Moody National REIT II (MNRTII) 10-K 23 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - shares	12 Months Ended
	Dec. 31, 2016	Mar. 08, 2017	Jun. 30, 2016
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, 2016
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			1,777,287
Entity Common Stock, Shares Outstanding		3,840,306
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Investment in hotel property, net	$ 99,989,740	$ 27,366,160
Cash and cash equivalents	19,577,312	1,580,967
Restricted cash	1,870,304	288,084
Accounts receivable, net of allowance of $3,000 and $0 at December 31, 2016 and 2015, respectively	278,796	46,759
Mortgage note receivable from related party	11,200,000
Prepaid expenses and other assets	209,535	48,853
Earnest money	2,000,000
Deferred franchise costs, net of accumulated amortization of $15,656 and $1,700 as of December 31, 2016 and 2015, respectively	234,344	148,300
Due from related parties	398,743
Total Assets	135,758,774	29,479,123
Liabilities:
Notes payable, net of unamortized debt issuance costs of $931,498 and $319,302 as of December 31, 2016 and 2015, respectively	69,043,502	16,255,698
Accounts payable and accrued expenses	1,431,535	552,285
Due to related parties		342,175
Dividends payable	451,631	67,754
Operating partnership distributions payable	2,668
Total Liabilities	70,929,336	17,217,912
Special Limited Partnership Interests	1,000	1,000
Commitments and Contingencies - Note 10
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, 3,173,348 and 520,969 shares issued and outstanding as of December 31, 2016 and 2015, respectively	31,733	5,210
Additional paid-in capital	68,571,270	10,990,045
Retained earnings (accumulated deficit)	(4,154,395)	1,264,956
Total stockholders' equity	64,448,608	12,260,211
Noncontrolling interest in Operating Partnership	379,830
Total Equity	64,828,438	12,260,211
Total Liabilities and Equity	$ 135,758,774	$ 29,479,123

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowance	$ 3,000	$ 0
Deferred franchies costs, accumulated amortization	15,656	1,700
Notes payable, unamortized debt issuance costs	$ 931,498	$ 319,302
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	3,173,348	520,969
Common stock, outstanding	3,173,348	520,969

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenue
Room revenue	$ 13,853,608	$ 1,053,476
Other hotel revenue	857,799	23,598
Total hotel revenue	14,711,407	1,077,074
Interest income from mortgage note receivable	147,465
Total revenue	14,858,872	1,077,074
Expenses
Hotel operating expenses	7,496,095	522,586
Property taxes, insurance and other	793,763	101,214
Depreciation and amortization	1,711,145	135,540
Acquisition expenses	2,407,445	496,165
Corporate general and administrative	1,590,687	171,461
Total expenses	13,999,135	1,426,966
Operating income (loss)	859,737	(349,892)
Other income (expenses)
Gain on acquisition of hotel property		2,000,000
Interest expense and amortization of debt issuance costs	(3,137,208)	(171,411)
Total other income (expenses)	(3,137,208)	1,828,589
Income (loss) before income taxes	(2,277,471)	1,478,697
Income tax benefit	4,000	6,000
Net income (loss)	(2,273,471)	1,484,697
Loss attributable to noncontrolling interest in Operating Partnership	15,560
Net income (loss) attributable to common stockholders	$ (2,257,911)	$ 1,484,697
Per-share information - basic and diluted:
Net income (loss) attributable to common stockholders (in dollars per share)	$ (1.26)	$ 10.93
Dividends declared (in dollars per share)	$ 1.75	$ 0.73
Weighted average shares outstanding (in shares)	1,798,364	135,854

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings (Accumulated Deficit) [Member]	Noncontrolling Interest in Operating Partnership [Member]	Total
Balance, beginning at Dec. 31, 2014	$ 80	$ 199,920	$ (2,376)		$ 197,624
Balance, beginning (in 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 (in 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 (in shares)	1,945
Stock-based compensation	$ 100	109,131			109,231
Stock-based compensation (in shares)	10,000
Net income (loss)			1,484,697		1,484,697
Dividends and distributions declared			(217,365)		(217,365)
Balance, ending at Dec. 31, 2015	$ 5,210	10,990,045	1,264,956		12,260,211
Balance, ending (in shares) at Dec. 31, 2015	520,969
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Redemption of common stock	$ (169)	(422,663)			(422,832)
Redemption of common stock (in shares)	(16,893)
Issuance of common stock, net of offering costs	$ 26,261	56,897,131			56,923,392
Issuance of common stock, net of offering costs (in shares)	2,626,152
Issuance of operating partnership units, net of offering costs				$ 414,497	414,497
Issuance of operating partnership units, net of offering costs (in shares)				18,000
Issuance of common stock pursuant to dividend reinvestment plan	$ 331	786,271			786,602
Issuance of common stock pursuant to dividend reinvestment plan (in shares)	33,120
Stock-based compensation	$ 100	320,486			320,586
Stock-based compensation (in shares)	10,000
Net income (loss)			(2,257,911)	$ (15,560)	(2,273,471)
Dividends and distributions declared			(3,161,440)	(19,107)	(3,180,547)
Balance, ending at Dec. 31, 2016	$ 31,733	$ 68,571,270	$ (4,154,395)	$ 379,830	$ 64,828,438
Balance, ending (in shares) at Dec. 31, 2016	3,173,348			18,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities
Net income (loss)	$ (2,273,471)	$ 1,484,697
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Gain on acquisition of hotel property		(2,000,000)
Depreciation and amortization	1,711,145	135,540
Amortization of debt issuance costs	876,352	6,932
Deferred income tax	(4,000)	(6,000)
Stock-based compensation	320,586	109,231
Changes in operating assets and liabilities
Restricted cash	(86,588)	(254,566)
Accounts receivable	(232,037)	(46,759)
Prepaid expenses and other assets	(156,682)	(42,853)
Accounts payable and accrued expenses	879,250	552,285
Due to related parties	(42,500)	42,500
Due from related parties	(70,965)
Net cash provided by (used in) operating activities	921,090	(18,993)
Cash flows from investing activities
Increase in restricted cash	(1,495,632)	(33,518)
Origination of mortgage note receivable	(11,200,000)
Earnest money paid	(2,000,000)
Payment of deferred franchise costs	(100,000)	(150,000)
Improvements and additions to hotel properties	(220,769)
Acquisition of hotel properties	(73,649,460)	(25,500,000)
Net cash used in investing activities	(88,665,861)	(25,683,518)
Cash flows from financing activities
Proceeds from issuance of common stock	65,654,316	12,525,592
Redemptions of commons stock	(422,832)
Offering costs paid	(9,358,377)	(1,586,093)
Offering costs paid for issuance of operating partnership units	(36,043)
Dividends paid	(1,990,961)	(103,411)
Operating partnership distributions paid	(16,439)
Proceeds from notes payable	109,650,000	16,575,000
Repayment of notes payable	(56,250,000)
Payment of debt issuance costs	(1,488,548)	(326,234)
Net cash provided by financing activities	105,741,116	27,084,854
Net change in cash and cash equivalents	17,996,345	1,382,343
Cash and cash equivalents at beginning of period	1,580,967	198,624
Cash and cash equivalents at end of period	19,577,312	1,580,967
Supplemental Disclosure of Cash Flow Activity
Interest paid	2,091,131	99,109
Supplemental Disclosure of Non-Cash Financing Activity
Increase (decrease) in accrued offering costs due to related party	(627,453)	299,675
Issuance of common stock from dividend reinvestment plan	786,602	46,200
Issuance of operating partnership units for hotel property	450,540
Dividends payable	451,631	$ 67,754
Operating partnership distribution payable	$ 2,668

Organization

Organization	12 Months Ended
	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Overview Moody National REIT II, Inc. (the “Company”) was formed on July 25, 2014, as a Maryland corporation and intends to elect to be taxed as a real estate investment trust (“REIT”) beginning with the year ended December 31, 2016. The Company has used, and expects to use, the proceeds from its initial public offering (as described below) 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 6, “Equity,” 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, 2016, the Company owned a 112-room hotel property located in Austin, Texas (the “Residence Inn Austin”), a 234-room hotel property located in Seattle, Washington (the “Springhill Suites Seattle”) and a mortgage note receivable from a related party, MN TX II, LLC. For more information on the Company’s properties see Note 3, “Investment in Hotel Properties” and Note 4, “Mortgage Note Receivable from Related Party.” On January 20, 2015, the Securities and Exchange Commission declared the Company’s registration statement on Form S-11 effective, and the Company commenced its initial public offering (the “Offering”), of up to $1,000,000,000 in shares of common stock consisting of up to $1,000,000,000 in shares of the Company’s common stock offered to the public (the “Primary Offering”), at an initial offering price of $25.00 per share, and up to $100,000,000 in shares offered to the Company’s stockholders pursuant to its distribution reinvestment plan (the “DRP”), at an initial offering price of $23.75 per share. On March 16, 2017, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $25.04 as of December 31, 2016. Also on March 16, 2017, in connection with the determination of the estimated value per share of the Company’s common stock, the Company’s board of directors determined a new per share offering price of the Company’s common stock. Accordingly, the Company will offer its shares (i) to the public in the Primary Offering at a purchase price of $27.82, which is equal to the estimated value per share of $25.04 as of December 31, 2016, plus applicable selling commissions and dealer manager fees, subject to any applicable discounts, all as described in the prospectus for the Offering, effective beginning April 3, 2017; and (ii) to the Company’s stockholders pursuant to the DRP at a purchase price of $25.04, which is equal to the estimated value per share of $25.04 as of December 31, 2016, effective beginning with distributions made in April 2017. As of December 31, 2016, the Company had received and accepted investors’ subscriptions for and issued 3,145,348 shares of the Company’s common stock in the Offering, including 35,065 shares of common stock pursuant to the DRP, resulting in gross offering proceeds of $77,757,076. The Company’s advisor is Moody National Advisor II, LLC (the “Advisor”), a Delaware limited liability company and an affiliate of the Sponsor. Pursuant to the advisory agreement dated January 12, 2015 among the Company, the OP (defined below) and the Advisor (the “advisory agreement), and subject to certain restrictions and limitations therein, 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 were 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 from such sales 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. Pending Merger with Moody National REIT I, Inc. On September 27, 2016, the Company jointly announced with Moody National REIT I, Inc. (“Moody I”), a Maryland corporation and a related party of the Company, that the Company had entered into a non-binding Letter of Intent (the “LOI”) that set forth the terms and conditions upon which the Company would acquire Moody I and its subsidiaries. Moody I is a public, non-listed REIT formed in January 2008 to invest primarily in hotel properties. As of March 8, 2017, Moody I’s portfolio included 14 total investments, comprised of (i) interests in 12 hotel properties with a total of 1,595 rooms, and (ii) two promissory notes issued to related parties with an aggregate initial principal amount of $13,500,000. The Company’s sponsor serves as the sponsor of Moody I, and Brett C. Moody serves as the Chairman of the Board and Chief Executive Officer of Moody I. On November 16, 2016, the Company along with the OP, the Advisor, Moody I, Moody National Operating Partnership I, LP, the operating partnership of Moody I (“Moody I OP”), Moody National Advisor I, LLC, Moody I’s advisor, (“Moody I Advisor”), and Moody Merger Sub, LLC, the Company’s wholly owned subsidiary (“Merger Sub”), entered into an agreement and plan of merger (the “Merger Agreement”). Pursuant to the Merger Agreement, Moody I will merge with and into Merger Sub, with Merger Sub continuing as the “Surviving Entity” and the Company’s wholly owned subsidiary (the foregoing transaction, the “Merger”). In addition, pursuant to the Merger Agreement, the OP will merge with and into Moody I OP (the continuing partnership, the “Surviving Partnership” and such transaction, the “Partnership Merger”). Unless context suggests otherwise, the Merger and the Partnership Merger together shall be the “Mergers.” The Merger Agreement was the product of a negotiation between a special committee of the Company’s board of directors and a special committee of the board of directors of Moody I (both consisting solely of independent directors), each of which was represented by its own counsel and financial advisor. Entry into the Merger Agreement was unanimously approved by the Company’s board of directors upon the recommendation of the special committee of the Company’s board of directors. Subject to the terms and conditions of the Merger Agreement, the Company agreed to pay gross consideration of $11.00 per share of the Moody I’s common stock, which amount will be reduced by all fees and expenses that Moody I incurs as a result of or in connection with the Mergers and other transactions contemplated by the Merger Agreement (including certain disposition fees and profit sharing amounts to Moody I’s sponsor and parties related thereto, financial advisory and legal fees payable by Moody I, and other transaction and closing costs incurred by Moody I) (all such fees and expenses, the “Moody I Transaction Fees and Expenses”) to arrive at the net merger consideration payable to the holders of the Company’s common stock, which is referred to herein as the “Net Per Share Price;” provided At the effective time of the merger, each outstanding share of Moody I common stock will be automatically cancelled and retired, and converted into the right to receive, at the election of each holder of such share of Moody I’s common stock, but subject to the limitations discussed below, either: (i) an amount in cash equal to the Net Per Share Price (the “Cash Consideration”) or (ii) a number of shares of the Company’s common stock (the “Stock Consideration” and, together with the Cash Consideration, the “Merger Consideration”) equal to the Net Per Share Price divided by $25.00 (such quotient, as adjusted pursuant to the Merger Agreement, the “Exchange Ratio”) Notwithstanding the above, the maximum number of shares of Moody I common stock that may be converted into the right to receive the Cash Consideration may not exceed 50% of the aggregate number of shares of Moody I common stock entitled to receive Merger Consideration. If the elections of Moody I’s stockholders would cause more than 50% of the aggregate number of shares of Moody I common stock to be converted into the right to receive the Cash Consideration, then the shares of Moody I common stock that would be converted into the right to receive the Cash Consideration will be reduced proportionally so that the number of shares of Moody I common stock that will be converted into the right to receive the Cash Consideration will not exceed 50%, and the remaining shares of Moody I common stock will be converted into the right to receive the Stock Consideration. Subject to the terms and conditions of the Merger Agreement, at the effective time of the Partnership Merger, each outstanding unit of limited partnership interest in Moody I OP will be automatically cancelled and retired, and converted into the right to receive a number of units of limited partnership interests in the Surviving Partnership equal to the Exchange Ratio. Each unit of limited partnership interest in Moody I OP designated as a special partnership unit pursuant to Moody I OP’s limited partnership agreement will be automatically cancelled and retired and shall cease to exist, and no consideration shall be paid, nor, except as expressly provided in the termination agreement (described below), shall any other payment or right inure or be made with respect thereto in connection with or as a consequence of the partnership merger. Each outstanding unit of limited partnership interest in the OP will be converted into one unit of equity ownership in the Surviving Partnership, and each unit designated as a special partnership unit pursuant to the limited partnership agreement of the OP will be converted into one special unit in the Surviving Partnership. The Merger Agreement contains customary covenants, including covenants prohibiting Moody I and its subsidiaries and representatives from soliciting, providing information with respect to or entering into discussions concerning proposals relating to alternative business combination transactions, subject to certain limited exceptions. However, under the terms of the Merger Agreement, during the period beginning on November 16, 2016 and continuing until 11:59 p.m. New York City time on December 31, 2016 (the “Go Shop Period End Time”) Moody I had the right to initiate, solicit, provide information and enter into discussions concerning proposals relating to alternative business combination transactions. Additionally, for up to five business days after the Go Shop Period End Time, Moody I had the right to continue to participate in such discussions with certain other parties (each, a “Go Shop Bidder”) and could have, subject to certain conditions set forth in the Merger Agreement regarding the proposal made by such Go Shop Bidder, terminated the Merger Agreement and entered into an agreement with a Go Shop Bidder with respect to the proposal made by such Go Shop Bidder. None of the parties contacted during the go shop process submitted a proposal that was deemed an “acquisition proposal” under the Merger Agreement to Moody I prior to the Go Shop Period End Time. Concurrently with the entry into the Merger Agreement, the Company, Moody I, Moody I OP, Moody I Advisor, Moody National Realty Company, LP (“Moody National”) and Moody OP Holdings I, LLC (“OP Holdings”), the holder of all outstanding special partnership units in Moody I OP, entered into a termination agreement (the “Termination Agreement”). Pursuant to the Termination Agreement, at the effective time of the Mergers, the amended and restated advisory agreement, dated August 14, 2009, among Moody I, Moody I OP, Moody I Advisor and Moody National will be terminated, and Moody I will pay Moody I Advisor a payment of $5,580,685 (the “Moody I Advisor Payment”). The Moody I Advisor Payment was a negotiated amount that represents a reduction in the disposition fee to which the Moody I Advisor could have been entitled and a waiver of any other contractual termination fee that the Moody I Advisor would have been due under the advisory agreement between Moody I and Moody I advisor in connection with the merger. In addition, the Termination Agreement provides that at the effective time of the Partnership Merger and in accordance with the terms of the limited partnership agreement of Moody I OP, Moody I OP will pay to OP Holdings an amount not to exceed $613,751 (the “Promote Payment”). In the event that the Merger Agreement is terminated prior to the consummation of the Mergers, the Termination Agreement will automatically terminate and be of no further effect and no Mood I Advisor Payment or Promote Payment will be owed and payable. Also concurrently with the entry into the Merger Agreement, the Company, the OP and the Advisor entered into an amended and restated advisory agreement (the “Amended and Restated Advisory Agreement”), which will become effective concurrently with the effective time of the Mergers. Pursuant to the Amended and Restated Advisory Agreement, the Company will be obligated to pay the Advisor an acquisition fee of 1.5% of the aggregate cash consideration paid in the Merger. However, during the first year following the consummation of the Mergers, if the Company sells a property that was previously owned by Moody I, then any disposition fee to which the Advisor would be entitled under the Amended and Restated Advisory Agreement will be reduced by an amount equal to the portion of the Moody I Advisor Payment attributable to such property. The Merger Agreement may be terminated under certain circumstances by both Moody I and the Company. If such termination occurs under certain circumstances, then Moody I would be obligated to pay the Company a termination fee of $2,000,000 (or $1,000,000 if the Merger Agreement had been terminated pursuant to the go shop provisions therein), plus an expense reimbursement fee of up to $500,000. The Merger Agreement also provides that one party may be required to reimburse the other party’s expenses, up to $500,000, if the Merger Agreement is terminated under certain circumstances The obligation of each party to consummate the Mergers is subject to a number of conditions, including the approval of Moody I’s stockholders, receipt of any regulatory approvals, delivery of certain documents and consents, the truth and correctness of the representations and warranties of the parties, subject to the materiality standards contained in the merger agreement, the effectiveness of the registration statement on Form S-4 (File No. 333-215362) filed by the Company to register the shares of the Company’s common stock to be issued as Stock Consideration in the merger, and the absence of a material adverse effect with respect to either us or Moody I. There is no guarantee that the mergers will close. The Company’s management has, and will continue to, expend time and resources to consummate the mergers, which time and resources may otherwise have been allocated to the Company’s other operational needs. In connection with the Mergers, on February 2, 2017, the Company entered into a stockholder servicing coordination agreement (the “Stockholder Servicing Coordination Agreement”) with Moody Securities. Pursuant to the Stockholder Servicing Coordination Agreement, the Company will pay to Moody Securities certain stockholder servicing fees (the “Stockholder Servicing Fees”) of up to $2.125 per share of the Company’s common stock issued as Stock Consideration. All Stockholder Servicing Fees will be re-allowed to broker-dealers that provide ongoing financial advisory services to Moody I stockholders and that enter into participating broker-dealer agreements with Moody Securities. The aggregate amount of Stockholder Servicing Fees will depend on the number of shares of the Company’s common stock issued as Stock Consideration in the Merger, and could range from approximately $5,797,034 to $11,594,068, assuming that the maximum Stockholder Servicing Fee of $2.125 per share is paid for all shares issued as Stock Consideration. No Stockholder Servicing Fees will be paid with respect to any cash paid by the Company as Cash Consideration in the Merger.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
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 certain entities 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 GAAP, which requires 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 any VIE interests as of December 31, 2016 or 2015. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses in the reporting period. 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 the public offering by the Company, 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, 2016, total offering costs for the Offering were $10,616,692, comprised of $7,823,406 of offering costs incurred directly by the Company and $2,793,286 in offering costs incurred by and reimbursable to the Advisor. As of December 31, 2016, the Company had $327,778 due 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 ended December 31, 2016. The Company did not meet all of the qualifications to be a REIT under the Internal Revenue Code for the year ended December 31, 2015 and for the period from July 25, 2014 (inception) to December 31, 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. Provided that the Company qualifies as a REIT, it 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 had no material uncertain tax positions as of December 31, 2016. 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 positions 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. For more information, see Note 11, “Incomes Taxes.” 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 for 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 in recording its financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, mortgage note receivable, notes payable, and accounts payable and accrued expenses. With the exception of the Company’s fixed-rate mortgage note receivable from related party and notes payable, the carrying amounts of these financial instruments approximate their fair values due to their short-term nature. For the fair value of the Company’s mortgage note receivable and notes payable, see Note 4, “Mortgage Note Receivable” and Note 5, “Debt,” respectively. Concentration of Credit Risk As of December 31, 2016, 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. The Company is also exposed to credit risk with respect to its mortgage note receivable from related party. The failure of the borrowers on the mortgage note receivable from related party to make payments of interest and principal when due, or any other event of default under the mortgage note receivable from related party, would have an adverse impact on the Company’s results of operations. Valuation and Allocation of Hotel Properties — 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, if any, 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. Land fair values are derived from appraisals and building fair values 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 fair 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. The Company uses Level III inputs to value acquired properties. 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 require judgment and are 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 Properties — Ownership Investment in hotel properties 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 costs of ordinary repairs and maintenance are charged to expense when incurred. Depreciation expense is computed using the straight-line method based upon the following estimated useful lives: Estimated Buildings and improvements 39-40 Exterior improvements 10-20 Furniture, fixtures and equipment 5-10 Impairment The Company monitors events and changes in circumstances indicating that the carrying amount of a hotel property 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 years ended December 31, 2016 or 2015. In evaluating a hotel property for impairment, the Company makes several estimates and assumptions, including, but not limited to, the projected date of disposition of the property, the estimated future cash flows of the property during the Company’s ownership and the projected sales price of the property. 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. Interest income is recognized when earned. Amounts received prior to guest arrival are recorded as advances from the customer and are recognized at the time of occupancy. 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. Impairment of Mortgage Note Receivable from Related Party The Company reviews the mortgage note receivable from related party for impairment in each reporting period pursuant to the applicable authoritative accounting guidance. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts recorded as assets on the consolidated balance sheets. The Company applies normal loan review and underwriting procedures (as may be implemented or modified from time to time) in making that judgment. When a loan is impaired, the Company measures impairment based on the present value of expected cash flows discounted at the loan’s effective interest rate against the value of the asset recorded on the consolidated balance sheets. The Company may also measure impairment based on a loan’s observable market price or the fair value of collateral, if the loan is collateral dependent. If a loan is deemed to be impaired, the Company records a valuation allowance through a charge to earnings for any shortfall. The Company’s assessment of impairment is based on considerable judgment and estimates. The Company did not record a valuation allowance during the year ended December 31, 2016. Prepaid Expenses and Other Assets Prepaid expenses include prepaid property insurance and hotel operating expenses. Other assets include the Company’s deferred income tax asset. Earnest money Earnest money includes earnest money for future acquisitions. Deferred Franchise Costs Deferred franchise costs are recorded at cost and amortized over the term of the respective franchise contract on a straight-line basis. Accumulated amortization of deferred franchise costs was $15,656 and $1,700 as of December 31, 2016 and 2015, respectively. Expected future amortization of deferred franchise costs as of December 31, 2016 is as follows: Years Ending December 31 Franchise Costs 2017 $ 17,720 2018 17,720 2019 17,720 2020 17,720 2021 17,720 Thereafter 145,744 Total $ 234,344 Debt Issuance Costs In accordance with ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” debt issuance costs are presented as a direct deduction from the carrying value of the notes payable on the consolidated balance sheets. All periods presented have been reclassified to conform with this presentation. Debt issuance costs are amortized as a component of interest expense over the term of the related debt using the straight-line method, which approximates the interest method. All periods presented have been reclassified to conform with this presentation. Accumulated amortization of debt issuance costs was $325,904 and $6,932 as of December 31, 2016 and 2015, respectively. Expected future amortization of debt issuance costs as of December 31, 2016 is as follows: Years Ending December 31 Debt Issuance 2017 $ 189,321 2018 123,566 2019 83,802 2020 83,802 2021 84,032 Thereafter 366,975 Total $ 931,498 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 5,000 and 7,500 shares as of December 31, 2016 and 2015, respectively, held by the Company’s independent directors are included in the calculation of basic EPS because such shares have been issued and participate in dividends. Comprehensive Income For the periods presented, there were no differences between reported net income (loss) attributable to common stockholders and comprehensive income (loss). Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 promised goods or services to customers. ASU No. 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. In July 2015, the FASB voted to defer the effective date to January 1, 2018 with early adoption beginning January 1, 2017. The Company has begun to evaluate each of its revenue streams under the new model. Based on preliminary assessments, the Company does not expect the adoption of ASU No. 2014-09 to have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Liabilities,” which enhances the reporting requirements surrounding the measurement of financial instruments and requires equity securities to be measured at fair value with changes in the fair value recognized through net income for the period. ASU No. 2016-01 is effective for the Company’s fiscal year commencing on January 1, 2018. The Company does not anticipate that the adoption of ASU No. 2016-01 will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which changes lessee accounting to reflect the financial liability and right-of-use asset that are inherent to leasing an asset on the balance sheet. ASU No. 2016-02 is effective for the Company’s fiscal year commencing on January 1, 2019, but early adoption is permitted. The effect that the adoption of ASU No. 2016-02 will have on the Company’s consolidated financial position or the Company’s consolidated results of operations is not currently reasonably estimable. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which simplifies the accounting for income taxes for certain equity-based awards to employees. ASU No. 2016-09 is effective for the Company’s fiscal year commencing on January 1, 2017. The Company does not anticipate that the adoption of ASU No. 2016-09 will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which addresses the Statement of Cash Flow classification and presentation of certain cash transactions. ASU No. 2016-15 is effective for the Company’s fiscal year commencing on January 1, 2018. The effect of this amendment is to be applied retrospectively where practical and early adoption is permitted. The Company expects to adopt ASU No. 2016-15 for the Company’s fiscal year commencing on January 1, 2018. The adoption of ASU No. 2016-15 will not have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In October 2016, the FASB issued ASU No. 2016-17, “Interest Held Through Related Parties That Are Under Common Control,” which amends the accounting guidance when determining the treatment of certain VIE’s to include the interest of related parties under common control in a VIE when considering whether or not the reporting entity is the primary beneficiary of the VIE when considering consolidation. ASU No. 2016-17 is effective for the Company’s fiscal year commencing on January 1, 2017. The adoption of ASU No. 2016-17 will not have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In November 2016, the FASB issued ASU No. 2016-18, “Classification of Restricted Cash,” which addresses the Statement of Cash Flow classification and presentation of restricted cash transactions. ASU No. 2016-18 is effective for the Company’s fiscal year commencing on January 1, 2018. The effect of this amendment is to be applied retrospectively and early adoption is permitted. We expect to adopt ASU No. 2016-18 for our fiscal year commencing on January 1, 2018. The adoption of ASU No. 2016-18 will not have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business,” with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as an acquisition of assets or a business. ASU No. 2017-01 is effective for the Company’s fiscal year commencing on January 1, 2018. The effect of this guidance is to be applied prospectively and early adoption is permitted. The adoption of ASU No. 2017-01 will not have a material effect on the Company’s financial position or our results of operations.

Investments in Hotel Properties

Investments in Hotel Properties	12 Months Ended
	Dec. 31, 2016
Real Estate [Abstract]
Investment in Hotel Properties	3. Investment in Hotel Properties The following table sets forth summary information regarding the Company’s investment in hotel properties as of December 31, 2016: Property Name Date Acquired Location Ownership Interest Purchase Price (1) Rooms Mortgage Debt Outstanding (2) Residence Inn Austin October 15, 2015 Austin, Texas 100 % $ 27,500,000 112 $ 16,575,000 Springhill Suites Seattle May 24, 2016 Seattle, Washington 100 % 74,100,000 234 45,000,000 Totals $ 101,600,000 346 $ 61,575,000 (1) Excludes closing costs and includes gain on acquisition. (2) As of December 31, 2016 Investment in hotel properties consisted of the following at December 31, 2016 and 2015: December 31, 2016 December 31, 2015 Land $ 18,350,000 $ 4,310,000 Buildings and improvements 80,810,000 21,690,000 Furniture, fixtures and equipment 2,660,769 1,500,000 Total cost 101,820,769 27,500,000 Accumulated depreciation (1,831,029 ) (133,840 ) Investment in hotel properties, net $ 99,989,740 $ 27,366,160 Springhill Suites Seattle On May 24, 2016, Moody National Yale-Seattle Holding, LLC, a wholly owned subsidiary of the OP (“Moody Seattle Holding”), acquired fee simple title to the Springhill Suites Seattle from the current tenant-in-common owners of the Springhill Suites Seattle, for an aggregate purchase price of $74,100,000, excluding acquisition costs. The Company financed the acquisition of the Springhill Suites Seattle with the proceeds from the Offering, $56,250,000 of indebtedness secured by the Springhill Suites Seattle and the issuance of 18,000 common units of the OP. The purchase price of the Springhill Suites Seattle, excluding acquisition expenses, was preliminarily allocated to land, buildings and improvements and furniture, fixtures and equipment in the amounts of $14,040,000, $59,120,000, and $940,000, respectively. Acquisition costs of $1,258,322 were expensed when incurred in connection with the acquisition of the Springhill Suites Seattle. The Company has recognized approximately $9,503,000 in revenues and a $406,000 net loss, which includes acquisition costs, for the Springhill Suites Seattle for year ended December 31, 2016. Upon the closing of the acquisition of the Springhill Suites Seattle, Moody National Yale-Seattle MT, LLC (the “Seattle Master Tenant”), a wholly owned subsidiary of the Company’s taxable REIT subsidiary, entered into a Hotel Lease Agreement pursuant to which the Seattle Master Tenant leases the Springhill Suites Seattle from Moody Seattle Holding. Moody National Hospitality Management, LLC, an affiliate of the Company, manages the Springhill Suites Seattle pursuant to a Hotel Management Agreement with the Seattle Master Tenant. Residence Inn Austin 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 $6,285,000 in revenues and a $471,000 net income, which includes acquisition costs and excludes gain on acquisition of hotel property, for the Residence Inn Austin Hotel for the period from the acquisition date through December 31, 2016. 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. The following unaudited pro forma consolidated financial information for the years ended December 31, 2016 and 2015 is presented as if the Company acquired the Residence Inn Austin and the Springhill Suites Seattle on January 1, 2015. This information is not necessarily indicative of what the actual results of operations would have been had the Company completed the acquisition of the Residence Inn Austin and the Springhill Suites Seattle on January 1, 2015, nor does it purport to represent the Company’s future operations: Years ended December 31, 2016 2015 Revenue $ 20,603,362 $ 19,168,709 Net income 828,005 1,382,560 Net income attributable to common stockholders 819,717 1,363,281 Net income per common share - basic and diluted $ 0.46 $ 1.06

Mortgage Note Receivable from R

Mortgage Note Receivable from Related Party	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Mortgage Note Receivable from Related Party	4. Mortgage Note Receivable from Related Party On October 6, 2016, the Company originated a secured loan in the aggregate principal amount of $11,200,000 (the “MN TX II Note”) to MN TX II, LLC, a Texas limited liability company and a related party (“MN TX II”). Proceeds from the MN TX II Note were used by MN TX II solely to acquire a commercial real property located in Houston, Texas (the “Subject Property”). The Company financed the mortgage note receivable in part with the proceeds of a loan from a bank secured by the note with an initial principal balance of $8,400,000. The entire unpaid principal balance of the MN TX II note and all accrued and unpaid interest thereon and all other amounts due under the MN TX II note are due and payable on October 6, 2018. Interest on the outstanding principal balance of the MN TX II note accrues at a fixed per annum rate equal to 5.50%, provided that in no event will the interest rate exceed the maximum rate permitted by applicable law. The MN TX II note may be prepaid in whole or part by MN TX II without penalty at any time upon prior written notice to the Company. Interest income for the year ended December 31, 2016 and interest receivable as of December 31, 2016 were each $147,465. The estimated fair value of the mortgage note receivable from related party as of December 31, 2016 was $11,200,000.

Debt

Debt	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Debt	5. 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, 2016, 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, 2016 and 2015, the Company’s mortgage notes payable secured by the respective real properties, consisted of the following: Mortgage Loan Principal as of Principal as of Interest Rate at Maturity Date Residence Inn Austin (1) $ 16,575,000 $ 16,575,000 4.580 % November 1, 2025 Springhill Suites Seattle (2) 45,000,000 — 4.380 % October 1, 2026 MN TX II note (3) 8,400,000 — 3.750 % October 6, 2018 Total notes payable 69,975,000 16,575,000 Less unamortized debt issuance costs (931,498 ) (319,302 ) Total notes payable, net of unamortized debt issuance costs $ 69,043,502 $ 16,255,698 (1) Monthly payments of interest only are due and payable in calendar year 2016, after which monthly payments of principal and interest are due and payable until the maturity date. (2) Monthly payments of interest only are due and payable in calendar year 2016 and 2017, after which monthly payments of principal and interest are due and payable until the maturity date. (3) Monthly payments of interest only are due until the maturity date. The original note payable secured by the Springhill Suites Seattle property was in the amount of $56,250,000 with an interest rate of LIBOR plus 4.75% with a maturity date of February 23, 2017. The principal was reduced to $44,460,000 during the period from May 24, 2016, the date of purchase of the Springhill Suites Seattle, to September 20, 2016, the date the loan was refinanced with a new note payable in the amount of $45,000,000. Maturities of the notes payable as of December 31, 2016 are as follows: Year ending December 31, 2017 $ 21,511 2018 8,769,830 2019 985,124 2020 1,022,688 2021 1,077,272 Thereafter 58,098,575 Total $ 69,975,000 The estimated fair value of the Company’s notes payable as of December 31, 2016 and 2015 was $70,000,000 and $16,575,000, respectively. The fair value of the notes payable was estimated based on discounted cash flow analyses using Level 2 inputs for 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. In addition to the foregoing, the Company may re-finance or extend loans that are currently secured by properties held by Moody I that the Company would acquire if the Mergers are consummated.

Equity

Equity	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Equity	6. Equity Capitalization Under its 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, 2016, there were a total of 3,173,848 shares of the Company’s common stock issued and outstanding, including the 8,000 shares sold to Sponsor and 20,000 shares of restricted stock, as discussed in Note 8, “Incentive Award Plan.” 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 years ended December 31, 2016 and 2015. Period Cash Distribution Distribution Paid Pursuant to DRP (1) Total Amount of Distribution First Quarter 2016 $ 185,952 $ 84,466 $ 270,418 Second Quarter 2016 351,169 157,799 508,968 Third Quarter 2016 634,948 229,708 864,656 Fourth Quarter 2016 818,892 314,629 1,133,521 Total $ 1,990,961 $ 786,602 $ 2,777,563 First Quarter 2015 $ — $ — $ — Second Quarter 2015 — — — 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. Noncontrolling Interest in Operating Partnership Noncontrolling interest in the OP at December 31, 2016 was $379,830, which represented 18,000 common units in the OP issued in connection with the acquisition of the Springhill Suites Seattle, and is reported in equity in the consolidated balance sheets. Loss from the OP attributable to these noncontrolling interests was $15,560 for the year ended December 31, 2016. There was no income (loss) attributable to the noncontrolling interest in 2015 given that the Springhill Suites Seattle was acquired in 2016.

Related Party Arrangements

Related Party Arrangements	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Arrangements	7. Related Party Arrangements Pursuant to the advisory agreement, the Advisor and certain affiliates of Advisor 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 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, please see Note 9, “Subordinated Partnership Interest.” Sales Commissions and Dealer Manager Fees Moody Securities, LLC (“Moody Securities”), the dealer manager of the Offering and an affiliate of Advisor, receives a commission of up to 7.0% of gross offering proceeds for shares sold in the Primary Offering. 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 for shares sold in the Primary Offering, a portion of which may be reallowed to participating broker-dealers. No selling commissions or dealer manager fee are paid for sales under the DRP. As of December 31, 2016, the Company had paid Moody Securities $5,921,786 in selling commissions related to the Offering and $1,310,259 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 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 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 Offering as of the date of reimbursement. As of December 31, 2016, total offering costs were $10,616,692, comprised of $7,823,406 of offering costs incurred directly by the Company and $2,793,286 in offering costs incurred by and reimbursable to Advisor. As of December 31, 2016, the Company had $327,778 due to Advisor for reimbursable offering costs. Acquisition Fees Advisor, or its affiliates, will also receive 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 Reimbursement of Acquisition Expenses Advisor may also be reimbursed by the Company for actual expenses related to the evaluation, selection and acquisition of real estate investments, regardless of whether the Company actually acquires the related assets. The Company did not reimburse Advisor for any acquisition expenses during the years ended December 31, 2016 and 2015. Financing Coordination Fee Advisor will also receive 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. 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, 2016, the Company paid the Advisor financing coordination fees of $562,500 in connection with the acquisition of the Springhill Suites Seattle Hotel. 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 Residence Inn Austin Hotel. Property Management Fee The Company will pay Moody National Hospitality Management, LLC (“Property Manager”) a monthly hotel management fee equal to 4.0% of the monthly gross operating revenues from the properties managed by Property Manager for services it provides in connection with operating and managing properties. The hotel management agreements between the Company and the Property Manager generally have initial terms of ten years. 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 Property Manager a market-based oversight fee. The Company will reimburse the costs and expenses incurred by 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 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 years ended December 31, 2016 and 2015, the Company paid the Property Manager property management fees of $588,396 and $42,723, respectively, which are included in hotel operating expenses in the accompanying consolidated statements of operations. The Company will also pay an annual incentive fee to Property Manager. Such annual incentive fee is equal to 15% of the amount by which the operating profit from the properties managed by Property Manager for such fiscal year (or partial fiscal year) exceeds 8.5% of the total investment of such properties. 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 will pay 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, 2016 and 2015, the Company incurred asset management fees of $725,751 and $42,500, respectively, payable to the Advisor, which are recorded in corporate general and administrative expenses in the accompanying consolidated statements of operations. Disposition Fee Advisor or its affiliates will also receive a disposition fee in an amount of up to one-half of the brokerage commission paid on the sale of an asset, but in no event greater than 3% 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% of the contract sales price. In addition, pursuant to the Amended and Restated Advisory Agreement, during the first year following the consummation of the Mergers, if the Company sells a property previously owned by Moody I, then any disposition fee to which Advisor would be entitled will be reduced by an amount equal to the portion of the Moody I Advisor Payment attributable to such property. As of December 31, 2016, the Company had not paid any disposition fees to Advisor. Operating Expense Reimbursement The Company will reimburse Advisor for all expenses paid or incurred by Advisor in connection with the services provided to the Company, subject to the limitation that, commencing with the end of the fourth fiscal quarter following the fiscal quarter in which the Company makes its first investment, the Company will not reimburse 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 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. The Company acquired its first asset, the Residence Inn Austin, in the fourth quarter of 2015. For the four fiscal quarters ended December 31, 2016, total operating expenses of the Company were $1,698,408, which included $1,118,687 in operating expenses incurred directly by the Company and $579,721 incurred by Advisor on behalf of the Company. Of the $1,698,408 in total operating expenses incurred during the four fiscal quarters ended December 31, 2016, $103,093 exceeded the 2%/25% Limitation. While the Company’s board of directors has not approved the reimbursement of such excess to Advisor, the Company’s board of directors reserves the right to do so in the future. The Company reimbursed Advisor $472,000 during the four fiscal quarters ended December 31, 2016. Springhill Suites Seattle On May 24, 2016, the OP acquired fee simple title to the Springhill Suites Seattle from the current tenant-in-common owners of the Springhill Suites Seattle (the “Seattle TIC Owners”), for an aggregate purchase price, exclusive of closing costs, of $74,100,000. The Seattle TIC Owners acquired their tenant-in-common interests in the Springhill Suites Seattle in a tenant-in-common program sponsored by an affiliate of the Sponsor. Merger Agreement with Moody I On November 16, 2016, the Company entered into the Merger Agreement. See Note 1 (“Organization—Pending Merger with Moody National REIT I, Inc.”).

Incentive Award Plan

Incentive Award Plan	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Incentive Award Plan	8. Incentive Award Plan The Company has adopted an incentive plan (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award 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 Incentive Award Plan. The Company has also adopted an independent directors compensation plan (the “Independent Directors Compensation Plan”) pursuant to which each of the Company’s independent directors was entitled, subject to the Independent Directors Compensation Plan’s conditions and restrictions, to receive 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 who 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. As of December 31, 2016, there were 1,980,000 common shares remaining available for future issuance under the Incentive Award Plan and the Independent Directors Compensation Plan. The Company recorded compensation expense related to such shares of restricted stock of $320,586 and $109,231 for the years ended December 31, 2016 and 2015, respectively. As of December 31, 2016, there were 5,000 non-vested shares of restricted common stock granted pursuant to the Independent Directors Compensation Plan. The remaining unrecognized compensation expense associated with those 5,000 non-vested shares of $70,183 will be recognized during the first, second and third quarters of 2017. The following is a summary of activity under the Independent Directors Compensation Plan for the years ended December 31, 2016 and 2015: Number of Shares Weighted Average Grant Date Fair Value Balance of non-vested shares as of January 1, 2015 — $ — Shares granted on July 2, 2015 10,000 25.00 Shares vested (2,500 ) 25.00 Balance of non-vested shares as of December 31, 2015 7,500 25.00 Shares granted on February 23, 2016 5,000 25.00 Shares granted August 10, 2016 5,000 25.00 Shares vested (12,500 ) 25.00 Balance of non-vested shares as of December 31, 2016 5,000 $ 25.00

Subordinated Participation Inte

Subordinated Participation Interest	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Subordinated Participation Interest	9. Subordinated Participation Interest Pursuant to the Amended and Restated 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 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, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Restricted Cash Under certain management and debt agreements related to the Residence Inn Austin and the Springhill Suites, the Company escrows payments required for real estate taxes, replacement of hotel furniture and fixtures and rent holdback. The composition of the Company’s restricted cash as of December 31, 2016 and 2015 are as follows: December 31, 2016 2015 Property improvement plan $ 1,200,000 $ — Real estate taxes 92,434 239,846 Hotel furniture and fixtures 329,150 33,518 Seasonality 234,000 — Rent holdback 14,720 14,720 Total restricted cash $ 1,870,304 $ 288,084 Franchise Agreements The Residence Inn Austin and the Springhill Suites Seattle are operated under franchise agreements with initial terms of 20 years. The franchise agreements allow the properties to operate under the franchisor’s brand. Pursuant to the franchise agreements, the Company pays a royalty fee of 5.5% to 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 $1,132,000 and $88,000 for the years ended December 31, 2016 and 2015, respectively, which is included in hotel operating expenses in the accompanying consolidated statements of operations.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes The Company has formed a TRS that is a C-corporation for federal income tax purposes and 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. As of December 31, 2016, the Company had net operating loss carry-forwards of $34,000. The TRS had deferred tax assets of $10,000 and $6,000 as of December 31, 2016 and 2015, respectively, related to net operating loss carry-forwards. The income tax benefit for the years ended December 31, 2016 and 2015 consisted of the following: Years ended December 31, 2016 2015 Current expense $ — $ — Deferred benefit (4,000 ) (6,000 ) Total benefit $ (4,000 ) $ (6,000 ) Federal $ (4,000 ) $ (6,000 ) State — — Total tax benefit $ (4,000 ) $ (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, 2016 2015 Expected federal tax (benefit) at statutory rate $ (774,000 ) $ 560,000 Tax impact of REIT election 770,000 (566,000 ) Income tax benefit $ (4,000 ) $ (6,000 )

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events Distributions Declared On December 31, 2016, the Company declared a distribution in the aggregate amount of $451,631, of which $321,676 was paid in cash on January 15, 2017 and $129,955 was paid pursuant to the DRP in the form of additional shares of the Company’s common stock. On January 31, 2017, the Company declared a distribution in the aggregate amount of $495,546, of which $353,450 was paid in cash on February 15, 2017 and $142,096 was paid pursuant to the DRP in the form of additional shares of the Company’s common stock. On February 28, 2017, the Company declared a distribution in the aggregate amount of $480,306 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, 2017. Amendment to Advisory Agreement On January 4, 2017, 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, 2018. Entry into the Stockholder Servicing Coordination Agreement In connection with the mergers, on February 2, 2017, the Company entered into the Stockholder Servicing Coordination Agreement with Moody Securities. Pursuant to the Stockholder Servicing Coordination Agreement, the Company will pay to Moody Securities Stockholder Servicing Fees of up to $2.125 per share of our common stock issued as Stock Consideration in the Mergers. All Stockholder Servicing Fees will be re-allowed to broker-dealers that provide ongoing financial advisory services to Moody I stockholders and that enter into participating broker-dealer agreements with Moody Securities. The aggregate amount of Stockholder Servicing Fees will depend on the number of shares of our common stock issued as Stock Consideration in the Merger, and could range from approximately $5,797,034 to $11,594,068, assuming that the maximum Stockholder Servicing Fee of $2.125 per share is paid for all shares issued as Stock Consideration. No Stockholder Servicing Fees will be paid with respect to any cash paid by the Company as consideration in the Merger. Determination of the estimated value per share On March 16, 2017, the Company’s board of directors determined an estimated value per share of the Company’s common stock of $25.04 as of December 31, 2016. The estimated value per share was based upon 3,173,348 shares of the Company’s common stock outstanding as of December 31, 2016. Although the estimated value per share has been developed as a measure of value as of December 31, 2016, a specific date, the estimated value per share does not reflect a liquidity discount for the fact that the shares are not currently traded on a national securities exchange or the limited nature in which a stockholder may redeem shares under the share redemption program (if at all), a discount for the non-assumability or prepayment obligations associated with certain of our debt, or a discount for our corporate level overhead. Updated Purchase Price in the Primary Offering and Under the Distribution Reinvestment Plan On March 16, 2017, in connection with the determination of the estimated value per share of the Company’s common stock, the Company’s board of directors also determined a new per share offering price of the Company’s common stock. Accordingly, the Company will offer its shares (i) to the public in the Primary Offering at a purchase price of $27.82, which is equal to the estimated value per share of $25.04 as of December 31, 2016, plus applicable selling commissions and dealer manager fees, subject to any applicable discounts, all as described in the prospectus for the Offering, effective beginning April 3, 2017; and (ii) to the Company’s stockholders pursuant to the DRP at a purchase price of $25.04, which is equal to the estimated value per share of $25.04 as of December 31, 2016, effective beginning with distributions made in April 2017. Amended and Restated DRP On March 16, 2017, in connection with the change in the price of shares offered pursuant to the DRP to $25.04, the Company adopted an amended and restated DRP to reflect the new DRP price of $25.04 per share and to provide that following any subsequent determination of an estimated value per share of our common stock, the Company will sell shares under the DRP at 100% of the most recently determined estimated value per share. Amendment to Dealer Manager Agreement On March 20, 2017, the Company entered into Amendment No. 1 to the Amended and Restated Dealer Manager Agreement by and among the Company, the OP and the Dealer Manager to reflect the new price of shares offered in the Primary Offering of $27.82 and shares offered pursuant to the DRP of $25.04. Suspension of the Share Repurchase Program In connection with the mergers, on March 14, 2017, the Company announced the suspension of its share repurchase program, effective March 24, 2017. The Company anticipates that its share repurchase program will be reinstated upon either the consummation of the mergers or the termination of the merger agreement.

Schedule III Real Estate Assets

Schedule III Real Estate Assets and Accumulated Depreciation and Amortization	12 Months Ended
	Dec. 31, 2016
Schedule Iii Real Estate Assets And Accumulated Depreciation And Amortization
Schedule III Real Estate Assets and Accumulated Depreciation and Amortization	MOODY NATIONAL REIT II, INC. SCHEDULE III DECEMBER 31, 2016 Initial Cost to Company Total Cost Description Location Ownership Percent Encumbrances Land Building, Improvements, and FF&E Total Cost Capitalized Subsequent to Acquisition Land Building, Improvements and FF&E Total (1) Accumulated Depreciation and Amortization Original Date of Construction Date Residence Inn Austin Austin, Texas 100.0 % $ 16,575,000 $ 4,310,000 $ 23,190,000 $ 27,500,000 (2) $ 29,001 $ 4,310,000 $ 23,219,001 $ 27,529,001 $ 844,352 2014 October 15, 2015 Springhill Suites Seattle Seattle, Washington 100.0 % 45,000,000 14,040,000 60,060,000 74,100,000 191,768 14,040,000 60,251,768 74,291,768 986,677 2001 May 24, 2016 Total $ 61,575,000 $ 18,350,000 $ 83,250,000 $ 101,600,000 $ 220,769 $ 18,350,000 $ 83,470,769 $ 101,820,769 $ 1,831,029 (1) The aggregate cost of real estate for federal income tax purposes was $100,054,354 as of December 31, 2016. (2) Includes gain on acquisition of hotel property of $2,000,000. 2016 2015 Real estate: Balance at the beginning of the year $ 27,500,000 $ — Acquisitions 74,100,000 27,500,000 Improvements and additions 220,769 — Dispositions — — Balance at the end of the year $ 101,820,769 $ 27,500,000 Accumulated depreciation: Balance at the beginning of the year $ 133,840 $ — Depreciation 1,697,189 133,840 Dispositions — — Balance at the end of the year $ 1,831,029 $ 133,840

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
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 certain entities 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 GAAP, which requires 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 any VIE interests as of December 31, 2016 or 2015.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and reported amounts of revenues and expenses in the reporting period. 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 the public offering by the Company, 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, 2016, total offering costs for the Offering were $10,616,692, comprised of $7,823,406 of offering costs incurred directly by the Company and $2,793,286 in offering costs incurred by and reimbursable to the Advisor. As of December 31, 2016, the Company had $327,778 due 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 ended December 31, 2016. The Company did not meet all of the qualifications to be a REIT under the Internal Revenue Code for the year ended December 31, 2015 and for the period from July 25, 2014 (inception) to December 31, 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. Provided that the Company qualifies as a REIT, it 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 had no material uncertain tax positions as of December 31, 2016. 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 positions 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. For more information, see Note 11, “Incomes Taxes.”
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 for 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 in recording its financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, mortgage note receivable, notes payable, and accounts payable and accrued expenses. With the exception of the Company’s fixed-rate mortgage note receivable from related party and notes payable, the carrying amounts of these financial instruments approximate their fair values due to their short-term nature. For the fair value of the Company’s mortgage note receivable and notes payable, see Note 4, “Mortgage Note Receivable” and Note 5, “Debt,” respectively.
Concentration of Credit Risk	Concentration of Credit Risk As of December 31, 2016, 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. The Company is also exposed to credit risk with respect to its mortgage note receivable from related party. The failure of the borrowers on the mortgage note receivable from related party to make payments of interest and principal when due, or any other event of default under the mortgage note receivable from related party, would have an adverse impact on the Company’s results of operations.
Valuation and Allocation of Hotel Property - Acquisition	Valuation and Allocation of Hotel Properties — 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, if any, 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. Land fair values are derived from appraisals and building fair values 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 fair 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. The Company uses Level III inputs to value acquired properties. 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 require judgment and are 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 Properties — Ownership Investment in hotel properties 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 costs of ordinary repairs and maintenance are charged to expense when incurred. Depreciation expense is computed using the straight-line method based upon the following estimated useful lives: Estimated Buildings and improvements 39-40 Exterior improvements 10-20 Furniture, fixtures and equipment 5-10
Impairment	Impairment The Company monitors events and changes in circumstances indicating that the carrying amount of a hotel property 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 years ended December 31, 2016 or 2015. In evaluating a hotel property for impairment, the Company makes several estimates and assumptions, including, but not limited to, the projected date of disposition of the property, the estimated future cash flows of the property during the Company’s ownership and the projected sales price of the property. 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. Interest income is recognized when earned. Amounts received prior to guest arrival are recorded as advances from the customer and are recognized at the time of occupancy.
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.
Impairment of Mortgage Notes Receivable from Related Party	Impairment of Mortgage Note Receivable from Related Party The Company reviews the mortgage note receivable from related party for impairment in each reporting period pursuant to the applicable authoritative accounting guidance. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts recorded as assets on the consolidated balance sheets. The Company applies normal loan review and underwriting procedures (as may be implemented or modified from time to time) in making that judgment. When a loan is impaired, the Company measures impairment based on the present value of expected cash flows discounted at the loan’s effective interest rate against the value of the asset recorded on the consolidated balance sheets. The Company may also measure impairment based on a loan’s observable market price or the fair value of collateral, if the loan is collateral dependent. If a loan is deemed to be impaired, the Company records a valuation allowance through a charge to earnings for any shortfall. The Company’s assessment of impairment is based on considerable judgment and estimates. The Company did not record a valuation allowance during the year ended December 31, 2016.
Prepaid Expenses and Other Assets	Prepaid Expenses and Other Assets Prepaid expenses include prepaid property insurance and hotel operating expenses. Other assets include the Company’s deferred income tax asset.
Earnest Money	Earnest money Earnest money includes earnest money for future acquisitions.
Deferred Franchise Costs	Deferred Franchise Costs Deferred franchise costs are recorded at cost and amortized over the term of the respective franchise contract on a straight-line basis. Accumulated amortization of deferred franchise costs was $15,656 and $1,700 as of December 31, 2016 and 2015, respectively. Expected future amortization of deferred franchise costs as of December 31, 2016 is as follows: Years Ending December 31 Franchise Costs 2017 $ 17,720 2018 17,720 2019 17,720 2020 17,720 2021 17,720 Thereafter 145,744 Total $ 234,344
Debt Issuance Costs	Debt Issuance Costs In accordance with ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” debt issuance costs are presented as a direct deduction from the carrying value of the notes payable on the consolidated balance sheets. All periods presented have been reclassified to conform with this presentation. Debt issuance costs are amortized as a component of interest expense over the term of the related debt using the straight-line method, which approximates the interest method. All periods presented have been reclassified to conform with this presentation. Accumulated amortization of debt issuance costs was $325,904 and $6,932 as of December 31, 2016 and 2015, respectively. Expected future amortization of debt issuance costs as of December 31, 2016 is as follows: Years Ending December 31 Debt Issuance 2017 $ 189,321 2018 123,566 2019 83,802 2020 83,802 2021 84,032 Thereafter 366,975 Total $ 931,498
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 5,000 and 7,500 shares as of December 31, 2016 and 2015, respectively, held by the Company’s independent directors are included in the calculation of basic EPS because such shares have been issued and participate in dividends.
Comprehensive Income	Comprehensive Income For the periods presented, there were no differences between reported net income (loss) attributable to common stockholders and comprehensive income (loss).
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 promised goods or services to customers. ASU No. 2014-09 will replace most existing revenue recognition guidance in GAAP when it becomes effective. The standard permits the use of either the retrospective or cumulative effect transition method. In July 2015, the FASB voted to defer the effective date to January 1, 2018 with early adoption beginning January 1, 2017. The Company has begun to evaluate each of its revenue streams under the new model. Based on preliminary assessments, the Company does not expect the adoption of ASU No. 2014-09 to have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In January 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Liabilities,” which enhances the reporting requirements surrounding the measurement of financial instruments and requires equity securities to be measured at fair value with changes in the fair value recognized through net income for the period. ASU No. 2016-01 is effective for the Company’s fiscal year commencing on January 1, 2018. The Company does not anticipate that the adoption of ASU No. 2016-01 will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In February 2016, the FASB issued ASU No. 2016-02, “Leases,” which changes lessee accounting to reflect the financial liability and right-of-use asset that are inherent to leasing an asset on the balance sheet. ASU No. 2016-02 is effective for the Company’s fiscal year commencing on January 1, 2019, but early adoption is permitted. The effect that the adoption of ASU No. 2016-02 will have on the Company’s consolidated financial position or the Company’s consolidated results of operations is not currently reasonably estimable. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which simplifies the accounting for income taxes for certain equity-based awards to employees. ASU No. 2016-09 is effective for the Company’s fiscal year commencing on January 1, 2017. The Company does not anticipate that the adoption of ASU No. 2016-09 will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Cash Receipts and Cash Payments,” which addresses the Statement of Cash Flow classification and presentation of certain cash transactions. ASU No. 2016-15 is effective for the Company’s fiscal year commencing on January 1, 2018. The effect of this amendment is to be applied retrospectively where practical and early adoption is permitted. The Company expects to adopt ASU No. 2016-15 for the Company’s fiscal year commencing on January 1, 2018. The adoption of ASU No. 2016-15 will not have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In October 2016, the FASB issued ASU No. 2016-17, “Interest Held Through Related Parties That Are Under Common Control,” which amends the accounting guidance when determining the treatment of certain VIE’s to include the interest of related parties under common control in a VIE when considering whether or not the reporting entity is the primary beneficiary of the VIE when considering consolidation. ASU No. 2016-17 is effective for the Company’s fiscal year commencing on January 1, 2017. The adoption of ASU No. 2016-17 will not have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In November 2016, the FASB issued ASU No. 2016-18, “Classification of Restricted Cash,” which addresses the Statement of Cash Flow classification and presentation of restricted cash transactions. ASU No. 2016-18 is effective for the Company’s fiscal year commencing on January 1, 2018. The effect of this amendment is to be applied retrospectively and early adoption is permitted. We expect to adopt ASU No. 2016-18 for our fiscal year commencing on January 1, 2018. The adoption of ASU No. 2016-18 will not have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations. In January 2017, the FASB issued ASU No. 2017-01, “Clarifying the Definition of a Business,” with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as an acquisition of assets or a business. ASU No. 2017-01 is effective for the Company’s fiscal year commencing on January 1, 2018. The effect of this guidance is to be applied prospectively and early adoption is permitted. The adoption of ASU No. 2017-01 will not have a material effect on the Company’s financial position or our results of operations.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Schedule of estimated useful lives, real property	Depreciation expense is computed using the straight-line method based upon the following estimated useful lives: Estimated Buildings and improvements 39-40 Exterior improvements 10-20 Furniture, fixtures and equipment 5-10
Schedule of expected future amortization of deferred franchise and deferred loan costs	Expected future amortization of deferred franchise costs as of December 31, 2016 is as follows: Years Ending December 31 Franchise Costs 2017 $ 17,720 2018 17,720 2019 17,720 2020 17,720 2021 17,720 Thereafter 145,744 Total $ 234,344
Schedule of expected future amortization of deferred loan costs	Expected future amortization of debt issuance costs as of December 31, 2016 is as follows: Years Ending December 31 Debt Issuance 2017 $ 189,321 2018 123,566 2019 83,802 2020 83,802 2021 84,032 Thereafter 366,975 Total $ 931,498

Investments in Hotel Properti22

Investments in Hotel Properties (Tables)	12 Months Ended
	Dec. 31, 2016
Real Estate [Abstract]
Schedule of investments in hotel properties	The following table sets forth summary information regarding the Company’s investment in hotel properties as of December 31, 2016: Property Name Date Acquired Location Ownership Interest Purchase Price (1) Rooms Mortgage Debt Outstanding (2) Residence Inn Austin October 15, 2015 Austin, Texas 100 % $ 27,500,000 112 $ 16,575,000 Springhill Suites Seattle May 24, 2016 Seattle, Washington 100 % 74,100,000 234 45,000,000 Totals $ 101,600,000 346 $ 61,575,000 (1) Excludes closing costs and includes gain on acquisition. (2) As of December 31, 2016
Schedule of investments	Investment in hotel properties consisted of the following at December 31, 2016 and 2015: December 31, 2016 December 31, 2015 Land $ 18,350,000 $ 4,310,000 Buildings and improvements 80,810,000 21,690,000 Furniture, fixtures and equipment 2,660,769 1,500,000 Total cost 101,820,769 27,500,000 Accumulated depreciation (1,831,029 ) (133,840 ) Investment in hotel properties, net $ 99,989,740 $ 27,366,160
Schedule of pro forma consolidated financial information	The following unaudited pro forma consolidated financial information for the years ended December 31, 2016 and 2015 is presented as if the Company acquired the Residence Inn Austin and the Springhill Suites Seattle on January 1, 2015. This information is not necessarily indicative of what the actual results of operations would have been had the Company completed the acquisition of the Residence Inn Austin and the Springhill Suites Seattle on January 1, 2015, nor does it purport to represent the Company’s future operations: Years ended December 31, 2016 2015 Revenue $ 20,603,362 $ 19,168,709 Net income 828,005 1,382,560 Net income attributable to common stockholders 819,717 1,363,281 Net income per common share - basic and diluted $ 0.46 $ 1.06

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Schedule of notes payable	As of December 31, 2016 and 2015, the Company’s mortgage notes payable secured by the respective real properties, consisted of the following: Mortgage Loan Principal as of Principal as of Interest Rate at Maturity Date Residence Inn Austin (1) $ 16,575,000 $ 16,575,000 4.580 % November 1, 2025 Springhill Suites Seattle (2) 45,000,000 — 4.380 % October 1, 2026 MN TX II note (3) 8,400,000 — 3.750 % October 6, 2018 Total notes payable 69,975,000 16,575,000 Less unamortized debt issuance costs (931,498 ) (319,302 ) Total notes payable, net of unamortized debt issuance costs $ 69,043,502 $ 16,255,698 (1) Monthly payments of interest only are due and payable in calendar year 2016, after which monthly payments of principal and interest are due and payable until the maturity date. (2) Monthly payments of interest only are due and payable in calendar year 2016 and 2017, after which monthly payments of principal and interest are due and payable until the maturity date. (3) Monthly payments of interest only are due until the maturity date.
Schedule of maturities of notes payable	Maturities of the notes payable as of December 31, 2016 are as follows: Year ending December 31, 2017 $ 21,511 2018 8,769,830 2019 985,124 2020 1,022,688 2021 1,077,272 Thereafter 58,098,575 Total $ 69,975,000

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
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 years ended December 31, 2016 and 2015. Period Cash Distribution Distribution Paid Pursuant to DRP (1) Total Amount of Distribution First Quarter 2016 $ 185,952 $ 84,466 $ 270,418 Second Quarter 2016 351,169 157,799 508,968 Third Quarter 2016 634,948 229,708 864,656 Fourth Quarter 2016 818,892 314,629 1,133,521 Total $ 1,990,961 $ 786,602 $ 2,777,563 First Quarter 2015 $ — $ — $ — Second Quarter 2015 — — — 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.

Incentive Award Plan (Tables)

Incentive Award Plan (Tables)	12 Months Ended
	Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of non-vested shares activity	The following is a summary of activity under the Independent Directors Compensation Plan for the years ended December 31, 2016 and 2015: Number of Shares Weighted Average Grant Date Fair Value Balance of non-vested shares as of January 1, 2015 — $ — Shares granted on July 2, 2015 10,000 25.00 Shares vested (2,500 ) 25.00 Balance of non-vested shares as of December 31, 2015 7,500 25.00 Shares granted on February 23, 2016 5,000 25.00 Shares granted August 10, 2016 5,000 25.00 Shares vested (12,500 ) 25.00 Balance of non-vested shares as of December 31, 2016 5,000 $ 25.00

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Schedule of composition of restricted cash	The composition of the Company’s restricted cash as of December 31, 2016 and 2015 are as follows: December 31, 2016 2015 Property improvement plan $ 1,200,000 $ — Real estate taxes 92,434 239,846 Hotel furniture and fixtures 329,150 33,518 Seasonality 234,000 — Rent holdback 14,720 14,720 Total restricted cash $ 1,870,304 $ 288,084

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of income tax expense (benefit)	The income tax benefit for the years ended December 31, 2016 and 2015 consisted of the following: Years ended December 31, 2016 2015 Current expense $ — $ — Deferred benefit (4,000 ) (6,000 ) Total benefit $ (4,000 ) $ (6,000 ) Federal $ (4,000 ) $ (6,000 ) State — — Total tax benefit $ (4,000 ) $ (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, 2016 2015 Expected federal tax (benefit) at statutory rate $ (774,000 ) $ 560,000 Tax impact of REIT election 770,000 (566,000 ) Income tax benefit $ (4,000 ) $ (6,000 )

Organization (Details Narrative

Organization (Details Narrative)	Feb. 02, 2017$ / sharesshares	Nov. 16, 2016USD ($)$ / shares	Dec. 31, 2016USD ($)Number$ / sharesshares	Mar. 17, 2017USD ($)Number	Mar. 16, 2017$ / shares	Sep. 27, 2016$ / shares	Dec. 31, 2015shares	Jan. 20, 2015$ / sharesshares
Common stock authorized, value | shares			1,000,000,000				1,000,000,000
Share price (in dollars per share) | $ / shares			$ 25.04
Common stock, issued | shares			3,173,348				520,969
Number of rooms | Number			346
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”).
Subsequent Event [Member]
Share price (in dollars per share) | $ / shares					$ 27.82
Initial Public Offering [Member]
Common stock authorized, value | shares								1,000,000,000
Common stock authorized in Distribution Reinvestment Plan (DRP), value | shares								100,000,000
Share price (in dollars per share) | $ / shares								$ 25
Share price for Distribution Reinvestment Plan (in dollars per share) | $ / shares								$ 23.75
Common stock, issued | shares			3,145,348
Common stock issued to Distribution Reinvestment Plan (DRP) | shares			35,065
Common stock issued under DRP | $			$ 77,757,076
Initial Public Offering [Member] | Maximum [Member]
Common stock authorized, value | shares								1,000,000,000
Residence Inn Austin Hotel [Member] | TEXAS [Member]
Number of rooms | Number			112
Springhill Suites Seattle [Member] | WASHINGTON [Member]
Number of rooms | Number			234
Moody National REIT I, Inc [Member] | Subsequent Event [Member]
Number of rooms | Number				1,595
Number of hotel properties | Number				12
Moody National REIT I, Inc [Member] | Subsequent Event [Member] | Promissory notes [Member]
Number of promissory notes | Number				2
Aggregate initial principal amount | $				$ 13,500,000
Moody National REIT I, Inc [Member] | Letter of Intent [Member]
Share price (in dollars per share) | $ / shares						$ 25
Gross acqusition share price (in dollars per share) | $ / shares						$ 11
Moody National REIT I, Inc [Member] | Merger Agreement [Member]
Gross acqusition share price (in dollars per share) | $ / shares		$ 11
Net acqusition share price (in dollars per share) | $ / shares		$ 10.25
Description of cash consideration		Maximum number of shares of Moody I common stock that may be converted into the right to receive the Cash Consideration may not exceed 50% of the aggregate number of shares of Moody I common stock entitled to receive Merger Consideration in connection with the Merger. If the elections of Moody I’s stockholders would cause more than 50% of the aggregate number of shares of Moody I common stock to be converted into the right to receive the Cash Consideration, then the shares of Moody I common stock that would be converted into the right to receive the Cash Consideration will be reduced proportionally so that the number of shares of Moody I common stock that will be converted into the right to receive the Cash Consideration will not exceed 50%, and the remaining shares of Moody I common stock will be converted into the right to receive the Stock Consideration.
Moody National REIT I, Inc [Member] | Termination Agreement [Member]
Termination payment | $		$ 5,580,685
Percentage of acquisition fee		1.50%
Maximum reimbursement fee | $		$ 500,000
Moody National REIT I, Inc [Member] | Stockholder Servicing Coordination Agreement [Member] | Subsequent Event [Member] | Moody Securities [Member]
Stockholder servicing fees | $ / shares	$ 2.125
Moody National REIT I, Inc [Member] | Maximum [Member] | Termination Agreement [Member]
Promote payment | $		613,751
Termination fees | $		2,000,000
Moody National REIT I, Inc [Member] | Maximum [Member] | Stockholder Servicing Coordination Agreement [Member] | Subsequent Event [Member] | Moody Securities [Member]
Number of common stock issued as consideration | shares	11,594,068
Moody National REIT I, Inc [Member] | Minimum [Member] | Termination Agreement [Member]
Termination fees | $		$ 1,000,000
Moody National REIT I, Inc [Member] | Minimum [Member] | Stockholder Servicing Coordination Agreement [Member] | Subsequent Event [Member] | Moody Securities [Member]
Number of common stock issued as consideration | shares	5,797,034

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2016
Buildings and Improvements [Member] | Minimum [Member]
Estimated useful lives	39 years
Buildings and Improvements [Member] | Maximum [Member]
Estimated useful lives	40 years
Furniture, Fixtures and Equipment [Member] | Minimum [Member]
Estimated useful lives	5 years
Furniture, Fixtures and Equipment [Member] | Maximum [Member]
Estimated useful lives	10 years
Exterior Improvements [Member] | Minimum [Member]
Estimated useful lives	10 years
Exterior Improvements [Member] | Maximum [Member]
Estimated useful lives	20 years

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details 1) - Franchise Costs [Member]	Dec. 31, 2016USD ($)
Expected future amortization of deferred franchise costs, year ending December 31,
2,017	$ 17,720
2,018	17,720
2,019	17,720
2,020	17,720
2,021	17,720
Thereafter	145,744
Total	$ 234,344

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Details 2) - Loan Costs [Member]	Dec. 31, 2016USD ($)
Expected future amortization of deferred loan costs, year ending December 31,
2,017	$ 189,321
2,018	123,566
2,019	83,802
2,020	83,802
2,021	84,032
Thereafter	366,975
Total	$ 931,498

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
REIT distribution threshold for federal corporate income tax benefit	90.00%
Deferred franchies costs, accumulated amortization	$ 15,656	$ 1,700
Nonvested restricted stock included in earnings per share	5,000	7,500
Loan Costs [Member]
Deferred franchies costs, accumulated amortization	$ 325,904	$ 6,932
Franchise Costs [Member]
Deferred franchies costs, accumulated amortization	$ 15,656	$ 1,700
Advisor [Member]
Percentage of organization and offering costs (in percent)	15.00%
Total offering costs	$ 10,616,692
Offering cost directly incurred by company	7,823,406
Offering cost reimbursed to advisor	2,793,286
Payable to Advisor for offering costs	$ 327,778

Investments in Hotel Properti33

Investments in Hotel Properties (Details)		12 Months Ended
		Dec. 31, 2016USD ($)Number	Dec. 31, 2015USD ($)
Purchase Price	[1]	$ 101,600,000
Number of rooms | Number		346
Mortgage Debt Outstanding		$ 69,975,000	$ 16,575,000
Residence Inn Austin Hotel [Member]
Mortgage Debt Outstanding	[2]	$ 16,575,000	16,575,000
Residence Inn Austin Hotel [Member] | TEXAS [Member]
Property Name		Residence Inn Austin
Date Acquired		Oct. 15, 2015
Location		Austin, Texas
Ownership Interest		100.00%
Purchase Price	[1]	$ 27,500,000
Number of rooms | Number		112
Mortgage Debt Outstanding	[3]	$ 16,575,000
Springhill Suites Seattle [Member]
Mortgage Debt Outstanding	[4]	$ 45,000,000
Springhill Suites Seattle [Member] | WASHINGTON [Member]
Property Name		Springhill Suites Seattle
Date Acquired		May 24, 2016
Location		Seattle, Washington
Ownership Interest		100.00%
Purchase Price	[1]	$ 74,100,000
Number of rooms | Number		234
Mortgage Debt Outstanding	[3]	$ 45,000,000
[1]	Excludes closing costs and includes gain on acquisition.
[2]	Monthly payments of interest only are due and payable in calendar year 2016, after which monthly payments of principal and interest are due and payable until the maturity date.
[3]	As of December 31, 2016
[4]	Monthly payments of interest only are due and payable in calendar year 2016 and 2017, after which monthly payments of principal and interest are due and payable until the maturity date.

Investments in Hotel Properti34

Investments in Hotel Properties (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Real Estate [Abstract]
Land	$ 18,350,000	$ 4,310,000
Buildings and improvements	80,810,000	21,690,000
Furniture, fixtures and equipment	2,660,769	1,500,000
Total cost	101,820,769	27,500,000
Accumulated depreciation	(1,831,029)	(133,840)
Investment in hotel properties, net	$ 99,989,740	$ 27,366,160

Investments in Hotel Properti35

Investments in Hotel Properties (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenue	$ 14,858,872	$ 1,077,074
Net income attributable to common stockholders	$ (2,257,911)	$ 1,484,697
Net income per common share - basic and diluted (in dollars per share)	$ (1.26)	$ 10.93
Residence Inn Austin and Springhill Suites Seattle [Member] | WASHINGTON [Member]
Revenue	$ 20,603,362	$ 19,168,709
Net income	828,005	1,382,560
Net income attributable to common stockholders	$ 819,717	$ 1,363,281
Net income per common share - basic and diluted (in dollars per share)	$ 0.46	$ 1.06

Investments in Hotel Properti36

Investments in Hotel Properties (Details Narrative) - USD ($)		May 24, 2016	Oct. 15, 2015	Dec. 31, 2016	Dec. 31, 2015
Aggregate purchase price	[1]			$ 101,600,000
Notes payable (Mortgage debt)				69,043,502	$ 16,255,698
Moody Seattle Holding[Member]
Aggregate purchase price		$ 74,100,000
Notes payable (Mortgage debt)		56,250,000
Purchase price allocation, land		14,040,000
Purchase price allocation, building and improvements		59,120,000
Purchase price allocation, furniture fixtures and equipment		$ 940,000
Acquisition costs				1,258,322
Revenues				9,503,000
Net loss				$ 406,000
Moody Seattle Holding[Member] | Common Units [Member]
Issuance of common units				18,000
Moody Austin Holding [Member]
Aggregate purchase price			$ 25,500,000
Notes payable (Mortgage debt)			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				6,285,000
Net loss				$ 471,000
Mortgage debt outstanding			27,500,000
Gain on sale of hotel property			$ 2,000,000
[1]	Excludes closing costs and includes gain on acquisition.

Mortgage Note Receivable from37

Mortgage Note Receivable from Related Party (Details Narrative) - USD ($)	Oct. 06, 2016	Dec. 31, 2016	Dec. 31, 2015
Principal amount		$ 69,975,000	$ 16,575,000
Secured Loan [Member] | MN TX II Note [Member]
Face amount	$ 11,200,000
Principal amount	$ 8,400,000
Maturity date	Oct. 6, 2018
Interest rate	5.50%
Interest receivable		147,465
Mortgage note receivable		$ 11,200,000

Debt (Details)

Debt (Details) - USD ($)		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Principal Amount		$ 69,975,000	$ 16,575,000
Less unamortized debt issuance costs		(931,498)	(319,302)
Total notes payable, net of debt issuance costs		69,043,502	16,255,698
Residence Inn Austin Hotel [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 16,575,000	16,575,000
Interest Rate	[1]	4.58%
Maturity Date	[1]	Nov. 1, 2025
Springhill Suites Seattle [Member]
Short-term Debt [Line Items]
Principal Amount	[2]	$ 45,000,000
Interest Rate	[2]	4.38%
Maturity Date	[2]	Oct. 1, 2026
MN TX II Note [member]
Short-term Debt [Line Items]
Principal Amount	[3]	$ 8,400,000
Interest Rate	[3]	3.75%
Maturity Date	[3]	Oct. 6, 2026
[1]	Monthly payments of interest only are due and payable in calendar year 2016, after which monthly payments of principal and interest are due and payable until the maturity date.
[2]	Monthly payments of interest only are due and payable in calendar year 2016 and 2017, after which monthly payments of principal and interest are due and payable until the maturity date.
[3]	Monthly payments of interest only are due until the maturity date.

Debt (Details 1)

Debt (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
For the year ending December 31,
2,017	$ 21,511
2,018	8,769,830
2,019	985,124
2,020	1,022,688
2,021	1,077,272
Thereafter	58,098,575
Total	$ 69,975,000	$ 16,575,000

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)		12 Months Ended
		Dec. 31, 2016	Dec. 31, 2015
Percentage of prohibited borrowing capacity to net assets		300.00%
Estimated fair value on notes payable		$ 69,975,000	$ 16,575,000
Principal Amount		69,975,000	16,575,000
Original Springhill Suites Seattle [Member]
Principal Amount		$ 56,250,000
Description on interest rate		LIBOR plus 4.75%
Maturity Date		Feb. 23, 2017
Reduction in prinicipal amount		$ 44,460,000
Springhill Suites Seattle [Member]
Principal Amount	[1]	$ 45,000,000
Maturity Date	[1]	Oct. 1, 2026
[1]	Monthly payments of interest only are due and payable in calendar year 2016 and 2017, after which monthly payments of principal and interest are due and payable until the maturity date.

Equity (Details)

Equity (Details) - USD ($)		3 Months Ended						12 Months Ended
		Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2016	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Cash Distribution		$ 818,892	$ 634,948	$ 351,169	$ 185,952	$ 86,452	$ 16,959	$ 1,990,961	$ 103,411
Distribution Paid Pursuant to DRP	[1]	314,629	229,708	157,799	84,466	40,362	5,838	786,602	46,200
Total Amount of Distribution		$ 1,133,521	$ 864,656	$ 508,968	$ 270,418	$ 126,814	$ 22,797	$ 2,777,563	$ 149,611
[1]	Amount of distributions paid in shares of common stock pursuant to our distribution reinvestment plan.

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)	Aug. 15, 2014	Dec. 31, 2016	Dec. 31, 2015
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)		$ 25.04
Common stock, shares issued		3,173,348	520,969
Common stock, shares outstanding		3,173,348	520,969
Outstanding shares of restricted stock		20,000
Distribution paid (in dollars per share)		$ 0.00479
Noncontrolling interest in operating partnership		$ 379,830
Loss attributable to noncontrolling interest in operating Partnership		$ 15,560
Noncontrolling Interest in Operating Partnership [Member]
Issuance of operating partnership units		18,000
Moody Seattle Holding[Member] | Noncontrolling Interest in Operating Partnership [Member]
Issuance of operating partnership units		18,000
Sponsor [Member]
Number of shares issued upon services	8,000	8,000
Share Price (in dollars per share)	$ 25
Value of shares issued upon services	$ 200,000

Related Party Arrangements (Det

Related Party Arrangements (Details Narrative) - USD ($)		May 24, 2016	Dec. 31, 2016	Dec. 31, 2015
Aggregate purchase price	[1]		$ 101,600,000
Moody Seattle Holding[Member]
Aggregate purchase price		$ 74,100,000
Advisor [Member]
Special partnership interest			$ 1,000
Percent of organization and offering costs (in percent)			15.00%
Total offering costs			$ 10,616,692
Offering cost directly incurred by company			7,823,406
Offering cost reimbursed to advisor			2,793,286
Payable to advisor for offering costs			$ 327,778
Percentage of acquisition fee (in percent)			1.50%
Debt financing fee percentage (in percent)			1.00%
Debt financing fee refinanced percentage			0.75%
Asset management fee percentage			1.00%
Monthly asset management fee percentage			0.083%
Asset management fees			$ 725,751	$ 42,500
Advisor expense reimbursement - alternative 1			2.00%
Advisor expense reimbursement - alternative 2			25.00%
Related party transaction amount exceeded limitation			$ 103,093
Operating expenses reimbursable			472,000
Advisor [Member] | Springhill Suites Seattle [Member]
Acquisition fees			1,111,500
Debt financing fee			$ 562,500
Advisor [Member] | Residence Inn Austin Hotel [Member]
Acquisition fees				382,500
Debt financing fee				165,750
Advisor [Member] | Maximum [Member]
Percentage of acquisition fee (in percent)			1.90%
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 [Member] | Follow On Offering [Member]
Total offering costs			$ 1,698,408
Offering cost directly incurred by company			1,118,687
Offering cost reimbursed to advisor			$ 579,721
Moody Securities [Member]
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			$ 5,921,786
Dealer manager fees			$ 1,310,259
Moody National Hospitality Management, LLC - Property Manager (Member]
Monthly hotel management fee percentage			4.00%
Agreement terms			10 years
Property manager property management fees			$ 588,396	$ 42,723
Incentive fee percentage			15.00%
Total investment of managed property			8.50%
[1]	Excludes closing costs and includes gain on acquisition.

Incentive Award Plan (Details)

Incentive Award Plan (Details) - Independent Directors Compensation Plan [Member] - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Balance of non-vested shares at beginning	7,500
Shares granted	5,000	10,000
Shares granted	5,000
Shares vested	(12,500)	(2,500)
Balance of non-vested shares at end	5,000	7,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Balance of non-vested shares at beginning	$ 25
Shares granted	25	$ 25
Shares granted	25
Shares vested	25	25
Balance of non-vested shares at end	$ 25	$ 25

Incentive Award Plan (Details N

Incentive Award Plan (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Stock-based compensation	$ 320,586	$ 109,231
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Board of Directors [Member]
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
Stock-based compensation	$ 1,980,000	$ 109,231
Nonvested of restricted stock common stock	5,000
Unrecognized compensation expense	$ 70,183
Incentive Award Plan and Independent Directors Compensation Plan [Member] | Restricted Stock [Member]
Unrecognized compensation expense	$ 1,980,000

Subordinated Participation In46

Subordinated Participation Interest (Details Narrative)	Dec. 31, 2016
Debt Disclosure [Abstract]
Maximum percentage of income received to special unit holders	15.00%
Percentage of additional operating income received	6.00%

Commitments and Contingencies47

Commitments and Contingencies (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Property improvement plan	$ 1,200,000
Real estate taxes	92,434	$ 239,846
Hotel furniture and fixtures	329,150	33,518
Seasonality	234,000
Rent holdback	14,720	14,720
Total restricted cash	$ 1,870,304	$ 288,084

Commitments and Contingencies48

Commitments and Contingencies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Franchise fees	$ 1,132,000	$ 88,000
Residence Inn Austin Hotel [Member]
Description of franchise agreements	The Residence Inn Austin and the Springhill Suites Seattle are operated under franchise agreements with initial terms of 20 years. The franchise agreements allow the properties to operate under the franchisor’s brand. Pursuant to the franchise agreements, the Company pays a royalty fee of 5.5% to 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 $1,132,000 and $88,000 for the years ended December 31, 2016 and 2015, respectively, which is included in hotel operating expenses in the accompanying consolidated statements of operations.
Term of franchise agreements	20 years
Additional franchise fees on room revenue	2.50%
Residence Inn Austin Hotel [Member] | Minimum [Member]
Royalty fees on room revenue	5.50%
Residence Inn Austin Hotel [Member] | Maximum [Member]
Royalty fees on room revenue	6.00%

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Components of income tax expense
Deferred benefit	$ (4,000)	$ (6,000)
Total benefit	(4,000)	(6,000)
Income tax by jurisdiction
Federal	(4,000)	(6,000)
Total benefit	$ (4,000)	$ (6,000)

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Taxes Details 1
Expected federal tax (benefit) at statutory rate	$ (774,000)	$ 560,000
Tax impact of REIT election	770,000	(566,000)
Total benefit	$ (4,000)	$ (6,000)

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards	$ 34,000
TRS [Member]
Operating Loss Carryforwards [Line Items]
Deferred tax assets	$ 10,000	$ 6,000

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Feb. 15, 2017	Feb. 02, 2017	Jan. 15, 2017	Jan. 04, 2017	Dec. 31, 2016	Dec. 31, 2015	Mar. 16, 2017	Feb. 28, 2017	Jan. 31, 2017
Dividends payable					$ 451,631	$ 67,754
Common stock issued by DRP					$ 786,602	$ 46,200
Share price (in dollars per share)					$ 25.04
Common stock, outstanding					3,173,348	520,969
Subsequent Event [Member]
Dividends payable								$ 480,306	$ 495,546
Dividend paid in cash	$ 353,450		$ 321,676
Common stock issued by DRP	$ 142,096		$ 129,955
Share price (in dollars per share)							$ 27.82
Subsequent Event [Member] | Advisor [Member] | Advisory Agreement [Member]
Description of advisory term				Advisory agreement with the Advisor, which extended the term of the advisory agreement for an additional one-year term expiring on January 20, 2018.
Subsequent Event [Member] | Moody Securities [Member] | Stockholder Servicing Coordination Agreement [Member] | Moody National REIT I, Inc [Member]
Stockholder servicing fees		$ 2.125
Subsequent Event [Member] | Moody Securities [Member] | Stockholder Servicing Coordination Agreement [Member] | Moody National REIT I, Inc [Member] | Minimum [Member]
Number of common stock issued as consideration		5,797,034
Subsequent Event [Member] | Moody Securities [Member] | Stockholder Servicing Coordination Agreement [Member] | Moody National REIT I, Inc [Member] | Maximum [Member]
Number of common stock issued as consideration		11,594,068

Schedule III Real Estate Asse53

Schedule III Real Estate Assets and Accumulated Depreciation and Amortization (Details) - USD ($)		12 Months Ended
		Dec. 31, 2016		Dec. 31, 2015
Encumbrances		$ 61,575,000
Initial Cost of land		18,350,000
Initial Cost of building, improvements and FF&E		83,250,000
Gross initial cost		101,600,000
Cost Capitalized Subsequent to Aquisition		220,769
Carrying amount of land		18,350,000
Carrying amount of building, improvements and FF&E		83,470,769
Gross carrying amount		101,820,769	[1]	$ 27,500,000
Accumulated Depreciation and Amortization		$ 1,831,029		$ 133,840
Residence Inn Austin Hotel [Member]
Description		Residence Inn Austin
Location		Austin, Texas
Ownership percentage		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	[2]	27,500,000
Cost Capitalized Subsequent to Aquisition		29,001
Carrying amount of land		4,310,000
Carrying amount of building, improvements and FF&E		23,219,001
Gross carrying amount	[1]	27,529,001
Accumulated Depreciation and Amortization		$ 844,352
Original Date of Construction		Jan. 1, 2014
Date Acquired		Oct. 15, 2015
Springhill Suites Seattle [Member]
Description		Springhill Suites Seattle
Location		Seattle, Washington
Ownership percentage		100.00%
Encumbrances		$ 45,000,000
Initial Cost of land		14,040,000
Initial Cost of building, improvements and FF&E		60,060,000
Gross initial cost		74,100,000
Cost Capitalized Subsequent to Aquisition		191,768
Carrying amount of land		14,040,000
Carrying amount of building, improvements and FF&E		60,251,768
Gross carrying amount	[1]	74,291,768
Accumulated Depreciation and Amortization		$ 986,677
Original Date of Construction		Jan. 1, 2001
Date Acquired		May 24, 2016
[1]	The aggregate cost of real estate for federal income tax purposes was $100,054,354 as of December 31, 2016.
[2]	Includes gain on acquisition of hotel property of $2,000,000.

Schedule III Real Estate Asse54

Schedule III Real Estate Assets and Accumulated Depreciation and Amortization (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2016		Dec. 31, 2015
Real Estate [Roll Forward]
Gross carrying amount, beginning	$ 27,500,000
Acquisitions	74,100,000		$ 27,500,000
Improvements and additions	220,769
Gross carrying amount, ending	101,820,769	[1]	27,500,000
Accumulated Depreciation [Roll Forward]
Accumulated depreciation, beginning	133,840
Depreciation	1,697,189		133,840
Accumulated depreciation, ending	$ 1,831,029		$ 133,840
[1]	The aggregate cost of real estate for federal income tax purposes was $100,054,354 as of December 31, 2016.

Schedule III Real Estate Asse55

Schedule III Real Estate Assets and Accumulated Depreciation and Amortization (Details Narrative)	12 Months Ended
	Dec. 31, 2016USD ($)
Tax basis cost of real estate	$ 100,054,354
Residence Inn Austin Hotel [Member]
Gain on acquisition of hotel property	$ 2,000,000