the debt liability. This standard is effective for periods beginning after December 15, 2015, with early adoption permitted, and will be applied on a retrospective basis. The new standard will be effective for the Company on January 1, 2016 and is not expected to have a material effect on the Company’s consolidated financial position or consolidated results of operations. On May 28, 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promise goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for us on January 1, 2018 and early adoption is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-09 will have on the Company’s consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has the Company determined the effect of the standard on the Company’s consolidated financial statements. In February 2015, the FASB issued ASU No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which changes the way reporting enterprises evaluate the consolidation of limited partnerships, variable interests and similar entities. This standard will be effective for the first annual reporting period beginning after December 15, 2015 with early adoption permitted. The Company is evaluating the effect that ASU No. 2015-2 will have on the Company’s consolidated financial statements and related disclosures, but the Company does not anticipate that adoption of this accounting standard will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In September 2015, the FASB issued ASU No. 2015-16, “Simplifying the Accounting for Measurement-Period Adjustments,” which illustrates certain guidance governing adjustments to the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. Such adjustments are required when new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement amounts initially recognized or would have resulted in the recognition of additional assets and liabilities. ASU No. 2015-16 eliminates the requirement to retrospectively account for such adjustments. ASU No. 2015-16 is effective for the Company’s fiscal year commencing on January 1, 2016. The Company does not anticipate that the adoption of ASU No. 2015-16 will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires that deferred tax liabilities and assets be classified on the Company’s consolidated balance sheets as noncurrent based on an analysis of each taxpaying component within a jurisdiction. ASU No. 2015-17 is effective for the Company’s fiscal year commencing on January 1, 2017. The Company does not anticipate that the adoption of ASU No. 2015-17 will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Summary Of Significant Accounting Policies Tables
Schedule of estimated useful lives, real property	Depreciation expense is computed using the straight-line and accelerated methods based upon the following estimated useful lives: Estimated Useful Lives (years) Buildings and improvements 39-40 Exterior improvements 10-20 Furniture, fixtures and equipment 5-10
Schedule of expected future amortization of deferred financing fees and franchise costs	Expected future amortization of deferred loan costs and franchise costs is as follows: Years Ending December 31 Total Loan Costs Franchise Costs 2016 $ 40,726 $ 32,526 $ 8,200 2017 40,637 32,437 8,200 2018 40,637 32,437 8,200 2019 40,637 32,437 8,200 Thereafter 304,965 189,465 115,500 Total $ 467,602 $ 319,302 $ 148,300

Investment in Hotel Property (T

Investment in Hotel Property (Tables)	12 Months Ended
	Dec. 31, 2015
Real Estate [Abstract]
Schedule of investments in hotel properties	The following table sets forth summary information regarding the Company’s investment in hotel property as of December 31, 2015: Property Name Date Acquired Location Ownership Interest Purchase Price(1) Rooms Mortgage Debt Outstanding(2) Austin Hotel (Residence Inn) October 15, 2015 Austin, Texas 100 % $ 27,500,000 112 $ 16,575,000 (1) Excludes closing costs and includes gain on acquisition. (2) As of December 31, 2015.
Schedule of pro forma consolidated financial information	Investments in hotel properties consisted of the following at December 31, 2015 and 2014: December 31, 2015 December 31, 2014 Land $ 4,310,000 $ — Buildings and improvements 21,690,000 — Furniture, fixtures and equipment 1,500,000 — Total cost 27,500,000 — Accumulated depreciation (133,840 ) — Investment in hotel property, net $ 27,366,160 $ —

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Schedule of notes payable	As of December 31, 2015 and 2014, the Company’s note payable consisted of the following: Principal as of December 31, 2015 Principal as of December 31, 2014 Interest Rate at December 31, 2015 Maturity Date Residence Inn Austin Loan $ 16,575,000 $ — 4.580 % November 1, 2025
Schedule of maturities of notes payable	Maturities of the note payable as of December 31, 2015 is as follows: Year ending December 31, 2016 $ — 2017 21,512 2018 253,982 2019 266,031 2020 276,544 Thereafter 15,756,931 Total $ 16,575,000

Capitalization (Tables)

Capitalization (Tables)	12 Months Ended
	Dec. 31, 2015
Capitalization Tables
Summary of distributions paid in cash and pursuant to the DRP	The following table summarizes distributions paid in cash and pursuant to the DRP for the year ended December 31, 2015. Period Cash Distribution Distribution Paid Pursuant to DRP (1) Total Amount of Distribution Third Quarter 2015 $ 16,959 $ 5,838 $ 22,797 Fourth Quarter 2015 86,452 40,362 126,814 Total $ 103,411 $ 46,200 $ 149,611 (1) Amount of distributions paid in shares of common stock pursuant to our distribution reinvestment plan.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of composition of restricted cash	The composition of the Company’s restricted cash as of December 31, 2015 and 2014 are as follows: December 31, 2015 2014 Real estate taxes $ 239,846 $ — Hotel furniture and fixtures 33,518 — Rent holdback 14,720 — Total restricted cash $ 288,084 $ —

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule of income tax expense (benefit)	The income tax benefit for the years ended December, 2015 and 2014 consisted of the following: Years ended December, 2015 2014 Current expense $ — $ — Deferred benefit (6,000 ) — Total benefit $ (6,000 ) $ — Federal $ (6,000 ) $ — State — — Total tax benefit $ (6,000 ) $ —
Schedule of reconciliation of income tax expense (benefit)	The reconciliation of income tax expense (benefit) to the expected amount computed by applying federal statutory rate to income before income taxes is as follows: Years ended December 31, 2015 2014 Expected federal tax at statutory rate $ 560,000 $ — Gain on acquisition (757,000 ) — Valuation allowance for deferred income tax asset 191,000 — Income tax benefit $ (6,000 ) $ —

Organization (Details Narrative

Organization (Details Narrative)	12 Months Ended
	Dec. 31, 2015USD ($)N$ / sharesshares	Jul. 02, 2015USD ($)	Jun. 30, 2015$ / shares	Dec. 31, 2014shares	Jul. 26, 2014$ / sharesshares
Common stock authorized, value	1,000,000,000			1,000,000,000
Share price (in dollars per share) | $ / shares	$ 25		$ 25
Common stock, shares issued	520,969			8,000
Description of operating partnership (OP)	Moody National Operating Partnership II, LP, a Delaware limited partnership (the “OP”). The Company is the sole general partner of the OP. The initial limited partners of the OP are Moody OP Holdings II, LLC, a Delaware limited liability company and a wholly-owned subsidiary of the Company (“Moody Holdings II”), and Moody National LPOP II, LLC (“Moody LPOP II”), an affiliate of the Advisor. Moody Holdings II initially invested $1,000 in the OP in exchange for limited partner interests, and Moody LPOP II has invested $1,000 in the OP in exchange for a separate class of limited partnership interests (the “Special Limited Partnership Interests”).
Initial Public Offering [Member]
Common stock authorized, value					1,000,000,000
Common stock authorized in Distribution Reinvestment Plan (DRP), value					100,000,000
Share price (in dollars per share) | $ / shares					$ 25
Share price for Distribution Reinvestment Plan (in dollars per share) | $ / shares					$ 23.75
Escrow subscriptions deposit | $		$ 2,000,000
Common stock, shares issued	502,969
Common stock issued	1,945
Common stock issued under DRP | $	$ 12,525,592
TEXAS [Member]
Number of rooms | N	112

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Deferred financing fees	$ 8,632	$ 0
Nonvested restricted stock included in earnings per share	7,500	0
Advisor [Member]
Percentage of organization and offering costs (in percent)	15.00%
Total offering costs	$ 473,186
Offering cost directly incurred by company	171,461
Offering cost reimbursed to advisor	301,725
Payable to Advisor for offering costs	0
Advisor [Member] | Follow On Offering [Member]
Total offering costs	1,885,768
Offering cost directly incurred by company	1,252,558
Offering cost reimbursed to advisor	633,210
Payable to Advisor for offering costs	$ 299,675

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2015
Buildings And Improvements [Member] | Lower Range [Member]
Estimated useful lives	39 years
Buildings And Improvements [Member] | Upper Range [Member]
Estimated useful lives	40 years
Furniture, Fixtures And Equipment [Member] | Lower Range [Member]
Estimated useful lives	5 years
Furniture, Fixtures And Equipment [Member] | Upper Range [Member]
Estimated useful lives	10 years
Exterior Improvements [Member] | Lower Range [Member]
Estimated useful lives	10 years
Exterior Improvements [Member] | Upper Range [Member]
Estimated useful lives	20 years

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details 1)	Dec. 31, 2015USD ($)
Expected future amortization of deferred costs:
2,016	$ 40,726
2,017	40,637
2,018	40,637
2,019	40,637
Thereafter	304,965
Total	467,602
Loan Costs [Member]
Expected future amortization of deferred costs:
2,016	32,526
2,017	32,437
2,018	32,437
2,019	32,437
Thereafter	189,465
Total	319,302
Franchise Costs [Member]
Expected future amortization of deferred costs:
2,016	8,200
2,017	8,200
2,018	8,200
2,019	8,200
Thereafter	115,500
Total	$ 148,300

Investment in Hotel Property (D

Investment in Hotel Property (Details Narrative) - USD ($)		Oct. 15, 2015	Dec. 31, 2014	Dec. 31, 2015
Gain on acquisition of hotel property				$ 2,000,000
Notes payable (Mortgage debt)				16,575,000
Acquisition costs				496,165
Net loss			$ (2,376)	1,484,697
Residence Inn Austin Hotel [Member]
Aggregate purchase price		$ 25,500,000		27,500,000	[1]
Aggregate purchase price fair value		27,500,000
Gain on acquisition of hotel property		2,000,000
Notes payable (Mortgage debt)	[2]	16,575,000		16,575,000
Purchase price allocation, land		4,310,000
Purchase price allocation, building and improvements		21,690,000
Purchase price allocation, furniture fixtures and equipment		$ 1,500,000
Acquisition costs				496,165
Revenues				1,077,000
Net loss				$ 344,000
[1]	Excludes closing costs and includes gain on acquisition.
[2]	As of December 31, 2015.

Investment in Hotel Property 31

Investment in Hotel Property (Details)		Oct. 15, 2015USD ($)	Dec. 31, 2015USD ($)N
Mortgage Debt Outstanding			$ 16,575,000
Residence Inn Austin Hotel [Member]
Property Name			Austin Hotel (Residence Inn)
Date Acquired			Oct. 15, 2015
Location			Austin, Texas
Ownership Interest			100.00%
Purchase Price		$ 25,500,000	$ 27,500,000	[1]
Number of rooms | N			112
Mortgage Debt Outstanding	[2]	$ 16,575,000	$ 16,575,000
[1]	Excludes closing costs and includes gain on acquisition.
[2]	As of December 31, 2015.

Investment in Hotel Property 32

Investment in Hotel Property (Details 1)	Dec. 31, 2015USD ($)
Real Estate [Abstract]
Land	$ 4,310,000
Buildings and improvements	21,690,000
Furniture, fixtures and equipment	1,500,000
Total cost	27,500,000
Accumulated depreciation	(133,840)
Investment in hotel properties, net	$ 27,366,160

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Debt Disclosure [Abstract]
Percentage of prohibited borrowing capacity to net assets	300.00%
Estimated fair value on notes payable	$ 16,575,000	$ 0

Debt (Details)

Debt (Details)	12 Months Ended
	Dec. 31, 2015USD ($)
Short-term Debt [Line Items]
Note payable	$ 16,575,000
Residence Inn Austin Hotel [Member]
Short-term Debt [Line Items]
Note payable	$ 16,575,000
Interest Rate	4.58%
Maturity Date	Nov. 1, 2025

Debt (Details 1)

Debt (Details 1)	Dec. 31, 2015USD ($)
For the year ending December 31,
2,017	$ 21,512
2,018	253,982
2,019	266,031
2,020	276,544
Thereafter	15,756,931
Total	$ 16,575,000

Capitalization (Details Narrati

Capitalization (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Subsidiary or Equity Method Investee [Line Items]
Common stock, authorized	1,000,000,000		1,000,000,000
Preferred stock, authorized	100,000,000		100,000,000
Common stock, par value (in dollars per share)	$ 0.01		$ 0.01
Preferred stock, par value (in dollars per share)	0.01		$ 0.01
Share Price (in dollars per share)	$ 25	$ 25
Common stock, shares issued	520,969		8,000
Common stock, shares outstanding	520,969		8,000
Outstanding shares of restricted stock	10,000
Distribution paid (in dollars per share)	$ 0.00479
Annualized distribution rate	7.00%
Sponsor [Member]
Subsidiary or Equity Method Investee [Line Items]
Number of shares issued upon services	8,000
Share Price (in dollars per share)	$ 25
Value of shares issued upon services	$ 200,000

Capitalization (Details)

Capitalization (Details) - USD ($)		3 Months Ended		12 Months Ended
		Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Cash Distribution		$ 86,452	$ 16,959	$ 103,411
Distribution Paid Pursuant to DRP	[1]	40,362	5,838	46,200
Total Amount of Distribution		$ 126,814	$ 22,797	$ 149,611
[1]	Amount of distributions paid in shares of common stock pursuant to our distribution reinvestment plan.

Related Party Arrangements (Det

Related Party Arrangements (Details Narrative)	12 Months Ended
	Dec. 31, 2015USD ($)
Advisor [Member]
Related Party Transaction [Line Items]
Percent of organization and offering costs (in percent)	15.00%
Percentage of acquisition fee (in percent)	1.50%
Acquisition fees	$ 382,500
Debt financing fee percentage	1.00%
Debt financing fee refinanced percentage	0.75%
Financing coordination fees	$ 165,750
Monthly asset management fee percentage	0.833%
Percentage of disposition fee on sale of each property (in percent)	3.00%
Maximum percentage of disposition fee and real estate commissions (in percent)	6.00%
Advisor expense reimbursement - alternative 1	2.00%
Advisor expense reimbursement - alternative 2	25.00%
Asset management fee percentage	1.00%
Related party transaction amount exceeded limitation	$ 335,686
Offering cost directly incurred by company	171,461
Offering cost reimbursed to advisor	301,725
Payable to advisor for offering costs	0
Total offering costs	473,186
Advisor [Member] | Follow On Offering [Member]
Related Party Transaction [Line Items]
Offering cost directly incurred by company	1,252,558
Offering cost reimbursed to advisor	633,210
Payable to advisor for offering costs	299,675
Total offering costs	$ 1,885,768
Moody Securities [Member]
Related Party Transaction [Line Items]
Percentage of selling commisssion on gross offering (in percent)	7.00%
Percentage of dealers manager fee on gross offering (in percent)	3.00%
Payments for commissions	$ 939,752
Dealer manager fees	$ 229,885
Moody National Hospitality Management, LLC - Property Manager (Member]
Related Party Transaction [Line Items]
Monthly hotel management fee percentage	4.00%
Incentive fee percentage	15.00%
Total investment of managed property	8.50%
Property manager property management fees	$ 42,723

Incentive Award Plan (Details N

Incentive Award Plan (Details Narrative) - USD ($)	5 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation		$ 109,231
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Board of Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Entitlement number of shares issued, minimum offering exceeds certain specified limit		5,000
Minimum offering amount threshold		$ 2,000,000
Number of shares issued to new joining directors		5,000
Entitlement number of shares issued , reelection of directors at annual general meeting		2,500
Restricted shares granted		10,000
Weighted average grant date fair value of restricted stock		$ 25
Stock-based compensation	$ 0	$ 109,231
Nonvested of restricted stock common stock		7,500
Unrecognized compensation expense		$ 140,769

Subordinated Participation In40

Subordinated Participation Interest (Details Narrative)	Dec. 31, 2015
Debt Disclosure [Abstract]
Maximum percentage of income received to special unit holders	15.00%
Percentage of additional operating income received	6.00%

Commitments and Contingencies41

Commitments and Contingencies (Details Narrative)	12 Months Ended
	Dec. 31, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Description of franchise agreements	As of December 31, 2015, the Company’s hotel property is operated under a franchise agreement with an initial term of 20 years. The franchise agreement allows the property to operate under its brand. Pursuant to the franchise agreement, the Company pays a royalty fee of 6.0% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs of 2.5% of room revenue.
Term of franchise agreements	20 years
Royalty fees on room revenue	6.00%
Additional franchise fees on room revenue	2.50%
Franchise fees	$ 88,000

Commitments and Contingencies42

Commitments and Contingencies (Details)	Dec. 31, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
Real estate taxes	$ 239,846
Hotel furniture and fixtures	33,518
Rent holdback	14,720
Total restricted cash	$ 288,084

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
Operating loss carry-forwards	$ 34,000
TRS [Member]
Operating Loss Carryforwards [Line Items]
Deferred tax assets	$ 6,000	$ 0

Income Taxes (Details)

Income Taxes (Details)	12 Months Ended
	Dec. 31, 2015USD ($)
Components of income tax expense (benefit)
Current expense
Deferred benefit	$ (6,000)
Total benefit	(6,000)
Income tax by jurisdiction
Federal	$ (6,000)
State
Total tax benefit	$ (6,000)

Income Taxes (Details 1)

Income Taxes (Details 1)	12 Months Ended
	Dec. 31, 2015USD ($)
Reconciliation of income tax expense (benefit)
Expected federal tax at statutory rate	$ 560,000
Gain on acquisition	(757,000)
Valuation allowance for deferred income tax asset	191,000
Income tax benefit	$ (6,000)

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Feb. 29, 2016	Feb. 23, 2016	Feb. 15, 2016	Jan. 31, 2016	Jan. 28, 2016	Jan. 15, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Payment of stock dividend							$ 46,200
Aggregate purchase price							$ 27,500,000
Subsequent Event [Member]
Subsequent Event [Line Items]
Declared distribution	$ 90,033			$ 112,630
Payment of cash dividends			$ 61,629			$ 46,147
Payment of stock dividend			$ 28,404			$ 21,607
Subsequent Event [Member] | Director [Member]
Subsequent Event [Line Items]
Shares forfeited up resignation		2,500
Subsequent Event [Member] | Springhill Suites Seattle [Member]
Subsequent Event [Line Items]
Aggregate purchase price					$ 74,100,000
Compensation paid					$ 2,000,000

SCHEDULE III REAL ESTATE ASSETS

SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (Details Narrative)	Dec. 31, 2015USD ($)
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract]
Tax basis cost of real estate	$ 27,815,995

SCHEDULE III REAL ESTATE ASSE48

SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (Details) - USD ($)		12 Months Ended
		Dec. 31, 2015		Dec. 31, 2014
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Encumbrances		$ 16,575,000
Initial cost of land		4,310,000
Initial cost of building, improvements and FF&E		23,190,000
Gross initial cost		27,500,000
Carrying amount of land		4,310,000
Carrying amount of building, improvements and FF&E	[1]	23,190,000
Gross carrying amount		27,500,000	[1]
Accumulated Depreciation and Amortization		$ 133,840
Residence Inn Austin Hotel [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Description		Residence Inn Austin
Location		Austin, Texas
Ownership Percent		100.00%
Encumbrances		$ 16,575,000
Initial cost of land		4,310,000
Initial cost of building, improvements and FF&E		23,190,000
Gross initial cost		27,500,000
Carrying amount of land		4,310,000
Carrying amount of building, improvements and FF&E	[1]	23,190,000
Gross carrying amount	[1]	27,500,000
Accumulated Depreciation and Amortization		$ 133,840
Original Date of Construction		2,014
Date Acquired		Oct. 15, 2015
[1]	The aggregate cost of real estate for federal income tax purposes was $27,815,995 as of December 31, 2015.

SCHEDULE III REAL ESTATE ASSE49

SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (Details 1)	12 Months Ended
	Dec. 31, 2015USD ($)
Real Estate Carrying balance [Roll Forward]
Gross carrying amount, beginning
Acquisitions	$ 27,500,000
Improvements and additions
Dispositions
Gross carrying amount, ending	$ 27,500,000	[1]
[1]	The aggregate cost of real estate for federal income tax purposes was $27,815,995 as of December 31, 2015.

SCHEDULE III REAL ESTATE ASSE50

SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (Details 2)	12 Months Ended
	Dec. 31, 2015USD ($)
Accumulated Depreciation [Roll Forward]
Accumulated depreciation, beginning
Depreciation	$ 133,840
Dispositions
Accumulated depreciation, ending	$ 133,840