Moody National REIT II (MNRTII) 10-Q 15 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	May 08, 2020
Entity Registrant Name	Moody National REIT II, Inc.
Entity Central Index Key	0001615222
Document Type	10-Q
Document Period End Date	Mar. 31, 2020
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity File Number	000-55778
Entity Incorporation, State or Country Code	MD
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		13,630,429
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2020
Class A Shares [Member]
Entity Common Stock, Shares Outstanding		12,990,645
Class I Shares [Member]
Entity Common Stock, Shares Outstanding		159,092
Class T Shares [Member]
Entity Common Stock, Shares Outstanding		480,692

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
ASSETS
Investment in hotel properties, net	$ 438,714	$ 441,025
Cash and cash equivalents	2,405	7,303
Restricted cash	6,487	8,645
Investment in marketable securities	3,049	5,936
Accounts receivable, net of allowance of $35 as of March 31, 2020 and December 31, 2019	651	766
Prepaid expenses and other assets	3,898	3,141
Deferred franchise costs, net of accumulated amortization of $237 and $217 at March 31, 2020 and December 31, 2019, respectively	830	850
Total Assets	456,034	467,666
Liabilities:
Note payable, net of unamortized debt issuance costs of $3,123 and $3,293 as of March 31, 2020 and December 31, 2019	237,680	238,603
Note payable to related party	186	2,894
Accounts payable and accrued expenses	8,233	10,106
Due to related parties, net	2,266	861
Dividends payable	70	2,038
Operating partnership distributions payable		47
Total Liabilities	248,435	254,549
Special Limited Partnership Interests	1	1
Stockholders' equity:
Common stock, $0.01 par value per share; 1,000,000 shares authorized, 13,630 and 13,251 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively	136	133
Additional paid-in capital	305,579	296,928
Accumulated deficit	(102,104)	(88,258)
Total stockholders' equity	203,611	208,803
Noncontrolling interests in Operating Partnership	3,987	4,313
Total Equity	207,598	213,116
Total Liabilities and Equity	$ 456,034	$ 467,666

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 35	$ 35
Accumulated amortization, deferred franchise costs	237	217
Unamortized debt issuance costs, note payable	$ 3,123	$ 3,293
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	13,630	13,251
Common stock, outstanding	13,630	13,251

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue
Total hotel revenue	$ 15,243	$ 18,456
Interest and dividend income	4	329
Total revenue	15,247	18,785
Expenses
Hotel operating expenses	11,200	12,115
Property taxes, insurance and other	1,761	1,369
Depreciation and amortization	3,839	3,174
Corporate general and administrative	1,806	1,622
Total expenses	18,606	18,280
Operating income (loss)	(3,359)	505
Other expenses
Interest expense and amortization of debt issuance costs	3,035	3,086
Loss on sale of marketable securities	37
Unrealized loss on change in fair value of investment in marketable securities	3,811	159
Total other expenses	6,883	3,245
Loss before income taxes	(10,242)	(2,740)
Income tax expense	13	50
Net loss	(10,255)	(2,790)
Loss attributable to noncontrolling interests in Operating Partnership	236	78
Net loss attributable to common stockholders	$ (10,019)	$ (2,712)
Per-share information - basic and diluted:
Net loss attributable to common stockholders (in dollars per share)	$ (0.75)	$ (0.25)
Dividends declared (in dollars per share)	$ 0.29	$ 0.43
Weighted average common shares outstanding (in shares)	13,427	10,953
Room Revenue [Member]
Revenue
Total hotel revenue	$ 14,180	$ 17,315
Other Hotel Revenue [Member]
Revenue
Total hotel revenue	$ 1,063	$ 1,141

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY (unaudited) - 3 months ended Mar. 31, 2020 - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Noncontrolling Interest in Operating Partnership [Member]	Total
Balance at beginning at Dec. 31, 2019	$ 133	$ 296,928	$ (88,258)	$ 4,313	$ 213,116
Balance at beginning (in shares) at Dec. 31, 2019	13,251,000
Balance at beginning (in units) at Dec. 31, 2019				316,000	316,037
Issuance of common stock, net of offering costs	$ 4	9,941			$ 9,945
Issuance of common stock, net of offering costs (in shares)	440,000
Redemption of common stock	$ (1)	(2,747)			(2,748)
Redemption of common stock (in shares)	(120,000)
Issuance of common stock pursuant to dividend reinvestment plan		1,393			1,393
Issuance of common stock pursuant to dividend reinvestment plan (in shares)	59,000
Stock-based compensation		64			64
Net loss			(10,019)	$ (236)	(10,255)
Dividends and distributions declared			(3,827)	(90)	(3,917)
Balance at end at Mar. 31, 2020	$ 136	$ 305,579	$ (102,104)	$ 3,987	$ 207,598
Balance at end (in shares) at Mar. 31, 2020	13,630,000
Balance at end (in units) at Mar. 31, 2020				316,000	316,037

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities
Net loss	$ (10,255)	$ (2,790)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	3,839	3,174
Amortization of debt issuance costs	169	327
Loss on sale of securities	37
Unrealized loss on change in fair value of investment in marketable securities	3,811	159
Stock-based compensation	64	65
Changes in operating assets and liabilities
Accounts receivable	115	(441)
Prepaid expenses and other assets	(757)	(679)
Accounts payable and accrued expenses	(1,873)	(1,588)
Due from related parties	1,091	(229)
Net cash used in operating activities	(3,759)	(2,002)
Cash flows from investing activities
Investment in marketable securities	(958)	(6,994)
Improvements and additions to hotel properties	(1,507)	(974)
Net cash used in investing activities	(2,465)	(7,968)
Cash flows from financing activities
Proceeds from issuance of common stock	10,259	18,810
Redemptions of common stock	(2,748)	(2,638)
Dividends paid	(4,404)	(3,517)
Operating partnership distributions paid	(138)	(137)
Repayment of notes payable	(1,093)	(6,730)
Repayment of note payable to related party	(2,708)
Net cash (used in) provided by financing activities	(832)	5,788
Net change in cash and cash equivalents and restricted cash	(7,056)	(4,182)
Cash and cash equivalents and restricted cash at beginning of period	15,948	19,194
Cash and cash equivalents and restricted cash at end of period	8,892	15,012
Supplemental Disclosure of Cash Flow Activity
Interest paid	2,872	2,763
Income tax paid
Supplemental Disclosure of Non-Cash Financing Activity
Increase in accrued offering costs due to related party	314	227
Issuance of common stock from dividend reinvestment plan	1,393	1,121
Dividends payable	$ 70	1,797
Operating partnership distributions payable		$ 47

Organization

Organization	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020, 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 $3.0 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 (as defined below) 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 registration statement provided for the Company to 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 (“Board”). On March 24, 2020, the Board approved the indefinite suspension of the sale of shares of the Company’s common stock in the Company’s follow-on offering due to the impact that the COVID-19 pandemic is having and is expected to continue to have in the Company’s hotel properties. As of March 31, 2020, the Company had accepted investors’ subscriptions for and issued an aggregate of 10.2 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 567,000 shares pursuant to the DRP, resulting in gross offering proceeds of $234.6 million. As of March 31, 2020, the Company had accepted investors’ subscriptions for and issued 4.1 million shares in the follow-on offering, including 352,000 shares pursuant to the DRP, resulting in gross offering proceeds of $87.2 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 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 pays all of the Company’s administrative costs and expenses, and such expenses are treated as expenses of the OP. On March 24, 2020, the Board determined an estimated net asset value (“NAV”) per share of each class of the Company’s common stock as of December 31, 2019 of $23.50.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements include its accounts and the accounts of its subsidiaries over which it has control. All intercompany balances and transactions are eliminated in consolidation. 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 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 March 31, 2020, total offering costs for the initial public offering and the follow-on offering were $20.9 million, comprised of $12.3 million of offering costs incurred directly by the Company and $8.6 million in offering costs incurred by and reimbursable to the Advisor. Total offering costs for the initial public offering were $18.4 million, comprised of $12.3 million of offering costs incurred directly by the Company and $6.1 million in offering costs incurred by and reimbursable to the Advisor. As of March 31, 2020, total offering costs for the follow-on offering were $2.5 million, comprised of $0 of offering costs incurred directly by the Company and $2.5 million in offering costs incurred by and reimbursable to the Advisor. As of March 31, 2020, the Company had $28,000 due to 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 March 31, 2020. 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, “Notes Receivable from Related Parties,” and Note 5, “Debt.” Concentration of Risk As of March 31, 2020, 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 three months ended March 31, 2020 and 2019. 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 $3.0 million and $5.9 million at March 31, 2020 and December 31, 2019, respectively, 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 three months ended March 31, 2020 and 2019, unrealized loss on change in fair value of investment in marketable securities was $3.6 million and $159,000, respectively. For the three months ended March 31, 2020 and 2019, loss on sale of marketable securities was $37,000 and $0, respectively. Dividend income is recognized when earned. For the three months ended March 31, 2020 and 2018, dividend income of $4,000 and $128,000, 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 three months ended March 31, 2020 or 2019. 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 $237,000 and $217,000 as of March 31, 2020 and December 31, 2019, respectively. Expected future amortization of deferred franchise costs as of December 31, 2019 is as follows (in thousands): Years Ending December 31, 2020 $ 63 2021 83 2022 82 2023 80 2024 77 Thereafter 445 Total $ 830 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 $4.2 million and $4.0 million as of March 31, 2020 and December 31, 2019, respectively. Expected future amortization of debt issuance costs as of December 31, 2019 is as follows (in thousands): Years Ending December 31, 2020 $ 509 2021 677 2022 677 2023 632 2024 440 Thereafter 188 Total $ 3,123 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 totalling 5,000 and 7,500 shares as of March 31, 2020 and December 31, 2019, respectively, held by the Company’s independent directors are included in the calculation of basic EPS because such shares have been issued and participate in dividends. 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. The impact was 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 is 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	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 (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 $ 16,234 Springhill Suites Seattle May 24, 2016 Seattle, Washington 100 % 74,100 234 43,979 Homewood Suites Woodlands September 27, 2017 (5) The Woodlands, Texas 100 % 17,356 91 8,876 Hyatt Place Germantown September 27, 2017 (5) Germantown, Tennessee 100 % 16,074 127 6,824 Hyatt Place North Charleston September 27, 2017 (5) North Charleston, South Carolina 100 % 13,806 113 6,994 Hampton Inn Austin September 27, 2017 (5) Austin, Texas 100 % 19,328 123 10,442 Residence Inn Grapevine September 27, 2017 (5) Grapevine, Texas 100 % 25,245 133 12,055 Marriott Courtyard Lyndhurst September 27, 2017 (5) Lyndhurst, New Jersey (3) 39,547 227 18,833 Hilton Garden Inn Austin September 27, 2017 (5) Austin, Texas 100 % 29,288 138 17,997 Hampton Inn Great Valley September 27, 2017 (5) Frazer, Pennsylvania 100 % 15,285 125 7,827 Embassy Suites Nashville September 27, 2017 (5) Nashville, Tennessee 100 % 82,207 208 41,057 Homewood Suites Austin September 27, 2017 (5) Austin, Texas 100 % 18,835 96 10,556 Townplace Suites Fort Worth September 27, 2017 (5) Fort Worth, Texas (4) 11,242 95 5,947 Hampton Inn Houston September 27, 2017 (5) Houston, Texas 100 % 9,958 119 4,328 Residence Inn Houston Medical Center April 29, 2019 (6) Houston, Texas 100 % 52,000 182 28,854 Totals $ 451,771 2,123 $ 240,803 (1) Excludes closing costs and includes gain on acquisition. (2) As of March 31, 2020. (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. 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. 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”). Investment in hotel properties consisted of the following at March 31, 2020 and December 31, 2019 (all amounts in thousands): March 31, December 31, Land $ 76,936 $ 76,936 Buildings and improvements 338,729 338,729 Furniture, fixtures and equipment 59,580 58,072 Total cost 475,245 473,737 Accumulated depreciation (36,531 ) (32,712 ) Investment in hotel properties, net $ 438,714 $ 441,025 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 (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 $186,000 as of March 31, 2020. 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 three months ended March 31, 2019 is presented as if the Company acquired the Residence Inn Houston on January 1, 2019. 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, 2019, nor does it purport to represent the Company’s future operations (in thousands, except per common share amounts): Three months ended Revenue $ 21,175 Net loss (2,374 ) Net loss attributable to common shareholders (2,296 ) Net loss per common share - basic and diluted $ (0.21 )

Notes Receivable from Related P

Notes Receivable from Related Party	3 Months Ended
	Mar. 31, 2020
Royalty fees on room revenue
Notes Receivable from Related Party	4. Note Receivable from Related Party As of March 31, 2020 and December 31, 2019, the amount of the note receivable from related party was $0. 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 $0 and $200,000 for the three months ended March 31, 2020 and 2019, respectively. Interest receivable on notes receivable from related parties was $0 as of March 31, 2020 and December 31, 2019.

Debt

Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Debt	5. Debt The Company’s aggregate borrowings are reviewed by the Board 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 March 31, 2020, the Company’s debt levels did not exceed 300% of the value of the Company’s net assets, as defined above. As of March 31, 2020 and December 31, 2019, the Company’s mortgage notes payable secured by the respective assets, consisted of the following (all $ amounts in thousands): Loan Principal as of March 31, 2020 Principal as of December 31, 2019 Interest Rate at March 31, 2020 Maturity Date Residence Inn Austin (1) $ 16,234 $ 16,300 4.580 % November 1, 2025 Springhill Suites Seattle (1) 43,979 44,165 4.380 % October 1, 2026 Homewood Suites Woodlands (1) 8,876 8,915 4.690 % April 11, 2025 Hyatt Place Germantown (1) 6,824 6,865 4.300 % May 6, 2023 Hyatt Place North Charleston (1) 6,994 7,019 5.193 % August 1, 2023 Hampton Inn Austin (1) 10,442 10,493 5.426 % January 6, 2024 Residence Inn Grapevine (1) 12,055 12,114 5.250 % April 6, 2024 Marriott Courtyard Lyndhurst (1) 18,833 18,934 4.700 % September 27, 2024 Hilton Garden Inn Austin (1) 17,997 18,080 4.530 % December 11, 2024 Hampton Inn Great Valley (1) 7,827 7,861 4.700 % April 11, 2025 Embassy Suites Nashville (1) 41,057 41,250 4.2123 % July 11, 2025 Homewood Suites Austin (1) 10,556 10,602 4.650 % August 11, 2025 Townplace Suites Fort Worth (1) 5,947 5,979 4.700 % September 27, 2024 Hampton Inn Houston (1) 4,328 4,366 6.250 % April 28, 2023 Residence Inn Houston Medical Center (2) 28,854 28,953 5.000 % October 1, 2024 Total notes payable 240,803 241,896 Less unamortized debt issuance costs (3,123 ) (3,293 ) Total notes payable, net of unamortized debt issuance costs $ 237,680 $ 238,603 (1) Monthly payments of principal and interest are due and payable until the maturity date. (2) Monthly payments of interest were due and payable until October 2019. Monthly payments of principal and interest are due and payable beginning in November 2019 until the maturity date. Hotel properties secure their respective loans. Scheduled maturities of the Company’s notes payable as of March 31, 2020 are as follows (all amounts in thousands): Years ending December 31, 2020 $ 3,492 2021 4,893 2022 5,131 2023 21,533 2024 89,112 Thereafter 116,642 Total $ 240,803 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 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 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 March 31, 2020 and December 31, 2019, respectively, was $240.8 million and $241.9 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	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020, there were a total of 13.6 million shares of the Company’s common stock issued and outstanding, including 10.2 million shares, net of redemptions, issued in the Company’s public offerings, 3.3 million shares, net of redemptions, issued in connection with the Mergers, 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 Class A Shares 12,990 Class T Shares 481 Class I Shares 159 Total 13,630 The Board 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 Board previously authorized and declared a distribution to its stockholders for that would 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. On March 24, 2020, the Board unanimously approved the suspension of (i) the payment of distributions to the Company’s stockholders, effective immediately, and (ii) the operation of the DRP, effective as of April 6, 2020, due to the impact that the COVID-19 pandemic is having and is expected to continue to have in the Company’s hotel properties. The payment of distributions and the operation of the DRP will remain suspended until such time as the Board approves their resumption. The following table summarizes distributions paid in cash and pursuant to the DRP for the three months ended March 31, 2020 and 2019 (all amounts in in thousands): Period Cash Distribution Distribution (1) Total Amount of Distribution First Quarter 2020 $ 4,404 $ 1,393 $ 5,797 First Quarter 2019 $ 3,517 $ 1,121 $ 4,638 (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 March 31, 2020 and December 31, 2019 was $4.0 million and $4.3 million, respectively, which represented 316,037 common units in the OP issued in connection with the acquisition of the Springhill Suites Seattle and the Partnership Merger, and is reported in equity in the consolidated balance sheets. Loss from the OP attributable to these noncontrolling interests was $236,000 and $78,000 for the three months ended March 31, 2020 and 2019, respectively.

Related Party Arrangements

Related Party Arrangements	3 Months Ended
	Mar. 31, 2020
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 Company’s public 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 March 31, 2020, Advisor had paid Moody Securities $9.7 million in selling commissions, trailing stockholder servicing fees, and dealer manager fees related to the Company’s public offering, of which $8.5 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 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 March 31, 2020, total offering costs for the initial public offering and the follow-on offering were $20.9 million, comprised of $12.3 million of offering costs incurred directly by the Company and $8.6 million in offering costs incurred by and reimbursable to the Advisor. As of March 31, 2020, total offering costs for the initial public offering were $18.4 million, comprised of $12.3 million of offering costs incurred directly by the Company and $6.1 million in offering costs incurred by and reimbursable to the Advisor. As of March 31, 2020, total offering costs for the follow-on offering were $2.5 million, comprised of $0 of offering costs incurred directly by the Company and $2.5 million in offering costs incurred by and reimbursable to the Advisor. As of March 31, 2020, the Company had $28,000 due to 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 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 three months ended March 31, 2020 and 2019. 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. The Company did not incur any financing coordination fees payable to the Advisor during the three months ended March 31, 2020 and 2019. 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 three months ended March 31, 2020 and 2019, the Company incurred property management fees to Property Manager of $610,000 and $738,000, respectively, and accounting fees of $112,000 and $105,000, respectively, pursuant to the terms of a hotel management agreement, and 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. Asset Management Fee The Company pays the Advisor a monthly asset management fee of one-twelfth of 1.0% of the cost of investment of all real estate investments the Company acquires. For the three months ended March 31, 2020 and 2019, the Company incurred asset management fees of $1.2 million and $1.0 million payable to the Advisor, respectively, 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 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. As of March 31, 2020, 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 March 31, 2020, total operating expenses of the Company were $6.5 million, which included $5.3 million in operating expenses incurred directly by the Company and $1.2 million incurred by the Advisor on behalf of the Company. Of the $6.5 million in total operating expenses incurred during the four fiscal quarters ended March 31, 2020, $0 exceeded the 2%/25% Limitation. The Company reimbursed the Advisor $1.2 million during the four fiscal quarters ended March 31, 2020. As of March 31, 2020, the Company had $208,000 due to the Advisor for operating expense reimbursement.

Incentive Award Plan

Incentive Award Plan	3 Months Ended
	Mar. 31, 2020
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 Company’s initial public offering. Each new independent director who subsequently joins the Board will receive a grant of 5,000 shares of restricted stock upon his or her election to the Board. 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 Board, 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 March 31, 2020, there were 1,945,000 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 shares of restricted stock issued pursuant to the Independent Directors Compensation Plan of $64,000 and $64,000 for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, there were 5,000 non-vested shares of restricted common stock granted pursuant to the Independent Directors Compensation Plan. The remaining unrecognized compensation expense associated with the 5,000 non-vested shares of $65,000 will be recognized during the second and third quarters of 2020. The following is a summary of activity under the Independent Directors Compensation Plan for the three months ended March 31, 2020 and year ended December 31, 2019: Number of Shares Weighted Average 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 Shares vested (2,500 ) $ 23.32 Balance of non-vested shares as of March 31, 2020 5,000 $ 23.32

Subordinated Participation Inte

Subordinated Participation Interest	3 Months Ended
	Mar. 31, 2020
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	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Restricted Cash Under certain management and debt agreements existing at March 31, 2020, 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 March 31, 2020 and December 31, 2019 are as follows (all amounts in in thousands): March 31, December 31, 2020 2019 Property improvement plan $ 189 $ 190 Real estate taxes 1,966 3,040 Insurance 199 235 Hotel furniture and fixtures 2,537 3,283 Debt service 984 939 Seasonality 542 888 Rent holdback 15 15 Immediate repairs 55 55 Total restricted cash $ 6,487 $ 8,645 Franchise Agreements As March 31, 2020, all of the Company’s hotel properties, including those acquired as part of the Moody I portfolio in the Mergers, 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 $1.3 million and $1.6 million for the three months ended March 31, 2020 and 2019, respectively, which amounts are included in hotel operating expenses in the accompanying consolidated statements of operations.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020, the Company had operating loss carry-forwards of $6.0 million. The Company had deferred tax assets of $2.3 million as of March 31, 2020 and December 31, 2019, net of a valuation allowance of $4.4 million and $3.3 million as of March 31, 2020 and December 31, 2019, 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 March 31, 2020, 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 for the three months ended March 31, 2020 and 2019 consisted of the following (in thousands): Three months ended March 31, 2020 2019 Current expense $ 13 $ 50 Deferred benefit (1,097 ) (468 ) Valuation provision for deferred benefit 1,097 468 Total expense (benefit) $ 13 $ 50 Federal $ (1,097 ) $ (468 ) Valuation provision for federal taxes 1,097 468 State 13 50 Total tax expense (benefit) $ 13 $ 50 On March 31, 2020, 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 analyses 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	3 Months Ended
	Mar. 31, 2020
Subsequent Events [Abstract]
Subsequent Events	12. Subsequent Events Coronavirus The ongoing global pandemic of the novel coronavirus that causes the disease known as coronavirus disease 2019 (“COVID-19”) has had, and is expected to continue to have, a significant adverse effect on the operating results of the Company’s hotel properties, which depend primarily upon revenues driven by business and leisure travel. A number of measures taken by governmental entities and employers intended to slow the transmission of COVID-19 have dramatically reduced business and leisure travel, and a result the demand for rooms at the Company’s hotel properties, including (i) restrictions on travel and public gatherings, quarantines and shelter-at-home orders, (ii) the postponement or cancellation of conventions, festivals, sporting events and other public events, (iii) the closure of amusement parks, museums, retail centers and other tourist attractions, and (iv) the closure of colleges and universities. These measures may be in place for a considerable period of time, and additional, more restrictive measures may be implemented in the future. As of the date of this Quarterly Report, the Company not ceased operations at any of its hotel properties. However, during the quarter ended March 31, 2020, the Company’s hotel properties experienced a significant decline in bookings and occupancy, resulting in a significant decrease in aggregate revenues generated by the properties as compared to the quarter ended March 31, 2019. If the decline in demand for rooms at the hotel properties continues, the Company may ultimately be required to close of one or more of its hotel properties. Each of the Company’s hotel properties is subject to a mortgage loan secured by the Company’s ownership interest in the property. If the Company is unable to service the mortgage loan secured by a hotel property due to decreased revenues generated by such property, the lender with respect to such mortgage loan may initiate foreclosure procedures with respect to the property or initiate other available remedies. As of the date of this Quarterly Report, the Company is not current with respect to the payments due under the mortgage loans secured by the Company’s hotel properties and is engaged in discussions regarding modification of the terms of such mortgage loans with the lenders. As of the date of this Quarterly Report, no lenders have initiated foreclosure procedures with respect to any of the Company’s properties.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2020
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements include its accounts and the accounts of its subsidiaries over which it has control. All intercompany balances and transactions are eliminated in consolidation.
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 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 March 31, 2020, total offering costs for the initial public offering and the follow-on offering were $20.9 million, comprised of $12.3 million of offering costs incurred directly by the Company and $8.6 million in offering costs incurred by and reimbursable to the Advisor. Total offering costs for the initial public offering were $18.4 million, comprised of $12.3 million of offering costs incurred directly by the Company and $6.1 million in offering costs incurred by and reimbursable to the Advisor. As of March 31, 2020, total offering costs for the follow-on offering were $2.5 million, comprised of $0 of offering costs incurred directly by the Company and $2.5 million in offering costs incurred by and reimbursable to the Advisor. As of March 31, 2020, the Company had $28,000 due to 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 March 31, 2020. 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, “Notes Receivable from Related Parties,” and Note 5, “Debt.”
Concentration of Risk	Concentration of Risk As of March 31, 2020, 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 three months ended March 31, 2020 and 2019. 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 $3.0 million and $5.9 million at March 31, 2020 and December 31, 2019, respectively, 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 three months ended March 31, 2020 and 2019, unrealized loss on change in fair value of investment in marketable securities was $3.6 million and $159,000, respectively. For the three months ended March 31, 2020 and 2019, loss on sale of marketable securities was $37,000 and $0, respectively. Dividend income is recognized when earned. For the three months ended March 31, 2020 and 2018, dividend income of $4,000 and $128,000, 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 three months ended March 31, 2020 or 2019.
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 $237,000 and $217,000 as of March 31, 2020 and December 31, 2019, respectively. Expected future amortization of deferred franchise costs as of December 31, 2019 is as follows (in thousands): Years Ending December 31, 2020 $ 63 2021 83 2022 82 2023 80 2024 77 Thereafter 445 Total $ 830
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 $4.2 million and $4.0 million as of March 31, 2020 and December 31, 2019, respectively. Expected future amortization of debt issuance costs as of December 31, 2019 is as follows (in thousands): Years Ending December 31, 2020 $ 509 2021 677 2022 677 2023 632 2024 440 Thereafter 188 Total $ 3,123
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 totalling 5,000 and 7,500 shares as of March 31, 2020 and December 31, 2019, respectively, held by the Company’s independent directors are included in the calculation of basic EPS because such shares have been issued and participate in dividends.
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. The impact was 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 is 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)	3 Months Ended
	Mar. 31, 2020
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 $ 63 2021 83 2022 82 2023 80 2024 77 Thereafter 445 Total $ 830
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 $ 509 2021 677 2022 677 2023 632 2024 440 Thereafter 188 Total $ 3,123

Investment in Hotel Properties

Investment in Hotel Properties (Tables)	3 Months Ended
	Mar. 31, 2020
Real Estate [Abstract]
Schedule of investment in hotel properties	The following table sets forth summary information regarding the Company’s investment in hotel properties as of March 31, 2020 (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 $ 16,234 Springhill Suites Seattle May 24, 2016 Seattle, Washington 100 % 74,100 234 43,979 Homewood Suites Woodlands September 27, 2017 (5) The Woodlands, Texas 100 % 17,356 91 8,876 Hyatt Place Germantown September 27, 2017 (5) Germantown, Tennessee 100 % 16,074 127 6,824 Hyatt Place North Charleston September 27, 2017 (5) North Charleston, South Carolina 100 % 13,806 113 6,994 Hampton Inn Austin September 27, 2017 (5) Austin, Texas 100 % 19,328 123 10,442 Residence Inn Grapevine September 27, 2017 (5) Grapevine, Texas 100 % 25,245 133 12,055 Marriott Courtyard Lyndhurst September 27, 2017 (5) Lyndhurst, New Jersey (3) 39,547 227 18,833 Hilton Garden Inn Austin September 27, 2017 (5) Austin, Texas 100 % 29,288 138 17,997 Hampton Inn Great Valley September 27, 2017 (5) Frazer, Pennsylvania 100 % 15,285 125 7,827 Embassy Suites Nashville September 27, 2017 (5) Nashville, Tennessee 100 % 82,207 208 41,057 Homewood Suites Austin September 27, 2017 (5) Austin, Texas 100 % 18,835 96 10,556 Townplace Suites Fort Worth September 27, 2017 (5) Fort Worth, Texas (4) 11,242 95 5,947 Hampton Inn Houston September 27, 2017 (5) Houston, Texas 100 % 9,958 119 4,328 Residence Inn Houston Medical Center April 29, 2019 (6) Houston, Texas 100 % 52,000 182 28,854 Totals $ 451,771 2,123 $ 240,803 (1) Excludes closing costs and includes gain on acquisition. (2) As of March 31, 2020. (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. 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. 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”).
Schedule of components of the investments in hotel properties	Investment in hotel properties consisted of the following at March 31, 2020 and December 31, 2019 (all amounts in thousands): March 31, December 31, Land $ 76,936 $ 76,936 Buildings and improvements 338,729 338,729 Furniture, fixtures and equipment 59,580 58,072 Total cost 475,245 473,737 Accumulated depreciation (36,531 ) (32,712 ) Investment in hotel properties, net $ 438,714 $ 441,025
Schedule of assets and liabilities acquired	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, 2019, nor does it purport to represent the Company’s future operations (in thousands, except per common share amounts): Three months ended Revenue $ 21,175 Net loss (2,374 ) Net loss attributable to common shareholders (2,296 ) Net loss per common share - basic and diluted $ (0.21 )

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Schedule of mortgage notes payable secured by the respective assets	As of March 31, 2020 and December 31, 2019, the Company’s mortgage notes payable secured by the respective assets, consisted of the following (all $ amounts in thousands): Loan Principal as of March 31, 2020 Principal as of December 31, 2019 Interest Rate at March 31, 2020 Maturity Date Residence Inn Austin (1) $ 16,234 $ 16,300 4.580 % November 1, 2025 Springhill Suites Seattle (1) 43,979 44,165 4.380 % October 1, 2026 Homewood Suites Woodlands (1) 8,876 8,915 4.690 % April 11, 2025 Hyatt Place Germantown (1) 6,824 6,865 4.300 % May 6, 2023 Hyatt Place North Charleston (1) 6,994 7,019 5.193 % August 1, 2023 Hampton Inn Austin (1) 10,442 10,493 5.426 % January 6, 2024 Residence Inn Grapevine (1) 12,055 12,114 5.250 % April 6, 2024 Marriott Courtyard Lyndhurst (1) 18,833 18,934 4.700 % September 27, 2024 Hilton Garden Inn Austin (1) 17,997 18,080 4.530 % December 11, 2024 Hampton Inn Great Valley (1) 7,827 7,861 4.700 % April 11, 2025 Embassy Suites Nashville (1) 41,057 41,250 4.2123 % July 11, 2025 Homewood Suites Austin (1) 10,556 10,602 4.650 % August 11, 2025 Townplace Suites Fort Worth (1) 5,947 5,979 4.700 % September 27, 2024 Hampton Inn Houston (1) 4,328 4,366 6.250 % April 28, 2023 Residence Inn Houston Medical Center (2) 28,854 28,953 5.000 % October 1, 2024 Total notes payable 240,803 241,896 Less unamortized debt issuance costs (3,123 ) (3,293 ) Total notes payable, net of unamortized debt issuance costs $ 237,680 $ 238,603 (1) Monthly payments of principal and interest are due and payable until the maturity date. (2) Monthly payments of interest were due and payable until October 2019. Monthly payments of principal and interest are 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 March 31, 2020 are as follows (all amounts in thousands): Years ending December 31, 2020 $ 3,492 2021 4,893 2022 5,131 2023 21,533 2024 89,112 Thereafter 116,642 Total $ 240,803

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2020
Stockholders' Equity Note [Abstract]
Schedule of outstanding shares of incentive award plan	As of March 31, 2020, there were a total of 13.6 million shares of the Company’s common stock issued and outstanding, including 10.2 million shares, net of redemptions, issued in the Company’s public offerings, 3.3 million shares, net of redemptions, issued in connection with the Mergers, 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 Class A Shares 12,990 Class T Shares 481 Class I Shares 159 Total 13,630
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 months ended March 31, 2020 and 2019 (all amounts in in thousands): Period Cash Distribution Distribution (1) Total Amount of Distribution First Quarter 2020 $ 4,404 $ 1,393 $ 5,797 First Quarter 2019 $ 3,517 $ 1,121 $ 4,638 (1) Amount of distributions paid in shares of common stock pursuant to the DRP.

Incentive Award Plan (Tables)

Incentive Award Plan (Tables)	3 Months Ended
	Mar. 31, 2020
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 three months ended March 31, 2020 and year ended December 31, 2019: Number of Shares Weighted Average 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 Shares vested (2,500 ) $ 23.32 Balance of non-vested shares as of March 31, 2020 5,000 $ 23.32

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Schedule of composition of restricted cash	The composition of the Company’s restricted cash as of March 31, 2020 and December 31, 2019 are as follows (all amounts in in thousands): March 31, December 31, 2020 2019 Property improvement plan $ 189 $ 190 Real estate taxes 1,966 3,040 Insurance 199 235 Hotel furniture and fixtures 2,537 3,283 Debt service 984 939 Seasonality 542 888 Rent holdback 15 15 Immediate repairs 55 55 Total restricted cash $ 6,487 $ 8,645

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of income tax expense (benefit)	The income tax expense for the three months ended March 31, 2020 and 2019 consisted of the following (in thousands): Three months ended March 31, 2020 2019 Current expense $ 13 $ 50 Deferred benefit (1,097 ) (468 ) Valuation provision for deferred benefit 1,097 468 Total expense (benefit) $ 13 $ 50 Federal $ (1,097 ) $ (468 ) Valuation provision for federal taxes 1,097 468 State 13 50 Total tax expense (benefit) $ 13 $ 50

Organization (Details Narrative

Organization (Details Narrative) $ / shares in Units, $ in Thousands	Jan. 18, 2018USD ($)	Mar. 31, 2020USD ($)Number$ / sharesshares	Dec. 31, 2019USD ($)$ / shares	Jun. 26, 2017$ / shares	Jan. 20, 2015USD ($)
Number of rooms | Number		2,123
Marketable securities		$ 3,049	$ 5,936
Common stock, par value | $ / shares		$ 0.01	$ 0.01
Value of shares issueable under registration statement	$ 990,000
Share price (in dollars per share) | $ / shares			$ 23.32
Special Limited Partnership Interests		$ 1	$ 1
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
Initial Public Offering [Member]
Common stock, authorized, value					$ 1,000,000
Common stock, authorized in Distribution Reinvestment Plan, value					100,000
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		10,200,000
Issuance of common stock pursuant to dividend reinvestment plan (in shares) | shares		567,000
Proceeds from stock and DRIP offering		$ 234,600
Follow On Offering [Member]
Issuance of common stock, net of offering costs (in shares) | shares		4,100,000
Issuance of common stock pursuant to dividend reinvestment plan (in shares) | shares		352,000
Proceeds from stock and DRIP offering		$ 87,200

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2020
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	Mar. 31, 2020	Dec. 31, 2019
Expected future amortization of deferred franchise costs, year ending December 31,
Total	$ 830	$ 850
Franchise Costs [Member]
Expected future amortization of deferred franchise costs, year ending December 31,
2020	63
2021	83
2022	82
2023	80
2024	77
Thereafter	445
Total	$ 830

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Expected future amortization of deferred loan costs, year ending December 31,
2020	$ 509
2021	677
2022	677
2023	632
2024	440
Thereafter	188
Total	$ 3,123	$ 3,293

Summary of Significant Accoun_7

Summary of Significant Accounting Policies (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Marketable securities	$ 3,049		$ 5,936
Marketable securities, unrealized gain (loss)	(3,811)	$ (159)
Marketable securities, realized gain (loss)	(37)
Dividend income	4	128
Deferred franchise costs, accumulated amortization	237		217
Debt issuance costs, accumulated amortization	$ 4,200		$ 4,000
Nonvested restricted stock included in earnings per share	5,000		7,500
Marketable Securities [Member]
Marketable securities, unrealized gain (loss)	$ (3,600)	(159)
Marketable securities, realized gain (loss)	$ (37)	$ 0
Advisor [Member]
Percentage of organization and offering costs	15.00%
Total offering costs	$ 20,900
Offering cost directly incurred by company	12,300
Offering cost reimbursed to advisor	8,600
Payable to Advisor for offering costs	28,000
Advisor [Member] | Initial Public Offering [Member]
Total offering costs	18,400
Offering cost directly incurred by company	12,300
Offering cost reimbursed to advisor	6,100
Advisor [Member] | Follow On Offering [Member]
Total offering costs	2,500
Offering cost directly incurred by company	0
Offering cost reimbursed to advisor	$ 2,500

Investment in Hotel Propertie_2

Investment in Hotel Properties (Details) $ in Thousands		Apr. 29, 2019USD ($)	Mar. 31, 2020USD ($)Number
Original Purchase Price	[1]		$ 451,771
Rooms | Number			2,123
Mortgage Debt Outstanding	[2]		$ 240,803
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]		$ 16,234
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]		$ 43,979
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]		$ 8,876
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]		$ 6,824
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]		$ 6,994
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]		$ 10,442
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]		$ 12,055
Marriott Courtyard Inn Lyndhurst [Member] | New Jersey [Member]
Property Name			Marriott Courtyard Lyndhurst
Date Acquired	[3]		Sep. 27, 2017
Location			Lyndhurst, New Jersey
Ownership percentage	[4]
Original Purchase Price	[1]		$ 39,547
Rooms | Number			227
Mortgage Debt Outstanding	[2]		$ 18,833
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]		$ 17,997
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]		$ 7,827
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]		$ 41,057
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]		$ 10,556
Townplace Suites Fort Worth [Member] | Texas [Member]
Property Name			Townplace Suites Fort Worth
Date Acquired	[3]		Sep. 27, 2017
Location			Fort Worth, Texas
Ownership percentage	[5]
Original Purchase Price	[1]		$ 11,242
Rooms | Number			95
Mortgage Debt Outstanding	[2]		$ 5,947
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]		$ 4,328
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			Apr. 29, 2019
Location			Houston, Texas
Ownership percentage			100.00%
Original Purchase Price	[1]		$ 52,000
Rooms | Number			182
Mortgage Debt Outstanding	[2]		$ 28,854
[1]	Excludes closing costs and includes gain on acquisition.
[2]	As of March 31, 2020.
[3]	Property acquired on September 27, 2017 as a result of the merger of Moody National REITI, 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]	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. See Note 5, "Debt."
[5]	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. See Note 5, "Debt."

Investment in Hotel Propertie_3

Investment in Hotel Properties (Details 1) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Real Estate [Abstract]
Land	$ 76,936	$ 76,936
Buildings and improvements	338,729	338,729
Furniture, fixtures and equipment	59,580	58,072
Total cost	475,245	473,737
Accumulated depreciation	(36,531)	(32,712)
Investment in hotel properties, net	$ 438,714	$ 441,025

Investment in Hotel Propertie_4

Investment in Hotel Properties (Details 2) - USD ($) $ in Thousands		Apr. 29, 2019	Mar. 31, 2020	Dec. 31, 2019
Assets acquired at fair value:
Land			$ 76,936	$ 76,936
Building			338,729	338,729
Furniture, fixtures and equipment			59,580	58,072
Net assets acquired at fair value			475,245	$ 473,737
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
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
[1]	Excludes closing costs and includes gain on acquisition.

Investment in Hotel Propertie_5

Investment in Hotel Properties (Details 3) - Residence Inn Houston [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2019USD ($)$ / shares
Revenue	$ 21,175
Net loss	(2,374)
Net loss attributable to common shareholders	$ (2,296)
Net loss per common share - basic and diluted (in dollar per share) | $ / shares	$ (0.21)

Investment in Hotel Propertie_6

Investment in Hotel Properties (Details Narrative) - USD ($) $ in Thousands		Oct. 01, 2019	Apr. 29, 2019	Mar. 31, 2020		Oct. 15, 2019
Purchase price consideration	[1]			$ 451,771
Residence Inn Houston Medical Center [Member]
Purchase price consideration			$ 52,000
Existing Loan			28,180	22,600
Note payable to related party			$ 22,550
Interest rate			5.00%
Debt instrument periodic payment		$ 170	$ 7,800			$ 2,000
Mortgage loan				$ 29,100
Maturity date		Oct. 1, 2014		Oct. 1, 2024	[2]	Dec. 15, 2019
Late fees interest rate		18.00%				5.00%
Residence Inn Houston Medical Center [Member] | Note Payable To Related Party [Member]
Note payable to related party				$ 186
Maturity date				Jun. 15, 2020
Date of acquisition				Apr. 29, 2019
Residence Inn Houston Medical Center [Member] | Maximum [Member]
Interest rate		17.00%
Residence Inn Houston Medical Center [Member] | Maximum [Member] | Note Payable To Related Party [Member]
Interest rate				3.00%
Residence Inn Houston Medical Center [Member] | Advisor [Member]
Acquisition fee			2,002
Contingent acquisition fee			1,222
Debt financing fee			$ 290
[1]	Excludes closing costs and includes gain on acquisition.
[2]	Monthly payments of interest were due and payable until October 2019. Monthly payments of principal and interest are due and payable beginning in November 2019 until the maturity date.

Note Receivable from Related Pa

Note Receivable from Related Party (Details Narrative) - USD ($) $ in Thousands	Aug. 21, 2015	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019
Interest receivable		$ 0		$ 0
Interest income on notes receivable from related parties		0	$ 200
Fair value of notes receivable		$ 0		$ 0
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		3 Months Ended
		Mar. 31, 2020	Dec. 31, 2019
Short-term Debt [Line Items]
Principal Amount		$ 240,803	$ 241,896
Less unamortized debt issuance costs		(3,123)	(3,293)
Total notes payable, net of unamortized debt issuance costs		237,680	238,603
Residence Inn Austin [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 16,234	16,300
Interest Rate	[1]	4.58%
Maturity Date	[1]	Nov. 1, 2025
Springhill Suites Seattle [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 43,979	44,165
Interest Rate	[1]	4.38%
Maturity Date	[1]	Oct. 1, 2026
Homewood Suites Woodlands [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 8,876	8,915
Interest Rate	[1]	4.69%
Maturity Date	[1]	Apr. 11, 2025
Hyatt Place Germantown [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 6,824	6,865
Interest Rate	[1]	4.30%
Maturity Date	[1]	May 6, 2023
Hyatt Place North Charleston [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 6,994	7,019
Interest Rate	[1]	5.193%
Maturity Date	[1]	Aug. 1, 2023
Hampton Inn Austin [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 10,442	10,493
Interest Rate	[1]	5.426%
Maturity Date	[1]	Jan. 6, 2024
Residence Inn Grapevine [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 12,055	12,114
Interest Rate	[1]	5.25%
Maturity Date	[1]	Apr. 6, 2024
Marriott Courtyard Lyndhurst [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 18,833	18,934
Interest Rate	[1]	4.70%
Maturity Date	[1]	Sep. 27, 2024
Hilton Garden Inn Austin [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 17,997	18,080
Interest Rate	[1]	4.53%
Maturity Date	[1]	Dec. 11, 2024
Hampton Inn Great Valley [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 7,827	7,861
Interest Rate	[1]	4.70%
Maturity Date	[1]	Apr. 11, 2025
Embassy Suites Nashville [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 41,057	41,250
Interest Rate	[1]	4.2123%
Maturity Date	[1]	Jul. 11, 2025
Homewood Suites Austin [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 10,556	10,602
Interest Rate	[1]	4.65%
Maturity Date	[1]	Aug. 11, 2025
Townplace Suites Fort Worth [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 5,947	5,979
Interest Rate	[1]	4.70%
Maturity Date	[1]	Sep. 27, 2024
Hampton Inn Houston [Member]
Short-term Debt [Line Items]
Principal Amount	[1]	$ 4,328	4,366
Interest Rate	[1]	6.25%
Maturity Date	[1]	Apr. 28, 2023
Residence Inn Houston Medical Center [Member]
Short-term Debt [Line Items]
Principal Amount	[2]	$ 28,854	$ 28,953
Interest Rate	[2]	5.00%
Maturity Date	[2]	Oct. 1, 2024
[1]	Monthly payments of principal and interest are due and payable until the maturity date.
[2]	Monthly payments of interest were due and payable until October 2019. Monthly payments of principal and interest are due and payable beginning in November 2019 until the maturity date.

Debt (Details 1)

Debt (Details 1) $ in Thousands	Mar. 31, 2020USD ($)
Maturities of notes payable for the year ending December 31,
2020	$ 3,492
2021	4,893
2022	5,131
2023	21,533
2024	89,112
Thereafter	116,642
Total	$ 240,803

Debt (Details Narrative)

Debt (Details Narrative) - USD ($) $ in Thousands	Oct. 24, 2018	Oct. 24, 2018	Mar. 28, 2018	Nov. 30, 2017	Mar. 31, 2020	Dec. 31, 2019	Sep. 27, 2017
Borrowings maximum percentage of net assets					300.00%
Principal amount					$ 240,803
Fair value of notes payable					$ 240,800	$ 241,900
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
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
Term Loan Agreement [Member] | Minimum [Member]
Basis spread interest rate		2.75%
Term Loan Agreement [Member] | Maximum [Member]
Basis spread interest rate		3.75%
Term Loan Agreement [Member] | OP [Member]
Face amount							$ 70,000

Equity (Details)

Equity (Details) - shares shares in Thousands	Mar. 31, 2020	Dec. 31, 2019
Shares Outstanding	13,630	13,251
Class A Shares [Member]
Shares Outstanding	12,990
Class T Shares [Member]
Shares Outstanding	481
Class I Shares [Member]
Shares Outstanding	159

Equity (Details 1)

Equity (Details 1) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2020	Mar. 31, 2019
Stockholders' Equity Note [Abstract]
Cash Distribution		$ 4,404	$ 3,517
Distribution Paid Pursuant to DRIP	[1]	1,393	1,121
Total Amount of Distribution		$ 5,797	$ 4,638
[1]	Amount of distributions paid in shares of common stock pursuant to the DRP.

Equity (Details Narrative)

Equity (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands	Aug. 15, 2014	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2019	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		$ 9,945
Share Price (in dollars per share)				$ 23.32
Common stock, shares issued		13,630,000		13,251,000
Common stock, shares outstanding		13,630,000		13,251,000
Outstanding shares of restricted stock		55,000
Distribution paid per day (in dollars per share)		$ 0.00480
Annualized distribution rate		$ 1.7528
Noncontrolling interest in operating partnership		$ 3,987		$ 4,313
Ownership units		316,037		316,037
Income (loss) attributable to noncontrolling interest in operating partnership		$ (236)	$ (78)
Class A Shares [Member]
Common stock, par value (in dollars per share)					$ 0.01
Common stock, shares outstanding		12,990,000
Sponsor [Member]
Issuance of common stock, net of offering costs (in shares)	8,000
Issuance of common stock, net of offering costs	$ 200
Share Price (in dollars per share)	$ 25
Common stock, shares issued		8,000
Public Offerings [Member]
Common stock, shares issued		10,200,000
IPO [Member] | Class A Shares [Member]
Issuance of common stock in connection with Merger (in shares)		3,300,000

Related Party Arrangements (Det

Related Party Arrangements (Details Narrative) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		5 Months Ended
	Jan. 16, 2018	Mar. 31, 2020	Mar. 31, 2019	Jun. 12, 2017	Dec. 31, 2019
Additional paid-in capital		$ 305,579			$ 296,928
Operating expenses		6,500
Advisory Agreement [Member]
Advisory service amount		1
The Company [Member]
Operating expenses		5,300
Moody Securities [Member]
Percentage of selling commissions on gross offering	6.00%			7.00%
Percentage of dealers manager fee on gross offering	2.50%			3.00%
Advisor [Member]
Payments for commissions		9,700
Dealer manager fees		$ 8,500
Percent of organization and offering costs		15.00%
Total offering costs		$ 20,900
Offering cost directly incurred by company		12,300
Offering cost reimbursed to advisor		8,600
Payable to advisor for offering costs		$ 28,000
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 reimbursed		$ 1,200
Operating expense reimbursement receivable		208
Operating expenses		1,200
Advisor [Member] | Asset Management [Member]
Property manager property management fees		610	$ 738
Accounting fees		112	105
Advisor [Member] | IPO [Member]
Total offering costs		18,400
Offering cost directly incurred by company		12,300
Offering cost reimbursed to advisor		6,100
Advisor [Member] | Follow On Offering [Member]
Total offering costs		2,500
Offering cost directly incurred by company		0
Offering cost reimbursed to advisor		$ 2,500
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%
Moody National Hospitality Management, LLC - Property Manager (Member]
Monthly hotel management fee percentage		4.00%
Percentage of annual incentive fee		15.00%
Asset management fee percentage		8.50%
Agreement term		10 years
Moody National Hospitality Management, LLC - Property Manager (Member] | Management And Administrative Service [Member]
Property manager property management fees		$ 1,200	$ 1,000

Incentive Award Plan (Details)

Incentive Award Plan (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2020	Dec. 31, 2019
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
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	7,500
Shares vested	(2,500)	(10,000)
Balance of non-vested shares at end	5,000	7,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward]
Balance of non-vested shares at beginning	$ 23.32	$ 23.19
Shares vested	23.32	23.32
Balance of non-vested shares at end	$ 23.32	$ 23.32

Incentive Award Plan (Details N

Incentive Award Plan (Details Narrative) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Stock-based compensation	$ 64	$ 65
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Board of Directors [Member]
Stock-based compensation	$ 64	$ 64
Nonvested of restricted stock common stock	5,000
Unrecognized compensation expense	$ 65
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Board of Directors [Member] | IPO [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
Incentive Award Plan and Independent Directors Compensation Plan [Member] | Restricted Stock [Member]
Shares available for issuance	1,945,000

Subordinated Participation In_2

Subordinated Participation Interest (Details Narrative)	Mar. 31, 2020
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	Mar. 31, 2020	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Property improvement plan	$ 189	$ 190
Real estate taxes	1,966	3,040
Insurance	199	235
Hotel furniture and fixtures	2,537	3,283
Debt service	984	939
Seasonality	542	888
Rent holdback	15	15
Immediate repairs	55	55
Total restricted cash	$ 6,487	$ 8,645

Commitments and Contingencies_3

Commitments and Contingencies (Details Narrative) - Moody National REIT I, Inc [Member] - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Franchise fees	$ 1,300	$ 1,600
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	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Components of income tax expense
Current expense	$ 13	$ 50
Deferred benefit	(1,097)	(468)
Valuation provision for deferred benefit	1,097	468
Total expense (benefit)	13	50
Income tax by jurisdiction
Federal	(1,097)	(468)
Valuation provision for federal taxes	1,097	468
State	13	50
Total tax expense (benefit)	$ 13	$ 50

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards	$ 6,000
Deferred tax assets	2,300	$ 2,300
Deferred tax assets, valuation allowance	4,400	$ 3,300
TRS [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards	26,700
Moody National REIT I, Inc [Member] | TRS [Member]
Operating Loss Carryforwards [Line Items]
Net operating loss carry-forwards	$ 7,300