Moody National REIT II (MNRTII) 10-Q 14 Nov 22 2022 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2022	Nov. 08, 2022
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2022
Current Fiscal Year End Date	--12-31
Entity File Number	000-55778
Entity Registrant Name	MOODY NATIONAL REIT II, INC.
Entity Central Index Key	0001615222
Entity Tax Identification Number	47-1436295
Entity Incorporation, State or Country Code	MD
Entity Address, Address Line One	9655 Katy Freeway
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77024
City Area Code	713
Local Phone Number	977-7500
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	true
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		13,640,429
Common Class A [Member]
Entity Common Stock, Shares Outstanding		13,000,645
Common Class I [Member]
Entity Common Stock, Shares Outstanding		159,092
Common Class T [Member]
Entity Common Stock, Shares Outstanding		480,692

CONSOLIDATED BALANCE SHEETS (un

CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Investments in hotel properties, net	$ 402,560	$ 412,972
Cash and cash equivalents	6,507	6,049
Restricted cash	15,272	13,232
Accounts receivable, net of allowance for doubtful accounts of $35 at September 30, 2022 and December 31, 2021	1,794	1,015
Prepaid expenses and other assets	2,991	2,890
Deferred franchise costs, net of accumulated amortization of $445 and $383 at September 30, 2022 and December 31, 2021, respectively	622	684
Total Assets	429,746	436,842
Liabilities:
Notes payable, net of unamortized debt issuance costs of $1,430 and $1,937 as of September 30, 2022 and December 31, 2021, respectively	236,160	239,739
Notes payable to related party	30,526	28,474
Accounts payable and accrued expenses	15,625	14,128
Due to related parties, net	6,877	953
Dividends payable	70	70
Total Liabilities	289,258	283,364
Special Limited Partnership Interests	1	1
Stockholders’ equity:
Preferred stock, $0.01 par value per share; 100,000 shares authorized; no shares issued and outstanding
Common stock, $0.01 par value per share; 1,000,000 shares authorized, 13,640 shares issued and outstanding at September 30, 2022 and December 31, 2021	136	136
Additional paid-in capital	305,640	305,562
Accumulated deficit	(167,755)	(154,983)
Total stockholders’ equity	138,021	150,715
Noncontrolling interests in Operating Partnership	2,466	2,762
Total Equity	140,487	153,477
TOTAL LIABILITIES AND EQUITY	$ 429,746	$ 436,842

CONSOLIDATED BALANCE SHEETS (_2

CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 35	$ 35
Accumulated amortization, deferred franchise costs	445	383
Unamortized debt issuance costs, note payable	$ 1,430	$ 1,937
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, authorized	100,000,000	100,000,000
Preferred stock, issued	0	0
Preferred stock, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized	1,000,000,000	1,000,000,000
Common Stock, Shares, Issued	13,640,000	13,640,000
Common Stock, Shares, Outstanding	13,640,000	13,640,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue
Total hotel revenue	$ 20,799	$ 16,323	$ 58,468	$ 40,878
Interest and dividend income				1
Total revenue	20,799	16,323	58,468	40,879
Expenses
Hotel operating expenses	13,816	10,790	38,614	29,581
Property taxes, insurance and other	1,775	1,276	5,081	4,720
Depreciation and amortization	3,908	3,872	11,700	11,606
Corporate general and administrative	1,613	1,618	5,163	5,372
Total expenses	21,112	17,556	60,558	51,279
Operating loss	(313)	(1,233)	(2,090)	(10,400)
Other expenses (income)
Interest expense and amortization of debt issuance costs	3,672	6,149	10,869	12,021
Loss on sale of marketable securities				245
Unrealized gain on change in fair value of investment in marketable securities				(397)
Total other expenses	3,672	6,149	10,869	11,869
Loss before income taxes	(3,985)	(7,382)	(12,959)	(22,269)
Income tax expense (benefit)	18	43	109	(27)
Net loss	(4,003)	(7,425)	(13,068)	(22,242)
Loss attributable to noncontrolling interests in Operating Partnership	91	168	296	504
Net loss attributable to common stockholders	$ (3,912)	$ (7,257)	$ (12,772)	$ (21,738)
Per-share information – basic and diluted:
Net loss attributable to common stockholders - basic	$ (0.29)	$ (0.53)	$ (0.94)	$ (1.59)
Net loss attributable to common stockholders - diluted	(0.29)	(0.53)	(0.94)	(1.59)
Dividends declared
Weighted average common shares outstanding - basic	13,640	13,635	13,640	13,635
Weighted average common shares outstanding - diluted	13,640	13,635	13,640	13,635
Occupancy [Member]
Revenue
Total hotel revenue	$ 19,609	$ 15,272	$ 55,237	$ 38,288
Hotel, Other [Member]
Revenue
Total hotel revenue	$ 1,190	$ 1,051	$ 3,231	$ 2,590

CONSOLIDATED STATEMENT OF EQUIT

CONSOLIDATED STATEMENT OF EQUITY (unaudited) - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]
Balance at December 31, 2021 at Dec. 31, 2020	$ 181,291		$ 136	$ 305,446	$ (127,686)	$ 3,395
Shares, Outstanding, Beginning Balance at Dec. 31, 2020			13,630,000
Partners' Capital Account, Units, Beginning Balance at Dec. 31, 2020						316,000
Stock-based compensation	97			97
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture			5,000
Net loss	(22,242)				(21,738)	(504)
Balance at September 30, 2022 at Sep. 30, 2021	159,146		$ 136	305,543	(149,424)	$ 2,891
Shares, Outstanding, Ending Balance at Sep. 30, 2021			13,635,000
Partners' Capital Account, Units, Ending Balance at Sep. 30, 2021						316,000
Balance at December 31, 2021 at Jun. 30, 2021	166,539		$ 136	305,511	(142,167)	$ 3,059
Shares, Outstanding, Beginning Balance at Jun. 30, 2021			13,635,000
Partners' Capital Account, Units, Beginning Balance at Jun. 30, 2021						316,000
Stock-based compensation	32			32
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture
Net loss	(7,425)				(7,257)	(168)
Balance at September 30, 2022 at Sep. 30, 2021	159,146		$ 136	305,543	(149,424)	$ 2,891
Shares, Outstanding, Ending Balance at Sep. 30, 2021			13,635,000
Partners' Capital Account, Units, Ending Balance at Sep. 30, 2021						316,000
Balance at December 31, 2021 at Dec. 31, 2021	153,477		$ 136	305,562	(154,983)	$ 2,762
Shares, Outstanding, Beginning Balance at Dec. 31, 2021			13,640,000
Partners' Capital Account, Units, Beginning Balance at Dec. 31, 2021						316,000
Stock-based compensation	78			78
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture
Net loss	(13,068)				(12,772)	(296)
Balance at September 30, 2022 at Sep. 30, 2022	$ 140,487		$ 136	305,640	(167,755)	$ 2,466
Shares, Outstanding, Ending Balance at Sep. 30, 2022			13,640,000
Partners' Capital Account, Units, Ending Balance at Sep. 30, 2022	316,037					316,000
Balance at December 31, 2021 at Jun. 30, 2022	$ 144,463		$ 136	305,613	(163,843)	$ 2,557
Shares, Outstanding, Beginning Balance at Jun. 30, 2022			13,640,000
Partners' Capital Account, Units, Beginning Balance at Jun. 30, 2022						316,000
Stock-based compensation	27			27
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture
Net loss	(4,003)				(3,912)	(91)
Balance at September 30, 2022 at Sep. 30, 2022	$ 140,487		$ 136	$ 305,640	$ (167,755)	$ 2,466
Shares, Outstanding, Ending Balance at Sep. 30, 2022			13,640,000
Partners' Capital Account, Units, Ending Balance at Sep. 30, 2022	316,037					316,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Cash flows from operating activities
Net loss	$ (13,068)	$ (22,242)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	11,700	11,606
Amortization of debt issuance costs	507	507
Loss on sale of marketable securities		245
Unrealized gain on change in fair value of investment in marketable securities		(397)
Stock-based compensation	78	97
Changes in operating assets and liabilities:
Accounts receivable	(779)	(675)
Prepaid expenses and other assets	(101)	150
Accounts payable and accrued expenses	1,497	(381)
Due to related parties	5,924	(3,251)
Net cash provided by (used in) operating activities	5,758	(14,341)
Cash flows from investing activities
Proceeds from the sale of marketable securities		2,188
Improvements and additions to hotel properties	(1,226)	(379)
Net cash (used in) provided by investing activities	(1,226)	1,809
Cash flows from financing activities
Repayment of notes payable	(4,086)	(3,289)
Proceeds from notes payable to related party	3,752	20,933
Repayment of notes payable to related party	(1,700)
Net cash (used in) provided by financing activities	(2,034)	17,644
Net change in cash and cash equivalents and restricted cash	2,498	5,112
Cash and cash equivalents and restricted cash at beginning of period	19,281	10,502
Cash and cash equivalents and restricted cash at end of period	21,779	15,614
Supplemental Disclosure of Cash Flow Activity
Interest paid	8,975	11,662
Income tax paid (refund received, net)	$ (17)	$ 141

Organization

Organization	9 Months Ended
	Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	1. Organization As discussed in Note 5, “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 September 30, 2022, the Company owned interests in fifteen hotel properties located in six states comprising a total of 2,123 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 1.0 100.0 On June 26, 2017, the Company reallocated the Company’s shares of common stock as Class A common stock, $ 0.01 0.01 0.01 0.01 provided, however On January 18, 2018, the Company filed a registration statement on Form S-11 (Registration No. 333-222610) registering $ 990 The Company’s follow-on public offering was terminated (including pursuant to the DRP) effective as of March 25, 2020, due to the impact that the COVID-19 pandemic had on the Company’s hotel properties. The Company accepted investors’ subscriptions for and issued an aggregate of 10.2 567,000 234.6 4.1 352,000 87.2 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 1,000 COVID-19 Pandemic The global COVID-19 pandemic has had, and may continue to have, a significant adverse effect on the Company’s financial condition and operating results. Since its discovery in December 2019, COVID-19 has spread globally, including to every state in the United States. The spread of COVID-19 has been declared a pandemic by the World Health Organization and in the United States the Health and Human Services Secretary has declared a public health emergency with respect to COVID-19 Although vaccines for COVID-19 are available to the general public in the United States and around the world, the spread of the virus could have a continued adverse impact on economic and market conditions despite the distribution of vaccines. The length and severity of the pandemic will be worsened to the extent that a significant portion of the population, in the United States and globally, is reluctant to be vaccinated, fails to complete required multi-step vaccination protocol or is unable to become vaccinated due to shortages in vaccine supply or suspensions in the distribution of vaccines due to safety concerns or other issues. The length of the pandemic is also dependent upon the degree to which more contagious variants of the virus continue to spread, particularly among areas of the country in which overall full vaccination rates are relatively low, and overall rates of new COVID-19 cases continue to rise. Further, new and worsening outbreaks of COVID-19 in other countries may impact global vaccine supplies and lead to the emergence of new variants of the virus which are more contagious, more deadly or against which currently available vaccines are less effective. The COVID-19 pandemic dramatically reduced travel, which has had an unprecedented adverse impact on the hotel industry. As a result, the COVID-19 pandemic has had 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, and on the Company’s business, financial performance and operating results. Since March 2020, the Company has experienced a significant decline in bookings, occupancy and revenues across the Company’s hotel properties, which the Company expects to continue for an indefinite period of time. The Company’s hotel properties have operated at a property net operating loss since the outbreak of COVID-19, which has had an adverse impact on the Company’s results of operations and cash flow from operations. In addition, the Company has reduced certain services and amenities at the Company’s hotel properties. Although all of the Company’s hotel properties are currently open and operational, the Company may be required, or elect, to temporarily suspend operations at one or more of the Company’s hotel properties in the future depending on the continued impact of COVID-19 and its related effects. If operations at any of the Company’s hotel properties are suspended, the Company cannot give any assurance as to when operations at such hotel properties will resume at a full or reduced level. 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 current with respect to the payments due under the mortgage loans secured by the Company’s hotel properties and or is compliance with the modified terms of certain mortgage loans and other accommodations as agreed to with the lenders. As discussed in Note 4, “Debt,” certain lenders agreed to limited loan modifications, including temporary deferrals of interest and principal payments and agreements to forebear the enforcement of default remedies available under the terms of the loan documents. As of the date of this Quarterly Report, no lenders accelerated the maturity of any of the loans secured by the Company’s properties or initiated foreclosure procedures with respect to any of the Company’s properties. In response to the COVID-19 pandemic, the Company terminated its public offering of common stock (including pursuant to the DRP), effective as of March 2020. The Company is not currently raising capital through the sale of its securities and the Company does not intend to begin to do so in the near term. The Company has also indefinitely suspended the payment of distributions to stockholders effective as of March 2020 and the operation of the Company’s share repurchase program effective as of April 2020. The Board and the Company’s management continue to evaluate the Company’s financial condition and the overall economic environment to determine if and when the Company will seek to resume raising capital, resume the payment of distributions and reinstate the Company’s share repurchase program. Specifically, the Board, in consultation with management, will continue to monitor the Company’s operations and intends to resume distributions at a time and level determined to be prudent in relation to the Company’s other cash requirements or in order to maintain the Company’s REIT status for federal income tax purposes. However, it is impossible to predict if or when the Company will be able to resume the payment of distributions or return to normal operations. The COVID-19 pandemic is a continually evolving situation that presents material uncertainty and risk. The extent and duration of the impacts of COVID-19 on the Company’s business, financial condition, results of operations and cash flows is dependent on future developments that are highly uncertain and cannot be accurately predicted at this time, including without limitation the scope, severity and duration of the pandemic, the extent and effectiveness of the actions taken to contain the pandemic or mitigate its impact, the speed of the development and distribution of vaccines for COVID-19 and the efficacy and availability of such vaccines, the extent to which the general population is willing to be vaccinated, the effectiveness of currently available vaccines against emerging variants of COVID-19, the potential for hotel closures that may be mandated or advisable, whether based on increased COVID-19 cases, new variants or other factors, the reduction or reversal of previously implemented containment measures in certain states and cities, and the direct and indirect economic effects of the pandemic. As a result, the Company cannot provide an estimate of the overall impact of COVID-19 on the Company’s business, financial condition, results of operations and cash flows or when, if at all, the Company will be able to resume pre-COVID-19 levels of operations.

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2022
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 All offering costs, including selling commissions and dealer manager fees, are recorded as an offset to additional paid-in-capital, and all organization costs are recorded as an expense when the Company has an obligation to reimburse the Advisor. As of September 30, 2022, total offering costs for the initial public offering and the follow-on offering were $ 21.1 12.3 8.8 18.4 12.3 6.1 2.7 0 2.7 0 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 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 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 September 30, 2022. 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 2017 through 2021 remaining subject to examination by various federal and state tax jurisdictions. For more information, see Note 10, “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 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 notes payable, see Note 4, “Debt.” Concentration of Risk As of September 30, 2022, 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 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 Useful Lives (years) Buildings and improvements 39 40 Exterior improvements 10 20 Furniture, fixtures and equipment 5 10 Impairments The Company monitors events and changes in circumstances indicating that the carrying 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 and nine months ended September 30, 2022 and 2021. 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. The following is a reconciliation of the Company’s cash and cash equivalents and restricted cash to the total presented in the unaudited consolidated statement of cash flows as of September 30, 2022 and 2021 (in thousands): September 30, 2022 2021 Cash and cash equivalents $ 6,507 $ 7,723 Restricted cash 15,272 7,891 Total cash and cash equivalents and restricted cash $ 21,779 $ 15,614 Investment in Marketable Securities All of the Company’s investment in marketable securities were sold during the nine months ended September 30, 2021. For the nine months ended September 30, 2021, unrealized gain on change in fair value of investment in marketable securities was $ 397,000 245,000 Dividend income is recognized when earned. For the nine months ended September 30, 2021, dividend income of $ 1,000 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. 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 $ 445,000 383,000 Expected future amortization of deferred franchise costs as of September 30, 2022 is as follows (in thousands): Years Ending December 31, 2022 $ 20 2023 77 2024 77 2025 77 2026 76 Thereafter 295 Total $ 622 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 $ 5.9 5.4 Expected future amortization of debt issuance costs as of June 30, 2022 is as follows (in thousands): Years Ending December 31, 2022 $ 170 2023 632 2024 440 2025 154 2026 34 Total $ 1,430 Earnings (Loss) per Share Earnings (loss) per share (“EPS”) is calculated based on the weighted average number of shares outstanding during each period. Basic and diluted EPS are the same for all periods presented. Non-vested shares of restricted common stock totaling 1,250 5,000

Investment in Hotel Properties

Investment in Hotel Properties	9 Months Ended
	Sep. 30, 2022
Real Estate [Abstract]
Investment in Hotel Properties	3. Investment in Hotel Properties The following table sets forth summary information regarding the Company’s investment in hotel properties as of September 30, 2022 (all $ amounts in thousands): Property Name Date Acquired Location Ownership Interest Original Purchase Price (1) Rooms Mortgage Debt Outstanding (2) Residence Inn Austin October 15, 2015 Austin, Texas 100 % $ 27,500 112 $ 15,540 Springhill Suites Seattle May 24, 2016 Seattle, Washington 100 % 74,100 234 42,022 Homewood Suites Woodlands September 27, 2017 (5) The Woodlands, Texas 100 % 17,356 91 8,465 Hyatt Place Germantown September 27, 2017 (5) Germantown, Tennessee 100 % 16,074 127 6,388 Hyatt Place North Charleston September 27, 2017 (5) North Charleston, South Carolina 100 % 13,806 113 6,608 Hampton Inn Austin September 27, 2017 (5) Austin, Texas 100 % 19,328 123 9,903 Residence Inn Grapevine September 27, 2017 (5) Grapevine, Texas 100 % 25,245 133 11,428 Marriott Courtyard Lyndhurst September 27, 2017 (5) Lyndhurst, New Jersey — (3) 39,547 227 18,097 Hilton Garden Inn Austin September 27, 2017 (5) Austin, Texas 100 % 29,288 138 17,121 Hampton Inn Great Valley September 27, 2017 (5) Frazer, Pennsylvania 100 % 15,285 125 7,468 Embassy Suites Nashville September 27, 2017 (5) Nashville, Tennessee 100 % 82,207 208 39,027 Homewood Suites Austin September 27, 2017 (5) Austin, Texas 100 % 18,835 96 10,074 Townplace Suites Fort Worth September 27, 2017 (5) Fort Worth, Texas — (4) 11,242 95 5,680 Hampton Inn Houston September 27, 2017 (5) Houston, Texas 100 % 9,958 119 4,028 Residence Inn Houston Medical Center April 29, 2019 (6) Houston, Texas 100 % 52,000 182 28,241 Totals $ 451,771 2,123 $ 230,090 (1) Excludes closing costs and includes gain on acquisition. (2) As of September 30, 2022. (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 4, “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 4, “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 September 30, 2022 and December 31, 2021 (all amounts in thousands): September 30, December 31, Land $ 76,936 $ 76,936 Buildings and improvements 338,749 338,729 Furniture, fixtures and equipment 61,931 60,725 Total cost 477,616 476,390 Accumulated depreciation (75,056 ) (63,418 ) Investment in hotel properties, net $ 402,560 $ 412,972

Debt

Debt	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Debt	4. 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 300 300 300 As of September 30, 2022 and December 31, 2021, the Company’s mortgage notes payable secured by the respective assets, consisted of the following ($ amounts in thousands): Loan Principal as of September 30, Principal as of December 31, 2021 Interest Rate at September 30, Maturity Date Loan Modifications Residence Inn Austin $ 15,540 $ 15,757 4.580 % November 1, 2025 Lender forbore the collection 75 1.1 25 Springhill Suites Seattle 42,022 42,634 4.380 % October 1, 2026 Three months deferral of interest and principal payments from June to August, 2020. Four months interest only payments from September to December, 2020. Homewood Suites Woodlands 8,465 8,594 4.690 % April 11, 2025 Hyatt Place Germantown 6,388 6,524 4.300 % May 6, 2023 Deferral of thirteen months of interest and principal payments from September 2020 to September 2021 and eighteen months deferral escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $ 1.4 Hyatt Place North Charleston 6,608 6,730 5.193 % August 1, 2023 Payment of $ 100,000 Hampton Inn Austin 9,903 10,073 5.426 % January 6, 2024 Deferral of thirteen months of interest and principal payments from September 2020 to September 2021 and eighteen months deferral escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $ 1.99 Residence Inn Grapevine 11,428 11,625 5.250 % April 6, 2024 Deferral of nine months of interest and principal payments from January 2021 to September 2021 and sixteen months deferral of escrow payments for tax, insurance and hotel furniture and fixtures from June 2020 to September 2021 totaled $ 2.35 1.41 940,000 Marriott Courtyard Lyndhurst 18,097 18,420 4.700 % September 27, 2024 Six months payment of interest only from April to September, 2020. Hilton Garden Inn Austin 17,121 17,564 4.530 % December 11, 2024 Deferral of eighteen months of interest and principal payments and escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $ 3.98 1.69 2.36 Hampton Inn Great Valley 7,468 7,617 4.700 % April 11, 2025 Deferral of sixteen months of interest and principal payments and escrow payments for tax, insurance and hotel furniture and fixtures from June 2020 to September totaled $ 1.75 729,000 1.02 Embassy Suites Nashville 39,027 39,660 4.2123 % July 11, 2025 April to July 2020 payment of principal and interest deferred. August 2020 to December 2020 interest only. Special servicing fees of $ 205,285 Homewood Suites Austin 10,074 10,311 4.650 % August 11, 2025 Deferral of seventeen months of interest and principal payments from May 2020 to September 2021 and eighteen months deferral of escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $ 2.73 1.14 1.59 Townplace Suites Fort Worth 5,680 5,783 4.700 % September 27, 2024 April 2020 payment was interest only. Six-month deferral of principal from April to September 2020. Two months deferral of interest payments for May and June, 2020. Three months interest only payments from July to September, 2020. Hampton Inn Houston 4,028 4,181 8.250 % April 28, 2023 Seven-month deferral of principal and interest payments for payments due March 28, 2020 through September 28, 2020. Six months interest only for payments due October 28, 2020 through March 28, 2021. Residence Inn Houston Medical Center 28,241 28,703 5.000 % October 1, 2024 Deferral of principal and interest payments for six months from April to September, 2020. Interest only payments for an additional twelve months from October 2020 to September 2021. U.S. Small Business Administration Economic Injury Disaster Loans 7,500 7,500 3.750 % November 2051 Total notes payable 237,590 241,676 Less unamortized debt issuance costs (1,430 ) (1,937 ) Total notes payable, net of unamortized debt issuance costs $ 236,160 $ 239,739 Monthly payments of principal and interest are due and payable until the maturity date, except that monthly installments of principal and interest begin two years from the dates of the U.S. Small Business Administration Economic Injury Disaster Loans. Hotel properties secure their respective loans. Scheduled maturities of the Company’s notes payable as of September 30, 2022 are as follows (all amounts in thousands): Years ending December 31, 2022 $ 1,313 2023 21,700 2024 90,551 2025 77,417 2026 39,141 Thereafter 7,468 Total $ 237,590 Economic Injury Disaster Loans The Company entered into fifteen Loans (“Loans”) each in the principal amount of $ 500,000 30 years 3.75 7.5 Notes Payable to Related Party On March 30, 2021, Moody National Capital, LLC (“Moody Capital”), an affiliate of the Company, loaned the Company $ 8 2 10 two years 4.75 6.75 10 From April 2021 to August 16, 2021, Moody Capital made a series of advances to the Company to meet specific cash flow needs of the Company. Effective June 30, 2021, these advances were memorialized in a promissory note (“Second Related Party Note”) with a total maximum aggregate loan amount of $ 10 two years 6.75 8.75 10 From August 20, 2021 to September 30, 2021, Moody Capital made a series of advances to the Company to meet specific cash flow needs and has received repayments from the Company based on the Company’s specific available cash flow. These advances were memorialized in a promissory note (“Third Related Party Note”) with a total maximum aggregate loan amount of $ 10 two years 7.75 9.75 10 8.5 From April 13, 2022 to September 30, 2022, Moody Capital made a series of advances to the Company to meet specific cash flow needs and has received repayments from the Company based on the Company’s specific available cash flow These advances were memorialized in a promissory note (“Fourth Related Party Note”) with a total maximum aggregate loan amount of $ 10 two years 8.75 9.75 525,500 Interest will be paid for the Related Party Note, the Second Related Party Note, the Third Related Party Note, and the Fourth Related Party Note as permitted by available cash flow of the Company, or from the excess proceeds following a sale of a property after the payment of expenses and amounts due to any senior lender, if applicable, and will be compounded semiannually. The Company expects to enter into a mutually agreeable subordination agreement with any such senior lender. The Company may prepay the amounts due under the Related Party Note, the Second Related Party Note, the Third Related Party Note, and the Fourth Related Party Note without any prepayment penalty. The estimated fair value of the Company’s notes payable as of September 30, 2022 and December 31, 2021, respectively, was $ 238 242

Equity

Equity	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Equity	5. Equity Capitalization Under its Charter, the Company has the authority to issue 1.0 billion 100.0 million 0.01 8,000 25.00 200,000 13.6 10.2 3.3 8,000 60,000 Schedule of shares outstanding Class Shares Outstanding as of September 30, Class A Shares 13,000 Class T Shares 481 Class I Shares 159 Total 13,640 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 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 had on 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. Noncontrolling Interest in Operating Partnership Noncontrolling interest in the OP at September 30, 2022 and December 31, 2021 was $ 2.5 2.8 316,037 91,000 168,000 296,000 504,000

Related Party Arrangements

Related Party Arrangements	9 Months Ended
	Sep. 30, 2022
Related Party Transactions [Abstract]
Related Party Arrangements	6. 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 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 3.0 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. 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 6.0 3.0 2.5 9.7 8.5 Organization and Offering Expenses The Advisor will receive reimbursement for organizational and offering expenses incurred on the Company’s behalf, but only to the extent that such reimbursements do not exceed actual expenses incurred by Advisor and do not cause the cumulative selling commissions, dealer manager fees, stockholder servicing fees and other organization and offering expenses borne by the Company to exceed 15.0 As of September 30, 2022, total offering costs for the initial public offering and the follow-on offering were $ 21.1 12.3 8.8 million 18.4 12.3 6.1 2.7 0 2.7 0 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 3.85 allocable cost of investments acquired in a joint venture (including 3.85 1.5 2.35 1.5 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 and nine months ended September 30, 2021 and 2020. Financing Coordination Fee The Advisor also receives financing coordination fees of 1 0.75 Property Management Fee The Company pays Moody National Hospitality Management, LLC (“Property Manager”) a monthly hotel management fee equal to 4.0 ten years 861,000 112,000 2.6 337,000 The Company pays an annual incentive fee to Property Manager. Such annual incentive fee is equal to 15 8.5 Asset Management Fee The Company pays the Advisor a monthly asset management fee of one-twelfth of 1.0 1.2 3.6 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 6 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 25 2 25 2 25 6.6 4.8 1.8 6.6 0 2 25 1.8 322,000

Incentive Award Plan

Incentive Award Plan	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
Incentive Award Plan	7. 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 2,000,000 5,000 2,500 1,935,000 The Company recorded compensation expense related to such shares of restricted stock of $ 28,000 33,000 78,000 97,000 1,250 301 The following is a summary of activity under the Independent Directors Compensation Plan for the nine months ended September 30, 2022 and year ended December 31, 2021: Number of Weighted Balance of non-vested shares as of December 31, 2020 5,000 $ 23.50 Shares granted on November 12, 2021 5,000 $ 19.40 Shares vested (5,000 ) $ 23.50 Balance of non-vested shares as of December 31, 2021 5,000 $ 19.40 Shares vested (3,750 ) $ 19.40 Balance of non-vested shares as of September 30, 2022 1,250 $ 19.40

Subordinated Participation Inte

Subordinated Participation Interest	9 Months Ended
	Sep. 30, 2022
Disclosure Subordinated Participation Interest Abstract
Subordinated Participation Interest	8. Subordinated Participation Interest Pursuant to the limited partnership agreement for the OP, Moody LPOP II, the holder of the Special Limited Partnership Interests, is entitled to receive distributions equal to 15.0 6.0 8.0

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Restricted Cash Under certain management and debt agreements existing at September 30, 2022, the Company escrows payments required for property improvement plans, real estate taxes, replacement of hotel furniture and fixtures, debt service and rent holdback. The composition of the Company’s restricted cash as of September 30, 2022 and December 31, 2021 are as follows (in thousands): September 30, December 31, Real estate taxes $ 4,266 $ 4,447 Insurance 290 382 Hotel furniture and fixtures 7,581 5,483 Debt service 2,977 2,762 Property improvement plan 158 158 Total restricted cash $ 15,272 $ 13,232 Franchise Agreements As of September 30, 2022, all of the Company’s hotel properties, including those acquired as part of the Moody I Portfolio, are operated under franchise agreements with initial terms ranging from 10 20 2.5 6.0 1.5 4.3 1.9 1.4 5.2 3.5

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	10. 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 September 30, 2022, the Company had operating loss and capital loss carry-forwards of $ 12.4 900,000 The Company had deferred tax assets of $ 2.3 16.4 14.5 80.1 8.3 The income tax expense (benefit) for the three and nine months ended September 30, 2022 and 2021 consisted of the following (in thousands): Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 Current expense $ 18 $ 43 $ 109 $ (27 ) Deferred benefit (579 ) (955 ) (1,925 ) (3,524 ) Valuation provision for deferred benefit 579 955 1,925 3,524 Total expense $ 18 $ 43 $ 109 $ (27 ) Federal $ (579 ) $ (955 ) $ (1,925 ) $ (3,524 ) Valuation provision for federal taxes 579 955 1,925 3,524 State 18 43 109 (27 ) Total tax expense $ 18 $ 43 $ 109 $ (27 ) On September 30, 2022, the Company had net deferred tax assets of $ 2.3 2033 through 2038 if not utilized by then

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2022
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events The COVID-19 pandemic has had, and may continue to have, a significant adverse effect on the operating results of the Company’s hotel properties and overall financial condition. See Note 1, “Organization.”

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
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 All offering costs, including selling commissions and dealer manager fees, are recorded as an offset to additional paid-in-capital, and all organization costs are recorded as an expense when the Company has an obligation to reimburse the Advisor. As of September 30, 2022, total offering costs for the initial public offering and the follow-on offering were $ 21.1 12.3 8.8 18.4 12.3 6.1 2.7 0 2.7 0
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 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 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 September 30, 2022. 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 2017 through 2021 remaining subject to examination by various federal and state tax jurisdictions. For more information, see Note 10, “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 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 notes payable, see Note 4, “Debt.”
Concentration of Risk	Concentration of Risk As of September 30, 2022, 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 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 Useful Lives (years) Buildings and improvements 39 40 Exterior improvements 10 20 Furniture, fixtures and equipment 5 10
Impairments	Impairments The Company monitors events and changes in circumstances indicating that the carrying amount of a hotel property may not be recoverable. When such events or changes in circumstances are present, the Company assesses potential impairment by comparing estimated future undiscounted cash flows expected to be generated over the life of the asset from operating activities and from its eventual disposition, to the carrying amount of the asset. In the event that the carrying amount exceeds the estimated future undiscounted cash flows, the Company recognizes an impairment loss to adjust the carrying amount of the asset to estimated fair value for assets held for use and fair value less costs to sell for assets held for sale. There were no such impairment losses for the three and nine months ended September 30, 2022 and 2021. 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. The following is a reconciliation of the Company’s cash and cash equivalents and restricted cash to the total presented in the unaudited consolidated statement of cash flows as of September 30, 2022 and 2021 (in thousands): September 30, 2022 2021 Cash and cash equivalents $ 6,507 $ 7,723 Restricted cash 15,272 7,891 Total cash and cash equivalents and restricted cash $ 21,779 $ 15,614
Investment in Marketable Securities	Investment in Marketable Securities All of the Company’s investment in marketable securities were sold during the nine months ended September 30, 2021. For the nine months ended September 30, 2021, unrealized gain on change in fair value of investment in marketable securities was $ 397,000 245,000 Dividend income is recognized when earned. For the nine months ended September 30, 2021, dividend income of $ 1,000
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.
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 $ 445,000 383,000 Expected future amortization of deferred franchise costs as of September 30, 2022 is as follows (in thousands): Years Ending December 31, 2022 $ 20 2023 77 2024 77 2025 77 2026 76 Thereafter 295 Total $ 622
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 $ 5.9 5.4 Expected future amortization of debt issuance costs as of June 30, 2022 is as follows (in thousands): Years Ending December 31, 2022 $ 170 2023 632 2024 440 2025 154 2026 34 Total $ 1,430
Earnings (Loss) per Share	Earnings (Loss) per Share Earnings (loss) per share (“EPS”) is calculated based on the weighted average number of shares outstanding during each period. Basic and diluted EPS are the same for all periods presented. Non-vested shares of restricted common stock totaling 1,250 5,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Depreciation expense is computed using the straight-line method based upon the following estimated useful lives:	Depreciation expense is computed using the straight-line method based upon the following estimated useful lives: Estimated Useful Lives (years) Buildings and improvements 39 40 Exterior improvements 10 20 Furniture, fixtures and equipment 5 10
The following is a reconciliation of the Company’s cash and cash equivalents and restricted cash to the total presented in the unaudited consolidated statement of cash flows as of September 30, 2022 and 2021 (in thousands):	The following is a reconciliation of the Company’s cash and cash equivalents and restricted cash to the total presented in the unaudited consolidated statement of cash flows as of September 30, 2022 and 2021 (in thousands): September 30, 2022 2021 Cash and cash equivalents $ 6,507 $ 7,723 Restricted cash 15,272 7,891 Total cash and cash equivalents and restricted cash $ 21,779 $ 15,614
Expected future amortization of deferred franchise costs as of September 30, 2022 is as follows (in thousands):	Expected future amortization of deferred franchise costs as of September 30, 2022 is as follows (in thousands): Years Ending December 31, 2022 $ 20 2023 77 2024 77 2025 77 2026 76 Thereafter 295 Total $ 622
Expected future amortization of debt issuance costs as of June 30, 2022 is as follows (in thousands):	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 $ 5.9 5.4 Expected future amortization of debt issuance costs as of June 30, 2022 is as follows (in thousands): Years Ending December 31, 2022 $ 170 2023 632 2024 440 2025 154 2026 34 Total $ 1,430

Investment in Hotel Properties

Investment in Hotel Properties (Tables)	9 Months Ended
	Sep. 30, 2022
Real Estate [Abstract]
The following table sets forth summary information regarding the Company’s investment in hotel properties as of September 30, 2022 (all $ amounts in thousands):	The following table sets forth summary information regarding the Company’s investment in hotel properties as of September 30, 2022 (all $ amounts in thousands): Property Name Date Acquired Location Ownership Interest Original Purchase Price (1) Rooms Mortgage Debt Outstanding (2) Residence Inn Austin October 15, 2015 Austin, Texas 100 % $ 27,500 112 $ 15,540 Springhill Suites Seattle May 24, 2016 Seattle, Washington 100 % 74,100 234 42,022 Homewood Suites Woodlands September 27, 2017 (5) The Woodlands, Texas 100 % 17,356 91 8,465 Hyatt Place Germantown September 27, 2017 (5) Germantown, Tennessee 100 % 16,074 127 6,388 Hyatt Place North Charleston September 27, 2017 (5) North Charleston, South Carolina 100 % 13,806 113 6,608 Hampton Inn Austin September 27, 2017 (5) Austin, Texas 100 % 19,328 123 9,903 Residence Inn Grapevine September 27, 2017 (5) Grapevine, Texas 100 % 25,245 133 11,428 Marriott Courtyard Lyndhurst September 27, 2017 (5) Lyndhurst, New Jersey — (3) 39,547 227 18,097 Hilton Garden Inn Austin September 27, 2017 (5) Austin, Texas 100 % 29,288 138 17,121 Hampton Inn Great Valley September 27, 2017 (5) Frazer, Pennsylvania 100 % 15,285 125 7,468 Embassy Suites Nashville September 27, 2017 (5) Nashville, Tennessee 100 % 82,207 208 39,027 Homewood Suites Austin September 27, 2017 (5) Austin, Texas 100 % 18,835 96 10,074 Townplace Suites Fort Worth September 27, 2017 (5) Fort Worth, Texas — (4) 11,242 95 5,680 Hampton Inn Houston September 27, 2017 (5) Houston, Texas 100 % 9,958 119 4,028 Residence Inn Houston Medical Center April 29, 2019 (6) Houston, Texas 100 % 52,000 182 28,241 Totals $ 451,771 2,123 $ 230,090 (1) Excludes closing costs and includes gain on acquisition. (2) As of September 30, 2022. (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 4, “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 4, “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 September 30, 2022 and December 31, 2021 (all amounts in thousands):	Investment in hotel properties consisted of the following at September 30, 2022 and December 31, 2021 (all amounts in thousands): September 30, December 31, Land $ 76,936 $ 76,936 Buildings and improvements 338,749 338,729 Furniture, fixtures and equipment 61,931 60,725 Total cost 477,616 476,390 Accumulated depreciation (75,056 ) (63,418 ) Investment in hotel properties, net $ 402,560 $ 412,972

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
As of September 30, 2022 and December 31, 2021, the Company’s mortgage notes payable secured by the respective assets, consisted of the following ($ amounts in thousands):	As of September 30, 2022 and December 31, 2021, the Company’s mortgage notes payable secured by the respective assets, consisted of the following ($ amounts in thousands): Loan Principal as of September 30, Principal as of December 31, 2021 Interest Rate at September 30, Maturity Date Loan Modifications Residence Inn Austin $ 15,540 $ 15,757 4.580 % November 1, 2025 Lender forbore the collection 75 1.1 25 Springhill Suites Seattle 42,022 42,634 4.380 % October 1, 2026 Three months deferral of interest and principal payments from June to August, 2020. Four months interest only payments from September to December, 2020. Homewood Suites Woodlands 8,465 8,594 4.690 % April 11, 2025 Hyatt Place Germantown 6,388 6,524 4.300 % May 6, 2023 Deferral of thirteen months of interest and principal payments from September 2020 to September 2021 and eighteen months deferral escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $ 1.4 Hyatt Place North Charleston 6,608 6,730 5.193 % August 1, 2023 Payment of $ 100,000 Hampton Inn Austin 9,903 10,073 5.426 % January 6, 2024 Deferral of thirteen months of interest and principal payments from September 2020 to September 2021 and eighteen months deferral escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $ 1.99 Residence Inn Grapevine 11,428 11,625 5.250 % April 6, 2024 Deferral of nine months of interest and principal payments from January 2021 to September 2021 and sixteen months deferral of escrow payments for tax, insurance and hotel furniture and fixtures from June 2020 to September 2021 totaled $ 2.35 1.41 940,000 Marriott Courtyard Lyndhurst 18,097 18,420 4.700 % September 27, 2024 Six months payment of interest only from April to September, 2020. Hilton Garden Inn Austin 17,121 17,564 4.530 % December 11, 2024 Deferral of eighteen months of interest and principal payments and escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $ 3.98 1.69 2.36 Hampton Inn Great Valley 7,468 7,617 4.700 % April 11, 2025 Deferral of sixteen months of interest and principal payments and escrow payments for tax, insurance and hotel furniture and fixtures from June 2020 to September totaled $ 1.75 729,000 1.02 Embassy Suites Nashville 39,027 39,660 4.2123 % July 11, 2025 April to July 2020 payment of principal and interest deferred. August 2020 to December 2020 interest only. Special servicing fees of $ 205,285 Homewood Suites Austin 10,074 10,311 4.650 % August 11, 2025 Deferral of seventeen months of interest and principal payments from May 2020 to September 2021 and eighteen months deferral of escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $ 2.73 1.14 1.59 Townplace Suites Fort Worth 5,680 5,783 4.700 % September 27, 2024 April 2020 payment was interest only. Six-month deferral of principal from April to September 2020. Two months deferral of interest payments for May and June, 2020. Three months interest only payments from July to September, 2020. Hampton Inn Houston 4,028 4,181 8.250 % April 28, 2023 Seven-month deferral of principal and interest payments for payments due March 28, 2020 through September 28, 2020. Six months interest only for payments due October 28, 2020 through March 28, 2021. Residence Inn Houston Medical Center 28,241 28,703 5.000 % October 1, 2024 Deferral of principal and interest payments for six months from April to September, 2020. Interest only payments for an additional twelve months from October 2020 to September 2021. U.S. Small Business Administration Economic Injury Disaster Loans 7,500 7,500 3.750 % November 2051 Total notes payable 237,590 241,676 Less unamortized debt issuance costs (1,430 ) (1,937 ) Total notes payable, net of unamortized debt issuance costs $ 236,160 $ 239,739
Scheduled maturities of the Company’s notes payable as of September 30, 2022 are as follows (all amounts in thousands):	Scheduled maturities of the Company’s notes payable as of September 30, 2022 are as follows (all amounts in thousands): Years ending December 31, 2022 $ 1,313 2023 21,700 2024 90,551 2025 77,417 2026 39,141 Thereafter 7,468 Total $ 237,590

Equity (Tables)

Equity (Tables)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Schedule of shares outstanding	Schedule of shares outstanding Class Shares Outstanding as of September 30, Class A Shares 13,000 Class T Shares 481 Class I Shares 159 Total 13,640

Incentive Award Plan (Tables)

Incentive Award Plan (Tables)	9 Months Ended
	Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]
The following is a summary of activity under the Independent Directors Compensation Plan for the nine months ended September 30, 2022 and year ended December 31, 2021:	The following is a summary of activity under the Independent Directors Compensation Plan for the nine months ended September 30, 2022 and year ended December 31, 2021: Number of Weighted Balance of non-vested shares as of December 31, 2020 5,000 $ 23.50 Shares granted on November 12, 2021 5,000 $ 19.40 Shares vested (5,000 ) $ 23.50 Balance of non-vested shares as of December 31, 2021 5,000 $ 19.40 Shares vested (3,750 ) $ 19.40 Balance of non-vested shares as of September 30, 2022 1,250 $ 19.40

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2022
Commitments and Contingencies Disclosure [Abstract]
The composition of the Company’s restricted cash as of September 30, 2022 and December 31, 2021 are as follows (in thousands):	Under certain management and debt agreements existing at September 30, 2022, the Company escrows payments required for property improvement plans, real estate taxes, replacement of hotel furniture and fixtures, debt service and rent holdback. The composition of the Company’s restricted cash as of September 30, 2022 and December 31, 2021 are as follows (in thousands): September 30, December 31, Real estate taxes $ 4,266 $ 4,447 Insurance 290 382 Hotel furniture and fixtures 7,581 5,483 Debt service 2,977 2,762 Property improvement plan 158 158 Total restricted cash $ 15,272 $ 13,232

Income Taxes (Tables)

Income Taxes (Tables)	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
The income tax expense (benefit) for the three and nine months ended September 30, 2022 and 2021 consisted of the following (in thousands):	The income tax expense (benefit) for the three and nine months ended September 30, 2022 and 2021 consisted of the following (in thousands): Three months ended Nine months ended September 30, September 30, 2022 2021 2022 2021 Current expense $ 18 $ 43 $ 109 $ (27 ) Deferred benefit (579 ) (955 ) (1,925 ) (3,524 ) Valuation provision for deferred benefit 579 955 1,925 3,524 Total expense $ 18 $ 43 $ 109 $ (27 ) Federal $ (579 ) $ (955 ) $ (1,925 ) $ (3,524 ) Valuation provision for federal taxes 579 955 1,925 3,524 State 18 43 109 (27 ) Total tax expense $ 18 $ 43 $ 109 $ (27 )

Organization (Details Narrative

Organization (Details Narrative) $ / shares in Units, $ in Thousands		9 Months Ended
	Jun. 18, 2018 USD ($)	Sep. 30, 2022 USD ($) Number $ / shares shares	Dec. 31, 2021 USD ($) $ / shares	Jun. 26, 2017 $ / shares	Jan. 20, 2015 USD ($)
Number of rooms | Number		2,123
Common stock, par value (in dollars per share) | $ / shares		$ 0.01	$ 0.01
Value of shares issueable under registration statement	$ 990,000
Special limited partnership interests		$ 1	$ 1
Common Class A [Member]
Common stock, par value (in dollars per share) | $ / shares				$ 0.01
Common Class D [Member]
Common stock, par value (in dollars per share) | $ / shares				0.01
Common Class I [Member]
Common stock, par value (in dollars per share) | $ / shares				0.01
Common Class T [Member]
Common stock, par value (in dollars per share) | $ / shares				$ 0.01
IPO [Member]
Common stock value authorized					$ 1,000,000
Common stock authorized in distribution reinvestment plan, value					100,000
IPO [Member] | Maximum [Member]
Common stock value authorized					$ 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 Narrative)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($) Number shares	Sep. 30, 2021 USD ($)	Dec. 31, 2021 USD ($) shares
Minimum number of shareholders to qualify as REIT | Number			100
Minimum percentage of taxable income to be distributed			90%
Marketable securities, unrealized gain				$ 397,000
Marketable securities, realized loss				245,000
Dividend income				$ 1,000
Accumulated Amortization of other deferred costs	445,000		445,000		$ 383,000
Accumulated amortization, debt issuance costs	5,900,000		$ 5,900,000		$ 5,400,000
Nonvested restricted stock included in earnings per share | shares			1,250		5,000
Affiliated Entity [Member]
Percentage of organization and offering costs			15%
Total offering costs	21,100,000		$ 21,100,000
Offering cost directly incurred by company	12,300,000		12,300,000
Offering cost reimbursed to advisor	8,800,000		8,800,000
Offering cost directly incurred by company	0		0
Affiliated Entity [Member] | IPO [Member]
Total offering costs	18,400,000		18,400,000
Offering cost directly incurred by company	12,300,000		12,300,000
Offering cost reimbursed to advisor	6,100,000		6,100,000
Affiliated Entity [Member] | Follow-on offering [Member]
Total offering costs	2,700,000		2,700,000
Offering cost directly incurred by company	0		0
Offering cost reimbursed to advisor	2,700,000		2,700,000
Offering cost directly incurred by company	$ 0		$ 0

Depreciation expense is compute

Depreciation expense is computed using the straight-line method based upon the following estimated useful lives: (Details)	9 Months Ended
	Sep. 30, 2022
Building and Building Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	39 years
Building and Building Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	40 years
Exterior Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years
Exterior Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	20 years
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	10 years

The following is a reconciliati

The following is a reconciliation of the Company’s cash and cash equivalents and restricted cash to the total presented in the unaudited consolidated statement of cash flows as of September 30, 2022 and 2021 (in thousands): (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 6,507	$ 6,049	$ 7,723
Restricted cash	15,272		7,891
Total cash and cash equivalents and restricted cash	$ 21,779	$ 19,281	$ 15,614	$ 10,502

Expected future amortization of

Expected future amortization of deferred franchise costs as of September 30, 2022 is as follows (in thousands): (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Years Ending December 31,
Total	$ 622	$ 684
Franchise Rights [Member]
Years Ending December 31,
2022	20
2023	77
2024	77
2025	77
2026	76
Thereafter	295
Total	$ 622

Expected future amortization _2

Expected future amortization of debt issuance costs as of June 30, 2022 is as follows (in thousands): (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Years Ending December 31,
2022	$ 170
2023	632
2024	440
2025	154
2026	34
Total	$ 1,430	$ 1,937

The following table sets forth

The following table sets forth summary information regarding the Company’s investment in hotel properties as of September 30, 2022 (all $ amounts in thousands): (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($) Number
Real Estate Properties [Line Items]
Original Purchase Price	$ 451,771	[1]
Rooms | Number	2,123
Mortgage Debt Outstanding	$ 230,090	[2]
Residence Inn Austin Hotel [Member] | TEXAS
Real Estate Properties [Line Items]
Property Name	Residence Inn Austin
Date Acquired	Oct. 15, 2015
Location	Austin, Texas
Ownership percentage	100%
Original Purchase Price	$ 27,500	[1]
Rooms | Number	112
Mortgage Debt Outstanding	$ 15,540	[2]
Springhill Suites Seattle [Member] | WASHINGTON
Real Estate Properties [Line Items]
Property Name	Springhill Suites  Seattle
Date Acquired	May 24, 2016
Location	Seattle, Washington
Ownership percentage	100%
Original Purchase Price	$ 74,100	[1]
Rooms | Number	234
Mortgage Debt Outstanding	$ 42,022	[2]
Homewood Suites Woodlands [Member] | TEXAS
Real Estate Properties [Line Items]
Property Name	Homewood Suites Woodlands
Date Acquired	Sep. 27, 2017	[3]
Location	The Woodlands, Texas
Ownership percentage	100%
Original Purchase Price	$ 17,356	[1]
Rooms | Number	91
Mortgage Debt Outstanding	$ 8,465	[2]
Hyatt Place Germantown [Member] | TENNESSEE
Real Estate Properties [Line Items]
Property Name	Hyatt Place  Germantown
Date Acquired	Sep. 27, 2017	[3]
Location	Germantown, Tennessee
Ownership percentage	100%
Original Purchase Price	$ 16,074	[1]
Rooms | Number	127
Mortgage Debt Outstanding	$ 6,388	[2]
Hyatt Place North Charleston [Member] | SOUTH CAROLINA
Real Estate Properties [Line Items]
Property Name	Hyatt Place North Charleston
Date Acquired	Sep. 27, 2017	[3]
Location	North Charleston, South Carolina
Ownership percentage	100%
Original Purchase Price	$ 13,806	[1]
Rooms | Number	113
Mortgage Debt Outstanding	$ 6,608	[2]
Hampton Inn Austin [Member] | TEXAS
Real Estate Properties [Line Items]
Property Name	Hampton Inn Austin
Date Acquired	Sep. 27, 2017	[3]
Location	Austin, Texas
Ownership percentage	100%
Original Purchase Price	$ 19,328	[1]
Rooms | Number	123
Mortgage Debt Outstanding	$ 9,903	[2]
Residence Inn Grapevine [Member] | TEXAS
Real Estate Properties [Line Items]
Property Name	Residence  Inn Grapevine
Date Acquired	Sep. 27, 2017	[3]
Location	Grapevine, Texas
Ownership percentage	100%
Original Purchase Price	$ 25,245	[1]
Rooms | Number	133
Mortgage Debt Outstanding	$ 11,428	[2]
Marriott Courtyard Inn Lyndhurst [Member] | NEW JERSEY
Real Estate Properties [Line Items]
Property Name	Marriott Courtyard Lyndhurst
Date Acquired	Sep. 27, 2017	[3]
Location	Lyndhurst, New Jersey
Ownership percentage		[4]
Original Purchase Price	$ 39,547	[1]
Rooms | Number	227
Mortgage Debt Outstanding	$ 18,097	[2]
Hilton Garden Inn Austin [Member] | TEXAS
Real Estate Properties [Line Items]
Property Name	Hilton Garden  Inn Austin
Date Acquired	Sep. 27, 2017	[3]
Location	Austin, Texas
Ownership percentage	100%
Original Purchase Price	$ 29,288	[1]
Rooms | Number	138
Mortgage Debt Outstanding	$ 17,121	[2]
Hampton Inn Great Valley [Member] | PENNSYLVANIA
Real Estate Properties [Line Items]
Property Name	Hampton Inn Great Valley
Date Acquired	Sep. 27, 2017	[3]
Location	Frazer, Pennsylvania
Ownership percentage	100%
Original Purchase Price	$ 15,285	[1]
Rooms | Number	125
Mortgage Debt Outstanding	$ 7,468	[2]
Embassy Suites Nashville [Member] | TENNESSEE
Real Estate Properties [Line Items]
Property Name	Embassy Suites Nashville
Date Acquired	Sep. 27, 2017	[3]
Location	Nashville, Tennessee
Ownership percentage	100%
Original Purchase Price	$ 82,207	[1]
Rooms | Number	208
Mortgage Debt Outstanding	$ 39,027	[2]
Homewood Suites Austin [Member] | TEXAS
Real Estate Properties [Line Items]
Property Name	Homewood Suites Austin
Date Acquired	Sep. 27, 2017	[3]
Location	Austin, Texas
Ownership percentage	100%
Original Purchase Price	$ 18,835	[1]
Rooms | Number	96
Mortgage Debt Outstanding	$ 10,074	[2]
Townplace Suites Fort Worth [Member] | TEXAS
Real Estate Properties [Line Items]
Property Name	Townplace Suites Fort Worth
Date Acquired	Sep. 27, 2017	[3]
Location	Fort Worth, Texas
Ownership percentage		[5]
Original Purchase Price	$ 11,242	[1]
Rooms | Number	95
Mortgage Debt Outstanding	$ 5,680	[2]
Hampton Inn Houston [Member] | TEXAS
Real Estate Properties [Line Items]
Property Name	Hampton Inn Houston
Date Acquired	Sep. 27, 2017	[3]
Location	Houston, Texas
Ownership percentage	100%
Original Purchase Price	$ 9,958	[1]
Rooms | Number	119
Mortgage Debt Outstanding	$ 4,028	[2]
Residence Inn Houston Medical Center [Member] | TEXAS
Real Estate Properties [Line Items]
Property Name	Residence Inn Houston Medical Center
Date Acquired	Apr. 29, 2019
Location	Houston, Texas
Ownership percentage	100%
Original Purchase Price	$ 52,000	[1]
Rooms | Number	182
Mortgage Debt Outstanding	$ 28,241	[2]
[1]Excludes closing costs and includes gain on acquisition.[2]As of September 30, 2022.[3]Property acquired on September 27, 2017 as a result of the merger of Moody National REIT I, Inc. (“Moody I”) with and into the Company (the “Merger”) and the merger of Moody National Operating Partnership I, L.P., the operating partnership of Moody I (“Moody I OP”), with and into the OP (the “Partnership Merger,” and together with the Merger, the “Mergers”).[4]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 4, “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 4, “Debt.”

Investment in hotel propertie_2

Investment in hotel properties consisted of the following at September 30, 2022 and December 31, 2021 (all amounts in thousands): (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Real Estate [Abstract]
Land	$ 76,936	$ 76,936
Buildings and improvements	338,749	338,729
Furniture, fixtures and equipment	61,931	60,725
Total cost	477,616	476,390
Accumulated depreciation	(75,056)	(63,418)
Investment in hotel properties, net	$ 402,560	$ 412,972

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021	Jun. 30, 2021	Mar. 30, 2021
Debt Instrument [Line Items]
Borrowings maximum percentage of net assets	300%
Note payable, net	$ 236,160,000		$ 239,739,000
Fair value of notes payable	$ 238,000,000		242,000,000
Moody National Capital LLC [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Principal amount					$ 8,000,000
Extend maturity date	2 years
Note payable, net	$ 10,000,000		10,000,000
Additional borrowings					2,000,000
Maximum aggregate loan amount					$ 10,000,000
Moody National Capital LLC [Member] | Promissory Note [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread interest rate	4.75%
Moody National Capital LLC [Member] | Promissory Note [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread interest rate	6.75%
Moody National Capital LLC [Member] | Second Related Party Note [Member]
Debt Instrument [Line Items]
Principal amount				$ 10,000,000
Extend maturity date		2 years
Note payable, net	$ 10,000,000		10,000,000
Moody National Capital LLC [Member] | Second Related Party Note [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread interest rate		6.75%
Moody National Capital LLC [Member] | Second Related Party Note [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread interest rate		8.75%
Moody National Capital LLC [Member] | Third Related Party Note [Member]
Debt Instrument [Line Items]
Principal amount		$ 10,000,000
Extend maturity date	2 years
Note payable, net	$ 10,000,000		8,500,000
Moody National Capital LLC [Member] | Third Related Party Note [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread interest rate	7.75%
Moody National Capital LLC [Member] | Third Related Party Note [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread interest rate	9.75%
Moody National Capital LLC [Member] | Fourth Related Party Note [Member]
Debt Instrument [Line Items]
Principal amount	$ 10,000,000
Note payable, net	$ 525,500
Moody National Capital LLC [Member] | Fourth Related Party Note [Member] | Minimum [Member]
Debt Instrument [Line Items]
Basis spread interest rate	8.75%
Moody National Capital LLC [Member] | Fourth Related Party Note [Member] | Maximum [Member]
Debt Instrument [Line Items]
Basis spread interest rate	9.75%
US Small Business Administration [Member]
Debt Instrument [Line Items]
Principal amount	$ 500,000
Extend maturity date	30 years
Basis spread interest rate	3.75%
Note payable, net	$ 7,500,000		$ 7,500,000

As of September 30, 2022 and De

As of September 30, 2022 and December 31, 2021, the Company’s mortgage notes payable secured by the respective assets, consisted of the following ($ amounts in thousands): (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Total notes payable	$ 237,590,000	$ 241,676,000
Less unamortized debt issuance costs	(1,430,000)	(1,937,000)
Total notes payable, net of unamortized debt issuance costs	236,160,000	239,739,000
Residence Inn Austin Hotel [Member]
Debt Instrument [Line Items]
Total notes payable	$ 15,540,000	15,757,000
Interest rate	4.58%
Debt instrument, maturity date	Nov. 01, 2025
Description of loan modifications	Lender forbore the collection 75% of default interest of $1.1 million when borrower brought all loan and escrow payments current and reimbursed lender expenses and paid 25% of default interest in July 2021.
Residence Inn Austin Hotel [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Percentage default interest forborne	75%
Default interest forborne	$ 1,100,000
Percentage default interest paid	25%
Springhill Suites Seattle [Member]
Debt Instrument [Line Items]
Total notes payable	$ 42,022,000	42,634,000
Interest rate	4.38%
Debt instrument, maturity date	Oct. 01, 2026
Description of loan modifications	Three months deferral of interest and principal payments from June to August, 2020. Four months interest only payments from September to December, 2020.
Homewood Suites Woodlands [Member]
Debt Instrument [Line Items]
Total notes payable	$ 8,465,000	8,594,000
Interest rate	4.69%
Debt instrument, maturity date	Apr. 11, 2025
Hyatt Place Germantown [Member]
Debt Instrument [Line Items]
Total notes payable	$ 6,388,000	6,524,000
Interest rate	4.30%
Debt instrument, maturity date	May 06, 2023
Description of loan modifications	Deferral of thirteen months of interest and principal payments from September 2020 to September 2021 and eighteen months deferral escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $1.4 million as of September 30, 2021 million and were paid to lender in October 2021.
Hyatt Place Germantown [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Deferral of payments	$ 1,400,000
Hyatt Place North Charleston [Member]
Debt Instrument [Line Items]
Total notes payable	$ 6,608,000	6,730,000
Interest rate	5.193%
Debt instrument, maturity date	Aug. 01, 2023
Description of loan modifications	Payment of $100,000 cash deposit and may make interest and principal payments from restricted cash for six months from April to September, 2020.
Hyatt Place North Charleston [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Payments for (proceeds from) deposit on loan	$ 100,000
Hampton Inn Austin [Member]
Debt Instrument [Line Items]
Total notes payable	$ 9,903,000	10,073,000
Interest rate	5.426%
Debt instrument, maturity date	Jan. 06, 2024
Description of loan modifications	Deferral of thirteen months of interest and principal payments from September 2020 to September 2021 and eighteen months deferral escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $1.99 million as of September 30, 2021 million and were paid to lender in October 2021.
Hampton Inn Austin [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Deferral of payments	$ 1,990,000
Residence Inn Grapevine [Member]
Debt Instrument [Line Items]
Total notes payable	$ 11,428,000	11,625,000
Interest rate	5.25%
Debt instrument, maturity date	Apr. 06, 2024
Description of loan modifications	Deferral of nine months of interest and principal payments from January 2021 to September 2021 and sixteen months deferral of escrow payments for tax, insurance and hotel furniture and fixtures from June 2020 to September 2021 totaled $2.35 million as of September 30, 2021 million.  $1.41 million of the total due as of September 30, 2021 was paid to lender in October 2021 and $940,000 was paid from excess cash flow with the October 2021 to June 2022 regular mortgage payments.
Residence Inn Grapevine [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Deferral of payments	$ 2,350,000
Repayments of Debt	1,410,000
Deferred payments payable	940,000
Marriott Courtyard Lyndhurst [Member]
Debt Instrument [Line Items]
Total notes payable	$ 18,097,000	18,420,000
Interest rate	4.70%
Debt instrument, maturity date	Sep. 27, 2024
Description of loan modifications	Six months payment of interest only from April to September, 2020.
Hilton Garden Inn Austin [Member]
Debt Instrument [Line Items]
Total notes payable	$ 17,121,000	17,564,000
Interest rate	4.53%
Debt instrument, maturity date	Dec. 11, 2024
Description of loan modifications	Deferral of eighteen months of interest and principal payments and escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $3.98 million as of September 30, 2021 million.  $1.69 million of the total due as of September 30, 2021 was paid to lender in October 2021 and $2.36 million was paid in monthly installments with the October 2021 to June 2022 regular mortgage payments.
Hilton Garden Inn Austin [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Deferral of payments	$ 3,980,000
Repayments of Debt	1,690,000
Deferred payments payable	2,360,000
Hampton Inn Great Valley [Member]
Debt Instrument [Line Items]
Total notes payable	$ 7,468,000	7,617,000
Interest rate	4.70%
Debt instrument, maturity date	Apr. 11, 2025
Description of loan modifications	Deferral of sixteen months of interest and principal payments and escrow payments for tax, insurance and hotel furniture and fixtures from June 2020 to September totaled $1.75 million as of September 30, 2021. $729,000 of the total due as of September 30, 2021 was paid to lender in October 2021 and $1.02 million was paid from excess cash flow with the October 2021 to September 2022 regular mortgage payments.
Hampton Inn Great Valley [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Deferral of payments	$ 1,750,000
Repayments of Debt	729,000
Deferred payments payable	1,020,000
Embassy Suites Nashville [Member]
Debt Instrument [Line Items]
Total notes payable	$ 39,027,000	39,660,000
Interest rate	4.2123%
Debt instrument, maturity date	Jul. 11, 2025
Description of loan modifications	April to July 2020 payment of principal and interest deferred. August 2020 to December 2020 interest only. Special servicing fees of $205,285 each were paid in January 2021 and April 2021.
Embassy Suites Nashville [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Deferral of payments	$ 205,285
Homewood Suites Austin [Member]
Debt Instrument [Line Items]
Total notes payable	$ 10,074,000	10,311,000
Interest rate	4.65%
Debt instrument, maturity date	Aug. 11, 2025
Description of loan modifications	Deferral of seventeen months of interest and principal payments from May 2020 to September 2021 and eighteen months deferral of escrow payments for tax, insurance and hotel furniture and fixtures from April 2020 to September 2021 totaled $2.73 million as of September 30, 2021.  $1.14 million of the total due as of September 30, 2021 was paid to lender in October 2021 and $1.59 million was paid in monthly installments with the October 2021 to June 2022 regular mortgage payments.
Homewood Suites Austin [Member] | Promissory Note [Member]
Debt Instrument [Line Items]
Deferral of payments	$ 2,730,000
Repayments of Debt	1,140,000
Deferred payments payable	1,590,000
Townplace Suites Fort Worth [Member]
Debt Instrument [Line Items]
Total notes payable	$ 5,680,000	5,783,000
Interest rate	4.70%
Debt instrument, maturity date	Sep. 27, 2024
Description of loan modifications	April 2020 payment was interest only. Six-month deferral of principal from April to September 2020. Two months deferral of interest payments for May and June, 2020. Three months interest only payments from July to September, 2020.
Hampton Inn Houston [Member]
Debt Instrument [Line Items]
Total notes payable	$ 4,028,000	4,181,000
Interest rate	8.25%
Debt instrument, maturity date	Apr. 28, 2023
Description of loan modifications	Seven-month deferral of principal and interest payments for payments due March 28, 2020 through September 28, 2020. Six months interest only for payments due October 28, 2020 through March 28, 2021.
Residence Inn Houston Medical Center1 [Member]
Debt Instrument [Line Items]
Total notes payable	$ 28,241,000	28,703,000
Interest rate	5%
Debt instrument, maturity date	Oct. 01, 2024
Description of loan modifications	Deferral of principal and interest payments for six months from April to September, 2020. Interest only payments for an additional twelve months from October 2020 to September 2021.
US Small Business Administration [Member]
Debt Instrument [Line Items]
Total notes payable	$ 7,500,000	7,500,000
Interest rate	3.75%
Debt instrument, maturity date	2051-11
Total notes payable, net of unamortized debt issuance costs	$ 7,500,000	$ 7,500,000

Scheduled maturities of the Com

Scheduled maturities of the Company’s notes payable as of September 30, 2022 are as follows (all amounts in thousands): (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Years ending December 31,
2022	$ 1,313
2023	21,700
2024	90,551
2025	77,417
2026	39,141
Thereafter	7,468
Total	$ 237,590

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)		3 Months Ended		9 Months Ended
	Aug. 15, 2014	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Class of Stock [Line Items]
Common stock, shares authorized		1,000,000,000		1,000,000,000		1,000,000,000
Preferred stock, shares authorized		100,000,000		100,000,000		100,000,000
Common stock, par or stated value per share		$ 0.01		$ 0.01		$ 0.01
Common stock, shares, issued		13,640,000		13,640,000		13,640,000
Common stock, shares, outstanding		13,640,000		13,640,000		13,640,000
Number of shares of restricted stock issued		60,000		60,000
Noncontrolling interests in operating partnership		$ 2,466,000		$ 2,466,000		$ 2,762,000
Partners' capital account, units		316,037		316,037
Net loss attributable to noncontrolling interest		$ 91,000	$ 168,000	$ 296,000	$ 504,000
Public Offerings [Member]
Class of Stock [Line Items]
Common stock, shares, issued		10,200,000		10,200,000
Mergers [Member]
Class of Stock [Line Items]
Common stock, shares, issued		3,300,000		3,300,000
Sponsor [Member]
Class of Stock [Line Items]
Stock issued during period, shares, new issues	8,000
Share Price	$ 25
Stock issued during period, value, new issues	$ 200,000
Common stock, shares, issued		8,000		8,000

Schedule of shares outstanding

Schedule of shares outstanding (Details) - shares shares in Thousands	Sep. 30, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Common stock, shares, outstanding	13,640	13,640
Common Class A [Member]
Class of Stock [Line Items]
Common stock, shares, outstanding	13,000
Common Class T [Member]
Class of Stock [Line Items]
Common stock, shares, outstanding	481
Common Class I [Member]
Class of Stock [Line Items]
Common stock, shares, outstanding	159

Related Party Arrangements (Det

Related Party Arrangements (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		5 Months Ended	9 Months Ended
	Jan. 16, 2018	Sep. 30, 2022	Sep. 30, 2021	Jun. 12, 2017	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Related Party Transaction [Line Items]
Special limited partnership interests		$ 1,000			$ 1,000		$ 1,000
Total operating expenses					6,600,000
Total operating expenses inurred by Advisot					1,800,000
Operating expenses exceeding limitation					0
Operating expenses reimbursed					1,800,000
Expenses reimbursement		$ 322,000,000			322,000,000
Parent Company [Member]
Related Party Transaction [Line Items]
Total operating expenses					4,800,000
Moody Securities LLC [Member]
Related Party Transaction [Line Items]
Percentage of selling commissions on gross offering	6%			7%
Percentage of dealers manager fee on gross offering	2.50%			3%
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Payments for commissions					9,700,000
Dealer manager fees					$ 8,500,000
Percentage of organization and offering costs		15%			15%
Total offering costs		$ 21,100,000			$ 21,100,000
Offering cost directly incurred by company		12,300,000			12,300,000
Reimbursed offering cost		8,800,000			8,800,000
Related party arrangements		$ 0			$ 0
Previous percentage of acquisition fee		1.50%			1.50%
Percentage of acquisition fee		3.85%			3.85%
Percentage of base acquisition fee		1.50%			1.50%
Percentage of contingent advisor payment		2.35%			2.35%
Debt financing fee percentage		1%			1%
Debt financing fee refinanced percentage		0.75%			0.75%
Asset Management Fee Percentage		1%			1%
Maximum contract sales price percentage for disposition fee		3%			3%
Maximum contract sales price percentage paid to unaffiliated parties		6%			6%
Advisor expense reimbursement - alternative 1		2%			2%
Advisor expense reimbursement - alternative 2		25%			25%
Affiliated Entity [Member] | Asset Management [Member]
Related Party Transaction [Line Items]
Property management fees		$ 861,000	$ 861,000		$ 2,600,000	$ 2,600,000
Accounting fees		112,000	112,000		337,000	337,000
Affiliated Entity [Member] | IPO [Member]
Related Party Transaction [Line Items]
Total offering costs		18,400,000			18,400,000
Offering cost directly incurred by company		12,300,000			12,300,000
Reimbursed offering cost		6,100,000			6,100,000
Affiliated Entity [Member] | Follow-on offering [Member]
Related Party Transaction [Line Items]
Total offering costs		2,700,000			2,700,000
Offering cost directly incurred by company		0			0
Reimbursed offering cost		2,700,000			2,700,000
Related party arrangements		$ 0			$ 0
Moody National Hospitality Management LLC [Member]
Related Party Transaction [Line Items]
Monthly hotel management fee percentage		4%			4%
Agreement Term					10 years
Percentage of Annual incentive Fee					15%
Asset Management Fee Percentage		8.50%			8.50%
Moody National Hospitality Management LLC [Member] | Investment Advisory, Management and Administrative Service [Member]
Related Party Transaction [Line Items]
Asset management fees		$ 1,200,000	$ 1,200,000		$ 3,600,000	$ 3,600,000

The following is a summary of a

The following is a summary of activity under the Independent Directors Compensation Plan for the nine months ended September 30, 2022 and year ended December 31, 2021: (Details) - Independent Directors Compensation Plan [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Balance of non-vested shares at beginning	5,000	5,000
Balance of non-vested shares at beginning	$ 19.40	$ 23.50
Shares granted		5,000
Shares granted		$ 19.40
Shares vested	(3,750)	(5,000)
Shares vested	$ 19.40	$ 23.50
Balance of non-vested shares ending	1,250	5,000
Balance of non-vested shares at ending	$ 19.40	$ 19.40

Incentive Award Plan (Details N

Incentive Award Plan (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based payment arrangement, expense	$ 28,000	$ 33,000	$ 78,000	$ 97,000
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Management [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Non-vested shares of restricted common stock granted	1,250		1,250
Non-vested shares recognized	$ 301		$ 301
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Management [Member] | IPO [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Deferred compensation arrangement with individual shares issued 1			5,000
Minimum offering amount threshold			$ 2,000,000
Deferred compensation arrangement with individual shares issued one			5,000
Deferred compensation arrangement with individual shares issued 2			2,500
Incentive Award Plan and Independent Directors Compensation Plan [Member] | Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Common shares remaining available for future issuance	1,935,000		1,935,000

Subordinated Participation In_2

Subordinated Participation Interest (Details Narrative)	Sep. 30, 2022
Disclosure Subordinated Participation Interest Abstract
Maximum percentage of income received to special unit holders	15%
Percentage of additional operating income received	6%
Percentage of cumulative annual return received	8%

The composition of the Company_

The composition of the Company’s restricted cash as of September 30, 2022 and December 31, 2021 are as follows (in thousands): (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Real estate taxes	$ 4,266	$ 4,447
Insurance	290	382
Hotel furniture and fixtures	7,581	5,483
Debt service	2,977	2,762
Property improvement plan	158	158
Total restricted cash	$ 15,272	$ 13,232

Commitments and Contingencies_2

Commitments and Contingencies (Details Narrative) - Moody National REIT I, Inc. [Member] - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Loss Contingencies [Line Items]
Franchise fees	$ 1.9	$ 1.4	$ 5.2	$ 3.5
Minimum [Member]
Loss Contingencies [Line Items]
Term of franchise agreements			10 years
Royalty fees on room revenue			2.50%
Additional franchise fees on room revenue			1.50%
Maximum [Member]
Loss Contingencies [Line Items]
Term of franchise agreements			20 years
Royalty fees on room revenue			6%
Additional franchise fees on room revenue			4.30%

Income Taxes (Details Narrative

Income Taxes (Details Narrative) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Net operating loss carry-forwards	$ 12,400
Deferred tax assets	2,300	$ 2,300
Deferred tax assets, valuation allowance	$ 16,400	$ 14,500
Description of loss carryforwards expiration	2033 through 2038 if not utilized by then
Subsidiaries [Member]
Net operating loss carry-forwards	$ 80,100
Subsidiaries [Member] | Moody National REIT I, Inc. [Member]
Net operating loss carry-forwards	8,300
Capital Loss Carryforward [Member]
Capital loss	$ 900

The income tax expense (benefit

The income tax expense (benefit) for the three and nine months ended September 30, 2022 and 2021 consisted of the following (in thousands): (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Current expense	$ 18	$ 43	$ 109	$ (27)
Deferred benefit	(579)	(955)	(1,925)	(3,524)
Valuation provision for deferred benefit	579	955	1,925	3,524
Total expense	18	43	109	(27)
Federal	(579)	(955)	(1,925)	(3,524)
Valuation provision for federal taxes	579	955	1,925	3,524
State	18	43	109	(27)
Total tax expense	$ 18	$ 43	$ 109	$ (27)