Moody National REIT II (MNRTII) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 07, 2017
Document And Entity Information
Entity Registrant Name	Moody National REIT II, Inc.
Entity Central Index Key	1,615,222
Document Type	10-Q
Trading Symbol	MNRTII
Document Period End Date	Sep. 30, 2017
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
Entity Common Stock, Shares Outstanding		8,660,079
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,017

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
ASSETS
Investments in hotel properties, net	$ 395,507,400	$ 99,989,740
Cash and cash equivalents	11,533,620	19,577,312
Restricted cash	16,550,930	1,870,304
Accounts receivable, net of allowance for doubtful accounts of $33,000 and $3,000 as of September 30, 2017 and December 31, 2016, respectively	1,757,845	278,796
Mortgage note receivable from related party	11,200,000	11,200,000
Notes receivable from related parties	11,250,000
Prepaid expenses and other assets	4,213,135	209,535
Earnest money		2,000,000
Deferred franchise costs, net of accumulated amortization of $29,658 and $15,656 at September 30, 2017 and December 31, 2016, respectively	1,037,409	234,344
Due from related parties	4,257,589	398,743
Total Assets	457,307,928	135,758,774
Liabilities:
Notes payable, net of unamortized debt issuance costs of $5,192,454 and $931,498 as of September 30, 2017 and December 31, 2016, respectively	267,527,529	69,043,502
Accounts payable and accrued expenses	12,239,833	1,431,535
Due to related parties	273,114
Dividends payable	756,031	451,631
Operating partnership distributions payable	8,305	2,668
Total Liabilities	280,804,812	70,929,336
Special Limited Partnership Interests	1,000	1,000
Commitments and Contingencies
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, 8,575,671 and 3,173,348 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	85,757	31,733
Additional paid-in capital	191,433,603	68,571,270
Accumulated deficit	(20,907,066)	(4,154,395)
Total stockholders' equity	170,612,294	64,448,608
Noncontrolling interests in Operating Partnership	5,889,822	379,830
Total Equity	176,502,116	64,828,438
TOTAL LIABILITIES AND EQUITY	$ 457,307,928	$ 135,758,774

CONSOLIDATED BALANCE SHEETS (u3

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 33,000	$ 3,000
Deferred franchies costs, accumulated amortization	29,658	15,656
Notes payable, unamortized debt issuance costs	$ 5,192,454	$ 931,498
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	8,575,671	3,173,348
Common stock, outstanding	8,575,671	3,173,348

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue
Room revenue	$ 6,124,800	$ 5,691,818	$ 14,863,606	$ 10,330,445
Other hotel revenue	393,237	332,349	1,146,743	499,377
Total hotel revenue	6,518,037	6,024,167	16,010,349	10,829,822
Interest income from notes receivable	172,915		485,193
Total revenue	6,690,952	6,024,167	16,495,542	10,829,822
Expenses
Hotel operating expenses	3,549,820	2,859,208	8,967,494	5,071,735
Property taxes, insurance and other	302,619	288,600	851,245	491,356
Depreciation and amortization	671,090	570,542	1,841,077	1,126,147
Acquisition expenses	10,758,141	20,200	11,806,469	1,258,322
Corporate general and administrative	356,214	360,453	1,508,700	1,035,154
Total expenses	15,637,884	4,099,003	24,974,985	8,982,714
Operating income (loss)	(8,946,932)	1,925,164	(8,479,443)	1,847,108
Interest expense and amortization of debt issuance costs	979,051	1,460,654	2,578,320	2,328,712
Income (loss) before income tax expense	(9,925,983)	464,510	(11,057,763)	(481,604)
Income tax expense (benefit)	111,000	(5,000)	(1,000)	165,000
Net income (loss)	(10,036,983)	469,510	(11,056,763)	(646,604)
(Income) loss attributable to noncontrolling interests in Operating Partnership	51,392	(3,098)	55,840	4,629
Net income (loss) attributable to common stockholders	$ (9,985,591)	$ 466,412	$ (11,000,923)	$ (641,975)
Per-share information - basic and diluted:
Net income (loss) attributable to common stockholders (in dollars per share)	$ (2)	$ 0.21	$ (2.50)	$ (0.44)
Dividends declared (in dollars per share)	$ 0.44	$ 0.44	$ 1.31	$ 1.31
Weighted average common shares outstanding (in shares)	4,993,340	2,208,966	4,406,320	1,457,638

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY (unaudited) - 9 months ended Sep. 30, 2017 - USD ($)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Non Controlling Interest in Operating Partnership [Member]	Total
Balance at beginning at Dec. 31, 2016		$ 31,733	$ 68,571,270	$ (4,154,395)	$ 379,830	$ 64,828,438
Balance at beginning (in shares) at Dec. 31, 2016		3,173,348
Balance at beginning (in units) at Dec. 31, 2016					18,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock, net of offering costs		$ 16,727	36,975,437			36,992,164
Issuance of common stock, net of offering costs (in shares)		1,672,674
Issuance of common stock in connection with Merger		$ 36,488	84,164,190			84,200,678
Issuance of common stock in connection with Merger (in shares)		3,648,776
Issuance of operating partnership units in connection with Merger					$ 5,595,108	5,595,108
Issuance of operating partnership units in connection with Merge (in units)					298,037
Issuance of common stock pursuant to dividend reinvestment plan		$ 659	1,626,482			1,627,141
Issuance of common stock pursuant to dividend reinvestment plan (in shares)		65,873
Stock-based compensation		$ 150	96,224			96,374
Stock-based compensation (in shares)		15,000
Net loss				(11,000,923)	$ (55,840)	(11,056,763)
Dividends and distributions declared				(5,751,748)	(29,276)	(5,781,024)
Balance at end at Sep. 30, 2017		$ 85,757	$ 191,433,603	$ (20,907,066)	$ 5,889,822	$ 176,502,116
Balance at end (in shares) at Sep. 30, 2017		8,575,671
Balance at end (in units) at Sep. 30, 2017					316,037

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (11,056,763)	$ (646,604)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,841,077	1,126,147
Amortization of debt issuance costs	188,585	841,974
Deferred income tax	(1,000)	6,000
Stock-based compensation	96,374	248,686
Changes in operating assets and liabilities:
Restricted cash	(2,929,131)	(370,383)
Accounts receivable	(193,364)	(377,870)
Prepaid expenses and other assets	(30,989)	(192,845)
Accounts payable and accrued expenses	986,471	896,102
Due from related parties	(2,741,064)	(23,500)
Net cash provided by (used in) operating activities	(13,839,804)	1,507,707
Cash flows from investing activities
Increase in restricted cash	(6,691,845)	(1,354,116)
Payment of deferred franchise costs		(100,000)
Due to related parties	2,000,000	(255,500)
Notes receivable from Moody I	(37,754,276)
Improvements and additions to hotel properties	(227,474)	(140,648)
Acquisition of Moody I	(43,516,093)
Acquisition of hotel property		(73,649,460)
Net cash used in investing activities	(86,189,688)	(75,499,724)
Cash flows from financing activities
Proceeds from issuance of common stock	42,658,265	49,187,701
Offering costs paid	(12,379,078)	(6,858,523)
Offering costs paid for issuance of operating partnership units		(36,043)
Dividends paid	(3,820,207)	(1,172,069)
Operating partnership distributions paid	(23,639)	(8,607)
Proceeds from note payable	70,000,000	101,250,000
Repayment of notes payable		(56,250,000)
Payment of debt issuance costs	(4,449,541)	(1,390,444)
Net cash provided by financing activities	91,985,800	84,722,015
Net change in cash and cash equivalents	(8,043,692)	10,729,998
Cash and cash equivalents at beginning of period	19,577,312	1,580,967
Cash and cash equivalents at end of period	11,533,620	12,310,965
Supplemental Disclosure of Cash Flow Activity
Interest paid	2,335,303	1,488,847
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Increase in accrued offering costs due to related party	305,745	590,428
Issuance of common stock from dividend reinvestment plan	1,627,141	471,973
Issuance of common stock in connection with Merger	91,219,400
Issuance of operating partnership units in connection with Merger	5,595,108	450,540
Repayment of notes receivables from Moody I in connection with Merger	37,754,276
Assumption of notes payable in connection with Merger	132,744,983
Dividends payable	756,031	347,685
Operating partnership distributions payable	$ 8,305	$ 2,582

Organization

Organization	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization Moody National REIT II, Inc. (the “Company”) was formed on July 25, 2014, as a Maryland corporation and has elected 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 September 30, 2017, the Company owned (1) interests in fourteen hotel properties located in six states comprising a total of 1,941 rooms, (2) a loan with a current principal amount of $6,750,000 originated to an affiliate of Sponsor used to acquire a commercial property located in Katy, Texas, (3) a loan in the aggregate principal amount of $4,500,000 originated to an affiliate of Sponsor used to acquire a commercial property located in Houston, Texas and (4) a mortgage note receivable with a current principal amount of $11,200,000 from a related party. For more information on the Company’s real estate investments, see Note 3, “Investment in Hotel Properties” and Note 4, “Notes Receivable.” On January 20, 2015, the Securities and Exchange Commission (the “SEC”) declared the Company’s registration statement on Form S-11 effective, and the Company commenced its initial public offering (the “Offering”), of up to $1,100,000,000 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. On June 26, 2017, the SEC declared effective the Company’s post-effective amendment to its registration statement for the Offering, which reallocated the Company’s shares of common stock as Class A common stock, $0.01 par value per share (“Class A Shares”), Class D common stock, $0.01 par value per share (“Class D Shares”), Class I common stock, $0.01 par value per share (“Class I Shares”), and Class T common stock, $0.01 par value per share (“Class T Shares” and, together with the Class A Shares, the Class D Shares and the Class I Shares, the “Shares”) to be sold on a “best efforts” basis. The Class T Shares contain a conversion feature whereby upon the occurrence of a specified event (generally related to a Class T stockholder’s account having incurred a maximum of 8.5% in underwriting compensation), Class T Shares owned in a stockholder’s Class T account for a given offering will automatically convert to Class A Shares. As of September 30, 2017, the Company had received and accepted investors’ subscriptions for and issued 4,883,895 shares in the Offering, including 100,938 shares pursuant to the DRP, resulting in gross offering proceeds of $120,415,340. 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 an advisory agreement 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 partnership 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 limited partnership agreement of the OP 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. Merger with Moody National REIT I, Inc. On November 16, 2016, the Company along with the OP, the Advisor, Moody National REIT I, Inc. (“Moody I”), a Maryland corporation and a related party of the Company, Moody National Operating Partnership I, L.P., the operating partnership of Moody I (“Moody I OP”), Moody National Advisor I, LLC (“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”). On September 27, 2017, pursuant to the Merger Agreement, Moody I merged 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 and Amendment No. 1 thereto, Moody I OP merged with and into the OP (the “Partnership Merger”), with the OP continuing as the surviving partnership (the “Surviving Partnership”) following the Partnership Merger. Unless context suggests otherwise, the Merger and the Partnership Merger together shall be the “Mergers.” The Mergers became effective on September 27, 2017 (the “Closing Date”). At the effective time of the Merger on the Closing Date (the “REIT Merger Effective Time”), each issued and outstanding share of Moody I common stock, par value $0.01 per share, that was issued and outstanding immediately prior to the REIT Merger Effective Time was converted into the right to receive either (i) 0.41 Class A Shares (plus cash in lieu of any fractional shares of Moody II) (the “Stock Consideration”) or (ii) $10.25 in cash. At the effective time of the Partnership Merger on the Closing Date (the “Partnership Merger Effective Time”), each issued and outstanding unit of limited partnership interest in Moody I OP was automatically cancelled and retired and converted into 0.41 Class A units of limited partnership interest in the Surviving Partnership. Each unit of limited partnership interest in the Moody I OP designated as a special partnership unit, pursuant to the Moody I OP’s limited partnership agreement, was automatically cancelled and retired and ceased to exist. Each outstanding unit of limited partnership interest in the OP remained as one unit of limited partnership interest in the Surviving Partnership, and each unit of limited partnership interest in the OP designated as a special partnership unit, pursuant to the limited partnership agreement of the OP, remained as one special unit in the Surviving Partnership. A total of approximately 3.65 million Class A Shares were issued and a total of approximately $44.7 million in cash was paid to former stockholders of Moody I in connection with the Merger, and former Moody I stockholders owned approximately 43% of the diluted common equity of the Company subsequent to the Merger. The Company and Moody I were each sponsored by the Sponsor. The Sponsor and its affiliates provides investment and advisory services to the Company, and previously provided such services to Moody I, pursuant to written advisory agreements. Concurrently with the entry into the Merger Agreement, the Company, Moody I, Moody I OP, Moody I Advisor, Moody National Realty Company, L.P. (“Moody Realty”) 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 REIT Merger Effective Time, the amended and restated advisory agreement, dated August 14, 2009, among Moody I, Moody I OP, Moody I Advisor and Moody Realty (the “Moody I Advisory Agreement”) was terminated and Moody I subsequently paid 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 fees that the Moody I Advisor would have been due under the Moody I Advisory Agreement in connection with the Mergers. In addition, pursuant to the Termination Agreement, Moody I OP paid $613,751 to OP Holdings, which amount was the promote payment to which OP Holdings was entitled under the terms of the limited partnership agreement. The Company paid the Advisor an acquisition fee of $670,000 in connection with the Mergers, which amount was equal to 1.5% of the cash consideration paid to Moody I stockholders. Additionally, the Company paid the Advisor a financing coordination fee of $1,720,000 based on the loans assumed from Moody I in connection with the Merger, including the debt held by the Company related to the Marriott Courtyard Lyndhurst and the Townplace Suites Forth Worth. 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 Advisory Agreement will be reduced by an amount equal to the portion of the Moody I Advisor Payment attributable to such property. 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, LLC (“Moody Securities”), the dealer manager of the Offering and an affiliate of Advisor. Pursuant to the Stockholder Servicing Coordination Agreement, the Company paid 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 were re-allowed to broker-dealers that provide ongoing financial advisory services to Moody I stockholders following the Mergers and that entered into participating broker-dealer agreements with Moody Securities. The aggregate amount of Stockholder Servicing Fees is based on the number of shares of the Company’s common stock issued as consideration in the Merger, and was approximately $7.0 million.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
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 prepares its consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X promulgated under Securities and Exchange Act of 1934, as amended (the “Exchange Act”). Accordingly, the consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation in accordance with GAAP have been included. Results for the three months ended September 30, 2017 may not be indicative of the results that may be expected for the full year of 2017. For further information, please read the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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 (each, a “VIE”) through which the Company has a controlling interest. Interests in entities acquired are evaluated based on GAAP, which require the consolidation of VIEs in which the Company is deemed to have the controlling financial interest. The Company has the controlling financial interest if the Company has the power to direct the activities of the VIE that most significantly impact its economic performance and the obligation to absorb losses or receive benefits from the VIE that could be significant to the Company. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which the Company has control and/or substantive participating rights under the respective ownership agreement. There are judgments and estimates involved in determining if an entity in which the Company has an investment is a VIE. The entity is evaluated to determine if it is a VIE by, among other things, determining if the equity investors as a group have a controlling financial interest in the entity and if the entity has sufficient equity at risk to finance its activities without additional subordinated financial support. The Company did not have a VIE interest as of September 30, 2017. 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 during 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 each of the Company’s public offerings, provided that within 60 days of the last day of the month in which a public offering ends, the Advisor is obligated to reimburse the Company to the extent organization and offering costs incurred by the Company in connection with the completed public offering exceed 15.0% of the gross offering proceeds from the sale of the Company’s shares of common stock in the completed public offering. Such organization and offering costs include selling commissions and dealer manager fees paid to a dealer manager, legal, accounting, printing and other offering expenses, including marketing, salaries and direct expenses of the Advisor’s employees and employees of the Advisor’s affiliates and others. Any reimbursement of the Advisor or its affiliates for organization and offering costs will not exceed actual expenses incurred by the Advisor. All offering costs, including selling commissions and dealer manager fees, are recorded as an offset to additional paid-in-capital, and all organization costs are recorded as an expense when the Company has an obligation to reimburse the Advisor. As of September 30, 2017, total offering costs for the Offering were $16,282,794, comprised of $12,033,763 of offering costs incurred directly by the Company and $4,249,031 in offering costs incurred by and reimbursable to the Advisor. As of September 30, 2017, the Company had $22,033 due from the Advisor for reimbursable offering costs. Income Taxes The Company elected 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 years ended December 31, 2015 and 2014, including not having 100 shareholders for a sufficient number of days in 2015. Prior to qualifying to be taxed as a REIT, the Company is subject to normal federal and state corporation income taxes. Provided that the Company continues to qualify 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 a wholly-owned taxable REIT subsidiary (“TRS”) that is subject to federal, state and local income taxes. The Company accounts for income taxes of its TRS 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. 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 September 30, 2017. 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 2012 through 2016 remaining subject to examination by various federal and state tax jurisdictions. For more information, see Note 11, “Income 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 in which there is little or no market data, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future income amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). The Company’s estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. The Company classifies assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The Company elected not to use the fair value option in recording its financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, notes receivable, notes payable, and accounts payable and accrued expenses. With the exception of the Company’s fixed-rate notes receivable from related parties 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, “Notes Receivable” and Note 5, “Debt.” Concentration of Credit Risk As of September 30, 2017, 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 notes receivable from related parties. The failure of the any of the borrowers on the notes receivable from related parties to make payments of interest and principal when due, or any other event of default under the notes receivable from related parties, would have an adverse impact on the Company’s results of operations. The Company is exposed to geographic risk in that eight of its fourteen hotel properties are located in one state, Texas. 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 values are derived from appraisals and building 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 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 3 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 Impairments 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 three or nine months ended September 30, 2017. 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 property 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, replacement of furniture, fixtures, and equipment and debt service, as required by certain management or mortgage and term debt agreements 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 Notes Receivable from Related Parties The Company reviews the notes receivable from related parties 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 nine months ended September 30, 2017. 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. 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 $29,658 and $15,656 as of September 30, 2017 and December 31, 2016, respectively. Expected future amortization of deferred franchise costs as of September 30, 2017 is as follows: Years Ending December 31, 2017 $ 20,772 2018 83,088 2019 83,088 2020 83,088 2021 83,088 Thereafter 684,285 Total $ 1,037,409 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. 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. Accumulated amortization of debt issuance costs was $424,489 and $325,904 as of September 30, 2017 and December 31, 2016, respectively. Expected future amortization of debt issuance costs as of September 30, 2017 is as follows: Years Ending December 31, 2017 $ 590,998 2018 1,773,689 2019 480,006 2020 481,323 2021 480,006 Thereafter 1,386,432 Total $ 5,192,454 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 15,000 and 7,500 shares as of September 30, 2017 and 2016, 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 (the “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 full retrospective or modified retrospective adoption. 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 assets 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 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 Company does not believe that the adoption of ASU No. 2016-15 will 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. The Company expects to adopt ASU No. 2016-18 for its fiscal year commencing on January 1, 2018. The Company does not believe that the adoption of ASU No. 2016-18 will 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 Company does not believe that the adoption of ASU No. 2017-01 will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations.

Investments in Hotel Properties

Investments in Hotel Properties	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017: 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 Homewood Suites Woodlands September 27, 2017 The Woodlands, Texas 100 % 17,355,672 91 9,244,028 Hyatt Place Germantown September 27, 2017 Germantown, Tennessee 100 % 16,073,719 127 7,216,139 Hyatt Place North Charleston September 27, 2017 North Charleston, South Carolina 100 % 13,805,648 113 7,323,184 Hampton Inn Austin September 27, 2017 Austin, Texas 100 % 19,327,908 123 10,915,327 Residence Inn Grapevine September 27, 2017 Grapevine, Texas 100 % 25,244,614 133 12,608,294 Marriott Courtyard Inn Lyndhurst September 27, 2017 Lyndhurst, New Jersey (3 ) 39,247,484 227 — Hilton Garden Inn Austin September 27, 2017 Austin, Texas 100 % 29,287,695 138 18,782,241 Hampton Inn Great Valley September 27, 2017 Frazer, Pennsylvania 100 % 15,284,824 125 8,150,750 Embassy Suites Nashville September 27, 2017 Nashville, Tennessee 100 % 81,453,322 208 42,890,574 Homewood Suites Austin September 27, 2017 Austin, Texas 100 % 18,834,848 96 10,987,326 Townplace Suites Fort Worth September 27, 2017 Fort Worth, Texas (4 ) 11,241,742 95 — Hampton Inn Houston September 27, 2017 Houston, Texas 100 % 9,959,785 119 4,627,120 Totals $ 398,717,261 1,941 $ 194,319,983 (1) Excludes closing costs and includes gain on acquisition. (2) As of September 30, 2017. (3) The Marriott Courtyard Lyndhurst is owned by MN Lyndhurst Venture, LLC, of which the OP is a member and holds 100% of the Class B membership interests therein. (4) The Townplace Suites Fort Worth is owned by MN Fort Worth Venture, LLC, of which the OP is a member and holds 100% of the Class B membership interests therein. Investments in hotel properties consisted of the following at September 30, 2017 and December 31, 2016: September 30, December 31, Land $ 70,285,689 $ 18,350,000 Buildings and improvements 296,669,641 80,810,000 Furniture, fixtures and equipment 32,210,174 2,660,769 Total cost 399,165,504 101,820,769 Accumulated depreciation (3,658,104 ) (1,831,029 ) Investment in hotel properties, net $ 395,507,400 $ 99,989,740 On May 24, 2016, Moody National Yale-Seattle Holding, LLC, a wholly owned subsidiary of the OP, acquired fee simple title to the Springhill Suites Seattle from the then current tenant-in-common owners of the Springhill Suites Seattle for an aggregate purchase price of $74,100,000, excluding acquisition costs. Acquisition of Moody I On September 27, 2017, in connection with the Mergers, the Company acquired interests in twelve hotel properties, including two joint venture interests, and two notes receivable from related parties from Moody I (the “Moody I Portfolio”). As of the date of the Mergers, there were 13,257,126 shares of Moody I common stock issued and outstanding, resulting in aggregate merger consideration of $135,885,546, consisting of the following: Value of Company’s Class A Shares issued to Moody I shareholders $ 91,219,400 Cash consideration paid 44,666,146 Aggregate merger consideration $ 135,885,546 67% of Moody I stockholders elected to receive stock consideration in the Merger resulting in the Company’s then current stockholders owning 57% and former Moody I stockholders owning 43% of the common stock of the Company outstanding after the consummation of the Merger, as follows: Company shares outstanding at date of merger 4,903,836 Company Class A common shares issued to Moody I stockholders on date of merger 3,648,776 Total Company shares outstanding after Merger 8,552,612 After consideration of all applicable factors pursuant to the business combination accounting rules, the Company is considered the “legal acquirer” because the Company is issuing common stock to Moody I stockholders, and also due to various factors including that the Company’s stockholders immediately preceding the Merger hold the largest portion of the voting rights in the Company immediately after the Merger. The aggregate purchase price consideration as shown above was allocated to assets and liabilities of Moody I was as follows: Assets Investment in hotel properties $ 297,117,261 Cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and other assets, deferred income tax asset, deferred franchise costs, and due from related parties 13,707,593 Notes receivable from related parties 11,250,000 Liabilities and Equity Notes payable (132,744,983 ) Notes receivable from Moody I (37,754,276 ) Accounts payable and accrued expenses, due to related parties, and operating partnership distributions payable (10,094,941 ) Noncontrolling interests in OP (5,595,108 ) Aggregate merger consideration $ 135,885,546 The estimated fair values for the assets acquired and the liabilities assumed are preliminary and are subject to change during the measurement period as additional information related to the inputs and assumptions used in determining the fair value of the assets and liabilities becomes available. Subsequent adjustments to the preliminary purchase price allocation are not expected to have a material impact to the Company’s consolidated financial statements. The purchase price allocation was based on the Company’s assessment of the fair value of the acquired assets and liabilities, as summarized below. Investment in hotel properties Cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and other assets, deferred franchise costs, and due from related parties Deferred income tax asset Notes receivable from related parties Notes payable Notes receivable from Moody I – Accounts payable and accrued expenses, due to related parties, and operating partnership distributions payable Noncontrolling interests in Operating Partnership The following unaudited pro forma consolidated financial information for the three and nine months ended September 30, 2017 and 2016 is presented as if the Company acquired the Springhill Suites Seattle and the Moody I Portfolio on January 1, 2016. This information is not necessarily indicative of what the actual results of operations would have been had the Company completed the acquisition of the Springhill Suites Seattle and the Moody I Portfolio on January 1, 2016, nor does it purport to represent the Company’s future operations: Three months ended Nine months ended 2017 2016 2017 2016 Revenue $ 22,544,438 $ 22,709,973 $ 64,956,766 $ 65,912,075 Net loss (1,069,538 ) (1,320,754 ) (4,724,125 ) (17,340,681 ) Net loss attributable to common shareholders (1,002,420 ) (1,307,456 ) (4,620,214 ) (17,287,088 ) Net loss per common share - basic and diluted $ (0.12 ) $ (0.15 ) $ (0.54 ) $ (2.02 )

Notes Receivable

Notes Receivable	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Notes Receivable	4. Notes Receivable As of September 30, 2017 and December 31, 2016, the amount of mortgage note receivable from related party was $11,200,000. As of September 30, 2017 and December 31, 2016, the amounts of notes receivable from related parties were $11,250,000 and $0, respectively. 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 Company financed the MN TX II Note in part with the proceeds of a loan from a bank secured by the MN TX II 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 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 on the mortgage note receivable from related party for the three and nine months ended September 30, 2017 was $156,139 and $468,417, respectively, and interest receivable on the mortgage note receivable from related parties as of September 30, 2017 and December 31, 2016 was $615,881 and $147,465, respectively, and is included in Due from Related Parties in the consolidated balance sheets. Notes Receivable from Related Parties On August 21, 2015, Moody I originated an unsecured loan in the aggregate principal amount of $9,000,000 (the “Related Party Note”) to Moody National DST Sponsor, LLC, a Texas limited liability company and an affiliate of Sponsor (“DST Sponsor”). Proceeds from the Related Party Note were used by DST Sponsor solely to acquire a commercial real property located in Katy, Texas (the “Subject Property”). The balance of the Related Party Note was $6,750,000 and $0 as of September 30, 2017 and December 31, 2016, respectively. The Company acquired the Related Party Note in connection with the Mergers. The entire unpaid principal balance of the Related Party Note and all accrued and unpaid interest thereon and all other amounts due under the Related Party Note were due and payable in full on the earlier of (1) August 21, 2016 or (2) ten days following the sale of 100% of the equity ownership interests that are to be syndicated in the Subject Property. Interest on the outstanding principal balance of the Related Party Note accrues at a fixed per annum rate equal to 12%, provided that in no event will the interest rate exceed the maximum rate permitted by applicable law. DST Sponsor was required to pay the Company an origination fee in the amount of $90,000 and an exit fee in the amount of $90,000 upon the maturity date of the Related Party Note, including any earlier prepayment date or accelerated maturity date of the Related Party Note. The Related Party Note may be prepaid in whole or part by DST Sponsor without penalty at any time upon prior written notice to the Company. On August 15, 2016, the maturity date of the Related Party note was extended from August 21, 2016 to August 21, 2017 and the origination fee in the amount of $90,000 and an extension fee in the amount of $45,000 were paid to Moody I by DST Sponsor. On September 24, 2017, the maturity date was extended to August 21, 2018. On April 29, 2016, Moody I originated an unsecured loan in the aggregate principal amount of $4,500,000 (the “Related Party Mezzanine Note”) to Moody Realty, an affiliate of Sponsor. Proceeds from the Related Party Mezzanine Note were used by Moody Realty solely to acquire a multifamily real property located in Houston, Texas. The Company acquired the Related Party Mezzanine Note in connection with the Mergers. The entire unpaid principal balance of the Related Party Mezzanine Note and all accrued and unpaid interest thereon and all other amounts due under the Related Party Mezzanine Note are due and payable in full on the earlier of (1) April 30, 2018, or (2) upon 90 days’ written notice of acceleration of the maturity date by the Company to Moody Realty. Interest on the outstanding principal balance of the Related Party Mezzanine Note accrues at a fixed per annum rate equal to 10%, provided that in no event will the interest rate exceed the maximum rate permitted by applicable law. Moody Realty will pay the Company an origination fee in the amount of $45,000 and an exit fee in the amount of $45,000 upon the maturity date of the Related Party Mezzanine Note, including any earlier prepayment date or accelerated maturity date. The Related Party Mezzanine Note may be prepaid in whole or part by Moody Realty without penalty at any time upon prior written notice to the Company. Interest income from notes receivable from related parties was $16,776 and $0 for the three months and nine months ended September 30, 2017. Interest receivable on notes receivable from related parties was $848,175 and $0 as of September 30, 2017 and December 31, 2016, respectively, and is included in due from related parties on the consolidated balance sheets. The aggregate estimated fair values of the notes receivable from related parties as of September 30, 2017 was $11,250,000. On September 6, 2017, the Company made a loan in the amount of $30,647,770 (the “Lyndhurst Loan”) to Moody National 1 Polito Lyndhurst Holding, LLC (“Lyndhurst Holding”), an indirect subsidiary of Moody I, and Lyndhurst Holding executed a promissory note (the “Lyndhurst Note”) evidencing the Lyndhurst Loan in favor of the Company. The Lyndhurst Note bore interest at a rate of 6.50% per annum and was secured by a Marriott Courtyard hotel property owned by Lyndhurst Holding and located in Lyndhurst, New Jersey (the “Lyndhurst Property”). The Lyndhurst Loan matured upon the consummation of the Mergers. Lyndhurst Holding used the proceeds of the Lyndhurst Loan to repay a loan secured by the Lyndhurst Property that had matured and had become due. On August 15, 2017, the Company made a loan in the amount of $7,106,506 (the “Fort Worth Loan”) to Moody National International-Fort Worth Holding, LLC, (“Fort Worth Holding”), an indirect subsidiary of Moody I, and Fort Worth Holding executed a promissory note (the “Fort Worth Note”) evidencing the Fort Worth Loan in favor of the Company. The Fort Worth Note bore interest at a rate of 6.50% per annum and was secured by a TownePlace Suites hotel property owned by Moody I and located in Ft. Worth, Texas (the “Fort Worth Property”). The Fort Worth Loan matured upon the consummation of the Mergers. Fort Worth Holding used the proceeds of the Fort Worth Loan to repay an existing loan secured by the Fort Worth Property that had matured and had become due.

Debt

Debt	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017, the Company’s debt levels did not exceed 300% of the value of the Company’s net assets, as defined above. As of September 30, 2017 and December 31, 2016, the Company’s mortgage notes payable, secured by the respective real properties and mortgage note receivable, consisted of the following: Mortgage Loan Principal as of September 30, 2017 Principal as of December 31, 2016 Interest Rate at September 30, 2017 Maturity Date Residence Inn Austin (1) $ 16,575,000 $ 16,575,000 4.580 % November 1, 2025 Springhill Suites Seattle (2) 45,000,000 45,000,000 4.380 % October 1, 2026 MN TX II Note (3) 8,400,000 8,400,000 3.750 % October 6, 2018 Homewood Suites Woodlands (4) 9,244,028 — 4.690 % April 11, 2025 Hyatt Place Germantown (4) 7,216,139 — 4.300 % May 6, 2023 Hyatt Place North Charleston (4) 7,323,184 — 5.193 % August 1, 2023 Hampton Inn Austin (4) 10,915,327 — 5.426 % January 6, 2024 Residence Inn Grapevine (4) 12,608,294 — 5.250 % April 6, 2024 Hilton Garden Inn Austin (4) 18,782,241 — 4.530 % December 11, 2024 Hampton Inn Great Valley (4) 8,150,750 — 4.700 % April 11, 2025 Embassy Suites Nashville (4) 42,890,574 — 4.2123 % July 11, 2025 Homewood Suites Austin (4) 10,987,326 — 4.650 % August 11, 2025 Hampton Inn Houston (4) 4,627,120 — 6.000 % August 10, 2018 Term Loan (5) 70,000,000 — 30-day LIBOR plus 7.250 % September 27, 2018 Total notes payable 272,719,983 69,975,000 Less unamortized debt issuance costs (5,192,454 ) (931,498 ) Total notes payable, net of unamortized debt issuance costs $ 267,527,529 $ 69,043,502 (1) Monthly payments of interest are due and payable until the maturity date. Monthly payments of principal are due and payable beginning in December 2017 until the maturity date. (2) Monthly payments of interest only are due and payable in calendar years 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. (4) Monthly payments of interest and principal are due until maturity date. (5) Monthly payments are due and payable until the maturity date. Monthly payments of principal are due and payable beginning in November 2017 until the maturity date. Maturities of the notes payable as of September 30, 2017 are as follows: Years ending December 31, 2017 $ 3,569,217 2018 85,518,905 2019 3,233,774 2020 3,362,828 2021 3,546,072 Thereafter 176,489,187 Total $ 272,719,983 Term Loan Agreement On September 27, 2017, the OP, as borrower, the Company and certain of the Company’s subsidiaries, as guarantors, and KeyBank National Association, or KeyBank, as agent and lender, entered into a term loan agreement (the “Term Loan Agreement”) (the Company refers to KeyBank, in its capacity as lender, together with any other lender institutions that may become parties thereto as the “Lenders”). Pursuant to the Term Loan Agreement, the Lenders have made a term loan to the OP in the principal amount of $70.0 million (the “Term Loan”). Capitalized terms used in this description of the Term Loan and not defined herein have the same meaning as in the Term Loan Agreement. The Company used proceeds from the Term Loan to pay the cash consideration in connection with the Merger, other costs and expenses related to the Mergers and for other corporate purposes. The outstanding principal of the Term Loan will initially bear interest payable monthly, at either (i) 6.25% per year over the base rate, which is defined in the Term Loan Agreement as the greatest of (a) the fluctuating annual rate of interest announced from time to time by the Agent at the Agent’s Head Office as its “prime rate,” (b) the then applicable LIBOR for a one month Interest Period plus one percent (1.00%), or (c) one half of one percent (0.5%) above the Federal Funds Effective Rate or (ii) 7.25% per year over the LIBOR rate for the applicable Interest Period, but upon reduction of the outstanding principal balance of the Term Loan to a specified level, the margins over the base rate or LIBOR rate will be reduced to 2.95% and 3.95%, respectively. As a condition to the funding of the Term Loan, the OP has entered into an interest rate cap arrangement with KeyBank that caps LIBOR at 1.75% until the initial Maturity Date with respect to $26.0 million of the principal of the Term Loan. Provisions of the Term Loan Agreement require that the Company raise a minimum of $10 million per quarter in gross offering proceeds from the Company’s public offering and that the Company make principal payments of $1.5 million per month beginning in November 2017. The Term Loan will mature on September 27, 2018, but can be extended for six months, to March 27, 2019, subject to satisfaction of certain conditions, including payment of an extension fee in the amount of 0.5% of the then outstanding principal amount of the Term Loan. The Outstanding Balance, together with any and all accrued and unpaid interest thereon, and all other Obligations, will be due on the Maturity Date. In addition, the Term Loan provides for monthly interest payments, for mandatory prepayments of principal from the proceeds of certain capital events, and for monthly payments of principal in an amount equal to the greater of (i) 50% of the OP’s Consolidated Net Cash Flow or (ii) $1,500,000. The Term Loan may be prepaid at any time, in whole or in part, without premium or penalty, as described in the Term Loan Agreement. Upon the occurrence of an event of default, the Lenders may accelerate the payment of the Outstanding Balance. The Term Loan Agreement also contains various customary covenants, including but not limited to financial covenants, covenants requiring monthly deposits in respect of certain property costs, such as taxes, furniture, fixtures and equipment, and insurance, covenants imposing restrictions on indebtedness and liens, and restrictions on investments and participation in other asset disposition, merger or business combination or dissolution transactions. The Company was in compliance with the financial covenants under the Term Loan Agreement as of September 30, 2017. The estimated fair value of the Company’s notes payable as of September 30, 2017 and December 31, 2016 was $273,000,000 and $70,000,000, respectively. The fair value of the notes payable was estimated based on discounted cash flow analyses using the current incremental borrowing rates for similar types of borrowing arrangements as of the respective reporting dates. The discounted cash flow method of assessing fair value results in a general approximation of value, and such value may never actually be realized.

Equity

Equity	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017, there were a total of 8,575,671 shares of the Company’s common stock issued and outstanding, including 4,883,895 shares issued in the Offering, 3,648,776 shares issued in connection with the Merger, the 8,000 shares sold to Sponsor and 35,000 shares of restricted stock, as discussed in Note 8, “Incentive Award Plan,” as follows: Class Shares Outstanding as of September 30, Class A Shares 8,544,435 Class D Shares — Class T Shares 6,012 Class I Shares 25,224 Total 8,575,671 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 for 2017 that (1) is calculated daily and reduced for class-specific expenses; (2) is payable in cumulative amounts on or before the 15th day of each calendar month to stockholders of record as of the last day of the previous month; and (3) is calculated at a rate of $1.75 per share of the Company’s common stock per year, or approximately $0.00479 per share per day, before any class-specific expenses. The Company first paid distributions on September 15, 2015. The following table summarizes distributions paid in cash and pursuant to the DRP for the nine months ended September 30, 2017 and 2016. Period Cash Distribution Distribution Paid Pursuant to DRP (1) Total Amount of Distribution First Quarter 2017 $ 1,016,749 $ 410,733 $ 1,427,482 Second Quarter 2017 1,325,157 589,483 1,914,640 Third Quarter 2017 1,478,301 626,925 2,105,226 Total $ 3,820,207 $ 1,627,141 $ 5,447,348 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 Total $ 1,172,069 $ 471,973 $ 1,644,042 (1) Amount of distributions paid in shares of common stock pursuant to the Company’s distribution reinvestment plan. Noncontrolling Interests in Operating Partnership Noncontrolling interests in the OP at September 30, 2017 was $5,889,822, which represented 316,037 common units in the OP issued in connection with the acquisition of the Springhill Suites Seattle and the Partnership Merger, and is reported in equity in the consolidated balance sheets. Income (loss) from the OP attributable to these noncontrolling interests was $(51,392) and $3,098 for the three months ended September 30, 2017 and 2016, respectively, and was $(55,840) and $(4,629) for the nine months ended September 30, 2017 and 2016, respectively.

Related Party Arrangements

Related Party Arrangements	9 Months Ended
	Sep. 30, 2017
Related Party Transactions [Abstract]
Related Party Arrangements	7. Related Party Arrangements Pursuant to the Advisory Agreement, 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 Participation Interest.” Sales Commissions, Dealer Manager Fees and Stockholder Servicing Fees Subject to volume discounts and other special circumstances described in the prospectus for the Offering, the Company will pay Moody Securities up-front selling commissions of up to (i) 7.0% of the gross proceeds of the Class A Shares sold in the Primary Offering and (ii) 3.0% of the gross proceeds of the Class T Shares sold in the Primary Offering. The Company will also pay Moody Securities up-front dealer manager fees of up to (i) 3.0% of the gross proceeds of the Class A Shares sold in the Primary Offering and (ii) 2.5% of the gross proceeds of the Class T Shares sold in the Primary Offering. The Sponsor may also pay Moody Securities (i) up-front dealer manager fees of up to 1.0% of the total amount of Class I Shares purchased in the Primary Offering and (ii) up-front selling commissions of up to 3.0% on purchases of $5,000,000 or more of our Class D Shares purchased in the Primary Offering, which will not be reimbursed by the Company. The Company does not pay Moody Securities any selling commissions or dealer manager fees with respect to DRP shares. Subject to certain limitations set forth in the Dealer Manager Agreement with Moody Securities, the Company will also pay Moody Securities a trailing stockholder servicing fee of (i) 1.0% per annum of the net asset value (“NAV”) of Class T Shares sold in the Primary Offering and (ii) 0.5% per annum of the NAV of Class D Shares sold in the Primary Offering. Moody Securities may reallow all or a portion of the foregoing selling commissions, dealer manager fees or stockholder servicing fees to participating broker-dealers. As of September 30, 2017, the Company had paid Moody Securities $9,170,067 in selling commissions related to the Offering and $2,050,584 in dealer manager fees related to the Offering, which amounts have 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 selling commissions, dealer manager fees, stockholder servicing fees 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 September 30, 2017, total offering costs were $16,282,794, comprised of $12,033,763 of offering costs incurred directly by the Company and $4,249,031 in offering costs incurred by and reimbursable to Advisor. As of September 30, 2017, the Company had $22,033 due from 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 three and nine months ended September 30, 2017 and 2016. 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 three and nine months ended September 30, 2017, the Company paid $1,720,000 in financing coordination fees to the Advisor in connection with the acquisition of the Moody I Portfolio based on the loans assumed from Moody I in connection with the Merger, including the debt held by the Company related to the Marriott Courtyard Lyndhurst and the Townplace Suites Forth Worth. For the three and nine months ended September 30, 2016, the Company paid $ in financing coordination fees to Advisor incurred in connection with the acquisition of the Springhill Suites Seattle. 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 three months ended September 30, 2017 and 2016, the Company paid the Property Manager property management fees of $253,686 and $ , respectively, and accounting fees of $19,000 and $ . For the nine months ended September 30, 2017 and 2016, the Company paid the Property Manager property management fees of $633,378 and $ , respectively, and accounting fees of $49,000 and $ , respectively, which are included in hotel operating expenses in the accompanying consolidated statements of operations. 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 three months ended September 30, 2017 and 2016, the Company incurred asset management fees of $283,000 and $ , respectively, and for the nine months ended September 30, 2017 and 2016, the Company incurred asset management fees of $849,000 and $ , respectively, payable to 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, subject to limitation if the property was previously owned by Moody I, 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. 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 Advisory Agreement will be reduced by an amount equal to the portion of the Moody I Advisor Payment attributable to such property. As of September 30, 2017, 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 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. For the four fiscal quarters ended September 30, 2017, total operating expenses of the Company were $1,943,583, which included $1,364,099 in operating expenses incurred directly by the Company and $579,484 incurred by Advisor on behalf of the Company. Of the $1,943,583 in total operating expenses incurred during the four fiscal quarters ended September 30, 2017, $0 exceeded the 2%/25% Limitation. The Company reimbursed Advisor $899,000 during four fiscal quarters ended September 30, 2017, which includes reimbursements for quarters prior to the four quarters ended September 30, 2017. Merger with Moody I See Note 1, “Organization - Merger with Moody National REIT I, Inc.” Earnest Money The Company assigned its earnest money contract in the amount of $2,000,000 to a related party for consideration paid to the Company of $2,000,000 during the nine months ended September 30, 2017.

Incentive Award Plan

Incentive Award Plan	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017, there were 1,965,000 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 $26,574 and $57,627 for the three months ended September 30, 2017 and 2016, respectively, and $96,374 and $248,686 for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, there were 15,000 non-vested shares of restricted common stock granted pursuant to the Independent Directors Compensation Plan. The remaining unrecognized compensation expense associated with those 15,000 non-vested shares of $391,109 will be recognized during the fourth quarter of 2017 and the first, second and third quarters of 2018. The following is a summary of activity under the Independent Directors Compensation Plan for the nine months ended September 30, 2017 and year ended December 31, 2016: Number of Weighted 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 on 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 Shares granted on August 10, 2017 5,000 27.82 Shares granted on September 27, 2017 10,000 27.82 Shares vested (5,000 ) 25.00 Balance of non-vested shares as of September 30, 2017 15,000 $ 27.82

Subordinated Participation Inte

Subordinated Participation Interest	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Subordinated Participation Interest	9. Subordinated Participation Interest Pursuant to the limited partnership agreement for the OP, Moody LPOP II, the holder of the Special Limited Partnership Interests, is entitled to receive distributions equal to 15.0% of the OP’s net cash flows, whether from continuing operations, the repayment of loans, the disposition of assets or otherwise, but only after the Company’s stockholders (and current and future limited partnership interest holders of the OP other than the former limited partners of Moody I OP) 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. Former limited partners of Moody I OP must have received a cumulative annual return of 8.0%, which is equal to the same return to which such holders were entitled before distributions to the special limited partner of Moody I OP could have been paid under the limited partnership agreement of Moody I OP. 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	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Restricted Cash Under certain management and debt agreements existing at September 30, 2017, the Company escrows payments required for property improvement plans, real estate taxes, replacement of hotel furniture and fixtures, debt service and rent holdback. The composition of the Company’s restricted cash as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 Property improvement plan $ 7,582,528 $ 1,200,000 Real estate taxes 2,954,446 92,434 Insurance 172,996 — Hotel furniture and fixtures 2,612,780 329,150 Debt service 2,578,129 — Seasonality 369,831 234,000 Expense deposit 265,500 — Rent holdback 14,720 14,720 Total restricted cash $ 16,550,930 $ 1,870,304 Franchise Agreements As of September 30, 2017, all of the Company’s hotel properties, including those acquired as part of the Moody I Portfolio, are operated under franchise agreements with initial terms ranging from 10 to 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 generally between 3.0% to 6.0% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs that amount to between 1.5% and 4.3% of room revenue. The Company incurred franchise fee expense of approximately $502,702 and $460,297 for the three months ended September 30, 2017 and 2016, respectively, and $1,214,965 and $843,000 for the nine months ended September 30, 2017 and 2016, respectively, which amounts are included in hotel operating expenses in the accompanying consolidated statements of operations.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017, the Company had operating loss carry-forwards of $281,051. The Company had deferred tax assets of $3,282,000 and $10,000 as of September 30, 2017 and December 31, 2016, respectively, related to net operating loss carry forwards of the TRS. As of September 30, 2017, the TRS had a net operating loss carry-forward of $8,315,458 of which $8,254,824 was transferred from Moody I’s taxable REIT subsidiaries when they were merged into our TRS on the date of the Merger. The income tax expense (benefit) for the three months and nine months ended September 30, 2017 and 2016 consisted of the following: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Current expense (benefit) $ — $ (5,000 ) $ — $ 159,000 Deferred expense (benefit) 111,000 — (1,000 ) 6,000 Total expense (benefit), net $ 111,000 $ (5,000 ) $ (1,000 ) $ 165,000 Federal $ 111,000 $ (5,000 ) $ (1,000 ) $ 165,000 State — — — — Total tax expense (benefit) $ 111,000 $ (5,000 ) $ (1,000 ) $ 165,000

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events Distributions Declared On September 30, 2017, the Company declared a distribution in the aggregate amount of $756,031, of which $496,217 was paid in cash on October 15, 2017, $207,869 was paid pursuant to the DRP in the form of additional shares of the Company’s common stock, and $51,945 was deferred pending the return of letters of transmittal by former Moody I stockholders. On October 31, 2017, the Company declared a distribution in the aggregate amount of $1,277,982, 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 or about November 15, 2017.

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
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 prepares its consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X promulgated under Securities and Exchange Act of 1934, as amended (the “Exchange Act”). Accordingly, the consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation in accordance with GAAP have been included. Results for the three months ended September 30, 2017 may not be indicative of the results that may be expected for the full year of 2017. For further information, please read the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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 (each, a “VIE”) through which the Company has a controlling interest. Interests in entities acquired are evaluated based on GAAP, which require the consolidation of VIEs in which the Company is deemed to have the controlling financial interest. The Company has the controlling financial interest if the Company has the power to direct the activities of the VIE that most significantly impact its economic performance and the obligation to absorb losses or receive benefits from the VIE that could be significant to the Company. If the interest in the entity is determined not to be a VIE, then the entity is evaluated for consolidation based on legal form, economic substance, and the extent to which the Company has control and/or substantive participating rights under the respective ownership agreement. There are judgments and estimates involved in determining if an entity in which the Company has an investment is a VIE. The entity is evaluated to determine if it is a VIE by, among other things, determining if the equity investors as a group have a controlling financial interest in the entity and if the entity has sufficient equity at risk to finance its activities without additional subordinated financial support. The Company did not have a VIE interest as of September 30, 2017.
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 during 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 each of the Company’s public offerings, provided that within 60 days of the last day of the month in which a public offering ends, the Advisor is obligated to reimburse the Company to the extent organization and offering costs incurred by the Company in connection with the completed public offering exceed 15.0% of the gross offering proceeds from the sale of the Company’s shares of common stock in the completed public offering. Such organization and offering costs include selling commissions and dealer manager fees paid to a dealer manager, legal, accounting, printing and other offering expenses, including marketing, salaries and direct expenses of the Advisor’s employees and employees of the Advisor’s affiliates and others. Any reimbursement of the Advisor or its affiliates for organization and offering costs will not exceed actual expenses incurred by the Advisor. All offering costs, including selling commissions and dealer manager fees, are recorded as an offset to additional paid-in-capital, and all organization costs are recorded as an expense when the Company has an obligation to reimburse the Advisor. As of September 30, 2017, total offering costs for the Offering were $16,282,794, comprised of $12,033,763 of offering costs incurred directly by the Company and $4,249,031 in offering costs incurred by and reimbursable to the Advisor. As of September 30, 2017, the Company had $22,033 due from the Advisor for reimbursable offering costs.
Income Taxes	Income Taxes The Company elected 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 years ended December 31, 2015 and 2014, including not having 100 shareholders for a sufficient number of days in 2015. Prior to qualifying to be taxed as a REIT, the Company is subject to normal federal and state corporation income taxes. Provided that the Company continues to qualify 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 a wholly-owned taxable REIT subsidiary (“TRS”) that is subject to federal, state and local income taxes. The Company accounts for income taxes of its TRS 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. 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 September 30, 2017. 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 2012 through 2016 remaining subject to examination by various federal and state tax jurisdictions. For more information, see Note 11, “Income 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. Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3: Unobservable inputs in which there is little or no market data, which require a reporting entity to develop its own assumptions. Assets and liabilities measured at fair value are based on one or more of the following valuation techniques: Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. Cost approach: Amount required to replace the service capacity of an asset (replacement cost). Income approach: Techniques used to convert future income amounts to a single amount based on market expectations (including present-value, option-pricing, and excess-earnings models). The Company’s estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. The Company classifies assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. The Company elected not to use the fair value option in recording its financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, notes receivable, notes payable, and accounts payable and accrued expenses. With the exception of the Company’s fixed-rate notes receivable from related parties 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, “Notes Receivable” and Note 5, “Debt.”
Concentration of Credit Risk	Concentration of Credit Risk As of September 30, 2017, 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 notes receivable from related parties. The failure of the any of the borrowers on the notes receivable from related parties to make payments of interest and principal when due, or any other event of default under the notes receivable from related parties, would have an adverse impact on the Company’s results of operations. The Company is exposed to geographic risk in that eight of its fourteen hotel properties are located in one state, Texas.
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 values are derived from appraisals and building 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 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 3 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 Useful Lives (years) Buildings and improvements 39-40 Exterior improvements 10-20 Furniture, fixtures and equipment 5-10
Impairments	Impairments The Company monitors events and changes in circumstances indicating that the carrying 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 three or nine months ended September 30, 2017. 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 property 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, replacement of furniture, fixtures, and equipment and debt service, as required by certain management or mortgage and term debt agreements 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 Notes Receivable from Related Parties	Impairment of Notes Receivable from Related Parties The Company reviews the notes receivable from related parties 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 nine months ended September 30, 2017.
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.
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 $29,658 and $15,656 as of September 30, 2017 and December 31, 2016, respectively. Expected future amortization of deferred franchise costs as of September 30, 2017 is as follows: Years Ending December 31, 2017 $ 20,772 2018 83,088 2019 83,088 2020 83,088 2021 83,088 Thereafter 684,285 Total $ 1,037,409
Debt Issuance Costs	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. 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. Accumulated amortization of debt issuance costs was $424,489 and $325,904 as of September 30, 2017 and December 31, 2016, respectively. Expected future amortization of debt issuance costs as of September 30, 2017 is as follows: Years Ending December 31, 2017 $ 590,998 2018 1,773,689 2019 480,006 2020 481,323 2021 480,006 Thereafter 1,386,432 Total $ 5,192,454
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 15,000 and 7,500 shares as of September 30, 2017 and 2016, 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 (the “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 full retrospective or modified retrospective adoption. 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 assets 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 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 Company does not believe that the adoption of ASU No. 2016-15 will 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. The Company expects to adopt ASU No. 2016-18 for its fiscal year commencing on January 1, 2018. The Company does not believe that the adoption of ASU No. 2016-18 will 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 Company does not believe that the adoption of ASU No. 2017-01 will have a material effect on the Company’s consolidated financial position or the Company’s consolidated results of operations.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
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 Useful Lives (years) Buildings and improvements 39-40 Exterior improvements 10-20 Furniture, fixtures and equipment 5-10
Schedule of expected future amortization of deferred franchise and deferred loan costs	Expected future amortization of deferred franchise costs as of September 30, 2017 is as follows: Years Ending December 31, 2017 $ 20,772 2018 83,088 2019 83,088 2020 83,088 2021 83,088 Thereafter 684,285 Total $ 1,037,409
Schedule of expected future amortization of deferred loan costs	Expected future amortization of debt issuance costs as of September 30, 2017 is as follows: Years Ending December 31, 2017 $ 590,998 2018 1,773,689 2019 480,006 2020 481,323 2021 480,006 Thereafter 1,386,432 Total $ 5,192,454

Investments in Hotel Properti21

Investments in Hotel Properties (Tables)	9 Months Ended
	Sep. 30, 2017
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 September 30, 2017: 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 Homewood Suites Woodlands September 27, 2017 The Woodlands, Texas 100 % 17,355,672 91 9,244,028 Hyatt Place Germantown September 27, 2017 Germantown, Tennessee 100 % 16,073,719 127 7,216,139 Hyatt Place North Charleston September 27, 2017 North Charleston, South Carolina 100 % 13,805,648 113 7,323,184 Hampton Inn Austin September 27, 2017 Austin, Texas 100 % 19,327,908 123 10,915,327 Residence Inn Grapevine September 27, 2017 Grapevine, Texas 100 % 25,244,614 133 12,608,294 Marriott Courtyard Inn Lyndhurst September 27, 2017 Lyndhurst, New Jersey (3 ) 39,247,484 227 — Hilton Garden Inn Austin September 27, 2017 Austin, Texas 100 % 29,287,695 138 18,782,241 Hampton Inn Great Valley September 27, 2017 Frazer, Pennsylvania 100 % 15,284,824 125 8,150,750 Embassy Suites Nashville September 27, 2017 Nashville, Tennessee 100 % 81,453,322 208 42,890,574 Homewood Suites Austin September 27, 2017 Austin, Texas 100 % 18,834,848 96 10,987,326 Townplace Suites Fort Worth September 27, 2017 Fort Worth, Texas (4 ) 11,241,742 95 — Hampton Inn Houston September 27, 2017 Houston, Texas 100 % 9,959,785 119 4,627,120 Totals $ 398,717,261 1,941 $ 194,319,983 (1) Excludes closing costs and includes gain on acquisition. (2) As of September 30, 2017. (3) The Marriott Courtyard Lyndhurst is owned by MN Lyndhurst Venture, LLC, of which the OP is a member and holds 100% of the Class B membership interests therein. (4) The Townplace Suites Fort Worth is owned by MN Fort Worth Venture, LLC, of which the OP is a member and holds 100% of the Class B membership interests therein.
Schedule of investments in hotel properties components	Investments in hotel properties consisted of the following at September 30, 2017 and December 31, 2016: September 30, December 31, Land $ 70,285,689 $ 18,350,000 Buildings and improvements 296,669,641 80,810,000 Furniture, fixtures and equipment 32,210,174 2,660,769 Total cost 399,165,504 101,820,769 Accumulated depreciation (3,658,104 ) (1,831,029 ) Investment in hotel properties, net $ 395,507,400 $ 99,989,740
Schedule of merger consideration	As of the date of the Mergers, there were 13,257,126 shares of Moody I common stock issued and outstanding, resulting in aggregate merger consideration of $135,885,546, as follows: Value of Company’s shares issued to Moody I shareholders $ 91,219,400 Cash consideration received by Moody I shareholders 44,666,146 Aggregate Merger consideration $ 135,885,546
Schedule of common stock after the consummation of the merger	67% of Moody I stockholders elected to receive stock consideration in the Merger resulting in the Company’s then current stockholders owning 57% and former Moody I stockholders owning 43% of the common stock of the Company outstanding after the consummation of the Merger, as follows: Company shares outstanding at date of merger 4,903,836 Company Class A common shares issued to Moody I stockholders on date of merger 3,648,776 Total Company shares outstanding after Merger 8,552,612
Schedule of assets and liabilities acquired	The aggregate purchase price consideration as shown above was allocated to assets and liabilities of Moody I was as follows: Assets Investment in hotel properties $ 297,117,261 Cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and other assets, deferred income tax asset, deferred franchise costs, and due from related parties 13,707,593 Notes receivable from related parties 11,250,000 Liabilities and Equity Notes payable (132,744,983 ) Notes receivable from Moody I (37,754,276 ) Accounts payable and accrued expenses, due to related parties, and operating partnership distributions payable (10,094,941 ) Noncontrolling interests in OP (5,595,108 ) Aggregate merger consideration $ 135,885,546
Schedule of pro forma consolidated financial information	The following unaudited pro forma consolidated financial information for the three and nine months ended September 30, 2017 and 2016 is presented as if the Company acquired the Springhill Suites Seattle and the Moody I Portfolio on January 1, 2016. This information is not necessarily indicative of what the actual results of operations would have been had the Company completed the acquisition of the Springhill Suites Seattle and the Moody I Portfolio on January 1, 2016, nor does it purport to represent the Company’s future operations: Three months ended Nine months ended 2017 2016 2017 2016 Revenue $ 22,544,438 $ 22,709,973 $ 64,956,766 $ 65,912,075 Net loss (1,069,538 ) (1,320,754 ) (4,724,125 ) (17,340,681 ) Net loss attributable to common shareholders (1,002,420 ) (1,307,456 ) (4,620,214 ) (17,287,088 ) Net loss per common share - basic and diluted $ (0.12 ) $ (0.15 ) $ (0.54 ) $ (2.02 )

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of notes payable	As of September 30, 2017 and December 31, 2016, the Company’s mortgage notes payable, secured by the respective real properties and mortgage note receivable, consisted of the following: Mortgage Loan Principal as of September 30, 2017 Principal as of December 31, 2016 Interest Rate at September 30, 2017 Maturity Date Residence Inn Austin (1) $ 16,575,000 $ 16,575,000 4.580 % November 1, 2025 Springhill Suites Seattle (2) 45,000,000 45,000,000 4.380 % October 1, 2026 MN TX II Note (3) 8,400,000 8,400,000 3.750 % October 6, 2018 Homewood Suites Woodlands (4) 9,244,028 — 4.690 % April 11, 2025 Hyatt Place Germantown (4) 7,216,139 — 4.300 % May 6, 2023 Hyatt Place North Charleston (4) 7,323,184 — 5.193 % August 1, 2023 Hampton Inn Austin (4) 10,915,327 — 5.426 % January 6, 2024 Residence Inn Grapevine (4) 12,608,294 — 5.250 % April 6, 2024 Hilton Garden Inn Austin (4) 18,782,241 — 4.530 % December 11, 2024 Hampton Inn Great Valley (4) 8,150,750 — 4.700 % April 11, 2025 Embassy Suites Nashville (4) 42,890,574 — 4.2123 % July 11, 2025 Homewood Suites Austin (4) 10,987,326 — 4.650 % August 11, 2025 Hampton Inn Houston (4) 4,627,120 — 6.000 % August 10, 2018 Term Loan (5) 70,000,000 — 30-day LIBOR plus 7.250 % September 27, 2018 Total notes payable 272,719,983 69,975,000 Less unamortized debt issuance costs (5,192,454 ) (931,498 ) Total notes payable, net of unamortized debt issuance costs $ 267,527,529 $ 69,043,502 (1) Monthly payments of interest are due and payable until the maturity date. Monthly payments of principal are due and payable beginning in December 2017 until the maturity date. (2) Monthly payments of interest only are due and payable in calendar years 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. (4) Monthly payments of interest and principal are due until maturity date. (5) Monthly payments are due and payable until the maturity date. Monthly payments of principal are due and payable beginning in November 2017 until the maturity date.
Schedule of maturities of notes payable	Maturities of the notes payable as of September 30, 2017 are as follows: Years ending December 31, 2017 $ 3, 569,217 2018 85,518,905 2019 3,233,774 2020 3,362,828 2021 3,546,072 Thereafter 176,489,187 Total $ 272,719,983

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Stockholders' Equity Note [Abstract]
Schedule of Incentive Award Plan	As of September 30, 2017, there were a total of 8,575,671 shares of the Company’s common stock issued and outstanding, including 4,883,895 shares issued in the Offering, 3,648,776 shares issued in connection with the Merger, the 8,000 shares sold to Sponsor and 35,000 shares of restricted stock, as discussed in Note 8, “Incentive Award Plan,” as follows: Class Shares Outstanding as of September 30, Class A Shares 8,544,435 Class D Shares — Class T Shares 6,012 Class I Shares 25,224 Total 8,575,671
Schedule 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 nine months ended September 30, 2017 and 2016. Period Cash Distribution Distribution Paid Pursuant to DRP (1) Total Amount of Distribution First Quarter 2017 $ 1,016,749 $ 410,733 $ 1,427,482 Second Quarter 2017 1,325,157 589,483 1,914,640 Third Quarter 2017 1,478,301 626,925 2,105,226 Total $ 3,820,207 $ 1,627,141 $ 5,447,348 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 Total $ 1,172,069 $ 471,973 $ 1,644,042 (1) Amount of distributions paid in shares of common stock pursuant to the Company’s distribution reinvestment plan.

Incentive Award Plan (Tables)

Incentive Award Plan (Tables)	9 Months Ended
	Sep. 30, 2017
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 nine months ended September 30, 2017 and year ended December 31, 2016: Number of Shares Weighted Average Grant Date Fair Value 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 on 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 Shares granted on August 10, 2017 5,000 27.82 Shares granted on September 27, 2017 10,000 27.82 Shares vested (5,000 ) 25.00 Balance of non-vested shares as of September 30, 2017 15,000 $ 27.82

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of composition of restricted cash	The composition of the Company’s restricted cash as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 Property improvement plan $ 7,582,528 $ 1,200,000 Real estate taxes 2,954,446 92,434 Insurance 172,996 — Hotel furniture and fixtures 2,612,780 329,150 Debt service 2,578,129 — Seasonality 369,831 234,000 Expense deposit 265,500 — Rent holdback 14,720 14,720 Total restricted cash $ 16,550,930 $ 1,870,304

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Schedule of income tax expense (benefit)	The income tax expense (benefit) for the three months and nine months ended September 30, 2017 and 2016 consisted of the following: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Current expense (benefit) $ — $ (5,000 ) $ — $ 159,000 Deferred expense (benefit) 111,000 — (1,000 ) 6,000 Total expense (benefit), net $ 111,000 $ (5,000 ) $ (1,000 ) $ 165,000 Federal $ 111,000 $ (5,000 ) $ (1,000 ) $ 165,000 State — — — — Total tax expense (benefit) $ 111,000 $ (5,000 ) $ (1,000 ) $ 165,000

Organization (Details Narrative

Organization (Details Narrative)	Feb. 02, 2017USD ($)$ / shares	Nov. 16, 2016USD ($)shares	Sep. 30, 2017USD ($)Number$ / sharesshares	Sep. 30, 2017USD ($)Number$ / sharesshares	Nov. 16, 2017USD ($)	Sep. 30, 2017USD ($)Number$ / sharesshares	Sep. 27, 2017$ / shares	Dec. 31, 2016USD ($)$ / sharesshares	Jan. 20, 2015USD ($)$ / shares
Number of rooms | Number			1,941	1,941		1,941
Common stock, authorized | shares			1,000,000,000	1,000,000,000		1,000,000,000		1,000,000,000
Mortgage note receivable from related party | $			$ 11,200,000	$ 11,200,000		$ 11,200,000		$ 11,200,000
Share price (in dollars per share)								$ 25.04
Common stock, par value			$ 0.01	$ 0.01		$ 0.01		$ 0.01
Description of operating partnership (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 partnership 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”)
Special Limited Partnership Interests | $			$ 1,000	$ 1,000		$ 1,000		$ 1,000
Number of hotel properties | Number			14	14		14
Description of merger consideration				At the effective time of the Merger on the Closing Date (the “REIT Merger Effective Time”), each issued and outstanding share of Moody I common stock, par value $0.01, per share that was issued and outstanding immediately prior to the REIT Merger Effective Time was converted into the right to receive either (i) 0.41 Class A Shares (plus cash in lieu of any fractional shares of Moody II) (the “Stock Consideration”) or (ii) $10.25 in cash. At the effective time of the Partnership Merger on the Closing Date (the “Partnership Merger Effective Time”), each issued and outstanding unit of limited partnership interest in Moody I OP was automatically cancelled and retired and converted into 0.41 Class A units of limited partnership interest in the Surviving Partnership. Each unit of limited partnership interest in the Moody I OP designated as a special partnership unit pursuant to the Moody I OP’s limited partnership agreement was automatically cancelled and retired and ceased to exist. Each outstanding unit of limited partnership interest in the OP remained as one unit of limited partnership interest in the Surviving Partnership, and each unit of limited partnership interest in the OP designated as a special partnership unit pursuant to the limited partnership agreement of the OP remained as one special unit in the Surviving Partnership.
Class A Shares [Member]
Common stock, par value			$ 0.01	$ 0.01		$ 0.01
Class D Shares [Member]
Common stock, par value			0.01	0.01		0.01
Class I Shares [Member]
Common stock, par value			0.01	0.01		0.01
Class T Shares [Member]
Common stock, par value			$ 0.01	$ 0.01		$ 0.01
Maximum [Member] | Class T Shares [Member]
Percentage of underwriting compensation			8.50%
Initial Public Offering [Member]
Common stock, authorized, value | $									$ 1,000,000,000
Common stock, authorized in Distribution Reinvestment Plan, value | $									$ 100,000,000
Share price (in dollars per share)									$ 25
Share price for Distribution Reinvestment Plan (in dollars per share)									$ 23.75
Initial Public Offering [Member] | Class A Shares [Member]
Share price (in dollars per share)								$ 25.04
Share price for Distribution Reinvestment Plan (in dollars per share)								$ 25.04
Issuance of common stock, net of offering costs (in shares) | shares						4,883,895
Issuance of common stock pursuant to dividend reinvestment plan (in shares) | shares						100,938
Proceeds from stock and DRIP offering | $						$ 120,415,340
Initial Public Offering [Member] | Maximum [Member]
Common stock, authorized, value | $									$ 1,100,000,000
Houston [Member] | TEXAS [Member]
Principal amount outstanding | $			$ 4,500,000	$ 4,500,000		4,500,000
Moody National REIT I, Inc [Member]
Mortgage note receivable from related party | $			11,250,000	$ 11,250,000		$ 11,250,000
Common stock, par value							$ 0.01
Net acqusition share price (in dollars per share)							10.25
Number of common stock issued as consideration | shares				3,648,776
Moody National REIT I, Inc [Member] | Advisor [Member]
Acquisition fee | $			$ 670,000		$ 670,000
Acquisition fee, percentage of cash consideration			5.00%		5.00%
Moody National REIT I, Inc [Member] | Termination Agreement [Member]
Termination payment | $		$ 5,580,685
Moody National REIT I, Inc [Member] | Stockholder Servicing Coordination Agreement [Member] | Moody Securities [Member]
Value of common stock issued as consideration | $	$ 7,000,000
Stockholder servicing fees	$ 2.125
Moody National REIT I, Inc [Member] | Class A Shares [Member]
Net acqusition share price (in dollars per share)							$ 0.41
Moody National REIT I, Inc [Member] | Class A Shares [Member] | Merger Agreement [Member] | Former Moody I Stockholders [Member]
Number of common stock issued as consideration | shares		3,650,000
Value of common stock issued as consideration | $		$ 44,700,000
Moody National REIT I, Inc [Member] | Maximum [Member] | Termination Agreement [Member]
Promote payment | $		$ 613,751

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2017
Buildings and Improvements [Member] | Minimum [Member]
Estimated useful lives	39 years
Buildings and Improvements [Member] | Maximum [Member]
Estimated useful lives	40 years
Exterior Improvements [Member] | Minimum [Member]
Estimated useful lives	10 years
Exterior Improvements [Member] | Maximum [Member]
Estimated useful lives	20 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

Summary of Significant Accoun29

Summary of Significant Accounting Policies (Details 1) - Franchise Costs [Member]	Sep. 30, 2017USD ($)
Expected future amortization of deferred franchise costs, year ending December 31,
2,017	$ 20,772
2,018	83,088
2,019	83,088
2,020	83,088
2,021	83,088
Thereafter	684,285
Total	$ 1,037,409

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details 2) - Loan Costs [Member]	Sep. 30, 2017USD ($)
Expected future amortization of deferred loan costs, year ending December 31,
2,017	$ 590,998
2,018	1,773,689
2,019	480,006
2,020	481,323
2,021	480,006
Thereafter	1,386,432
Total	$ 5,192,454

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
REIT distribution threshold for federal corporate income tax benefit	90.00%
Deferred franchies costs, accumulated amortization	$ 29,658		$ 15,656
Nonvested restricted stock included in earnings per share	15,000	7,500
Franchise Costs [Member]
Deferred franchies costs, accumulated amortization	$ 29,658		15,656
Loan Costs [Member]
Deferred franchies costs, accumulated amortization	$ 424,489		$ 325,904
Advisor [Member]
Percentage of organization and offering costs	15.00%
Total offering costs	$ 16,282,794
Offering cost directly incurred by company	12,033,763
Offering cost reimbursed to advisor	4,249,031
Payable to Advisor for offering costs	$ 22,033

Investments in Hotel Properti32

Investments in Hotel Properties (Details)	9 Months Ended
	Sep. 30, 2017USD ($)Number
Purchase Price	$ 398,717,261	[1]
Number of rooms | Number	1,941
Mortgage Debt Outstanding	$ 194,319,983	[2]
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	$ 27,500,000	[1]
Number of rooms | Number	112
Mortgage Debt Outstanding	$ 16,575,000	[2]
Springhill Suites Seattle [Member] | WASHINGTON [Member]
Property Name	Springill Suites Seattle
Date Acquired	May 24, 2016
Location	Seattle, Washington
Ownership Interest	100.00%
Purchase Price	$ 74,100,000	[1]
Number of rooms | Number	234
Mortgage Debt Outstanding	$ 45,000,000	[2]
Homewood Suites Woodlands [Member] | TEXAS [Member]
Property Name	Homewood Suites Woodlands
Date Acquired	Sep. 27, 2017
Location	The Woodlands, Texas
Ownership Interest	100.00%
Purchase Price	$ 17,355,672	[1]
Number of rooms | Number	91
Mortgage Debt Outstanding	$ 9,244,028	[2]
Hyatt Place Germantown [Member] | Germantown, Tennessee [Member]
Property Name	Hyatt Place Germantown
Date Acquired	Sep. 27, 2017
Location	Germantown, Tennessee
Ownership Interest	100.00%
Purchase Price	$ 16,073,719	[1]
Number of rooms | Number	127
Mortgage Debt Outstanding	$ 7,216,139	[2]
Hyatt Place North Charleston [Member] | North Charleston, South Carolina [Member]
Property Name	Hyatt Place North Charleston
Date Acquired	Sep. 27, 2017
Location	North Charleston, South Carolina
Ownership Interest	100.00%
Purchase Price	$ 13,805,648	[1]
Number of rooms | Number	113
Mortgage Debt Outstanding	$ 7,323,184	[2]
Hampton Inn Austin [Member] | TEXAS [Member]
Property Name	Hampton Inn Austin
Date Acquired	Sep. 27, 2017
Location	Austin, Texas
Ownership Interest	100.00%
Purchase Price	$ 19,327,908	[1]
Number of rooms | Number	123
Mortgage Debt Outstanding	$ 10,915,327	[2]
Residence Inn Grapevine [Member] | TEXAS [Member]
Property Name	Residence Inn Grapevine
Date Acquired	Sep. 27, 2017
Location	Grapevine, Texas
Ownership Interest	100.00%
Purchase Price	$ 25,244,614	[1]
Number of rooms | Number	133
Mortgage Debt Outstanding	$ 12,608,294	[2]
Marriott Courtyard Inn Lyndhurst [Member] | Lyndhurst, New Jersey [Member]
Property Name	Marriott Courtyard Inn Lyndhurst	[3]
Date Acquired	Sep. 27, 2017	[3]
Location	Lyndhurst, New Jersey	[3]
Purchase Price	$ 39,247,484	[1],[3]
Number of rooms | Number	227	[3]
Hilton Garden Inn Austin [Member] | TEXAS [Member]
Property Name	Hilton Garden Inn Austin
Date Acquired	Sep. 27, 2017
Location	Austin, Texas
Ownership Interest	100.00%
Purchase Price	$ 29,287,695	[1]
Number of rooms | Number	138
Mortgage Debt Outstanding	$ 18,782,241	[2]
Hampton Inn Great Valley [Member] | Frazer, Pennsylvania [Member]
Property Name	Hampton Inn Great Valley
Date Acquired	Sep. 27, 2017
Location	Frazer, Pennsylvania
Ownership Interest	100.00%
Purchase Price	$ 15,284,824	[1]
Number of rooms | Number	125
Mortgage Debt Outstanding	$ 8,150,750	[2]
Embassy Suites Nashville [Member] | Nashville, Tennessee [Member]
Property Name	Embassy Suites Nashville
Date Acquired	Sep. 27, 2017
Location	Nashville, Tennessee
Ownership Interest	100.00%
Purchase Price	$ 81,453,322	[1]
Number of rooms | Number	208
Mortgage Debt Outstanding	$ 42,890,574	[2]
Homewood Suites Austin [Member] | TEXAS [Member]
Property Name	Homewood Suites Austin
Date Acquired	Sep. 27, 2017
Location	Austin, Texas
Ownership Interest	100.00%
Purchase Price	$ 18,834,848	[1]
Number of rooms | Number	96
Mortgage Debt Outstanding	$ 10,987,326	[2]
Townplace Suites Fort Worth [Member] | TEXAS [Member]
Property Name	Townplace Suites Fort Worth	[4]
Date Acquired	Sep. 27, 2017	[4]
Location	Fort Worth, Texas	[4]
Purchase Price	$ 11,241,742	[1],[4]
Number of rooms | Number	95	[4]
Hampton Inn Houston [Member] | TEXAS [Member]
Property Name	Hampton Inn Houston
Date Acquired	Sep. 27, 2017
Location	Houston, Texas
Ownership Interest	100.00%
Purchase Price	$ 9,959,785	[1]
Number of rooms | Number	119
Mortgage Debt Outstanding	$ 4,627,120	[2]
[1]	Excludes closing costs and includes gain on acquisition.
[2]	As of September 30, 2017.
[3]	The Marriott Courtyard Lyndhurst is owned by MN Lyndhurst Venture, LLC, of which the OP is a member and holds 100% of the Class B membership interests therein.
[4]	The Townplace Suites Fort Worth is owned by MN Fort Worth Venture, LLC, of which the OP is a member and holds 100% of the Class B membership interests therein.

Investments in Hotel Properti33

Investments in Hotel Properties (Details 1) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Real Estate [Abstract]
Land	$ 70,285,689	$ 18,350,000
Buildings and improvements	296,669,641	80,810,000
Furniture, fixtures and equipment	32,210,174	2,660,769
Total cost	399,165,504	101,820,769
Accumulated depreciation	(3,658,104)	(1,831,029)
Investment in hotel properties, net	$ 395,507,400	$ 99,989,740

Investments in Hotel Properti34

Investments in Hotel Properties (Details 2)	9 Months Ended
	Sep. 30, 2017USD ($)
Aggregate Merger consideration	$ 398,717,261	[1]
Moody National REIT I, Inc [Member]
Value of Company's shares issued to Moody I shareholders	91,219,400
Cash consideration received by Moody I shareholders	44,666,146
Aggregate Merger consideration	$ 135,885,546
[1]	Excludes closing costs and includes gain on acquisition.

Investments in Hotel Properti35

Investments in Hotel Properties (Details 3) - shares	9 Months Ended
	Sep. 30, 2017	Sep. 27, 2017	Sep. 26, 2017	Dec. 31, 2016
Common stock, shares outstanding	8,575,671	8,552,612	4,903,836	3,173,348
Moody National REIT I, Inc [Member]
Common stock, shares outstanding		13,257,126
Number of common stock issued as consideration	3,648,776

Investments in Hotel Properti36

Investments in Hotel Properties (Details 4) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Assets
Notes receivable from related parties	$ 11,200,000	$ 11,200,000
Liabilities and Equity
Noncontrolling interests in Operating Partnership	(5,889,822)	$ (379,830)
Moody National REIT I, Inc [Member]
Assets
Investments in hotel properties	297,117,261
Cash and cash equivalents, restricted cash, accounts receivable, prepaid expenses and other assets, deferred income tax asset, deferred franchise costs, and due from related parties	13,707,593
Notes receivable from related parties	11,250,000
Liabilities and Equity
Notes payable	(132,744,983)
Notes receivable from Moody I	(37,754,276)
Accounts payable and accrued expenses, due to related parties, and operating partnership distributions payable	(10,094,941)
Noncontrolling interests in Operating Partnership	(5,595,108)
Aggregate Merger consideration	$ 135,885,546

Investments in Hotel Properti37

Investments in Hotel Properties (Details 5) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue	$ 6,690,952	$ 6,024,167	$ 16,495,542	$ 10,829,822
Net loss attributable to common shareholders	$ (9,985,591)	$ 466,412	$ (11,000,923)	$ (641,975)
Net loss per common share - basic and diluted (in dollars per share)	$ (2)	$ 0.21	$ (2.50)	$ (0.44)
Residence Inn Austin and Springhill Suites Seattle [Member] | WASHINGTON [Member]
Revenue	$ 22,544,438	$ 22,709,973	$ 64,956,766	$ 65,912,075
Net loss	(1,069,538)	(1,320,754)	(4,724,125)	(17,340,681)
Net loss attributable to common shareholders	$ (1,002,420)	$ (1,307,456)	$ (4,620,214)	$ (17,287,088)
Net loss per common share - basic and diluted (in dollars per share)	$ (0.12)	$ (0.15)	$ (0.54)	$ (2.02)

Investments in Hotel Properti38

Investments in Hotel Properties (Details Narrative) - USD ($)		May 24, 2016	Sep. 30, 2017	Sep. 27, 2017	Sep. 26, 2017	Dec. 31, 2016
Aggregate purchase price	[1]		$ 398,717,261
Common stock, shares issued			8,575,671			3,173,348
Common stock, shares outstanding			8,575,671	8,552,612	4,903,836	3,173,348
Percentage stock ownership in Moody RETI II after the merger				43.00%
Marriott Courtyard Inn Lyndhurst [Member] | Lyndhurst, New Jersey [Member]
Aggregate purchase price	[1],[2]		$ 39,247,484
Marriott Courtyard Inn Lyndhurst [Member] | Lyndhurst, New Jersey [Member] | Class B Membership Interests [Member]
Ownership interest			100.00%
Townplace Suites Fort Worth [Member] | TEXAS [Member]
Aggregate purchase price	[1],[3]		$ 11,241,742
Townplace Suites Fort Worth [Member] | TEXAS [Member] | Class B Membership Interests [Member]
Ownership interest			100.00%
Moody Seattle Holding[Member]
Aggregate purchase price		$ 74,100,000
Moody National REIT I, Inc [Member]
Aggregate purchase price			$ 135,885,546
Common stock, shares issued				13,257,126
Common stock, shares outstanding				13,257,126
Percentage of stockholders electing to receive stock consideration				63.00%
Percentage stock ownership in Moody RETI II after the merger				57.00%
[1]	Excludes closing costs and includes gain on acquisition.
[2]	The Marriott Courtyard Lyndhurst is owned by MN Lyndhurst Venture, LLC, of which the OP is a member and holds 100% of the Class B membership interests therein.
[3]	The Townplace Suites Fort Worth is owned by MN Fort Worth Venture, LLC, of which the OP is a member and holds 100% of the Class B membership interests therein.

Notes Receivable (Details Narra

Notes Receivable (Details Narrative) - USD ($)	Oct. 06, 2016	Aug. 15, 2016	Aug. 21, 2015	Sep. 30, 2017	Sep. 30, 2017	Apr. 29, 2017	Dec. 31, 2016	Apr. 29, 2016
Mortgage note receivable from related party				$ 11,200,000	$ 11,200,000		$ 11,200,000
Notes receivable from related parties				11,250,000	11,250,000
Face amount				272,719,983	272,719,983		69,975,000
Principal amount				272,719,983	272,719,983
Interest income on the mortgage note receivable				172,915	485,193
Interest receivable on notes receivable from related parties				848,175	848,175		0
Fair value of notes receivable				11,250,000	11,250,000
Katy [Member] | TEXAS [Member]
Notes receivable from related parties				6,750,000	6,750,000		0
Moody National REIT I, Inc [Member]
Mortgage note receivable from related party				11,250,000	11,250,000
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 income on the mortgage note receivable				156,139	468,417
Interest receivable from related party				615,881	615,881		$ 147,465
Unsecured Loan [Member] | Moody National REIT I, Inc [Member]
Face amount								$ 4,500,000
Interest rate								10.00%
Interest income on the mortgage note receivable				$ 16,776	$ 0
Notes receivable origination fee						$ 45,000
Notes receivable exit fee						$ 45,000
Unsecured Loan [Member] | Moody National DST Sponsor, LLC [Member]
Face amount			$ 9,000,000
Interest rate			12.00%
Notes receivable origination fee			$ 90,000
Notes receivable exit fee			$ 90,000
Extension fee		$ 45,000

Debt (Details)

Debt (Details) - USD ($)		9 Months Ended
		Sep. 30, 2017	Dec. 31, 2016
Short-term Debt [Line Items]
Principal Amount		$ 272,719,983	$ 69,975,000
Less unamortized debt issuance costs		(5,192,454)	(931,498)
Total notes payable, net of unamortized debt issuance costs		267,527,529	69,043,502
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	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	$ 8,400,000
Interest Rate	[3]	3.75%
Maturity Date	[3]	Oct. 6, 2018
Homewood Suites Woodlands [Member]
Short-term Debt [Line Items]
Principal Amount	[4]	$ 9,244,028
Interest Rate	[4]	4.69%
Maturity Date	[4]	Apr. 11, 2025
Hyatt Place Germantown [Member]
Short-term Debt [Line Items]
Principal Amount	[4]	$ 7,216,139
Interest Rate	[4]	4.30%
Maturity Date	[4]	May 6, 2023
Hyatt Place North Charleston [Member]
Short-term Debt [Line Items]
Principal Amount	[4]	$ 7,323,184
Interest Rate	[4]	5.193%
Maturity Date	[4]	Jul. 1, 2023
Hampton Inn Austin [Member]
Short-term Debt [Line Items]
Principal Amount	[4]	$ 10,915,327
Interest Rate	[4]	5.426%
Maturity Date	[4]	Jan. 6, 2024
Residence Inn Grapevine [Member]
Short-term Debt [Line Items]
Principal Amount	[4]	$ 12,608,294
Interest Rate	[4]	5.25%
Maturity Date	[4]	Apr. 6, 2024
Hilton Garden Inn Austin [Member]
Short-term Debt [Line Items]
Principal Amount	[4]	$ 18,782,241
Interest Rate	[4]	4.53%
Maturity Date	[4]	Dec. 11, 2024
Hampton Inn Great Valley [Member]
Short-term Debt [Line Items]
Principal Amount	[4]	$ 8,150,750
Interest Rate	[4]	4.70%
Maturity Date	[4]	Apr. 11, 2025
Embassy Suites Nashville [Member]
Short-term Debt [Line Items]
Principal Amount	[4]	$ 42,890,574
Interest Rate	[4]	4.2123%
Maturity Date	[4]	Jul. 11, 2025
Homewood Suites Austin [Member]
Short-term Debt [Line Items]
Principal Amount	[4]	$ 10,987,326
Interest Rate	[4]	4.65%
Maturity Date	[4]	Aug. 11, 2025
Hampton Inn Houston [Member]
Short-term Debt [Line Items]
Principal Amount	[4]	$ 4,627,120
Interest Rate	[4]	6.00%
Maturity Date	[4]	Aug. 10, 2018
Term Loan [Member]
Short-term Debt [Line Items]
Principal Amount	[5]	$ 70,000,000
Maturity Date	[5]	Sep. 27, 2018
Description on interest rate	[5]	30-day LIBOR plus 7.250%
Spread on variable rate	[5]	7.25%
[1]	Monthly payments of interest are due and payable until the maturity date. Monthly payments of principal are due and payable beginning in December 2017 until the maturity date.
[2]	Monthly payments of interest only are due and payable in calendar years 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.
[4]	Monthly payments of interest and principal are due until maturity date.
[5]	Monthly payments are due and payable until the maturity date. Monthly payments of principal are due and payable beginning in November 2017 until the maturity date.

Debt (Details 1)

Debt (Details 1)	Sep. 30, 2017USD ($)
Maturities of notes payable for the year ending December 31,
2,017	$ 3,569,217
2,018	82,518,905
2,019	3,233,774
2,020	3,362,828
2,021	3,546,072
Thereafter	176,489,187
Total	$ 272,719,983

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	Sep. 27, 2017	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Face amount		$ 272,719,983	$ 272,719,983	$ 69,975,000
Principal amount		272,719,983	272,719,983
Fair value of notes payable		273,000,000	273,000,000	$ 70,000,000
Term Loan Agreement [Member]
Principal payments		$ 1,500,000
Term Loan Agreement [Member] | Minimum [Member]
Gross offering proceeds required quarterly			$ 10,000,000
Term Loan Agreement [Member] | OP [Member]
Face amount	$ 70,000,000
Interest rate	6.25%
Description of interest rate	Term Loan will initially bear interest at either (i) 6.25% per year over the base rate, which is defined in the Term Loan Agreement as the greatest of (a) the fluctuating annual rate of interest announced from time to time by the Agent at the Agent’s Head Office as its “prime rate,” (b) the then applicable LIBOR for a one month Interest Period plus one percent (1.00%), or (c) one half of one percent (0.5%) above the Federal Funds Effective Rate or (ii) 7.25% per year over the LIBOR rate for the applicable Interest Period, but upon reduction of the outstanding principal balance of the Term Loan to a specified level, the margins over the base rate or LIBOR rate will be reduced to 2.95% and 3.95%, respectively. As a condition to the funding of the Term Loan, the OP has entered into an interest rate cap arrangement with KeyBank that caps LIBOR at 1.75% until the initial Maturity Date.
Principal amount	$ 26,000,000
Description of maturity date	Term Loan will mature on September 27, 2018, but can be extended for six months, to March 27, 2019, subject to satisfaction of certain conditions, including payment of an extension fee in the amount of 0.5% of the then outstanding principal amount of the Term Loan. The Outstanding Balance, together with any and all accrued and unpaid interest thereon, and all other Obligations, will be due on the Maturity Date. In addition, the Term Loan provides for monthly interest payments, for mandatory prepayments of principal from the proceeds of certain capital events, and for monthly payments of principal in an amount equal to the greater of (i) 50% of our operating partnership’s Consolidated Net Cash Flow or (ii) $1,500,000.

Equity (Details)

Equity (Details) - shares	Sep. 30, 2017	Sep. 27, 2017	Sep. 26, 2017	Dec. 31, 2016
Shares Outstanding	8,575,671	8,552,612	4,903,836	3,173,348
Class A Shares [Member]
Shares Outstanding	8,544,435
Class T Shares [Member]
Shares Outstanding	6,012
Class I Shares [Member]
Shares Outstanding	25,224

Equity (Details 1)

Equity (Details 1) - USD ($)		3 Months Ended						9 Months Ended
		Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Stockholders' Equity Note [Abstract]
Cash Distribution		$ 1,478,301	$ 1,325,157	$ 1,016,749	$ 634,948	$ 351,169	$ 185,952	$ 3,820,207	$ 1,172,069
Distribution Paid Pursuant to DRIP	[1]	626,925	589,483	410,733	229,708	157,799	84,466	1,627,141	471,973
Total Amount of Distribution		$ 2,105,226	$ 1,914,640	$ 1,427,482	$ 864,656	$ 508,968	$ 270,418	$ 5,447,348	$ 1,644,042
[1]	Amount of distributions paid in shares of common stock pursuant to the Company's distribution reinvestment plan.

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)	Aug. 15, 2014	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 27, 2017	Sep. 26, 2017	Dec. 31, 2016	Jan. 20, 2015
Common stock, authorized		1,000,000,000		1,000,000,000		1,000,000,000			1,000,000,000
Preferred stock, authorized		100,000,000		100,000,000		100,000,000			100,000,000
Common stock, par value (in dollars per share)		$ 0.01		$ 0.01		$ 0.01			$ 0.01
Preferred stock, par value (in dollars per share)		$ 0.01		$ 0.01		$ 0.01			0.01
Issuance of common stock, net of offering costs				$ 36,992,164
Share Price (in dollars per share)									$ 25.04
Common stock, shares issued		8,575,671		8,575,671		8,575,671			3,173,348
Common stock, shares outstanding		8,575,671		8,575,671		8,575,671	8,552,612	4,903,836	3,173,348
Outstanding shares of restricted stock		35,000		35,000		35,000
Distribution paid (in dollars per share)		$ 0.00479		$ 0.00479		$ 0.00479
Annualized distribution rate		$ 1.75		$ 1.75		$ 1.75
Noncontrolling interest in operating partnership		$ 5,889,822		$ 5,889,822		$ 5,889,822			$ 379,830
Income (loss) attributable to noncontrolling interest in operating partnership		(51,392)	$ 3,098	(55,840)	$ (4,629)
Moody Seattle Holding[Member]
Noncontrolling interest in operating partnership		$ 5,889,822		$ 5,889,822		$ 5,889,822
Ownership units		316,037		316,037		316,037
Class A Shares [Member]
Common stock, par value (in dollars per share)		$ 0.01		$ 0.01		$ 0.01
Common stock, shares outstanding		8,544,435		8,544,435		8,544,435
Initial Public Offering [Member]
Share Price (in dollars per share)										$ 25
Initial Public Offering [Member] | Class A Shares [Member]
Issuance of common stock, net of offering costs (in shares)						4,883,895
Share Price (in dollars per share)									$ 25.04
Common Stock [Member]
Issuance of common stock, net of offering costs (in shares)				1,672,674
Issuance of common stock in connection with Merger (in shares)				3,648,776
Issuance of common stock, net of offering costs				$ 16,727
Sponsor [Member]
Issuance of common stock, net of offering costs (in shares)	8,000
Issuance of common stock, net of offering costs	$ 200,000
Share Price (in dollars per share)	$ 25
Common stock, shares issued		8,000		8,000		8,000
Common stock, shares outstanding		8,000		8,000		8,000

Related Party Arrangements (Det

Related Party Arrangements (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Nov. 16, 2017	Sep. 30, 2017
Value of shares purchased			$ 36,992,164
Operating expenses reimbursable			899,000
Operating expenses			1,943,583
Earnst money			2,000,000
The Company [Member]
Operating expenses						$ 1,364,099
Advisor [Member]
Special partnership interest	$ 1,000		$ 1,000			$ 1,000
Percent of organization and offering costs	15.00%		15.00%			15.00%
Total offering costs	$ 16,282,794		$ 16,282,794			$ 16,282,794
Offering cost directly incurred by company	12,033,763		12,033,763			12,033,763
Offering cost reimbursed to advisor	4,249,031		4,249,031			4,249,031
Payable to advisor for offering costs	$ 22,033		$ 22,033			$ 22,033
Percentage of acquisition fee	1.50%		1.50%			1.50%
Debt financing fee percentage	1.00%		1.00%			1.00%
Debt financing fee refinanced percentage	0.75%		0.75%			0.75%
Coordination fees	$ 1,720,000		$ 1,720,000
Asset management fee percentage	1.00%		1.00%			1.00%
Asset management fees	$ 283,000	$ 254,000	$ 849,000	$ 452,751
Advisor expense reimbursement - alternative 1	2.00%		2.00%			2.00%
Advisor expense reimbursement - alternative 2	25.00%		25.00%			25.00%
Operating expenses reimbursable			$ 761,000
Operating expenses						$ 579,484
Operating expenses exceeded specified limit			$ 0
Advisor [Member] | Moody National REIT I, Inc [Member]
Acquisition fee	$ 670,000				$ 670,000
Acquisition fee, percentage of cash consideration	5.00%				5.00%
Advisor [Member] | Springhill Suites Seattle [Member]
Acquisition fee		0		1,111,500
Debt financing fee		0		562,500
Advisor [Member] | Maximum [Member]
Percentage of acquisition fee	1.90%		1.90%			1.90%
Percentage of disposition fee on sale of each property	3.00%		3.00%			3.00%
Maximum percentage of disposition fee and real estate commissions	6.00%		6.00%			6.00%
Moody Securities [Member]
Payments for commissions			$ 9,170,067
Dealer manager fees			$ 2,050,584
Moody Securities [Member] | Class A Shares [Member]
Percentage of selling commissions on gross offering			7.00%
Percentage of dealers manager fee on gross offering			3.00%
Moody Securities [Member] | Class T Shares [Member]
Percentage of selling commissions on gross offering			3.00%
Percentage of dealers manager fee on gross offering			2.50%
Percentage of net asset value in the primary offering			1.00%
Moody Securities [Member] | Class I Shares [Member]
Percentage of dealers manager fee on gross offering			1.00%
Moody Securities [Member] | Class D Shares [Member]
Value of shares purchased			$ 5,000,000
Percentage of dealers manager fee on gross offering			3.00%
Percentage of net asset value in the primary offering			0.50%
Moody National Hospitality Management, LLC - Property Manager (Member]
Monthly hotel management fee percentage	4.00%		4.00%			4.00%
Property manager property management fees	$ 253,686	240,942	$ 633,378	433,132
Accounting fees	$ 19,000	$ 15,000	$ 49,000	$ 32,500
Agreement term			10 years

Incentive Award Plan (Details)

Incentive Award Plan (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
August 10, 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Shares granted	5,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Shares granted	$ 27.82
September 27, 2017 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Shares granted	5,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Shares granted	$ 27.82
February 23, 2016 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Shares granted		5,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Shares granted		$ 25
August 10, 2016 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Shares granted		5,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Shares granted		$ 25
Independent Directors Compensation Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Balance of non-vested shares at beginning	5,000	7,500
Shares vested	(5,000)	(12,500)
Balance of non-vested shares at end	15,000	5,000
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	$ 25
Shares vested	25	25
Balance of non-vested shares at end	$ 27.82	$ 25

Incentive Award Plan (Details N

Incentive Award Plan (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2017
Stock-based compensation			$ 96,374	$ 248,686
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	$ 26,574	$ 57,627	$ 96,374	$ 248,686
Nonvested of restricted stock common stock	15,000		15,000
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Board of Directors [Member] | Subsequent Event [Member]
Unrecognized compensation expense					$ 391,109
Incentive Award Plan and Independent Directors Compensation Plan [Member] | Restricted Stock [Member]
Shares available for issuance	1,965,000		1,965,000

Subordinated Participation In49

Subordinated Participation Interest (Details Narrative)	Sep. 30, 2017
Debt Disclosure [Abstract]
Maximum percentage of income received to special unit holders	15.00%
Percentage of additional operating income received	6.00%
Percentage of cumulative annual return received	8.00%

Commitments and Contingencies50

Commitments and Contingencies (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Property improvement plan	$ 7,582,528	$ 1,200,000
Real estate taxes	2,954,446	92,434
Insurance	172,996
Hotel furniture and fixtures	2,612,780	329,150
Debt service	2,578,129
Seasonality	369,831	234,000
Expense deposit	265,500
Rent holdback	14,720	14,720
Total restricted cash	$ 16,550,930	$ 1,870,304

Commitments and Contingencies51

Commitments and Contingencies (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Franchise fees	$ 502,702	$ 460,297	$ 1,214,965	$ 843,000
Moody National REIT I, Inc [Member]
Description of franchise agreements			the Company’s hotel properties, including those acquired as part of the Moody I Portfolio, are operated under franchise agreements with initial terms ranging from 10 to 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 generally between 3.0% to 6.0% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs that amount to between 1.5% and 4.3% of room revenue.
Moody National REIT I, Inc [Member] | Minimum [Member]
Term of franchise agreements			10 years
Royalty fees on room revenue			3.00%
Additional franchise fees on room revenue			1.50%
Moody National REIT I, Inc [Member] | Maximum [Member]
Term of franchise agreements			20 years
Royalty fees on room revenue			6.00%
Additional franchise fees on room revenue			4.30%

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Components of income tax expense
Current expense (benefit)		$ (5,000)		$ 159,000
Deferred expense (benefit)	$ 111,000		$ (1,000)	6,000
Total expense (benefit), net	111,000	(5,000)	(1,000)	165,000
Income tax by jurisdiction
Federal	$ 111,000	$ (5,000)	$ (1,000)	$ 165,000

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards	$ 281,051
Deferred tax assets	3,282,000	$ 10,000
TRS [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards	8,315,458
TRS [Member] | Moody National REIT I, Inc [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards	$ 8,254,824

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	Oct. 15, 2017	Sep. 30, 2017	Oct. 31, 2017	Dec. 31, 2016
Dividends payable		$ 756,031		$ 451,631
Common stock issued by DRP		$ 1,627,141
Subsequent Event [Member]
Dividends payable			$ 1,277,982
Dividend paid in cash	$ 496,217
Common stock issued by DRP	207,869
Subsequent Event [Member] | Former Moody I Stockholders [Member]
Deferred line of credit	$ 51,945