Moody National REIT II (MNRTII) 10-K 30 Mar 20 2019 FY Annual report Financial data

Document - Document and Entity

Document - Document and Entity Information - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Mar. 06, 2020	Jun. 30, 2019
Entity Registrant Name	Moody National REIT II, Inc.
Entity Central Index Key	0001615222
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	000-55778
Entity Incorporation, State or Country Code	MD
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filer	No
Entity Reporting Status Current	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Reporting Company	true
Entity Emerging Growth	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,632,766
Entity Public Float			$ 12,029,983
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019
Class A Shares [Member]
Common stock held by non-affiliates		12,996,645
Class I Shares [Member]
Common stock held by non-affiliates		158,951
Class T Shares [Member]
Common stock held by non-affiliates		477,170

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Investments in hotel properties, net	$ 441,025	$ 393,140
Cash and cash equivalents	7,303	8,990
Restricted cash	8,645	10,204
Investment in marketable securities	5,936
Accounts receivable, net of allowance for doubtful accounts of $35 and $33 at December 31, 2019 and 2018, respectively	766	711
Notes receivable from related parties		6,750
Prepaid expenses and other assets	3,141	3,014
Deferred franchise costs, net of accumulated amortization of $217 and $134 at December 31, 2019 and 2018, respectively	850	934
Due from related parties		1,159
Total Assets	467,666	424,902
Liabilities:
Notes payable, net of unamortized debt issuance costs of $3,293 and $3,462 as of December 31, 2019 and 2018, respectively	238,603	227,174
Note payable to related party	2,894
Accounts payable and accrued expenses	10,106	8,089
Due to related parties, net	861
Dividends payable	2,038	1,744
Operating partnership distributions payable	47	47
Total Liabilities	254,549	237,054
Special Limited Partnership Interests	1	1
Commitments and Contingencies
Stockholders' equity:
Preferred stock, $0.01 par value per share; 100,000 shares authorized; no shares issued and outstanding
Common stock, $0.01 par value per share; 1,000,000 shares authorized, 13,251 and 10,636 shares issued and outstanding at December 31, 2019 and December 31, 2018, respectively	133	106
Additional paid-in capital	296,928	237,216
Accumulated deficit	(88,258)	(54,674)
Total stockholders' equity	208,803	182,648
Noncontrolling interests in Operating Partnership	4,313	5,199
Total Equity	213,116	187,847
TOTAL LIABILITIES AND EQUITY	$ 467,666	$ 424,902

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 35	$ 33
Accumulated amortization, deferred franchise costs	217	134
Unamortized debt issuance costs of notes payable	$ 3,293	$ 3,462
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized	100,000	100,000
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	1,000,000
Common stock, issued	13,251	10,636
Common stock, outstanding	13,251	10,636

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue
Total hotel revenue	$ 84,013	$ 79,666
Interest and dividend income	664	1,175
Total revenue	84,677	80,841
Expenses
Hotel operating expenses	55,351	50,182
Property taxes, insurance and other	6,711	5,542
Depreciation and amortization	14,167	12,166
Acquisition expenses	2,212
Corporate general and administrative	6,358	6,503
Total expenses	84,799	74,393
Operating income (loss)	(122)	6,448
Other expenses (income)
Interest expense and amortization of debt issuance costs	12,826	15,960
Gain on sale of marketable securities	(9)
Unrealized gain on change in fair value of investment in marketable securities	(197)
Total other expenses	12,620	15,960
Loss before income tax expense	(12,742)	(9,512)
Income tax expense	183	158
Net loss	(12,925)	(9,670)
Net loss attributable to noncontrolling interests in Operating Partnership	332	309
Net loss attributable to common stockholders	$ (12,593)	$ (9,361)
Per-share information - basic and diluted:
Net loss attributable to common stockholders (in dollars per share)	$ (1.05)	$ (0.98)
Dividends declared (in dollars per share)	$ 1.75	$ 1.75
Weighted average common shares outstanding (in shares)	12,002	9,578
Room [Member]
Revenue
Total hotel revenue	$ 78,947	$ 74,782
Other Hotel Revenue [Member]
Revenue
Total hotel revenue	$ 5,066	$ 4,884

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Noncontrolling Interests in Opereating Partnership [Member]	Total
Balance at beginning at Dec. 31, 2017	$ 87	$ 193,865	$ (28,501)	$ 6,062	$ 171,513
Balance at beginning (in shares) at Dec. 31, 2017	8,693
Balance at beginning (in units) at Dec. 31, 2017				316
Increase (Decrease) in Stockholders' Equity
Issuance of common stock, net of offering costs	$ 18	41,897			41,915
Issuance of common stock, net of offering costs (in shares)	1,884
Redemption of common stock	$ (1)	(2,623)			(2,624)
Redemption of common stock (in shares)	(110)
Issuance of common stock pursuant to dividend reinvestment plan	$ 2	3,716			3,718
Issuance of common stock pursuant to dividend reinvestment plan (in shares)	159
Stock-based compensation		361			361
Stock-based compensation (in shares)	10
Net loss			(9,361)	$ (309)	(9,670)
Dividends and distributions declared			(16,812)	(554)	(17,366)
Balance at end at Dec. 31, 2018	$ 106	237,216	(54,674)	$ 5,199	187,847
Balance at end (in shares) at Dec. 31, 2018	10,636
Balance at end (in units) at Dec. 31, 2018				316
Increase (Decrease) in Stockholders' Equity
Issuance of common stock, net of offering costs	$ 28	60,951			60,979
Issuance of common stock, net of offering costs (in shares)	2,671
Redemption of common stock	$ (3)	(6,471)			(6,474)
Redemption of common stock (in shares)	(281)
Issuance of common stock pursuant to dividend reinvestment plan	$ 2	4,997			4,999
Issuance of common stock pursuant to dividend reinvestment plan (in shares)	215
Stock-based compensation		235			235
Stock-based compensation (in shares)	10
Net loss			(12,593)	$ (332)	(12,925)
Dividends and distributions declared			(20,991)	(554)	(21,545)
Balance at end at Dec. 31, 2019	$ 133	$ 296,928	$ (88,258)	$ 4,313	$ 213,116
Balance at end (in shares) at Dec. 31, 2019	13,251
Balance at end (in units) at Dec. 31, 2019				316	316

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net loss	$ (12,925)	$ (9,670)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	14,167	12,166
Amortization of debt issuance costs	1,025	1,973
Gain on sale of marketable securities	(9)
Unrealized loss on change in fair value of investment in marketable securities	(197)
Stock-based compensation	235	361
Changes in operating assets and liabilities:
Accounts receivable	(56)	672
Prepaid expenses and other assets	(127)	13
Accounts payable and accrued expenses	2,019	(336)
Due from related parties	2,358	(919)
Net cash provided by operating activities	6,490	4,260
Cash flows from investing activities
Repayment of mortgage note receivable from related party		11,200
Repayment of notes receivable from related parties	6,750	4,500
Investment in marketable securities	(9,889)
Proceeds from the sale of marketable securities	4,160
Improvements and additions to hotel properties	(9,969)	(8,588)
Acquisition of hotel property	(350)
Net cash (used in) provided by investing activities	(9,298)	7,112
Cash flows from financing activities
Proceeds from issuance of common stock	62,189	44,027
Redemptions of common stock	(6,474)	(2,624)
Offering costs paid	(1,550)	(2,692)
Dividends paid	(15,697)	(12,935)
Operating partnership distributions paid	(554)	(554)
Proceeds from notes payable	25,000	16,000
Repayment of notes payable	(42,840)	(54,537)
Repayment of note payable to related party	(19,656)
Payment of debt issuance costs	(856)	(598)
Net cash used in financing activities	(438)	(13,913)
Net change in cash, cash equivalents and restricted cash	(3,246)	(2,541)
Cash, cash equivalents and restricted cash at beginning of year	19,194	21,735
Cash, cash equivalents and restricted cash at end of year	15,948	19,194
Supplemental Disclosure of Cash Flow Activity
Interest paid	11,877	14,166
Income tax paid	290	290
Supplemental Disclosure of Non-Cash Financing Activity
Decrease in accrued offering costs due to related party	338	580
Issuance of common stock from dividend reinvestment plan	4,999	3,718
Assumption of note payable in connection with acquisition of hotel property	29,100
Note payable to related party issued in connection with acquisition of hotel property	22,550
Dividends payable	2,038	1,744
Operating partnership distribution payable	$ 47	$ 47

Organization

Organization	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization As discussed in Note 6, “Equity,” Moody National REIT II, Inc. (the “Company”) was initially capitalized by Moody National REIT Sponsor, LLC (the “Sponsor”). The Company’s fiscal year end is December 31. As of December 31, 2019, the Company owned (1) interests in fifteen hotel properties located in six states comprising a total of 2,123 rooms and (2) investment in marketable securities valued at $5.9 million. For more information on the Company’s real estate investments, see Note 3, “Investment in Hotel Properties.” 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 of up to $1.1 billion in shares of common stock consisting of up to $1.0 billion in shares of the Company’s common stock offered to the public, and up to $100.0 million in shares offered to the Company’s stockholders pursuant to its distribution reinvestment plan (the “DRP”). On June 26, 2017, the SEC declared effective the Company’s post-effective amendment to its registration statement for the Company’s initial public 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. On January 16, 2018, the Advisor assumed responsibility for the payment of all selling commissions, dealer manager fees and stockholder servicing fees paid in connection with the Company’s public offering; provided, however that the Advisor intends to recoup the selling commissions, dealer manager fees and stockholder servicing fees that it funds through an increased acquisition fee, or “Contingent Advisor Payment,” as described in Note 7, “Related Party Arrangements.” On January 18, 2018, the Company filed a registration statement on Form S-11 (Registration No. 333-222610) registering $990.0 million in any combination of the Shares to be sold on a “best efforts” basis in the Company’s follow-on public offering. The SEC declared the registration statement effective on July 19, 2018. The Company will continue to offer Shares in the follow-on offering on a continuous basis until July 19, 2021, subject to extension for an additional year by the Company’s board of directors. The Company is currently offering the Shares (i) to the public in the Company’s primary offering at a purchase price of $23.32 per share, which is equal to the estimated net asset value (“NAV”) per share for each class as of December 31, 2018, and (ii) to the Company’s stockholders pursuant to the DRP at a purchase price of $23.32 per share, which is equal to the estimated NAV per share for each class as of December 31, 2018. As of December 31, 2019, the Company had accepted investors’ subscriptions for and issued 9.8 million shares in the Company’s initial public offering and follow-on offering, excluding shares issued in connection with the Company’s merger with Moody National REIT I, Inc. and including 507,000 shares pursuant to the DRP, resulting in gross offering proceeds of $226.2 million. The Company accepted investors’ subscriptions for and issued 6.1 million shares in the initial public offering, excluding shares issued in connection with the Company’s merger with Moody National REIT I, Inc. and including 215,000 shares pursuant to the DRP in the initial public offering, resulting in gross offering proceeds of $147.4 million for the initial public offering. As of December 31, 2019, the Company had accepted investors’ subscriptions for and issued 3.7 million shares in the follow-on offering, including 292,000 shares pursuant to the DRP in the follow-on offering, resulting in gross offering proceeds of $78.8 million for the follow-on offering. 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies B asis 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. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“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 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 aggregate 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. The Company’s organization and offering costs incurred in connection with the Company’s initial public offering did not exceed 15% of the gross offering proceeds from the sale of our shares of common stock in such offering. All offering costs, including selling commissions and dealer manager fees, are recorded as an offset to additional paid-in-capital, and all organization costs are recorded as an expense when the Company has an obligation to reimburse the Advisor. As of December 31, 2019, total offering costs for the initial public offering and the follow-on offering were $20.6 million, comprised of $12.3 million of offering costs incurred directly by the Company and $8.3 million in offering costs incurred by and reimbursable to the Advisor. Total offering costs for the initial public offering were $18.3 million, comprised of $12.3 million of offering costs incurred directly by the Company and $6.0 million in offering costs incurred by and reimbursable to the Advisor. As of December 31, 2019, total offering costs for the follow-on offering were $2.3 million, comprised of $0 of offering costs incurred directly by the Company and $2.3 million in offering costs incurred by and reimbursable to the Advisor. As of December 31, 2019, the Company had $286,000 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 was 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. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period prior to when the new rates become effective. 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 December 31, 2019. The preparation of the Company’s various tax returns requires the use of estimates for federal and state income tax purposes. These estimates may be subjected to review by the respective taxing authorities. A revision to an estimate may result in an assessment of additional taxes, penalties and interest. At this time, a range in which the Company’s estimates may change is not expected to be material. The Company will account for interest and penalties relating to uncertain tax positions in the current period results of operations, if necessary. The Company has tax years 2014 through 2018 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 has elected the fair value option in recording its investment in marketable securities whereby unrealized holding gains and losses on available-for-sale securities are included in earnings. With the exception of the Company’s fixed-rate notes receivable from related parties and notes payable, the carrying amounts of other financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, notes receivable, notes payable, and accounts payable and accrued expenses, approximate their fair values due to their short-term nature. For the fair value of the Company’s note receivable from related parties and notes payable, see Note 4 and “Notes Receivable from Related Parties” and Note 5, “Debt.” Concentration of Risk As of December 31, 2019, 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 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 nine of its fifteen 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 years ended December 31, 2019 and 2018. 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 years 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. Investment in Marketable Securities Investment in marketable securities of $5.9 million at December 31, 2019 consists primarily of common stock investments in other REITs and which are classified as available-for-sale securities and recorded at fair value. The Company has elected the fair value option whereby unrealized holding gains and losses on available-for-sale securities are included in earnings. For the years ended December 31, 2019 and 2018, unrealized gain on investment in marketable securities was $197,000 and $0, respectively. For the years ended December 31, 2019 and 2018, realized gain on investment in marketable securities was $9,000 and $0, respectively. Dividend income is recognized when earned. For the years ended December 31, 2019 and 2018, dividend income of $399,000 and $0, respectively, was recognized and is included in interest and dividend income on the consolidated statements of operations. 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 years ended December 31, 2019 or 2018. 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 $217,000 and $134,000 as of December 31, 2019 and 2018, respectively. Expected future amortization of deferred franchise costs as of December 31, 2019 is as follows (in thousands): Years Ending December 31, 2020 $ 83 2021 83 2022 82 2023 80 2024 77 Thereafter 445 Total $ 850 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 $4.0 million and $3.0 million as of December 31, 2019 and 2018, respectively. Expected future amortization of debt issuance costs as of December 31, 2019 is as follows (in thousands): Years Ending December 31, 2020 $ 679 2021 677 2022 677 2023 632 2024 440 Thereafter 188 Total $ 3,293 Earnings (Loss) per Share Earnings (loss) per share (“EPS”) is calculated based on the weighted average number of shares outstanding during each period. Basic and diluted EPS are the same for all periods presented. Non-vested shares of restricted common stock totaling 7,500 shares as of December 31, 2019 and 2018, 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. Recent Accounting Pronouncements 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. The standard requires a modified retrospective approach, with restatement of the prior periods presented in the year of adoption, subject to any FASB modifications. This standard will be effective for the first annual reporting period beginning after December 15, 2018. The Company adopted this standard on January 1, 2019. In evaluating the effect that ASU No. 2016-02 will have on the Company’s consolidated financial statements and related disclosures, the Company believes the impact will be minimal to the Company’s ongoing consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities,” which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of hedge accounting. This standard will be effective for the first annual period beginning after December 15, 2018, including interim periods within those periods. Early adoption is permitted. The Company adopted this standard on January 1, 2018 and aside from minor presentation changes in its disclosure on derivative and hedging activities, it will not have a material effect on the Company’s ongoing consolidated financial statements.

Investment in Hotel Properties

Investment in Hotel Properties	12 Months Ended
	Dec. 31, 2019
Real Estate [Abstract]
Investment in Hotel Properties	3. Investment in Hotel Properties The following table sets forth summary information regarding the Company’s investment in hotel properties as of December 31, 2019 (all $ amounts in thousands): Property Name Date Acquired Location Ownership Interest Original Purchase (1) Rooms Mortgage (2) Residence Inn Austin October 15, 2015 Austin, Texas 100 % $ 27,500 112 $ 16,300 Springhill Suites Seattle May 24, 2016 Seattle, Washington 100 % 74,100 234 44,165 Homewood Suites Woodlands September 27, 2017 (5) The Woodlands, Texas 100 % 17,356 91 8,915 Hyatt Place Germantown September 27, 2017 (5) Germantown, Tennessee 100 % 16,074 127 6,865 Hyatt Place North Charleston September 27, 2017 (5) North Charleston, 100 % 13,806 113 7,019 Hampton Inn Austin September 27, 2017 (5) Austin, Texas 100 % 19,328 123 10,493 Residence Inn Grapevine September 27, 2017 (5) Grapevine, Texas 100 % 25,245 133 12,114 Marriott Courtyard Lyndhurst September 27, 2017 (5) Lyndhurst, New Jersey (3 ) 39,547 227 18,934 Hilton Garden Inn Austin September 27, 2017 (5) Austin, Texas 100 % 29,288 138 18,080 Hampton Inn Great September 27, 2017 (5) Frazer, Pennsylvania 100 % 15,285 125 7,861 Embassy Suites Nashville September 27, 2017 (5) Nashville, Tennessee 100 % 82,207 208 41,250 Homewood Suites Austin September 27, 2017 (5) Austin, Texas 100 % 18,835 96 10,602 Townplace Suites Fort Worth September 27, 2017 (5) Fort Worth, Texas (4 ) 11,242 95 5,979 Hampton Inn Houston September 27, 2017 (5) Houston, Texas 100 % 9,958 119 4,366 Residence Inn Houston Medical Center April 29, 2019 (6) Houston, Texas 100 % 52,000 182 31,847 Totals $ 451,771 2,123 $ 244,790 (1) Excludes closing costs and includes gain on acquisition. (2) As of December 31, 2019. (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. The Marriott Courtyard Lyndhurst is pledged as security for the Term Loan. See Note 5, “Debt.” (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. The Townplace Suites Fort Worth is pledged as security for the Term Loan. See Note 5, “Debt.” (5) Property acquired on September 27, 2017 as a result of the merger of Moody National REIT I, Inc. (“Moody I”) with and into the Company (the “Merger”) and the merger of Moody National Operating Partnership I, L.P., the operating partnership of Moody I (“Moody I OP”), with and into the OP (the “Partnership Merger,” and together with the Merger, the “Mergers”). (6) Includes balance of $29.0 million for first mortgage loan and balance of $2.9 million for promissory note payable to seller of the Residence Inn Houston Medical Center in the original principal amount of $22.6 million. Investment in hotel properties consisted of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Land $ 76,936 $ 70,456 Buildings and improvements 338,729 297,680 Furniture, fixtures and equipment 58,072 43,632 Total cost 473,737 411,768 Accumulated depreciation (32,712 ) (18,628 ) Investment in hotel properties, net $ 441,025 $ 393,140 Acquisition of Residence Inn Houston Medical Center On the April 29, 2019 (“Closing Date”), Moody National Kirby-Houston Holding, LLC, a wholly-owned subsidiary of the OP (“Houston Holding”), acquired fee simple title to the Residence Inn Houston Medical Center (“Residence Inn Houston”) located in Houston, Texas from a related party for an aggregate purchase price, excluding acquisition costs, of $52.0 million, inclusive of (i) Houston Holding’s assumption as of the Closing Date of an existing mortgage loan from an institutional lender (“Lender”), secured by the Residence Inn Houston, with an outstanding balance as of the Closing Date of $28,180,000 (“Existing Loan”), and (ii) financing from the Seller in the amount of $22,550,000 (“Note Payable to Related Party”). See below for an additional discussion of the Existing Loan and the Note Payable to Related Party. In connection with the acquisition of the Residence Inn Houston, Advisor earned an aggregate acquisition fee of $2,002,000 (inclusive of a $1,222,000 contingent acquisition fee paid to reimburse Advisor for upfront selling commissions and dealer manager fees paid by Advisor) and a financing coordination fee of $290,000. The Residence Inn Houston is a 16-story select-service hotel consisting of 182 guest rooms located in Houston, Texas. The Residence Inn Houston is located in the Texas Medical Center, the world’s largest medical center, and is located adjacent to NRG Park area. The Residence Inn Houston includes a four and a half story parking garage. Houston Holding leases the Residence Inn Houston to Moody National Kirby-Houston MT, LLC (“Master Tenant”), an indirect, wholly-owned subsidiary of the OP, pursuant to a Hotel Lease Agreement between Houston Holding and the Master Tenant (“Hotel Lease”). Moody National Hospitality Management, LLC, a related party (“Property Manager”), manages the Residence Inn Houston pursuant to a Hotel Management Agreement between the Property Manager and the Master Tenant (“Management Agreement”), which Management Agreement was assigned to Master Tenant by Seller on the Closing Date. Existing Loan On the Closing Date, pursuant to an Assignment and Assumption Agreement, Houston Holding assumed all of the Seller’s rights, duties and obligations under and with respect to the Existing Loan and all loan documents associated therewith, including, without limitation, (i) a Promissory Note, dated September 13, 2017, in the original principal amount of $29.1 million, evidencing the Existing Loan and payable to the Lender, or the Note, (ii) the Construction Loan Agreement, dated September 13, 2017, between the Seller and the Lender (“Loan Agreement”), and (iii) the Deed of Trust, Security Agreement and Financing Statement, dated September 13, 2017, for the benefit of Lender, securing payment of the Note (“ Deed of Trust.”) The Existing Loan bears interest at a rate of 5% per annum. Payments of interest only were due on the Existing Loan on a monthly basis through October 1, 2019, and thereafter equal monthly payments of principal and interest in the amount of $170,000 will be due. Upon and during any event of default by Houston Holdings under the Note, the Loan Agreement or any other loan document relating to the Existing Loan, the Existing Loan will bear interest at a rate per annum equal to the lesser of the maximum rate permitted by applicable law and 17%. The entire outstanding principal balance of the Existing Loan and all accrued interest thereon and all other amounts payable under the Note is due and payable in full on October 1, 2024. Houston Holding may not prepay the Existing Loan, in whole or in part, prior to November 1, 2021. Thereafter, upon at least 30 but not more than 90 days prior written notice to the Lender, Houston Holding may prepay the outstanding principle balance, plus all accrued interest and other amounts due, in full (but not in part), provided that such prepayment will be subject to certain additional prepayment fees as set forth in the Note. The Note provides for customary events of default, including failure by Houston Holding to pay when due and payable any amounts payable under the terms of the Note. Upon any event of default by Houston Holding, Lender may accelerate the maturity date of the Loan and declare the entire unpaid principal balance of the Loan and all accrued and unpaid interest thereon due and payable in full immediately, and exercise any other rights available to it under law or equity. The performance of the obligations of Houston Holding under the Existing Loan is secured by, among other things, a security interest in the Residence Inn Houston and other collateral granted to the Lender pursuant to the Deed of Trust. Pursuant to payment and completion guaranties in favor of the Lender, Brett C. Moody has agreed to irrevocably and unconditionally guarantee the prompt and unconditional payment to the Lender and its successors and assigns of all obligations and liabilities of Houston Holding for which Houston Holding may be personally liable with respect to the Existing Loan. Note Payable to Related Party On the Closing Date, the OP issued a promissory note payable to Seller in the original principal amount of approximately $22.6 million, evidencing the note payable to related party (the “Note Payable to Related Party”). The Note Payable to Related Party bears interest at a rate per annum equal to the lesser of the maximum rate permitted by applicable law and 3%. Any amounts payable under the Note Payable to Related Party which are not paid by the OP when due will bear interest at a past due rate equal to the lesser of the maximum rate permitted by applicable law and 18%. On the Closing Date, the OP made a principal payment of $7.8 million, and beginning on May 15, 2019 and ending on October 15, 2019, the OP made monthly principal and interest payments of $2.0 million. The entire outstanding principal balance of the Note Payable to Related Party, together with all accrued interest thereon and all other amounts payable under the Note Payable to Related Party, was due and payable in full on December 15, 2019. The maturity date of the note payable to related party was extended to June 15, 2020, with all other terms and conditions remaining unchanged. If the OP fails to make when due any payment under the Note Payable to Related Party, the OP will pay to Seller on demand a late fee equal to 5% of the amount of such payment. Upon at least five days prior written notice to the Seller, the OP may prepay the outstanding principle balance, plus all accrued interest and other amounts due, in whole or in part, without penalty. The balance of the Note Payable to Related Party was $2.9 million as of December 31, 2019. The Note Payable to Related Party provides for customary events of default, including failure by the OP to pay when due and payable any amounts payable under the terms of the Note Payable to Related Party. Upon any event of default by the OP, Seller may accelerate the maturity date of the Note Payable to Related Party and declare the entire unpaid principal balance of the Note Payable to Related Party and all accrued and unpaid interest thereon due and payable in full immediately, and exercise any other rights available to it under law or equity. The following table presents a summary of assets acquired and the purchase price consideration in the acquisition of the Residence Inn Houston (in thousands): Assets acquired at fair value: Land $ 6,480 Building 40,920 Furniture, fixtures and equipment 4,600 Net assets acquired at fair value $ 52,000 Purchase price consideration: Cash $ 350 Existing Loan 29,100 Note payable to related party 22,550 Purchase price consideration $ 52,000 The results of operations of the Residence Inn Houston have been included in the consolidated statement of operations as of the date of acquisition of April 29, 2019. The following unaudited pro forma consolidated financial information for the years ended December 31, 2019 and 2018 is presented as if the Company acquired the Residence Inn Houston on January 1, 2018. This information is not necessarily indicative of what the actual results of operations would have been had the Company completed the acquisition of the Residence Inn Houston on January 1, 2018, nor does it purport to represent the Company’s future operations (in thousands, except per common share amounts): Years ended 2019 2018 Revenue $ 87,810 $ 90,533 Net loss (10,177 ) (7,984 ) Net loss attributable to common shareholders (9,845 ) (7,675 ) Net loss per common share - basic and diluted $ (0.82 ) $ (0.80 )

Notes Receivable from Related P

Notes Receivable from Related Parties	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
Notes Receivable from Related Parties	4. Notes Receivable from Related Parties As of December 31, 2019 and 2018, the amount of the note receivable from related party was $0 and $6,750,000, respectively. 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 Company acquired the Related Party Note in connection with the Mergers. 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 August 30, 2018, the maturity date was extended to April 30, 2019. The Related Party Note was paid in full on April 29, 2019. Interest income from notes receivable from related parties was $264,000 and $864,900 for the years ended December 31, 2019 and 2018, respectively. Interest receivable on notes receivable from related parties was $0 and $810,000 as of December 31, 2019 and December 31, 2018, respectively. The estimated fair value of the note receivable from related party as of December 31, 2018 was $6,750,000. The fair value of the note receivable from related party was estimated based on discounted cash flow analyses using the current incremental lending rates for similar types of lending 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.

Debt

Debt	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Debt	5. Debt The Company’s aggregate borrowings are reviewed by the Company’s board of directors at least quarterly. Under the Company’s Articles of Amendment and Restatement (as amended, the “Charter”), the Company is prohibited from borrowing in excess of 300% of the value of the Company’s net assets. “Net assets” for purposes of this calculation is defined to be the Company’s total assets (other than intangibles), valued at cost prior to deducting depreciation, reserves for bad debts and other non-cash reserves, less total liabilities. However, the Company may temporarily borrow in excess of these amounts if such excess is approved by a majority of the Company’s independent directors and disclosed to stockholders in the Company’s next quarterly report, along with an explanation for such excess. As of December 31, 2019, the Company’s debt levels did not exceed 300% of the value of the Company’s net assets, as defined above. As of December 31, 2019 and 2018, the Company’s mortgage notes payable secured by the respective assets, consisted of the following (all $ amounts in thousands): Loan Principal as of December 31, 2019 Principal as of December 31, 2018 Interest Rate at December 31, 2019 Maturity Date Residence Inn Austin (1) $ 16,300 $ 16,554 4.580 % November 1, 2025 Springhill Suites Seattle (1) 44,165 44,884 4.380 % October 1, 2026 Homewood Suites Woodlands (1) 8,915 9,066 4.690 % April 11, 2025 Hyatt Place Germantown (1) 6,865 7,025 4.300 % May 6, 2023 Hyatt Place North Charleston (1) 7,019 7,158 5.193 % August 1, 2023 Hampton Inn Austin (1) 10,493 10,687 5.426 % January 6, 2024 Residence Inn Grapevine (1) 12,114 12,341 5.250 % April 6, 2024 Marriott Courtyard Lyndhurst (1) 18,934 — 4.700 % September 27, 2024 Hilton Garden Inn Austin (1) 18,080 18,401 4.530 % December 11, 2024 Hampton Inn Great Valley (1) 7,861 7,994 4.700 % April 11, 2025 Embassy Suites Nashville (1) 41,250 41,998 4.2123 % July 11, 2025 Homewood Suites Austin (1) 10,602 10,778 4.650 % August 11, 2025 Townplace Suites Fort Worth (1) 5,979 — 4.700 % September 27, 2024 Hampton Inn Houston (1) 4,366 4,480 6.750 % April 28, 2023 Residence Inn Houston Medical Center (4) 28,953 — 5.000 % October 1, 2024 Term Loan (2) — 26,300 30-day LIBOR plus 3.750 % September 27, 2019 Short Term Loan (3) — 12,970 30-day LIBOR plus 2.50 % April 24, 2019 Total notes payable 241,896 230,636 Less unamortized debt issuance costs (3,293 ) (3,462 ) Total notes payable, net of unamortized debt issuance costs $ 238,603 $ 227,174 (1) Monthly payments of principal and interest are due and payable until the maturity date. (2) Monthly payments of principal and interest are due and payable until the maturity date. On October 24, 2018, the maturity date of the Term Loan was extended to September 27, 2019. All unpaid principal and interest thereon was repaid in full on September 27, 2019, the maturity date. (3) Monthly payments of principal and interest were due and payable until the maturity date. All unpaid principal and interest thereon was repaid in full on April 24, 2019, the maturity date. (4) Monthly payments of interest due and payable until October 2019. Monthly payments of principal and interest due and payable beginning in November 2019 until the maturity date. Hotel properties secure their respective loans. The Term Loan was partially secured by Marriott Courtyard Lyndhurst and Townplace Suites Fort Worth and was partially unsecured. Scheduled maturities of the Company’s notes payable as of December 31, 2019 are as follows (in thousands): Years ending December 31, 2020 $ 4,567 2021 4,870 2022 5,108 2023 21,597 2024 89,112 Thereafter 116,642 Total $ 241,896 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 (“KeyBank,” and together with any other lender institutions that may become parties thereto, the “Lenders”), as agent and lender, entered into a term loan agreement (as amended, the “Term Loan Agreement”). 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 Mergers, other costs and expenses related to the Mergers and for other corporate purposes. The Company began making principal payments of $1.5 million per month in November 2017. On March 28, 2018, the parties to the Term Loan Agreement entered into a letter agreement, or the Term Loan Letter Agreement, pursuant to which the parties thereto agreed to change the commencement of the Company’s obligation under the Term Loan Agreement to raise $10 million per quarter in gross offering proceeds to the calendar quarter June 30, 2018. The Company satisfied such obligation with respect to the calendar quarter ended December 31, 2019. The Term Loan originally matured on September 27, 2018. The maturity date of the Term Loan was originally extended to October 26, 2018 and on October 24, 2018, the maturity date of the Term Loan was extended again to September 27, 2019 in connection with the partial refinancing of the Term Loan. The Outstanding Balance of $26.5 million as of October 24, 2018, together with any and all accrued and unpaid interest thereon, and all other Obligations, was repaid in full on September 27, 2019. The Term Loan originally provided 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) $1.5 million. In connection with the extension of the Term Loan on October 24, 2018, monthly payments of principal were $100,000 per month, and the margins over the base rate or LIBOR rate were 2.75% and 3.75%, respectively. Short Term Loan On October 24, 2018, the Company and the OP issued a promissory note in favor of Green Bank, N.A. in the original principal amount of $16.0 million (the “Short Term Loan”). The proceeds of the promissory note were used to retire a portion of the Term Loan, resulting in a balance of $26.5 million for the Term Loan as of October 24, 2018. The note bore interest at an annual rate equal to the one-month LIBOR plus 2.5% and the Company and the OP were collectively required to make a monthly payment on the outstanding principal and interest of the promissory note equal to the greater of $1.5 million and 50% of our consolidated net cash flow. The entire outstanding principle amount of the Short Term Loan and all accrued interest thereon were repaid in full on April 24, 2019, the maturity date of the Short Term Loan. The estimated fair value of the Company’s notes payable as of December 31, 2019 and 2018, respectively, was $241.9 million and $231.0 million, 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	12 Months Ended
	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
Equity	6. Equity Capitalization Under its Charter, the Company has the authority to issue 1.0 billion shares of common stock and 100.0 million shares of preferred stock. All shares of such stock have a par value of $0.01 per share. On August 15, 2014, the Company sold 8,000 shares of common stock to the Sponsor at a purchase price of $25.00 per share for an aggregate purchase price of $200,000, which was paid in cash. As of December 31, 2019, there were a total of 13.3 million shares of the Company’s common stock issued and outstanding, including 9.8 million shares, net of redemptions, issued in the Company’s public offerings, 3.4 million shares, net of redemptions, issued in connection with the Merger, the 8,000 shares sold to Sponsor and 55,000 shares of restricted stock issued to the Company’s directors, as discussed in Note 8, “Incentive Award Plan,” as follows (in thousands): Class Shares Outstanding as of December 31, 2019 Class A Shares 12,640 Class T Shares 457 Class I Shares 154 Total 13,251 The Company’s board of directors is authorized to amend the 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 2019 and 2018 that will be (1) calculated daily and reduced for class-specific expenses; (2) 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) calculated at a rate of $1.7528 per share of the Company’s common stock per year, or approximately $0.00480 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 three and year ended December 31, 2019 and 2018 (in thousands): Period Cash Distribution Distribution (1) Total Amount of Distribution First Quarter 2019 $ 3,517 $ 1,121 $ 4,638 Second Quarter 2019 3,858 1,228 5,086 Third Quarter 2019 4,097 1,302 5,399 Fourth Quarter 2019 4,225 1,348 5,573 Total $ 15,697 $ 4,999 $ 20,696 First Quarter 2018 $ 3,218 $ 634 $ 3,852 Second Quarter 2018 3,039 963 4,002 Third Quarter 2018 3,241 1,034 4,275 Fourth Quarter 2018 3,437 1,087 4,524 Total $ 12,935 $ 3,718 $ 16,653 (1) Amount of distributions paid in shares of common stock pursuant to the DRP. Noncontrolling Interest in Operating Partnership Noncontrolling interest in the OP at December 31, 2019 and 2018 was $4.3 million and $5.2 million, respectively, which represented 316,000 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. Loss from the OP attributable to these noncontrolling interests was $332,000 and $309,000 for the years ended December 31, 2019 and 2018, respectively.

Related Party Arrangements

Related Party Arrangements	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
Related Party Arrangements	7. Related Party Arrangements Pursuant to the Advisory Agreement, the Advisor and certain affiliates of Advisor receive fees and compensation in connection with the Offering and the acquisition, management and sale of the Company’s real estate investments. In addition, in exchange for $1,000 and in consideration of services to be provided by the Advisor, the OP has issued an affiliate of the Advisor, Moody LPOP II, a separate, special limited partnership interest, in the form of Special Limited Partnership Interests. For further detail, please see Note 9, “Subordinated Participation Interest.” Sales Commissions and Dealer Manager Fees From January 1, 2017 through June 12, 2017, the Company paid Moody Securities an up-front selling commission of up to 7.0% of the gross proceeds of what are now the Class A Shares sold in the primary offering and a dealer manager fee of up to 3.0% of the gross proceeds of what are now the Class A Shares sold in the primary offering. Beginning on June 12, 2017, the Company reallocated its common shares into four separate share classes, Class A Shares, Class T Shares, Class I Shares and Class D Shares, with the differing fees for each class of shares Beginning January 16, 2018, the Advisor assumed responsibility for the payment of all selling commissions, dealer manager fees and stockholder servicing fees paid in connection with the Company’s public offering; provided, however, that the Advisor intends to recoup the funding of such amounts through the Contingent Advisor Payment (described below). In connection with the implementation of the Contingent Advisor Payment, the Company reduced the up-front selling commission paid with respect to the Class A Shares from up to 7.0% to up to 6.0% of the gross proceeds of the Class A Shares sold in the primary offering and reduced the dealer manager fee paid with respect to the Class A Shares from up to 3.0% to up to 2.5% of the gross proceeds of the Class A Shares sold in the primary offering. As of December 31, 2019, the Company had paid Moody Securities $9.4 million in selling commissions and trailing stockholder servicing fees related to the Company’s ongoing public offering and $2.1 million in dealer manager fees related to the Company’s ongoing public offering, which amounts have been recorded as a reduction to additional paid-in capital in the consolidated balance sheets. As of December 31, 2019, Advisor had paid Moody Securities $8.8 million in selling commissions, trailing stockholder servicing fees, and dealer manager fees related to the Company’s ongoing public offering, of which $7.6 million could potentially be recouped by the Advisor at a later date through the Contingent Advisor Payment. Organization and Offering Expenses The Advisor will receive reimbursement for organizational and offering expenses incurred on the Company’s behalf, but only to the extent that such reimbursements do not exceed actual expenses incurred by 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 Company’s follow-on offering as of the date of reimbursement. As of December 31, 2019, total offering costs for the initial public offering and the follow-on offering were $20.6 million, comprised of $12.3 million of offering costs incurred directly by the Company and $8.3 million in offering costs incurred by and reimbursable to the Advisor. As of December 31, 2019, total offering costs for the initial public offering were $18.3 million, comprised of $12.3 million of offering costs incurred directly by the Company and $6.0 million in offering costs incurred by and reimbursable to the Advisor. As of December 31, 2019, total offering costs for the follow-on offering were $2.3 million, comprised of $0 of offering costs incurred directly by the Company and $2.3 million in offering costs incurred by and reimbursable to the Advisor. As of December 31, 2019, the Company had $286,000 due from the Advisor for reimbursable offering costs. Acquisition Fees As of January 16, 2018, the Advisor assumed responsibility for the payment of all selling commissions, dealer manager fees and stockholder servicing fees in connection with the Company’s public offering. In connection therewith, as of January 16, 2018, the acquisition fee payable to the Advisor was increased from 1.5% to up to a maximum of 3.85% 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 the Company’s pro rata share of the purchase price and the Company’s pro rata share of any indebtedness assumed or incurred in respect of that investment and exclusive of acquisition fees and financing coordination fees) or (3) the amount funded by the Company to acquire or originate a loan or other investment, including mortgage, mezzanine or bridge loans (including any third-party expenses related to such investment and exclusive of acquisition fees and financing coordination fees). The up to 3.85% acquisition fee consists of (i) a 1.5% base acquisition fee and (ii) up to an additional 2.35% contingent acquisition fee (the “Contingent Advisor Payment”). The 1.5% base acquisition fee will always be payable upon the acquisition of an investment by the Company, unless the receipt thereof is waived by the Advisor. The amount of the Contingent Advisor Payment to be paid in connection with the closing of an acquisition will be reviewed on an acquisition-by-acquisition basis and such payment shall not exceed the then-outstanding amounts paid by the Advisor for dealer manager fees, sales commissions or stockholder servicing fees at the time of such closing. For purposes of determining the amount of Contingent Advisor Payment payable, the amounts paid by the Advisor for dealer manager fees, sales commissions or stockholder servicing fees and considered “outstanding” will be reduced by the amount of the Contingent Advisor Payment previously paid and taking into account the amount of the Contingent Advisor Holdback. The Advisor may waive or defer all or a portion of the acquisition fee at any time and from time to time, in the Advisor’s sole discretion. For the years ended December 31, 2019 and 2018, the Company incurred acquisition fees of $2.0 million, composed of a base acquisition fee of $780,000 and a contingent acquisition fee of $1.2 million, and $0, respectively, payable to Advisor, which are recorded in the accompanying consolidated statements of operations. Reimbursement of Acquisition Expenses The 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 the Advisor for any acquisition expenses during the years ended December 31, 2019 and 2018. Financing Coordination Fee The Advisor also receives financing coordination fees of 1% of the amount available under any loan or line of credit made available to the Company and 0.75% of the amount available or outstanding under any refinanced loan or line of credit. The Advisor will pay some or all of these fees to third parties with whom it subcontracts to coordinate financing for the Company. For the years ended December 31, 2019 and 2018, the Company incurred financing coordination fees of $478,000 and $0, respectively, payable to Advisor. Property Management Fee The Company pays Moody National Hospitality Management, LLC (“Property Manager”) a monthly hotel management fee equal to 4.0% of the monthly gross operating revenues from the properties managed by Property Manager for services it provides in connection with operating and managing properties. The hotel management agreements between the Company and the Property Manager generally have initial terms of ten years. Property Manager may pay some or all of the compensation it receives from the Company to a third-party property manager for management or leasing services. In the event that the Company contracts directly with a non-affiliated third-party property manager, the Company will pay Property Manager a market-based oversight fee. The Company will reimburse the costs and expenses incurred by Property Manager on the Company’s behalf, including legal, travel and other out-of-pocket expenses that are directly related to the management of specific properties, but the Company will not reimburse Property Manager for general overhead costs or personnel costs other than employees or subcontractors who are engaged in the on-site operation, management, maintenance or access control of the properties. For the years ended December 31, 2019 and 2018, the Company paid the Property Manager property management fees of $3.4 million and $3.2 million, and accounting fees of $438,000 and $420,000, respectively, which are included in hotel operating expenses in the accompanying consolidated statements of operations. The Company pays an annual incentive fee to Property Manager. Such annual incentive fee is equal to 15% of the amount by which the operating profit from the properties managed by Property Manager for such fiscal year (or partial fiscal year) exceeds 8.5% of the total investment of such properties. Property Manager may pay some or all of this annual incentive fee to third-party sub-property managers for management services. For purposes of this annual incentive fee, “total investment” means the sum of (i) the price paid to acquire a property, including closing costs, conversion costs, and transaction costs; (ii) additional invested capital and (iii) any other costs paid in connection with the acquisition of the property, whether incurred pre- or post-acquisition. As of December 31, 2019, the Company had not paid any annual incentive fees to Property Manager. 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 years ended December 31, 2019 and 2018, the Company incurred asset management fees of $4.5 million and $4.2 million, respectively, payable to the Advisor, which are recorded in corporate general and administrative expenses in the accompanying consolidated statements of operations. Disposition Fee The Company also pays the Advisor or its affiliates a disposition fee (subject to a limitation if the property was previously owned by Moody I discussed below) 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 sold a property that was previously owned by Moody I, then any disposition fee to which the Advisor would be entitled under the Advisory Agreement would have been reduced by an amount equal to the portion of the Moody I Advisor Payment attributable to such property. As of December 31, 2019, the Company had not incurred any disposition fees payable to the Advisor. Operating Expense Reimbursement The Company will reimburse the Advisor for all expenses paid or incurred by the Advisor in connection with the services provided to the Company, subject to the limitation that the Company will not reimburse the Advisor for any amount by which the Company’s aggregate operating expenses (including the asset management fee payable to the Advisor) at the end of the four preceding fiscal quarters exceeds the greater of: (1) 2% of the Company’s average invested assets, or (2) 25% of the Company’s net income determined without reduction for any additions to reserves for depreciation, bad debts or other similar non-cash reserves and excluding any gain from the sale of the Company’s assets for that period (the “2%/25% Limitation”). Notwithstanding the above, the Company may reimburse the Advisor for expenses in excess of the 2%/25% Limitation if a majority of the Company’s independent directors determines that such excess expenses are justified based on unusual and non-recurring factors. For the four fiscal quarters ended December 31, 2019, total operating expenses of the Company were $6.4 million, which included $5.1 million in operating expenses incurred directly by the Company and $1.3 million incurred by the Advisor on behalf of the Company. Of the $6.4 million in total operating expenses incurred during the four fiscal quarters ended December 31, 2019, $0 exceeded the 2%/25% Limitation. The Company reimbursed the Advisor $1.3 million during the four fiscal quarters ended December 31, 2019. As of December 31, 2019, the Company had $106,000 due from the Advisor for operating expense reimbursement.

Incentive Award Plan

Incentive Award Plan	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Incentive Award Plan	8. Incentive Award Plan The Company has adopted an incentive plan (the “Incentive Award Plan”) that provides for the grant of equity awards to its employees, directors and consultants and those of the Company’s affiliates. The Incentive Award Plan authorizes the grant of non-qualified and incentive stock options, restricted stock awards, restricted stock units, stock appreciation rights, dividend equivalents and other stock-based awards or cash-based awards. Shares of common stock will be authorized and reserved for issuance under the Incentive Award Plan. The Company has also adopted an independent directors compensation plan (the “Independent Directors Compensation Plan”) pursuant to which each of the Company’s independent directors was entitled, subject to the Independent Directors Compensation Plan’s conditions and restrictions, to receive an initial grant of 5,000 shares of restricted stock when the Company raised the minimum offering amount of $2,000,000 in the Offering. Each new independent director who subsequently joins the Company’s board of directors will receive a grant of 5,000 shares of restricted stock upon his or her election to the Company’s board of directors. In addition, on the date of each of the first four annual meetings of the Company’s stockholders at which an independent director is re-elected to the Company’s board of directors, he or she will receive an additional grant of 2,500 shares of restricted stock. Subject to certain conditions, the non-vested shares of restricted stock granted pursuant to the Independent Directors Compensation Plan will vest and become non-forfeitable in four equal quarterly installments beginning on the first day of the first quarter following the date of grant; provided, however, that the restricted stock will become fully vested on the earlier to occur of (1) the termination of the independent director’s service as a director due to his or her death or disability or (2) a change in control of the Company. As of December 31, 2019, there were 1,955,000 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 $235,000 and $361,000 for the years ended December 31, 2019 and 2018, respectively. As of December 31, 2019, there were 7,500 non-vested shares of restricted common stock granted pursuant to the Independent Directors Compensation Plan. The remaining unrecognized compensation expense associated with those 7,500 non-vested shares of $129,000 will be recognized during the first, second and third quarters of 2019. The following is a summary of activity under the Independent Directors Compensation Plan for the years ended December 31, 2019 and 2018: Number of Shares Weighted Average Grant Date Fair Value Balance of non-vested shares as of December 31, 2017 11,250 $ 27.82 Shares granted on August 13, 2018 10,000 $ 23.19 Shares vested (13,750 ) $ 26.98 Balance of non-vested shares as of December 31, 2018 7,500 $ 23.19 Shares granted on August 5, 2019 10,000 $ 23.32 Shares vested (10,000 ) $ 23.22 Balance of non-vested shares as of December 31, 2019 7,500 $ 23.32

Subordinated Participation Inte

Subordinated Participation Interest	12 Months Ended
	Dec. 31, 2019
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	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Restricted Cash Under certain management and debt agreements existing at December 31, 2019, 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 December 31, 2019 and 2018 are as follows (in thousands): December 31, 2019 2018 Property improvement plan $ 190 $ 1,239 Real estate taxes 3,040 2,894 Insurance 235 231 Hotel furniture and fixtures 3,283 4,178 Debt service 939 764 Seasonality 888 883 Rent holdback 15 15 Immediate repairs 55 — Total restricted cash $ 8,645 $ 10,204 Franchise Agreements As of December 31, 2019, 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% and 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 $7.4 million and $6.6 million for the years ended December 31, 2019 and 2018, respectively, which amounts are included in hotel operating expenses in the accompanying consolidated statements of operations.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes The Company has formed a TRS that is treated as a C-corporation for federal income tax purposes and uses the asset and liability method of accounting for income taxes. Tax return positions are recognized in the consolidated financial statements when they are “more-likely-than-not” to be sustained upon examination by the taxing authority. Deferred income tax assets and liabilities result from temporary differences. Temporary differences are differences between the tax bases of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future periods. A valuation allowance may be placed on deferred income tax assets, if it is determined that it is more likely than not that a deferred tax asset may not be realized. As of December 31, 2019, the Company had operating loss carry-forwards of $6.0 million. The Company had deferred tax assets of $2.3 million as of December 31, 2019 and 2018, net of a valuation allowance of $3.3 million and $1.2 million as of December 31, 2019 and 2018, respectively, related to net operating loss carry forwards of the TRS which are included in prepaid expenses and other assets on the consolidated balance sheets. As of December 31, 2019, the TRS had a net operating loss carry-forward of $26.7 million, of which $7.3 million was transferred from Moody I’s taxable REIT subsidiaries when they were merged into the Company’s TRS on the date of the closing of the Mergers. The income tax expense (benefit) for the years ended December 31, 2019 and 2018 consisted of the following (in thousands): Years ended December 31, 2019 2018 Current expense $ 183 $ 158 Deferred benefit (2,112 ) (1,194 ) Valuation provision for deferred benefit 2,112 1,194 Total expense, net $ 183 $ 158 Federal $ (2,112 ) $ (1,194 ) Valuation provision for federal taxes 2,112 1,194 State 183 158 Total tax expense $ 183 $ 158 The reconciliation of income tax expense (benefit) to the expected amount computed by applying federal statutory rate to income before income taxes is as follows: Years ended December 31, 2019 2018 Expected federal tax benefit at statutory rate $ (2,676 ) $ (1,998 ) Tax impact of REIT election 2,859 2,156 Income tax expense (benefit) $ 183 $ 158 On December 31, 2019, the Company had net deferred tax assets of $2.3 million primarily due to past years’ federal and state tax operating losses of the TRS. These loss carryforwards will generally expire in 2033 through 2038 if not utilized by then. The Company analyzes state loss carryforwards on a state by state basis and records a valuation allowance when management deems it more likely than not that future results will not generate sufficient taxable income in the respective state to realize the deferred tax asset prior to the expiration of the loss carryforwards. Management believes that it is more likely than not that the results of future operations of the TRS will generate sufficient taxable income to realize the deferred tax assets, in excess of the valuation allowance, related to federal and state loss carryforwards prior to the expiration of the loss carryforwards and has determined that no valuation allowance is necessary. From time to time, the Company may be subjected to federal, state or local tax audits in the normal course of business.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events Distributions Declared On December 31, 2019, the Company declared a distribution in the aggregate amount of $2.0 million, of which $1.5 million was paid in cash on January 15, 2020 and $500,000 was paid pursuant to the DRP in the form of additional shares of the Company’s common stock. On January 31, 2020, the Company declared a distribution in the aggregate amount of $2.0 million, of which $1.5 million was paid in cash on February 15, 2020 and $500,000 was paid pursuant to the DRP in the form of additional shares of the Company’s common stock. On February 29, 2020, the Company declared a distribution in the aggregate amount of $1.9 million of which $1.4 million was paid in cash on March 15, 2020 and $500,000 was paid pursuant to the DRP in the form of additional shares of the Company’s common stock. Suspension of Public Offering On March 24, 2020, the Company’s board of directors determined to suspend the sale of shares of the Company’s common stock in the Company’s public offering, effective as of March 25, 2020. Suspension of Distributions On March 24, 2020, the Company’s board of directors determined to suspend the payment of all distributions to the Company’s stockholders, effective immediately. Suspension of Distribution Reinvestment Plan On March 24, 2020, in light of its determination to suspend the payment of all distributions, the Company’s board of directors also determined to suspend the operation of the DRP, effective as of April 6, 2020. Suspension of Share Repurchase Program On March 24, 2020, the Company’s board of directors determined to suspend the operation of the Company’s share repurchase program, effective as of April 6, 2020. Payment by Advisor to Holders of Class I Shares On January 17, 2020, the Advisor agreed to make a one-time cash payment to holders of the Company’s Class I shares acquired subsequent to January 16, 2018 (the date that the Contingent Advisor Payment first became payable) in an amount designed to compensate the holders of such Class I shares for the amount of the Contingent Advisor Payments attributable to such Class I shares (“Class I payment”). The Class I payment will be made by the Advisor prior to or upon the Company’s liquidation and dissolution or other liquidity event, provided that the specific timing of the Class I payment will be in the Advisor’s sole discretion.

SCHEDULE III REAL ESTATE ASSETS

SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION	12 Months Ended
	Dec. 31, 2019
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]
SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION	MOODY NATIONAL REIT II, INC. SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION DECEMBER 31, 2019 Initial Cost to Company Total Cost Description Location Ownership Percent Encumbrances Land Building, Improvements, and FF&E Total Cost Capitalized Subsequent to Acquisition Land Building, Improvements and FF&E Total (1) Accumulated Depreciation and Amortization Original Date of Construction Date Acquired Residence Inn Austin, Texas 100.0 % $ 16,300 $ 4,310 $ 23,190 $ 27,500 (2) $ 161 $ 4,310 $ 23,351 $ 27,661 $ 2,996 2014 October 15, 2015 Springhill Suites Seattle Seattle, Washington 100.0 % 44,165 14,040 60,060 74,100 8,334 14,040 68,394 82,434 6,476 2001 May 24, 2016 Homewood Suites The Woodlands, Texas 100.0 % 8,915 2,828 14,528 17,356 340 2,828 14,868 17,696 1,226 2001 September 27, 2017 Hyatt Place Germantown, Tennessee 100.0 % 6,865 1,874 14,200 16,074 648 1,874 14,848 16,722 1,191 2009 September 27, 2017 Hyatt Place North Charleston, 100.0 % 7,019 783 13,023 13,806 615 783 13,638 14,421 1,092 2009 September 27, 2017 Hampton Inn Austin, Texas 100.0 % 10,493 4,329 14,999 19,328 293 4,329 15,292 19,621 1,427 1997 September 27, 2017 Residence Inn Grapevine, Texas 100.0 % 12,114 2,028 23,217 25,245 568 2,028 23,785 25,813 1,913 2007 September 27, 2017 Marriott Courtyard Lyndhurst, New Jersey (3 ) 18,934 2,663 36,884 39,547 369 2,663 37,253 39,916 2,988 1990 September 27, 2017 Hilton Garden Inn Austin, Texas 100.0 % 18,080 9,058 20,230 29,288 526 9,058 20,756 29,814 1,945 2002 September 27, 2017 Hampton Inn Frazer, Pennsylvania 100.0 % 7,861 1,730 13,555 15,285 1,732 1,730 15,287 17,017 1,570 1998 September 27, 2017 Embassy Suites Nashville, Tennessee 100.0 % 41,250 14,805 67,402 82,207 4,160 14,805 71,562 86,367 5,532 2001 September 27, 2017 Homewood Suites Austin, Texas 100.0 % 10,602 4,218 14,617 18,835 792 4,218 15,409 19,627 1,461 1998 September 27, 2017 TownPlace Suites Fort Worth, Texas (3 ) 5,979 4,240 7,002 11,242 71 4,240 7,073 11,313 719 1998 September 27, 2017 Hampton Inn Houston, Texas 100.0 % 4,366 3,550 6,408 9,958 3,340 3,550 9,748 13,298 1,137 1995 September 27, 2017 Residence Inn Houston Medical Center Houston, Texas 100.0 % 31,847 6,480 45,520 52,000 17 6,480 45,537 52,017 1,039 2019 April 29, 2019 Total $ 244,790 $ 76,936 $ 374,835 $ 451,771 $ 21,966 $ 76,936 $ 396,801 $ 473,737 $ 32,712 (1) The aggregate cost of real estate for federal income tax purposes was $429 million as of December 31, 2019. (2) Includes gain on acquisition of hotel property of $2.0 million. (3) 100% of the Class B membership interests of a joint venture. 2019 2018 Real estate: Balance at the beginning of the year $ 411,768 $ 403,180 Acquisitions 52,000 — Improvements and additions 9,969 8,588 Dispositions — — Balance at the end of the year $ 473,737 $ 411,768 Accumulated depreciation: Balance at the beginning of the year $ 18,628 $ 6,545 Depreciation 14,084 12,083 Dispositions — — Balance at the end of the year $ 32,712 $ 18,628

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	B asis 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.
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“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 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 aggregate 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. The Company’s organization and offering costs incurred in connection with the Company’s initial public offering did not exceed 15% of the gross offering proceeds from the sale of our shares of common stock in such offering. All offering costs, including selling commissions and dealer manager fees, are recorded as an offset to additional paid-in-capital, and all organization costs are recorded as an expense when the Company has an obligation to reimburse the Advisor. As of December 31, 2019, total offering costs for the initial public offering and the follow-on offering were $20.6 million, comprised of $12.3 million of offering costs incurred directly by the Company and $8.3 million in offering costs incurred by and reimbursable to the Advisor. Total offering costs for the initial public offering were $18.3 million, comprised of $12.3 million of offering costs incurred directly by the Company and $6.0 million in offering costs incurred by and reimbursable to the Advisor. As of December 31, 2019, total offering costs for the follow-on offering were $2.3 million, comprised of $0 of offering costs incurred directly by the Company and $2.3 million in offering costs incurred by and reimbursable to the Advisor. As of December 31, 2019, the Company had $286,000 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 was 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. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period prior to when the new rates become effective. 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 December 31, 2019. The preparation of the Company’s various tax returns requires the use of estimates for federal and state income tax purposes. These estimates may be subjected to review by the respective taxing authorities. A revision to an estimate may result in an assessment of additional taxes, penalties and interest. At this time, a range in which the Company’s estimates may change is not expected to be material. The Company will account for interest and penalties relating to uncertain tax positions in the current period results of operations, if necessary. The Company has tax years 2014 through 2018 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. 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 has elected the fair value option in recording its investment in marketable securities whereby unrealized holding gains and losses on available-for-sale securities are included in earnings. With the exception of the Company’s fixed-rate notes receivable from related parties and notes payable, the carrying amounts of other financial instruments, which include cash and cash equivalents, restricted cash, accounts receivable, notes receivable, notes payable, and accounts payable and accrued expenses, approximate their fair values due to their short-term nature. For the fair value of the Company’s note receivable from related parties and notes payable, see Note 4 and “Notes Receivable from Related Parties” and Note 5, “Debt.”
Concentration of Risk	Concentration of Risk As of December 31, 2019, 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 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 nine of its fifteen hotel properties are located in one state, Texas.
Valuation and Allocation of Hotel Properties - 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 Properties - Ownership	Valuation and Allocation of Hotel Properties — Ownership Investment in hotel properties is recorded at cost less accumulated depreciation. Major improvements that extend the life of an asset are capitalized and depreciated over a period equal to the shorter of the life of the improvement or the remaining useful life of the asset. The costs of ordinary repairs and maintenance are charged to expense when incurred. Depreciation expense is computed using the straight-line method based upon the following estimated useful lives: Estimated Buildings and improvements 39-40 Exterior improvements 10-20 Furniture, fixtures and equipment 5-10
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 years ended December 31, 2019 and 2018. 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 years 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.
Investment in Marketable Securities	Investment in Marketable Securities Investment in marketable securities of $5.9 million at December 31, 2019 consists primarily of common stock investments in other REITs and which are classified as available-for-sale securities and recorded at fair value. The Company has elected the fair value option whereby unrealized holding gains and losses on available-for-sale securities are included in earnings. For the years ended December 31, 2019 and 2018, unrealized gain on investment in marketable securities was $197,000 and $0, respectively. For the years ended December 31, 2019 and 2018, realized gain on investment in marketable securities was $9,000 and $0, respectively. Dividend income is recognized when earned. For the years ended December 31, 2019 and 2018, dividend income of $399,000 and $0, respectively, was recognized and is included in interest and dividend income on the consolidated statements of operations.
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 years ended December 31, 2019 or 2018.
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 $217,000 and $134,000 as of December 31, 2019 and 2018, respectively. Expected future amortization of deferred franchise costs as of December 31, 2019 is as follows (in thousands): Years Ending December 31, 2020 $ 83 2021 83 2022 82 2023 80 2024 77 Thereafter 445 Total $ 850
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 $4.0 million and $3.0 million as of December 31, 2019 and 2018, respectively. Expected future amortization of debt issuance costs as of December 31, 2019 is as follows (in thousands): Years Ending December 31, 2020 $ 679 2021 677 2022 677 2023 632 2024 440 Thereafter 188 Total $ 3,293
Earnings (Loss) per Share	Earnings (Loss) per Share Earnings (loss) per share (“EPS”) is calculated based on the weighted average number of shares outstanding during each period. Basic and diluted EPS are the same for all periods presented. Non-vested shares of restricted common stock totaling 7,500 shares as of December 31, 2019 and 2018, 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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements 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. The standard requires a modified retrospective approach, with restatement of the prior periods presented in the year of adoption, subject to any FASB modifications. This standard will be effective for the first annual reporting period beginning after December 15, 2018. The Company adopted this standard on January 1, 2019. In evaluating the effect that ASU No. 2016-02 will have on the Company’s consolidated financial statements and related disclosures, the Company believes the impact will be minimal to the Company’s ongoing consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities,” which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and simplifies the application of hedge accounting. This standard will be effective for the first annual period beginning after December 15, 2018, including interim periods within those periods. Early adoption is permitted. The Company adopted this standard on January 1, 2018 and aside from minor presentation changes in its disclosure on derivative and hedging activities, it will not have a material effect on the Company’s ongoing consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Schedule of estimated useful lives, real property	Depreciation expense is computed using the straight-line method based upon the following estimated useful lives: Estimated Buildings and improvements 39-40 Exterior improvements 10-20 Furniture, fixtures and equipment 5-10
Schedule of expected future amortization of deferred franchise costs	Expected future amortization of deferred franchise costs as of December 31, 2019 is as follows (in thousands): Years Ending December 31, 2020 $ 83 2021 83 2022 82 2023 80 2024 77 Thereafter 445 Total $ 850
Schedule of expected future amortization of deferred issuance costs	Expected future amortization of debt issuance costs as of December 31, 2019 is as follows (in thousands): Years Ending December 31, 2020 $ 679 2021 677 2022 677 2023 632 2024 440 Thereafter 188 Total $ 3,293

Investments in Hotel Properties

Investments in Hotel Properties (Tables)	12 Months Ended
	Dec. 31, 2019
Real Estate [Abstract]
Schedule of investments in hotel properties	The following table sets forth summary information regarding the Company’s investment in hotel properties as of December 31, 2019 (all $ amounts in thousands): Property Name Date Acquired Location Ownership Interest Original Purchase (1) Rooms Mortgage (2) Residence Inn Austin October 15, 2015 Austin, Texas 100 % $ 27,500 112 $ 16,300 Springhill Suites Seattle May 24, 2016 Seattle, Washington 100 % 74,100 234 44,165 Homewood Suites Woodlands September 27, 2017 (5) The Woodlands, Texas 100 % 17,356 91 8,915 Hyatt Place Germantown September 27, 2017 (5) Germantown, Tennessee 100 % 16,074 127 6,865 Hyatt Place North Charleston September 27, 2017 (5) North Charleston, 100 % 13,806 113 7,019 Hampton Inn Austin September 27, 2017 (5) Austin, Texas 100 % 19,328 123 10,493 Residence Inn Grapevine September 27, 2017 (5) Grapevine, Texas 100 % 25,245 133 12,114 Marriott Courtyard Lyndhurst September 27, 2017 (5) Lyndhurst, New Jersey (3 ) 39,547 227 18,934 Hilton Garden Inn Austin September 27, 2017 (5) Austin, Texas 100 % 29,288 138 18,080 Hampton Inn Great September 27, 2017 (5) Frazer, Pennsylvania 100 % 15,285 125 7,861 Embassy Suites Nashville September 27, 2017 (5) Nashville, Tennessee 100 % 82,207 208 41,250 Homewood Suites Austin September 27, 2017 (5) Austin, Texas 100 % 18,835 96 10,602 Townplace Suites Fort Worth September 27, 2017 (5) Fort Worth, Texas (4 ) 11,242 95 5,979 Hampton Inn Houston September 27, 2017 (5) Houston, Texas 100 % 9,958 119 4,366 Residence Inn Houston Medical Center April 29, 2019 (6) Houston, Texas 100 % 52,000 182 31,847 Totals $ 451,771 2,123 $ 244,790 (1) Excludes closing costs and includes gain on acquisition. (2) As of December 31, 2019. (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. The Marriott Courtyard Lyndhurst is pledged as security for the Term Loan. See Note 5, “Debt.” (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. The Townplace Suites Fort Worth is pledged as security for the Term Loan. See Note 5, “Debt.” (5) Property acquired on September 27, 2017 as a result of the merger of Moody National REIT I, Inc. (“Moody I”) with and into the Company (the “Merger”) and the merger of Moody National Operating Partnership I, L.P., the operating partnership of Moody I (“Moody I OP”), with and into the OP (the “Partnership Merger,” and together with the Merger, the “Mergers”). (6) Includes balance of $29.0 million for first mortgage loan and balance of $2.9 million for promissory note payable to seller of the Residence Inn Houston Medical Center in the original principal amount of $22.6 million.
Schedule of components of the investments in hotel properties	Investment in hotel properties consisted of the following at December 31, 2019 and 2018 (in thousands): December 31, 2019 2018 Land $ 76,936 $ 70,456 Buildings and improvements 338,729 297,680 Furniture, fixtures and equipment 58,072 43,632 Total cost 473,737 411,768 Accumulated depreciation (32,712 ) (18,628 ) Investment in hotel properties, net $ 441,025 $ 393,140
Schedule of merger consideration	The following table presents a summary of assets acquired and the purchase price consideration in the acquisition of the Residence Inn Houston (in thousands): Assets acquired at fair value: Land $ 6,480 Building 40,920 Furniture, fixtures and equipment 4,600 Net assets acquired at fair value $ 52,000 Purchase price consideration: Cash $ 350 Existing Loan 29,100 Note payable to related party 22,550 Purchase price consideration $ 52,000
Schedule of pro forma consolidated financial information	This information is not necessarily indicative of what the actual results of operations would have been had the Company completed the acquisition of the Residence Inn Houston on January 1, 2018, nor does it purport to represent the Company’s future operations (in thousands, except per common share amounts): Years ended 2019 2018 Revenue $ 87,810 $ 90,533 Net loss (10,177 ) (7,984 ) Net loss attributable to common shareholders (9,845 ) (7,675 ) Net loss per common share - basic and diluted $ (0.82 ) $ (0.80 )

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2019
Debt Disclosure [Abstract]
Schedule of mortgage notes payable secured by the respective assets	As of December 31, 2019 and 2018, the Company’s mortgage notes payable secured by the respective assets, consisted of the following (all $ amounts in thousands): Loan Principal as of December 31, 2019 Principal as of December 31, 2018 Interest Rate at December 31, 2019 Maturity Date Residence Inn Austin (1) $ 16,300 $ 16,554 4.580 % November 1, 2025 Springhill Suites Seattle (1) 44,165 44,884 4.380 % October 1, 2026 Homewood Suites Woodlands (1) 8,915 9,066 4.690 % April 11, 2025 Hyatt Place Germantown (1) 6,865 7,025 4.300 % May 6, 2023 Hyatt Place North Charleston (1) 7,019 7,158 5.193 % August 1, 2023 Hampton Inn Austin (1) 10,493 10,687 5.426 % January 6, 2024 Residence Inn Grapevine (1) 12,114 12,341 5.250 % April 6, 2024 Marriott Courtyard Lyndhurst (1) 18,934 — 4.700 % September 27, 2024 Hilton Garden Inn Austin (1) 18,080 18,401 4.530 % December 11, 2024 Hampton Inn Great Valley (1) 7,861 7,994 4.700 % April 11, 2025 Embassy Suites Nashville (1) 41,250 41,998 4.2123 % July 11, 2025 Homewood Suites Austin (1) 10,602 10,778 4.650 % August 11, 2025 Townplace Suites Fort Worth (1) 5,979 — 4.700 % September 27, 2024 Hampton Inn Houston (1) 4,366 4,480 6.750 % April 28, 2023 Residence Inn Houston Medical Center (4) 28,953 — 5.000 % October 1, 2024 Term Loan (2) — 26,300 30-day LIBOR plus 3.750 % September 27, 2019 Short Term Loan (3) — 12,970 30-day LIBOR plus 2.50 % April 24, 2019 Total notes payable 241,896 230,636 Less unamortized debt issuance costs (3,293 ) (3,462 ) Total notes payable, net of unamortized debt issuance costs $ 238,603 $ 227,174 (1) Monthly payments of principal and interest are due and payable until the maturity date. (2) Monthly payments of principal and interest are due and payable until the maturity date. On October 24, 2018, the maturity date of the Term Loan was extended to September 27, 2019. All unpaid principal and interest thereon was repaid in full on September 27, 2019, the maturity date. (3) Monthly payments of principal and interest were due and payable until the maturity date. All unpaid principal and interest thereon was repaid in full on April 24, 2019, the maturity date. (4) Monthly payments of interest due and payable until October 2019. Monthly payments of principal and interest due and payable beginning in November 2019 until the maturity date.
Schedule of maturities of notes payable	Scheduled maturities of the Company’s notes payable as of December 31, 2019 are as follows (in thousands): Years ending December 31, 2020 $ 4,567 2021 4,870 2022 5,108 2023 21,597 2024 89,112 Thereafter 116,642 Total $ 241,896

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
Schedule of outstanding shares of Incentive Award Plan	“Incentive Award Plan,” as follows (in thousands): Class Shares Outstanding as of December 31, 2019 Class A Shares 12,640 Class T Shares 457 Class I Shares 154 Total 13,251
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 three and year ended December 31, 2019 and 2018 (in thousands): Period Cash Distribution Distribution (1) Total Amount of Distribution First Quarter 2019 $ 3,517 $ 1,121 $ 4,638 Second Quarter 2019 3,858 1,228 5,086 Third Quarter 2019 4,097 1,302 5,399 Fourth Quarter 2019 4,225 1,348 5,573 Total $ 15,697 $ 4,999 $ 20,696 First Quarter 2018 $ 3,218 $ 634 $ 3,852 Second Quarter 2018 3,039 963 4,002 Third Quarter 2018 3,241 1,034 4,275 Fourth Quarter 2018 3,437 1,087 4,524 Total $ 12,935 $ 3,718 $ 16,653 (1) Amount of distributions paid in shares of common stock pursuant to the DRP.

Incentive Award Plan (Tables)

Incentive Award Plan (Tables)	12 Months Ended
	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of activity under the Independent Directors Compensation Plan	The following is a summary of activity under the Independent Directors Compensation Plan for the years ended December 31, 2019 and 2018: Number of Shares Weighted Average Grant Date Fair Value Balance of non-vested shares as of December 31, 2017 11,250 $ 27.82 Shares granted on August 13, 2018 10,000 $ 23.19 Shares vested (13,750 ) $ 26.98 Balance of non-vested shares as of December 31, 2018 7,500 $ 23.19 Shares granted on August 5, 2019 10,000 $ 23.32 Shares vested (10,000 ) $ 23.22 Balance of non-vested shares as of December 31, 2019 7,500 $ 23.32

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Schedule of composition of restricted cash	The composition of the Company’s restricted cash as of December 31, 2019 and 2018 are as follows (in thousands): December 31, 2019 2018 Property improvement plan $ 190 $ 1,239 Real estate taxes 3,040 2,894 Insurance 235 231 Hotel furniture and fixtures 3,283 4,178 Debt service 939 764 Seasonality 888 883 Rent holdback 15 15 Immediate repairs 55 — Total restricted cash $ 8,645 $ 10,204

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Schedule of income tax expense (benefit)	The income tax expense (benefit) for the years ended December 31, 2019 and 2018 consisted of the following (in thousands): Years ended December 31, 2019 2018 Current expense $ 183 $ 158 Deferred benefit (2,112 ) (1,194 ) Valuation provision for deferred benefit 2,112 1,194 Total expense, net $ 183 $ 158 Federal $ (2,112 ) $ (1,194 ) Valuation provision for federal taxes 2,112 1,194 State 183 158 Total tax expense $ 183 $ 158
Schedule of reconciliation of income tax expense (benefit)	The reconciliation of income tax expense (benefit) to the expected amount computed by applying federal statutory rate to income before income taxes is as follows: Years ended December 31, 2019 2018 Expected federal tax benefit at statutory rate $ (2,676 ) $ (1,998 ) Tax impact of REIT election 2,859 2,156 Income tax expense (benefit) $ 183 $ 158

Organization (Details Narrative

Organization (Details Narrative) $ / shares in Units, shares in Thousands, $ in Thousands	Jan. 18, 2019USD ($)	Dec. 31, 2019USD ($)Number$ / sharesshares	Dec. 31, 2018USD ($)$ / shares	Jun. 26, 2017$ / shares	Jan. 20, 2015USD ($)
Number of rooms | Number		2,123
Marketable securities		$ 5,936
Share price (in dollars per share) | $ / shares		$ 23.32	$ 23.32
Common stock, par value | $ / shares		$ 0.01	$ 0.01
Special Limited Partnership Interests		$ 1	$ 1
Value of shares issueable under registration statement	$ 990,000
Class A Shares [Member]
Common stock, par value | $ / shares				$ 0.01
Class D Shares [Member]
Common stock, par value | $ / shares				0.01
Class I Shares [Member]
Common stock, par value | $ / shares				0.01
Class T Shares [Member]
Common stock, par value | $ / shares				$ 0.01
Follow-On Offering [Member]
Issuance of common stock, net of offering costs (in shares) | shares		3,700
Issuance of common stock pursuant to dividend reinvestment plan (in shares) | shares		292
Proceeds from stock and DRIP offering		$ 78,800
Initial Public Offering [Member]
Common stock, authorized, value					$ 1,000,000
Common stock, authorized in Distribution Reinvestment Plan, value					100,000
Issuance of common stock, net of offering costs (in shares) | shares		6,100
Issuance of common stock pursuant to dividend reinvestment plan (in shares) | shares		215
Proceeds from stock and DRIP offering		$ 147,400
Initial Public Offering [Member] | Class A Shares [Member]
Issuance of common stock, net of offering costs (in shares) | shares		9,800
Initial Public Offering [Member] | Maximum [Member]
Common stock, authorized, value					$ 1,100,000
Initial Public Offering and Follow-on Offering [Member]
Issuance of common stock, net of offering costs (in shares) | shares		9,800
Issuance of common stock pursuant to dividend reinvestment plan (in shares) | shares		507
Proceeds from stock and DRIP offering		$ 226,200

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details)	12 Months Ended
	Dec. 31, 2019
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 Accoun_5

Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Expected future amortization of deferred franchise costs, year ending December 31,
Total	$ 3,293	$ 3,462
Franchise Costs [Member]
Expected future amortization of deferred franchise costs, year ending December 31,
2020	83
2021	83
2022	82
2023	80
2024	77
Thereafter	445
Total	$ 850

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Expected future amortization of deferred loan costs, year ending December 31,
Total	$ 3,293	$ 3,462
Loan Costs [Member]
Expected future amortization of deferred loan costs, year ending December 31,
2020	679
2021	677
2022	677
2023	632
2024	440
Thereafter	188
Total	$ 3,293

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Marketable securities	$ 5,936
Marketable securities, unrealized gain (loss)	197
Marketable securities, realized gain (loss)	9
Dividend income	399	$ 0
Deferred franchise costs, accumulated amortization	217	134
Debt issuance costs, accumulated amortization	$ 4,000	$ 3,000
Nonvested restricted stock included in earnings per share	7,500	7,500
Advisor [Member]
Percentage of organization and offering costs	15.00%
Total offering costs	$ 20,600
Offering cost directly incurred by company	12,300
Offering cost reimbursed to advisor	8,300
Payment from advisor for reimbursable offering costs	286
Initial Public Offering [Member] | Advisor [Member]
Total offering costs	18,300
Offering cost directly incurred by company	12,300
Offering cost reimbursed to advisor	6,000
Follow-On Offering [Member] | Advisor [Member]
Total offering costs	2,300
Offering cost directly incurred by company	0
Offering cost reimbursed to advisor	$ 2,300

Investment in Hotel Properties

Investment in Hotel Properties (Details) $ in Thousands		Apr. 29, 2019USD ($)	Dec. 31, 2019USD ($)Number
Original Purchase Price	[1]		$ 451,771
Rooms | Number			2,123
Mortgage Debt Outstanding	[2]		$ 244,790
Residence Inn Austin [Member]
Date Acquired			Oct. 15, 2015
Location			Austin, Texas
Ownership percentage			100.00%
Residence Inn Austin [Member] | TEXAS [Member]
Property Name			Residence Inn Austin
Date Acquired			Oct. 15, 2015
Location			Austin, Texas
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 27,500
Rooms | Number			112
Mortgage Debt Outstanding	[2]		$ 16,300
Springhill Suites Seattle [Member]
Date Acquired			May 24, 2016
Location			Seattle, Washington
Ownership percentage			100.00%
Springhill Suites Seattle [Member] | WASHINGTON [Member]
Property Name			Springill Suites Seattle
Date Acquired			May 24, 2016
Location			Seattle, Washington
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 74,100
Rooms | Number			234
Mortgage Debt Outstanding	[2]		$ 44,165
Homewood Suites Woodlands [Member] | TEXAS [Member]
Property Name			Homewood Suites Woodlands
Date Acquired	[3]		Sep. 27, 2017
Location			The Woodlands, Texas
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 17,356
Rooms | Number			91
Mortgage Debt Outstanding	[2]		$ 8,915
Hyatt Place Germantown [Member] | Tennessee [Member]
Property Name			Hyatt Place Germantown
Date Acquired	[3]		Sep. 27, 2017
Location			Germantown, Tennessee
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 16,074
Rooms | Number			127
Mortgage Debt Outstanding	[2]		$ 6,865
Hyatt Place North Charleston [Member] | South Carolina [Member]
Property Name			Hyatt Place North Charleston
Date Acquired	[3]		Sep. 27, 2017
Location			North Charleston, South Carolina
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 13,806
Rooms | Number			113
Mortgage Debt Outstanding	[2]		$ 7,019
Hampton Inn Austin [Member] | TEXAS [Member]
Property Name			Hampton Inn Austin
Date Acquired	[3]		Sep. 27, 2017
Location			Austin, Texas
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 19,328
Rooms | Number			123
Mortgage Debt Outstanding	[2]		$ 10,493
Residence Inn Grapevine [Member] | TEXAS [Member]
Property Name			Residence Inn Grapevine
Date Acquired	[3]		Sep. 27, 2017
Location			Grapevine, Texas
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 25,245
Rooms | Number			133
Mortgage Debt Outstanding	[2]		$ 12,114
Marriott Courtyard Inn Lyndhurst [Member] | New Jersey [Member]
Property Name			Marriott Courtyard Lyndhurst
Date Acquired	[3]		Sep. 27, 2017
Location			Lyndhurst, New Jersey
Original Purchase Price	[1]		$ 39,547
Rooms | Number			227
Mortgage Debt Outstanding	[2]		$ 18,934
Hilton Garden Inn Austin [Member] | TEXAS [Member]
Property Name			Hilton Garden Inn Austin
Date Acquired	[3]		Sep. 27, 2017
Location			Austin, Texas
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 29,288
Rooms | Number			138
Mortgage Debt Outstanding	[2]		$ 18,080
Hampton Inn Great Valley [Member] | Pennsylvania [Member]
Property Name			Hampton Inn Great Valley
Date Acquired	[3]		Sep. 27, 2017
Location			Frazer, Pennsylvania
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 15,285
Rooms | Number			125
Mortgage Debt Outstanding	[2]		$ 7,861
Embassy Suites Nashville [Member] | Tennessee [Member]
Property Name			Embassy Suites Nashville
Date Acquired	[3]		Sep. 27, 2017
Location			Nashville, Tennessee
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 82,207
Rooms | Number			208
Mortgage Debt Outstanding	[2]		$ 41,250
Homewood Suites Austin [Member] | TEXAS [Member]
Property Name			Homewood Suites Austin
Date Acquired	[3]		Sep. 27, 2017
Location			Austin, Texas
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 18,835
Rooms | Number			96
Mortgage Debt Outstanding	[2]		$ 10,602
Townplace Suites Fort Worth [Member] | TEXAS [Member]
Property Name			Townplace Suites Fort Worth
Date Acquired	[3]		Sep. 27, 2017
Location			Fort Worth, Texas
Original Purchase Price	[1]		$ 11,242
Rooms | Number			95
Mortgage Debt Outstanding	[2]		$ 5,979
Hampton Inn Houston [Member] | TEXAS [Member]
Property Name			Hampton Inn Houston
Date Acquired	[3]		Sep. 27, 2017
Location			Houston, Texas
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 9,958
Rooms | Number			119
Mortgage Debt Outstanding	[2]		$ 4,366
Residence Inn Houston Medical Center [Member]
Original Purchase Price		$ 52,000
Residence Inn Houston Medical Center [Member] | TEXAS [Member]
Property Name			Residence Inn Houston Medical Center
Date Acquired	[4]		Apr. 29, 2019
Location			Houston, Texas
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 52,000
Rooms | Number			182
Mortgage Debt Outstanding	[2]		$ 31,847
[1]	Excludes closing costs and includes gain on acquisition.
[2]	As of December 31, 2019.
[3]	Property acquired on September 27, 2017 as a result of the merger of Moody National REIT I, Inc. ("Moody I") with and into the Company (the "Merger") and the merger of Moody National Operating Partnership I, L.P., the operating partnership of Moody I ("Moody I OP"), with and into the OP (the "Partnership Merger," and together with the Merger, the" Mergers").
[4]	Includes balance of $29.0 million for first mortgage loan and balance of $2.9 million for promissory note payable to seller of the Residence Inn Houston Medical Center in the original principal amount of $22.6 million.

Investment in Hotel Propertie_2

Investment in Hotel Properties (Details 1) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Real Estate [Abstract]
Land	$ 76,936	$ 70,456
Buildings and improvements	338,729	297,680
Furniture, fixtures and equipment	58,072	43,632
Total cost	473,737	411,768
Accumulated depreciation	(32,712)	(18,628)
Investment in hotel properties, net	$ 441,025	$ 393,140

Investment in Hotel Propertie_3

Investment in Hotel Properties (Details 2) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018
Assets acquired at fair value:
Land		$ 76,936	$ 70,456
Building		338,729	297,680
Furniture, fixtures and equipment		58,072	43,632
Total cost		473,737	$ 411,768
Purchase price consideration:
Purchase price consideration	[1]	451,771
Residence Inn Houston [Member]
Assets acquired at fair value:
Land		6,480
Building		40,920
Furniture, fixtures and equipment		4,600
Total cost		52,000
Purchase price consideration:
Cash		350
Existing Loan		29,100
Note payable to related party		22,550
Purchase price consideration		$ 52,000
[1]	Excludes closing costs and includes gain on acquisition.

Investment in Hotel Propertie_4

Investment in Hotel Properties (Details 3) - Residence Inn Houston [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Revenue	$ 87,810	$ 90,533
Net loss	(10,177)	(7,984)
Net loss attributable to common shareholders	$ (9,845)	$ (7,675)
Net loss per common share - basic and diluted	$ (0.82)	$ (0.80)

Investment in Hotel Propertie_5

Investment in Hotel Properties (Details Narrative) - USD ($) $ in Thousands		Oct. 15, 2019	Oct. 02, 2019	Apr. 29, 2019	Dec. 31, 2019		Sep. 13, 2017
Purchase price consideration	[1]				$ 451,771
Residence Inn Houston Medical Center [Member]
Purchase price consideration				$ 52,000
Existing Loan				28,180
Note payable to related party				$ 22,550	$ 22,600
Principal amount							$ 29,100
Interest rate				5.00%	5.00%	[2]
Debt instrument periodic payment		$ 2,000	$ 170	$ 7,800
Mortgage loan					$ 29,100
Maturity date		Jun. 15, 2020	Oct. 1, 2014		Oct. 1, 2024	[2]
Late fees interest rate		5.00%	18.00%
Residence Inn Houston Medical Center [Member] | Advisor [Member]
Acquisition fee				2,002
Contingent acquisition fee				1,222
Debt financing fee				$ 290
Residence Inn Houston Medical Center [Member] | Note Payable To Related Party [Member]
Note payable to related party					$ 2,900
Date of acquisition					Apr. 29, 2019
Residence Inn Houston [Member]
Purchase price consideration					$ 52,000
Existing Loan					29,100
Note payable to related party					$ 22,550
Maximum [Member] | Residence Inn Houston Medical Center [Member] | Note Payable To Related Party [Member]
Interest rate					3.00%
[1]	Excludes closing costs and includes gain on acquisition.
[2]	Monthly payments of interest due and payable until October 2019. Monthly payments of principal and interest due and payable beginning in November 2019 until the maturity date.

Notes Receivable from Related_2

Notes Receivable from Related Parties (Details Narrative) - USD ($) $ in Thousands	Aug. 21, 2015	Dec. 31, 2019	Dec. 31, 2018
Notes receivable from related parties		$ 0	$ 6,750
Interest receivable		0	810
Interest income on notes receivable from related parties		$ 264	8,649
Fair value of notes receivable			$ 6,750
Unsecured Loan [Member] | Moody National DST Sponsor, LLC [Member]
Face amount	$ 9,000
Notes receivable origination fee	90
Notes receivable extension fee	$ 45

Debt (Details)

Debt (Details) - USD ($) $ in Thousands		Oct. 15, 2019	Oct. 02, 2019	Dec. 31, 2019		Apr. 29, 2019	Dec. 31, 2018
Short-term Debt [Line Items]
Principal Amount				$ 241,896			$ 230,636
Less unamortized debt issuance costs				(3,293)			(3,462)
Total notes payable, net of unamortized debt issuance costs				238,603			227,174
Residence Inn Houston Medical Center [Member]
Short-term Debt [Line Items]
Principal Amount	[1]			$ 28,953
Interest Rate				5.00%	[1]	5.00%
Maturity Date		Jun. 15, 2020	Oct. 1, 2014	Oct. 1, 2024	[1]
Residence Inn Austin [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 16,300			16,554
Interest Rate	[2]			4.58%
Maturity Date	[2]			Nov. 1, 2025
Springhill Suites Seattle [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 44,165			44,884
Interest Rate	[2]			4.38%
Maturity Date	[2]			Oct. 1, 2026
Homewood Suites Woodlands [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 8,915			9,066
Interest Rate	[2]			4.69%
Maturity Date	[2]			Apr. 11, 2025
Hyatt Place Germantown [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 6,865			7,025
Interest Rate	[2]			4.30%
Maturity Date	[2]			May 6, 2023
Hyatt Place North Charleston [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 7,019			7,158
Interest Rate	[2]			5.193%
Maturity Date	[2]			Aug. 1, 2023
Hampton Inn Austin [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 10,493			10,687
Interest Rate	[2]			5.426%
Maturity Date	[2]			Jan. 6, 2024
Residence Inn Grapevine [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 12,114			12,341
Interest Rate	[2]			5.25%
Maturity Date	[2]			Apr. 6, 2024
Hilton Garden Inn Austin [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 18,080			18,401
Interest Rate	[2]			4.53%
Maturity Date	[2]			Dec. 11, 2024
Hampton Inn Great Valley [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 7,861			7,994
Interest Rate	[2]			4.70%
Maturity Date	[2]			Apr. 11, 2025
Embassy Suites Nashville [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 41,250			41,998
Interest Rate	[2]			4.2123%
Maturity Date	[2]			Jul. 11, 2025
Homewood Suites Austin [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 10,602			10,778
Interest Rate	[2]			4.65%
Maturity Date	[2]			Aug. 11, 2025
Hampton Inn Houston [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 4,366			4,480
Interest Rate	[2]			6.75%
Maturity Date	[2]			Apr. 28, 2023
Term Loan [Member]
Short-term Debt [Line Items]
Principal Amount	[3]						26,300
Maturity Date	[3]			Sep. 27, 2019
Description on interest rate	[3]			30-day LIBOR plus 3.750%
Short Term Loan [Member]
Short-term Debt [Line Items]
Principal Amount	[4]						12,970
Maturity Date	[4]			Apr. 24, 2019
Description on interest rate	[4]			30-day LIBOR plus 2.50%
Marriott Courtyard Lyndhurst [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 18,934
Interest Rate	[2]			4.70%
Maturity Date	[2]			Sep. 27, 2024
Townplace Suites Fort Worth [Member]
Short-term Debt [Line Items]
Principal Amount	[2]			$ 5,979
Interest Rate	[2]			4.70%
Maturity Date	[2]			Sep. 27, 2024
[1]	Monthly payments of interest due and payable until October 2019. Monthly payments of principal and interest due and payable beginning in November 2019 until the maturity date.
[2]	Monthly payments of principal and interest are due and payable until the maturity date.
[3]	Monthly payments of principal and interest are due and payable until the maturity date. On October 24, 2018, the maturity date of the Term Loan was extended to September 27, 2019. All unpaid principal and interest thereon was repaid in full on September 27, 2019, the maturity date.
[4]	Monthly payments of principal and interest were due and payable until the maturity date. All unpaid principal and interest thereon was repaid in full on April 24, 2019, the maturity date.

Debt (Details 1)

Debt (Details 1) $ in Thousands	Dec. 31, 2019USD ($)
Maturities of notes payable for the year ending December 31,
2020	$ 4,567
2021	4,870
2022	5,108
2023	21,597
2024	89,112
Thereafter	116,642
Total	$ 241,896

Debt (Details Narrative)

Debt (Details Narrative) - USD ($) $ in Thousands	Oct. 24, 2018	Oct. 24, 2018	Nov. 30, 2017	Sep. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Sep. 27, 2017
Principal amount					$ 241,896
Fair value of notes payable					$ 241,900	$ 231,000
Term Loan Agreement [Member]
Principal amount	$ 26,500	$ 26,500
Gross offering proceeds required quarterly				$ 10,000
Frequency of periodic payment		monthly
Principal payments of operating partnership consolidated net cash flows		50.00%
Principal payment		$ 100
Periodic payment		1,500	$ 1,500
OP [Member] | Term Loan Agreement [Member]
Face amount							$ 70,000
Minimum [Member] | Term Loan Agreement [Member]
Basis spread interest rate	2.75%
Maximum [Member] | Term Loan Agreement [Member]
Basis spread interest rate	3.75%
Green Bank, N.A [Member] | Promissory Note [Member]
Principal amount	$ 16,000	$ 16,000
Frequency of periodic payment	monthly
Basis spread interest rate	2.50%
Principal payments of operating partnership consolidated net cash flows	50.00%
Periodic payment	$ 1,500
Maturity date	Apr. 24, 2019

Equity (Details)

Equity (Details) - shares	Dec. 31, 2019	Dec. 31, 2018
Shares Outstanding	13,251,000	10,636,000
Class A Shares [Member]
Shares Outstanding	12,640,000
Class T Shares [Member]
Shares Outstanding	457,000
Class I Shares [Member]
Shares Outstanding	154,000

Equity (Details 1)

Equity (Details 1) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Stockholders' Equity Note [Abstract]
Cash Distribution	$ 4,225	$ 4,097	$ 3,858	$ 3,517	$ 3,437	$ 3,241	$ 3,039	$ 3,218	$ 15,697	$ 12,935
Distribution Paid Pursuant to DRIP	1,348	1,302	1,228	1,121	1,087	1,034	963	634	4,999	3,718
Total Amount of Distribution	$ 5,573	$ 5,399	$ 5,086	$ 4,638	$ 4,524	$ 4,275	$ 4,002	$ 3,852	$ 20,696	$ 16,653

Equity (Details Narrative)

Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Aug. 15, 2014	Dec. 31, 2019	Dec. 31, 2018	Jun. 26, 2017
Common stock, authorized		1,000,000,000	1,000,000,000
Preferred stock, authorized		100,000,000	100,000,000
Common stock, par value (in dollars per share)		$ 0.01	$ 0.01
Preferred stock, par value (in dollars per share)		$ 0.01	$ 0.01
Issuance of common stock, net of offering costs		$ 60,979	$ 41,915
Share Price (in dollars per share)		$ 23.32	$ 23.32
Common stock, shares issued		13,251,000	10,636,000
Common stock, shares outstanding		13,251,000	10,636,000
Outstanding shares of restricted stock		55,000
Distribution paid (in dollars per share)		$ 0.00480	$ 0.00480
Annualized distribution rate		$ 1.7528	$ 1.7528
Noncontrolling interest in operating partnership		$ 4,313	$ 5,199
Ownership units		316,000
Income (loss) attributable to noncontrolling interest in operating partnership		$ (332)	$ (309)
Class A Shares [Member]
Common stock, par value (in dollars per share)				$ 0.01
Common stock, shares outstanding		12,640,000
Initial Public Offering [Member]
Issuance of common stock, net of offering costs (in shares)		6,100,000
Initial Public Offering [Member] | Class A Shares [Member]
Issuance of common stock, net of offering costs (in shares)		9,800,000
Issuance of common stock in connection with Merger (in shares)		3,400,000
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

Related Party Arrangements (Det

Related Party Arrangements (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	5 Months Ended	12 Months Ended
	Jan. 16, 2019	Jun. 12, 2018	Dec. 31, 2019	Dec. 31, 2018
Value of shares purchased			$ 60,979	$ 41,915
Operating expenses reimbursable			1,300
Operating expenses			6,400
Notes receivable from related parties				6,750
The Company [Member]
Operating expenses			5,100
Advisor [Member]
Special partnership interest			1
Payments for commissions			8,800
Dealer manager fees			$ 7,600
Percent of organization and offering costs			15.00%
Total offering costs			$ 20,600
Offering cost directly incurred by company			12,300
Offering cost reimbursed to advisor			8,300
Payable to advisor for offering costs			$ 286,000
Percentage of acquisition fee	3.85%
Percentage of base acquisition fee	1.50%
Percentage of contingent advisor payment	2.35%
Debt financing fee percentage			1.00%
Debt financing fee refinanced percentage			0.75%
Asset management fee percentage			1.00%
Advisor expense reimbursement - alternative 1			2.00%
Advisor expense reimbursement - alternative 2			25.00%
Operating expenses reimbursable			$ 106,000
Operating expenses			1,300
Advisor [Member] | Asset Management [Member]
Property manager property management fees			4,500	4,200
Advisor [Member] | Initial Public Offering [Member]
Total offering costs			18,300
Offering cost directly incurred by company			12,300
Offering cost reimbursed to advisor			6,000
Advisor [Member] | Follow-On Offering [Member]
Total offering costs			2,300
Offering cost directly incurred by company			0
Offering cost reimbursed to advisor			$ 2,300
Advisor [Member] | Maximum [Member]
Percentage of disposition fee on sale of each property			3.00%
Maximum percentage of disposition fee and real estate commissions			6.00%
Advisor [Member] | Moody National REIT I, Inc [Member]
Acquisition fee			$ 2,000	2,000
Base acquisition fee			780	780
Contingent acquisition fee			1,200	0
financing coordination fees			478	0
Moody Securities [Member]
Percentage of selling commissions on gross offering	7.00%
Percentage of dealers manager fee on gross offering	6.00%
Payments for commissions			9,400
Dealer manager fees			$ 2,100
Moody Securities [Member] | Class A Shares [Member]
Percentage of selling commissions on gross offering		7.00%	3.00%
Percentage of dealers manager fee on gross offering		3.00%	2.50%
Moody National Hospitality Management, LLC - Property Manager (Member]
Monthly hotel management fee percentage			4.00%
Accounting fees			$ 438,000	420,000
Percentage of annual incentive fee			15.00%
Agreement term			10 years
Moody National Hospitality Management, LLC - Property Manager (Member] | Management And Administrative Service [Member]
Property manager property management fees			$ 3,400	$ 3,200

Incentive Award Plan (Details)

Incentive Award Plan (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
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	7,500	11,250
Shares vested	(10,000)	(13,750)
Balance of non-vested shares at end	7,500	7,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Balance of non-vested shares at beginning	$ 23.19	$ 27.82
Shares vested	23.22	26.98
Balance of non-vested shares at end	$ 23.32	$ 23.19
August 13, 2018 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Shares granted		10,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Shares granted		$ 23.19
August 5, 2019 Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]
Shares granted	10,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Shares granted	$ 23.32

Incentive Award Plan (Details N

Incentive Award Plan (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Stock-based compensation	$ 235	$ 361
Restricted Stock [Member] | Incentive Award Plan and Independent Directors Compensation Plan [Member]
Shares available for issuance	1,955,000
Board of Directors [Member] | Restricted Stock [Member] | Independent Directors Compensation Plan [Member]
Entitlement number of shares issued, minimum offering exceeds certain specified limit	5,000
Minimum offering amount threshold	$ 2,000
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	$ 235	$ 361
Nonvested of restricted stock common stock	7,500
Unrecognized compensation expense	$ 129

Subordinated Participation In_2

Subordinated Participation Interest (Details Narrative)	Dec. 31, 2019
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 Contingencies_2

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Property improvement plan	$ 190	$ 1,239
Real estate taxes	3,040	2,894
Insurance	235	231
Hotel furniture and fixtures	3,283	4,178
Debt service	939	764
Seasonality	888	883
Rent holdback	15	15
Immediate repairs	55
Total restricted cash	$ 8,645	$ 10,204

Commitments and Contingencies_3

Commitments and Contingencies (Details Narrative) - Moody National REIT I, Inc [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Franchise fees	$ 7,400	$ 6,600
Minimum [Member]
Term of franchise agreements	10 years
Royalty fees on room revenue	3.00%
Additional franchise fees on room revenue	1.50%
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 ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Components of income tax expense
Current expense	$ 183	$ 158
Deferred benefit	(2,112)	(1,194)
Valuation provision for deferred benefit	2,112	1,194
Total expense, net	183	158
Income tax by jurisdiction
Federal	(2,112)	(1,194)
Valuation provision for federal taxes	2,112	1,194
State	183	158
Total tax expense (benefit)	$ 183	$ 158

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Effective Income Tax Rate Reconciliation
Expected federal tax benefit at statutory rate	$ (2,676)	$ (1,998)
Tax impact of REIT election	2,859	2,156
Total expense, net	$ 183	$ 158

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards	$ 6,000
Deferred tax assets	2,300	$ 2,300
Deferred tax assets, valuation allowance	3,300	$ 1,200
TRS [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards	26,700
TRS [Member] | Moody National REIT I, Inc [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards	$ 7,300

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($) $ in Thousands	Mar. 15, 2020	Feb. 15, 2020	Jan. 15, 2020	Dec. 31, 2019	Dec. 31, 2018	Feb. 29, 2020	Jan. 31, 2020
Distributions paid in cash				$ 1,550	$ 2,692
Common stock issued by DRP				$ 4,999	$ 3,718
Subsequent Event [Member]
Distributions declared			$ 2,000			$ 1,900	$ 2,000
Distributions paid in cash	$ 1,400	$ 1,500	1,500
Common stock issued by DRP	$ 500,000	$ 500,000	$ 500,000

SCHEDULE III REAL ESTATE ASSE_2

SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2019		Dec. 31, 2018	Dec. 31, 2017
Encumbrances		$ 244,790
Initial Cost of land		76,936
Initial Cost of building, improvements and FF&E		374,835
Gross initial cost		451,771
Cost Capitalized Subsequent to Aquisition		21,966
Carrying amount of land		76,936
Carrying amount of building, improvements and FF&E		396,801
Gross carrying amount		473,737	[1]	$ 411,768	$ 403,180
Accumulated Depreciation and Amortization		$ 32,712		$ 18,628	$ 6,545
Homewood Suites Woodlands [Member]
Description		Homewood Suites Woodlands
Location		The Woodlands, Texas
Ownership percentage		100.00%
Encumbrances		$ 8,915
Initial Cost of land		2,828
Initial Cost of building, improvements and FF&E		14,528
Gross initial cost		17,356
Cost Capitalized Subsequent to Aquisition		340
Carrying amount of land		2,828
Carrying amount of building, improvements and FF&E		14,868
Gross carrying amount	[1]	17,696
Accumulated Depreciation and Amortization		$ 1,226
Original Date of Construction		Jan. 1, 2001
Date Acquired		Sep. 27, 2017
Hyatt Place Germantown [Member]
Description		Hyatt Place Germantown
Location		Germantown, Tennessee
Ownership percentage		100.00%
Encumbrances		$ 6,865
Initial Cost of land		1,874
Initial Cost of building, improvements and FF&E		14,200
Gross initial cost		16,074
Cost Capitalized Subsequent to Aquisition		648
Carrying amount of land		1,874
Carrying amount of building, improvements and FF&E		14,848
Gross carrying amount	[1]	16,722
Accumulated Depreciation and Amortization		$ 1,191
Original Date of Construction		Jan. 1, 2009
Date Acquired		Sep. 27, 2017
Hyatt Place North Charleston [Member]
Description		Hyatt Place North Charleston
Location		North Charleston, South Carolina
Ownership percentage		100.00%
Encumbrances		$ 7,019
Initial Cost of land		783
Initial Cost of building, improvements and FF&E		13,023
Gross initial cost		13,806
Cost Capitalized Subsequent to Aquisition		615
Carrying amount of land		783
Carrying amount of building, improvements and FF&E		13,638
Gross carrying amount	[1]	14,421
Accumulated Depreciation and Amortization		$ 1,092
Original Date of Construction		Jan. 1, 2009
Date Acquired		Sep. 27, 2017
Hampton Inn Austin [Member]
Description		Hampton Inn Austin
Location		Austin, Texas
Ownership percentage		100.00%
Encumbrances		$ 10,493
Initial Cost of land		4,329
Initial Cost of building, improvements and FF&E		14,999
Gross initial cost		19,328
Cost Capitalized Subsequent to Aquisition		293
Carrying amount of land		4,329
Carrying amount of building, improvements and FF&E		15,292
Gross carrying amount	[1]	19,621
Accumulated Depreciation and Amortization		$ 1,427
Original Date of Construction		Jan. 1, 1997
Date Acquired		Sep. 27, 2017
Residence Inn Grapevine [Member]
Description		Residence Inn Grapevine
Location		Grapevine, Texas
Ownership percentage		100.00%
Encumbrances		$ 12,114
Initial Cost of land		2,028
Initial Cost of building, improvements and FF&E		23,217
Gross initial cost		25,245
Cost Capitalized Subsequent to Aquisition		568
Carrying amount of land		2,028
Carrying amount of building, improvements and FF&E		23,785
Gross carrying amount	[1]	25,813
Accumulated Depreciation and Amortization		$ 1,913
Original Date of Construction		Jan. 1, 2007
Date Acquired		Sep. 27, 2017
Marriott Courtyard Lyndhurst [Member]
Description		Marriott Courtyard Lyndhurst
Location		Lyndhurst, New Jersey
Encumbrances		$ 18,934
Initial Cost of land		2,663
Initial Cost of building, improvements and FF&E		36,884
Gross initial cost		39,547
Cost Capitalized Subsequent to Aquisition		369
Carrying amount of land		2,663
Carrying amount of building, improvements and FF&E		37,253
Gross carrying amount	[1]	39,916
Accumulated Depreciation and Amortization		$ 2,988
Original Date of Construction		Jan. 1, 1990
Date Acquired		Sep. 27, 2017
Hilton Garden Inn Austin [Member]
Description		Hilton Garden Inn Austin
Location		Austin, Texas
Ownership percentage		100.00%
Encumbrances		$ 18,080
Initial Cost of land		9,058
Initial Cost of building, improvements and FF&E		20,230
Gross initial cost		29,288
Cost Capitalized Subsequent to Aquisition		526
Carrying amount of land		9,058
Carrying amount of building, improvements and FF&E		20,756
Gross carrying amount	[1]	29,814
Accumulated Depreciation and Amortization		$ 1,945
Original Date of Construction		Jan. 1, 2002
Date Acquired		Sep. 27, 2017
Hampton Inn Great Valley [Member]
Description		Hampton Inn Great Valley
Location		Frazer, Pennsylvania
Ownership percentage		100.00%
Encumbrances		$ 7,861
Initial Cost of land		1,730
Initial Cost of building, improvements and FF&E		13,555
Gross initial cost		15,285
Cost Capitalized Subsequent to Aquisition		1,732
Carrying amount of land		1,730
Carrying amount of building, improvements and FF&E		15,287
Gross carrying amount	[1]	17,017
Accumulated Depreciation and Amortization		$ 1,570
Original Date of Construction		Jan. 1, 1998
Date Acquired		Sep. 27, 2017
Embassy Suites Nashville [Member]
Description		Embassy Suites Nashville
Location		Nashville, Tennessee
Ownership percentage		100.00%
Encumbrances		$ 41,250
Initial Cost of land		14,805
Initial Cost of building, improvements and FF&E		67,402
Gross initial cost		82,207
Cost Capitalized Subsequent to Aquisition		4,160
Carrying amount of land		14,805
Carrying amount of building, improvements and FF&E		71,562
Gross carrying amount	[1]	86,367
Accumulated Depreciation and Amortization		$ 5,532
Original Date of Construction		Jan. 1, 2001
Date Acquired		Sep. 27, 2017
Homewood Suites Austin [Member]
Description		Homewood Suites Austin
Location		Austin, Texas
Ownership percentage		100.00%
Encumbrances		$ 10,602
Initial Cost of land		4,218
Initial Cost of building, improvements and FF&E		14,617
Gross initial cost		18,835
Cost Capitalized Subsequent to Aquisition		792
Carrying amount of land		4,218
Carrying amount of building, improvements and FF&E		15,409
Gross carrying amount	[1]	19,627
Accumulated Depreciation and Amortization		$ 1,461
Original Date of Construction		Jan. 1, 1998
Date Acquired		Sep. 27, 2017
TownPlace Suites Fort Worth [Member]
Description		TownPlace Suites Fort Worth
Location		Fort Worth, Texas
Encumbrances		$ 5,979
Initial Cost of land		4,240
Initial Cost of building, improvements and FF&E		7,002
Gross initial cost		11,242
Cost Capitalized Subsequent to Aquisition		71
Carrying amount of land		4,240
Carrying amount of building, improvements and FF&E		7,073
Gross carrying amount	[1]	11,313
Accumulated Depreciation and Amortization		$ 719
Original Date of Construction		Jan. 1, 1998
Date Acquired		Sep. 27, 2017
Hampton Inn Houston [Member]
Description		Hampton Inn Houston
Location		Houston, Texas
Ownership percentage		100.00%
Encumbrances		$ 4,366
Initial Cost of land		3,550
Initial Cost of building, improvements and FF&E		6,408
Gross initial cost		9,958
Cost Capitalized Subsequent to Aquisition		3,340
Carrying amount of land		3,550
Carrying amount of building, improvements and FF&E		9,748
Gross carrying amount	[1]	13,298
Accumulated Depreciation and Amortization		$ 1,137
Original Date of Construction		Jan. 1, 1995
Date Acquired		Sep. 27, 2017
Residence Inn Houston Medical Center [Member]
Description		Residence Inn Houston Medical Center
Location		Houston, Texas
Ownership percentage		100.00%
Encumbrances		$ 31,847
Initial Cost of land		6,480
Initial Cost of building, improvements and FF&E		45,520
Gross initial cost		52,000
Cost Capitalized Subsequent to Aquisition		17
Carrying amount of land		6,480
Carrying amount of building, improvements and FF&E		45,537
Gross carrying amount	[1]	52,017
Accumulated Depreciation and Amortization		$ 1,039
Original Date of Construction		Jan. 1, 2019
Date Acquired		Apr. 29, 2019
Residence Inn Austin [Member]
Description		Residence Inn Austin
Location		Austin, Texas
Ownership percentage		100.00%
Encumbrances		$ 16,300
Initial Cost of land		4,310
Initial Cost of building, improvements and FF&E		23,190
Gross initial cost	[2]	27,500
Cost Capitalized Subsequent to Aquisition		161
Carrying amount of land		4,310
Carrying amount of building, improvements and FF&E		23,351
Gross carrying amount	[1]	27,661
Accumulated Depreciation and Amortization		$ 2,996
Original Date of Construction		Jan. 1, 2014
Date Acquired		Oct. 15, 2015
Springhill Suites Seattle [Member]
Description		Springhill Suites Seattle
Location		Seattle, Washington
Ownership percentage		100.00%
Encumbrances		$ 44,165
Initial Cost of land		14,040
Initial Cost of building, improvements and FF&E		60,060
Gross initial cost		74,100
Cost Capitalized Subsequent to Aquisition		8,334
Carrying amount of land		14,040
Carrying amount of building, improvements and FF&E		68,394
Gross carrying amount	[1]	82,434
Accumulated Depreciation and Amortization		$ 6,476
Original Date of Construction		Jan. 1, 2001
Date Acquired		May 24, 2016
[1]	The aggregate cost of real estate for federal income tax purposes was $429 million as of December 31, 2019.
[2]	Includes gain on acquisition of hotel property of $2.0 million.

SCHEDULE III REAL ESTATE ASSE_3

SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019		Dec. 31, 2018
Real Estate [Roll Forward]
Gross carrying amount, beginning	$ 411,768		$ 403,180
Acquisitions	52,000
Improvements and additions	9,969		8,588
Gross carrying amount, ending	473,737	[1]	411,768
Accumulated Depreciation [Roll Forward]
Accumulated depreciation, beginning	18,628		6,545
Depreciation	14,084		12,083
Accumulated depreciation, ending	$ 32,712		$ 18,628
[1]	The aggregate cost of real estate for federal income tax purposes was $429 million as of December 31, 2019.

SCHEDULE III REAL ESTATE ASSE_4

SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Tax basis cost of real estate	$ 429,000
Residence Inn Austin [Member]
Gain on acquisition of hotel property	$ 2,000