Moody National REIT II (MNRTII) 10-K 29 Mar 23 2022 FY Annual report Financial data

Cover

Cover - USD ($)	12 Months Ended
	Dec. 31, 2022	Mar. 06, 2023	Jun. 30, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2022
Document Fiscal Period Focus	FY
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 Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 13,640,429
Entity Common Stock, Shares Outstanding		13,640,429
Auditor Name	Frazier & Deeter, LLC
Auditor Location	Atlanta, Georgia
Auditor Firm ID	2015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
ASSETS
Investments in hotel properties, net	$ 399,477	$ 412,972
Cash and cash equivalents	4,912	6,049
Restricted cash	16,291	13,232
Accounts receivable, net of allowance for doubtful accounts of $35 at December 31, 2022 and 2021	802	1,015
Prepaid expenses and other assets	2,927	2,890
Deferred franchise costs, net of accumulated amortization of $466 and $383 at December 31, 2022 and 2021, respectively	676	684
Total Assets	425,085	436,842
Liabilities:
Notes payable, net of unamortized debt issuance costs of $1,260 and $1,937 as of December 31, 2022 and 2021, respectively	235,060	239,739
Notes payable to related party	30,111	28,474
Accounts payable and accrued expenses	16,856	14,128
Due to related parties, net	8,144	953
Dividends payable	70	70
Total Liabilities	290,241	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 December 31, 2022 and 2021	136	136
Additional paid-in capital	305,641	305,562
Accumulated deficit	(173,272)	(154,983)
Total stockholders’ equity	132,505	150,715
Noncontrolling interests in Operating Partnership	2,338	2,762
Total Equity	134,843	153,477
TOTAL LIABILITIES AND EQUITY	$ 425,085	$ 436,842

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 35	$ 35
Accumulated amortization, deferred franchise costs	466	383
Unamortized debt issuance costs, note payable	$ 1,260	$ 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, issued	13,640,000	13,640,000
Common stock, outstanding	13,640,000	13,640,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Revenue
Total hotel revenue	$ 77,374	$ 56,617
Interest and dividend income		1
Total revenue	77,374	56,618
Expenses
Hotel operating expenses	52,182	41,290
Property taxes, insurance and other	6,600	6,102
Depreciation and amortization	15,629	15,482
Corporate general and administrative	6,877	6,675
Total expenses	81,288	69,549
Operating loss	(3,914)	(12,931)
Other expenses (income)
Interest expense and amortization of debt issuance costs	14,653	15,168
Gain on sale of marketable securities		(152)
Total other expenses	14,653	15,016
Loss before income tax expense	(18,567)	(27,947)
Income tax expense (benefit)	146	(17)
Net loss	(18,713)	(27,930)
Net loss attributable to noncontrolling interests in Operating Partnership	424	633
Net loss attributable to common stockholders	$ (18,289)	$ (27,297)
Per-share information – basic and diluted:
Net loss attributable to common stockholders - basic	$ (1.34)	$ (2)
Net loss attributable to common stockholders - diluted	(1.34)	(2)
Dividends declared
Weighted average common shares outstanding - basic	13,640	13,636
Weighted average common shares outstanding - diluted	13,640	13,636
Occupancy [Member]
Revenue
Total hotel revenue	$ 73,002	$ 53,129
Hotel, Other [Member]
Revenue
Total hotel revenue	$ 4,372	$ 3,488

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]
Beginning balance at Dec. 31, 2020	$ 181,291	$ 0	$ 136	$ 305,446	$ (127,686)	$ 3,395
Balance at beginning (in shares) at Dec. 31, 2020		0	13,630,000
Balance at beginning (in shares) at Dec. 31, 2020						316,000
Stock-based compensation	116			116
Stock based compensation (in shares)			10,000
Net loss	(27,930)				(27,297)	(633)
Ending balance at Dec. 31, 2021	153,477	$ 0	$ 136	305,562	(154,983)	$ 2,762
Balance at end (in shares) at Dec. 31, 2021		0	13,640,000
Balance at end (in shares) at Dec. 31, 2021						316,000
Stock-based compensation	79			79
Net loss	(18,713)				(18,289)	(424)
Ending balance at Dec. 31, 2022	$ 134,843	$ 0	$ 136	$ 305,641	$ (173,272)	$ 2,338
Balance at end (in shares) at Dec. 31, 2022		0	13,640,000
Balance at end (in shares) at Dec. 31, 2022	316,037					316,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Cash flows from operating activities
Net loss	$ (18,713)	$ (27,930)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	15,629	15,482
Amortization of debt issuance costs	677	677
Loss on sale of marketable securities		245
Unrealized gain on change in fair value of investment in marketable securities		(397)
Stock-based compensation	79	117
Changes in operating assets and liabilities:
Accounts receivable	213	(447)
Prepaid expenses and other assets	(37)	13
Accounts payable and accrued expenses	2,728	(3,233)
Due to related parties	7,191	(7,386)
Net cash provided by (used in) operating activities	7,767	(22,859)
Cash flows from investing activities
Proceeds from the sale of marketable securities		2,188
Payment of deferred franchise costs	(75)
Improvements and additions to hotel properties	(2,051)	(570)
Net cash (used in) provided by investing activities	(2,126)	1,618
Cash flows from financing activities
Proceeds from notes payable		7,500
Repayment of notes payable	(5,356)	(5,954)
Proceeds of notes payable to related party	6,437	35,042
Repayment of notes payable to related party	(4,800)	(6,568)
Net cash (used in) provided by financing activities	(3,719)	30,020
Net change in cash and cash equivalents and restricted cash	1,922	8,779
Cash and cash equivalents and restricted cash at beginning of year	19,281	10,502
Cash and cash equivalents and restricted cash at end of year	21,203	19,281
Supplemental Disclosure of Cash Flow Activity
Interest paid	11,709	17,655
Income tax paid	$ 115	$ 141

Organization

Organization	12 Months Ended
	Dec. 31, 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 December 31, 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 1 100 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 spread of COVID-19, a disease caused by a novel strain of coronavirus, is having and is expected to continue to have in the Company’s hotel properties. The Company accepted investors’ subscriptions for and issued an aggregate of 10.2 million 567,000 234.6 million 4.1 million 352,000 87.2 million 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 had a significant adverse effect on the Company’s financial condition and operating results. Since its discovery in December 2019, COVID-19 spread globally, including to every state in the United States. The spread of COVID-19 was declared a pandemic by the World Health Organization and in the United States the Health and Human Services Secretary 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 COVID-19 pandemic dramatically reduced travel, which had an unprecedented adverse impact on the hotel industry. As a result, the COVID-19 pandemic 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 experienced a significant decline in bookings, occupancy and revenues across the Company’s hotel properties. The Company’s hotel properties operated at a property net operating loss since the outbreak of COVID-19, which had an adverse impact on the Company’s results of operations and cash flow from operations. In addition, the Company reduced certain services and amenities at the Company’s hotel properties. Each of the Company’s hotel properties is subject to a mortgage loan secured by the Company’s ownership interest in the property. If the Company is unable to service the mortgage loan secured by a hotel property due to decreased revenues generated by such property, the lender with respect to such mortgage loan may initiate foreclosure procedures with respect to the property or initiate other available remedies. As of the date of this Annual 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,” during 2021 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 Annual 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.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 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 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 December 31, 2022, total offering costs for the initial public offering and the follow-on offering were $ 21.1 12.3 million 8.8 million 18.4 12.3 6.1 million 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 December 31, 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 2018 through 2022 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 December 31, 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 along with the balances there on deposit to minimize the Company’s potential risk and believes that it is not exposed to any significant credit risk in cash and cash equivalents or restricted cash. The Company holds cash accounts at several institutions in excess of the Federal Deposit Insurance Corporation (the “FDIC”) protection limits of $ 250,000 1,500,000 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 years ended December 31, 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 December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Cash and cash equivalents $ 4,912 $ 6,049 Restricted cash 16,291 13,232 Total cash and cash equivalents and restricted cash $ 21,203 $ 19,281 Investment in Marketable Securities All of the Company’s investment in marketable securities were sold during the year 2021. For the year 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 years ended December 31, 2022 and 2021, dividend income of $ 0 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 $ 466,000 383,000 Expected future amortization of deferred franchise costs as of December 31, 2022 is as follows (in thousands): Years Ending December 31, 2023 $ 85 2024 85 2025 85 2026 84 2027 75 Thereafter 262 Total $ 676 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 $ 6.1 million 5.4 million Expected future amortization of debt issuance costs as of December 31, 2022 is as follows (in thousands): Years Ending December 31, 2023 $ 632 2024 440 2025 154 2026 34 2027 — Total $ 1,260 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 0 5,000

Investment in Hotel Properties

Investment in Hotel Properties	12 Months Ended
	Dec. 31, 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 December 31, 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 $ 15,465 Springhill Suites Seattle May 24, 2016 Seattle, Washington 100 % 74,100 234 41,812 Homewood Suites Woodlands September 27, 2017 (5) The Woodlands, Texas 100 % 17,356 91 8,420 Hyatt Place Germantown September 27, 2017 (5) Germantown, Tennessee 100 % 16,074 127 6,342 Hyatt Place North Charleston September 27, 2017 (5) North Charleston, South Carolina 100 % 13,806 113 6,553 Hampton Inn Austin September 27, 2017 (5) Austin, Texas 100 % 19,328 123 9,844 Residence Inn Grapevine September 27, 2017 (5) Grapevine, Texas 100 % 25,245 133 11,360 Marriott Courtyard Lyndhurst September 27, 2017 (5) Lyndhurst, New Jersey - (3 ) 39,547 227 17,986 Hilton Garden Inn Austin September 27, 2017 (5) Austin, Texas 100 % 29,288 138 17,026 Hampton Inn Great Valley September 27, 2017 (5) Frazer, Pennsylvania 100 % 15,285 125 7,429 Embassy Suites Nashville September 27, 2017 (5) Nashville, Tennessee 100 % 82,207 208 38,811 Homewood Suites Austin September 27, 2017 (5) Austin, Texas 100 % 18,835 96 10,022 Townplace Suites Fort Worth September 27, 2017 (5) Fort Worth, Texas - (4 ) 11,242 95 5,645 Hampton Inn Houston September 27, 2017 (5) Houston, Texas 100 % 9,958 119 4,022 Residence Inn Houston Medical Center April 29, 2019 Houston, Texas 100 % 52,000 182 28,083 Totals $ 451,771 2,123 $ 228,820 (1) Excludes closing costs and includes gain on acquisition. (2) As of December 31, 2022. (3) The Marriott Courtyard Lyndhurst is owned by MN Lyndhurst Venture, LLC, of which the OP is a member and holds 100 (4) The Townplace Suites Fort Worth is owned by MN Fort Worth Venture, LLC, of which the OP is a member and holds 100 (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 December 31, 2022 and 2021 (all amounts in thousands): December 31, 2022 2021 Land $ 76,936 $ 76,936 Buildings and improvements 338,938 338,729 Furniture, fixtures and equipment 62,567 60,725 Total cost 478,441 476,390 Accumulated depreciation (78,964 ) (63,418 ) Investment in hotel properties, net $ 399,477 $ 412,972

Debt

Debt	12 Months Ended
	Dec. 31, 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 December 31, 2022 and 2021, the Company’s mortgage notes payable secured by the respective assets, consisted of the following ($ amounts in thousands): Loan Principal as of December 31, 2022 Principal as of December 31, 2021 Interest Rate at December 31, 2022 Maturity Date Loan Modifications Residence Inn Austin $ 15,465 $ 15,757 4.580 % November 1, 2025 Lender forbore the collection 75 1.1 million 25 Springhill Suites Seattle 41,812 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 8,420 8,594 4.690 % April 11, 2025 Hyatt Place Germantown 6,342 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 million Hyatt Place North Charleston 6,553 6,730 5.193 % August 1, 2023 Payment of $ 100,000 Hampton Inn Austin 9,844 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 million Residence Inn Grapevine 11,360 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 million 1.41 million Marriott Courtyard Lyndhurst 17,986 18,420 4.700 % September 27, 2024 Six months payment of interest only from April to September, 2020. Hilton Garden Inn Austin 17,026 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 million 1.62 million 2.36 million Hampton Inn Great Valley 7,429 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 2021 totaled $ 1.75 729,000 1.02 Embassy Suites Nashville 38,811 39,660 4.2123 % July 11, 2025 April 2020 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 10,022 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 million 1.59 million Townplace Suites Fort Worth 5,645 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 4,022 4,181 9.500 % 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 28,083 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 236,320 241,676 Less unamortized debt issuance costs (1,260 ) (1,937 ) Total notes payable, net of unamortized debt issuance costs $ 235,060 $ 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. Scheduled maturities of the Company’s notes payable as of December 31, 2022 are as follows (in thousands): Years ending December 31, 2023 $ 21,681 2024 90,498 2025 77,532 2026 39,141 2027 147 Thereafter 7,321 Total $ 236,320 Economic Injury Disaster Loans The Company entered into fifteen Loans (“Loans”) of $ 500,000 30 3.75 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 March 29, 2024 two years 4.75 6.75 8.93 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 June 30, 2024 two years 6.75 8.75 10.93 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 August 20, 2024 7.75 9.75 11.93 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 April 13, 2025 8.75 9.75 12.93 110,500 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 December 31, 2022 and 2021 was $ 236 242

Equity

Equity	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Equity	5. Equity Capitalization Under its Charter, the Company has the authority to issue 1.0 100.0 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 December 31, 2022 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 December 31, 2022 and 2021 was $ 2.3 million 2.8 million 316,037 424,000 633,000

Related Party Arrangements

Related Party Arrangements	12 Months Ended
	Dec. 31, 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 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 December 31, 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 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 years ended December 31, 2022 and 2021. 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 3.4 450,000 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 4.8 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 7 5.2 1.8 7 0 2 25 1.8 252,000 Notes Payable to Related Party See Note 4, “Debt” to the consolidated financial statements for a description of notes payable to related party. The balance of such notes was $ 30,110,500 Due to Related Parties, Net The composition of the amounts due to (due from) related parties, net as of December 31, 2022 and 2021 is as follows (in thousands): December 31, 2022 2021 Operating expense reimbursement $ 252 $ 338 Asset management fee 3,467 (233 ) Accounts payable to Property Manager 4,425 848 Total due to related parties, net $ 8,144 $ 953

Incentive Award Plan

Incentive Award Plan	12 Months Ended
	Dec. 31, 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 $ 79,000 117,000 no The following is a summary of activity under the Independent Directors Compensation Plan for the years ended December 31, 2022 and 2021: Number of Shares Weighted Grant Date Fair Value 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 (5,000 ) $ 19.40 Balance of non-vested shares as of December 31, 2022 0 $

Subordinated Participation Inte

Subordinated Participation Interest	12 Months Ended
	Dec. 31, 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	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	9. Commitments and Contingencies Restricted Cash Under certain management and debt agreements existing at December 31, 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 December 31, 2022 and 2021 are as follows (in thousands): December 31, 2022 2021 Real estate taxes $ 4,499 $ 4,447 Insurance 376 382 Hotel furniture and fixtures 8,053 5,483 Debt service 3,205 2,762 Property improvement plan 158 158 Total restricted cash $ 16,291 $ 13,232 Franchise Agreements As of December 31, 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 6.9 million 5.0 million

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 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 December 31, 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 million 17.3 million 14.5 million 93.4 million 8.3 million The income tax expense (benefit) for the years ended December 31, 2022 and 2021 consisted of the following (in thousands): Years ended December 31, 2022 2021 Current expense (benefit) $ 146 $ (17 ) Deferred benefit (2,806 ) (4,530 ) Valuation provision for deferred benefit 2,806 4,530 Total expense (benefit) $ 146 $ (17 ) Federal $ (2,806 ) $ (4,530 ) Valuation provision for federal taxes 2,806 4,530 State 146 (17 ) Total tax expense (benefit) $ 146 $ (17 ) On December 31, 2022, the Company had net deferred tax assets of $ 2.3 million 20CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents33 through 2038 if not utilized by then

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2022
Subsequent Events [Abstract]
Subsequent Events	11. Subsequent Events In preparing the consolidated financial statements, the Company has evaluated all subsequent events and transactions for potential recognition or disclosure through March 29, 2023, the date the consolidated financial statements were available for issuance. Tender Offer In March 2023, an unaffiliated third party that currently owns 2.7% 1.9%

REAL ESTATE ASSETS AND ACCUMULA

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION	12 Months Ended
	Dec. 31, 2022
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]
REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION	MOODY NATIONAL REIT II, INC. SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION DECEMBER 31, 2022 SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION Initial Cost to Company Total Cost Description Location Ownership Percent Encumbrances Land Building, Improvements, and FF&E Total Cost Capitalized Subsequent to Acquisition Land Building, Improvements and FF&E Total (1) Accumulated+ Depreciation and Amortization Original Date of Construction Date Acquired Residence Inn Austin Austin, Texas 100.0 % $ 15,465 $ 4,310 $ 23,190 $ 27,500 (2) $ 954 $ 4,310 $ 24,135 $ 28,445 $ 5,336 2014 October 15, 2015 Springhill Suites Seattle Seattle, Washington 100.0 % 42,812 14,040 60,060 74,100 9,272 14,040 69,332 83,372 14,258 2001 May 24, 2016 Homewood Suites Woodlands The Woodlands, Texas 100.0 % 8,420 2,828 14,528 17,356 597 2,828 15,125 17,953 2,905 2001 September 27, 2017 Hyatt Place Germantown Germantown, Tennessee 100.0 % 6,342 1,874 14,200 16,074 733 1,874 14,933 16,807 2,957 2009 September 27, 2017 Hyatt Place North Charleston North Charleston, South Carolina 100.0 % 6,553 783 13,023 13,806 615 783 13,638 14,421 2,676 2009 September 27, 2017 Hampton Inn Austin Austin, Texas 100.0 % 9,844 4,329 14,999 19,328 788 4,329 15,787 20,116 3,386 1997 September 27, 2017 Residence Inn Grapevine Grapevine, Texas 100.0 % 11,360 2,028 23,217 25,245 639 2,028 23,856 25,884 4,554 2007 September 27, 2017 Marriott Courtyard Lyndhurst Lyndhurst, New Jersey - (3 ) 17,986 2,663 36,884 39,547 538 2,663 37,422 40,085 7,050 1990 September 27, 2017 Hilton Garden Inn Austin Austin, Texas 100.0 % 17,026 9,058 20,230 29,288 1,055 9,058 21,285 30,343 4,752 2002 September 27, 2017 Hampton Inn Great Valley Frazer, Pennsylvania 100.0 % 7,429 1,730 13,555 15,285 1,846 1,730 15,401 17,131 3,736 1998 September 27, 2017 Embassy Suites Nashville Nashville, Tennessee 100.0 % 38,811 14,805 67,402 82,207 4,751 14,805 72,153 86,958 13,467 2001 September 27, 2017 Homewood Suites Austin Austin, Texas 100.0 % 10022 4,218 14,617 18,835 1,021 4,218 15,638 19,856 3,464 1998 September 27, 2017 TownPlace Suites Fort Worth Fort Worth, Texas - (3 ) 5,645 4,240 7,002 11,242 293 4,240 7,295 11,535 1,714 1998 September 27, 2017 Hampton Inn Houston Houston, Texas 100.0 % 4,022 3,550 6,408 9,958 3,403 3,550 9,811 13,361 3,043 1995 September 27, 2017 Residence Inn Houston Medical Center Houston, Texas 100.0 % 28,083 6,480 45,520 52,000 174 6,480 45,694 52,174 5,666 2019 April 29, 2019 Total $ 228,820 $ 76,936 $ 374,835 $ 451,771 $ 26,670 $ 76,936 $ 401,505 $ 478,441 $ 78,964 (1) The aggregate cost of real estate for federal income tax purposes was $ 434 (2) Includes gain on acquisition of hotel property of $ 2.0 million (3) 100% of the Class B membership interests of a joint venture. MOODY NATIONAL REIT II, INC. SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2022 and 2021 2022 2021 Real estate: Balance at the beginning of the year $ 476,390 $ 475,820 Improvements and additions 2,051 570 Balance at the end of the year $ 478,441 $ 476,390 Accumulated depreciation: Balance at the beginning of the year $ 63,418 $ 48,019 Depreciation 15,546 15,399 Balance at the end of the year $ 78,964 $ 63,418

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 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 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 December 31, 2022, total offering costs for the initial public offering and the follow-on offering were $ 21.1 12.3 million 8.8 million 18.4 12.3 6.1 million 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 December 31, 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 2018 through 2022 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 December 31, 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 along with the balances there on deposit to minimize the Company’s potential risk and believes that it is not exposed to any significant credit risk in cash and cash equivalents or restricted cash. The Company holds cash accounts at several institutions in excess of the Federal Deposit Insurance Corporation (the “FDIC”) protection limits of $ 250,000 1,500,000 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 years ended December 31, 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 December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Cash and cash equivalents $ 4,912 $ 6,049 Restricted cash 16,291 13,232 Total cash and cash equivalents and restricted cash $ 21,203 $ 19,281
Investment in Marketable Securities	Investment in Marketable Securities All of the Company’s investment in marketable securities were sold during the year 2021. For the year 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 years ended December 31, 2022 and 2021, dividend income of $ 0 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 $ 466,000 383,000 Expected future amortization of deferred franchise costs as of December 31, 2022 is as follows (in thousands): Years Ending December 31, 2023 $ 85 2024 85 2025 85 2026 84 2027 75 Thereafter 262 Total $ 676
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 $ 6.1 million 5.4 million Expected future amortization of debt issuance costs as of December 31, 2022 is as follows (in thousands): Years Ending December 31, 2023 $ 632 2024 440 2025 154 2026 34 2027 — Total $ 1,260
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 0 5,000

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 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 December 31, 2022 and 2021 (in thousands): December 31, 2022 2021 Cash and cash equivalents $ 4,912 $ 6,049 Restricted cash 16,291 13,232 Total cash and cash equivalents and restricted cash $ 21,203 $ 19,281
Expected future amortization of deferred franchise costs as of December 31, 2022 is as follows (in thousands):	Expected future amortization of deferred franchise costs as of December 31, 2022 is as follows (in thousands): Years Ending December 31, 2023 $ 85 2024 85 2025 85 2026 84 2027 75 Thereafter 262 Total $ 676
Expected future amortization of debt issuance costs as of December 31, 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 $ 6.1 million 5.4 million Expected future amortization of debt issuance costs as of December 31, 2022 is as follows (in thousands): Years Ending December 31, 2023 $ 632 2024 440 2025 154 2026 34 2027 — Total $ 1,260

Investment in Hotel Properties

Investment in Hotel Properties (Tables)	12 Months Ended
	Dec. 31, 2022
Real Estate [Abstract]
The following table sets forth summary information regarding the Company’s investment in hotel properties as of December 31, 2022 (all $ amounts in thousands):	The following table sets forth summary information regarding the Company’s investment in hotel properties as of December 31, 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 $ 15,465 Springhill Suites Seattle May 24, 2016 Seattle, Washington 100 % 74,100 234 41,812 Homewood Suites Woodlands September 27, 2017 (5) The Woodlands, Texas 100 % 17,356 91 8,420 Hyatt Place Germantown September 27, 2017 (5) Germantown, Tennessee 100 % 16,074 127 6,342 Hyatt Place North Charleston September 27, 2017 (5) North Charleston, South Carolina 100 % 13,806 113 6,553 Hampton Inn Austin September 27, 2017 (5) Austin, Texas 100 % 19,328 123 9,844 Residence Inn Grapevine September 27, 2017 (5) Grapevine, Texas 100 % 25,245 133 11,360 Marriott Courtyard Lyndhurst September 27, 2017 (5) Lyndhurst, New Jersey - (3 ) 39,547 227 17,986 Hilton Garden Inn Austin September 27, 2017 (5) Austin, Texas 100 % 29,288 138 17,026 Hampton Inn Great Valley September 27, 2017 (5) Frazer, Pennsylvania 100 % 15,285 125 7,429 Embassy Suites Nashville September 27, 2017 (5) Nashville, Tennessee 100 % 82,207 208 38,811 Homewood Suites Austin September 27, 2017 (5) Austin, Texas 100 % 18,835 96 10,022 Townplace Suites Fort Worth September 27, 2017 (5) Fort Worth, Texas - (4 ) 11,242 95 5,645 Hampton Inn Houston September 27, 2017 (5) Houston, Texas 100 % 9,958 119 4,022 Residence Inn Houston Medical Center April 29, 2019 Houston, Texas 100 % 52,000 182 28,083 Totals $ 451,771 2,123 $ 228,820 (1) Excludes closing costs and includes gain on acquisition. (2) As of December 31, 2022. (3) The Marriott Courtyard Lyndhurst is owned by MN Lyndhurst Venture, LLC, of which the OP is a member and holds 100 (4) The Townplace Suites Fort Worth is owned by MN Fort Worth Venture, LLC, of which the OP is a member and holds 100 (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 December 31, 2022 and 2021 (all amounts in thousands):	Investment in hotel properties consisted of the following at December 31, 2022 and 2021 (all amounts in thousands): December 31, 2022 2021 Land $ 76,936 $ 76,936 Buildings and improvements 338,938 338,729 Furniture, fixtures and equipment 62,567 60,725 Total cost 478,441 476,390 Accumulated depreciation (78,964 ) (63,418 ) Investment in hotel properties, net $ 399,477 $ 412,972

Debt (Tables)

Debt (Tables)	12 Months Ended
	Dec. 31, 2022
Debt Disclosure [Abstract]
As of December 31, 2022 and 2021, the Company’s mortgage notes payable secured by the respective assets, consisted of the following ($ amounts in thousands):	As of December 31, 2022 and 2021, the Company’s mortgage notes payable secured by the respective assets, consisted of the following ($ amounts in thousands): Loan Principal as of December 31, 2022 Principal as of December 31, 2021 Interest Rate at December 31, 2022 Maturity Date Loan Modifications Residence Inn Austin $ 15,465 $ 15,757 4.580 % November 1, 2025 Lender forbore the collection 75 1.1 million 25 Springhill Suites Seattle 41,812 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 8,420 8,594 4.690 % April 11, 2025 Hyatt Place Germantown 6,342 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 million Hyatt Place North Charleston 6,553 6,730 5.193 % August 1, 2023 Payment of $ 100,000 Hampton Inn Austin 9,844 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 million Residence Inn Grapevine 11,360 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 million 1.41 million Marriott Courtyard Lyndhurst 17,986 18,420 4.700 % September 27, 2024 Six months payment of interest only from April to September, 2020. Hilton Garden Inn Austin 17,026 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 million 1.62 million 2.36 million Hampton Inn Great Valley 7,429 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 2021 totaled $ 1.75 729,000 1.02 Embassy Suites Nashville 38,811 39,660 4.2123 % July 11, 2025 April 2020 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 10,022 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 million 1.59 million Townplace Suites Fort Worth 5,645 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 4,022 4,181 9.500 % 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 28,083 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 236,320 241,676 Less unamortized debt issuance costs (1,260 ) (1,937 ) Total notes payable, net of unamortized debt issuance costs $ 235,060 $ 239,739
Scheduled maturities of the Company’s notes payable as of December 31, 2022 are as follows (in thousands):	Scheduled maturities of the Company’s notes payable as of December 31, 2022 are as follows (in thousands): Years ending December 31, 2023 $ 21,681 2024 90,498 2025 77,532 2026 39,141 2027 147 Thereafter 7,321 Total $ 236,320

Equity (Tables)

Equity (Tables)	12 Months Ended
	Dec. 31, 2022
Equity [Abstract]
Schedule of shares outstanding	Schedule of shares outstanding Class Shares Outstanding as of December 31, 2022 Class A Shares 13,000 Class T Shares 481 Class I Shares 159 Total 13,640

Related Party Arrangements (Tab

Related Party Arrangements (Tables)	12 Months Ended
	Dec. 31, 2022
Related Party Transactions [Abstract]
The composition of the amounts due to (due from) related parties, net as of December 31, 2022 and 2021 is as follows (in thousands):	The composition of the amounts due to (due from) related parties, net as of December 31, 2022 and 2021 is as follows (in thousands): December 31, 2022 2021 Operating expense reimbursement $ 252 $ 338 Asset management fee 3,467 (233 ) Accounts payable to Property Manager 4,425 848 Total due to related parties, net $ 8,144 $ 953

Incentive Award Plan (Tables)

Incentive Award Plan (Tables)	12 Months Ended
	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
The following is a summary of activity under the Independent Directors Compensation Plan for the years ended December 31, 2022 and 2021:	The following is a summary of activity under the Independent Directors Compensation Plan for the years ended December 31, 2022 and 2021: Number of Shares Weighted Grant Date Fair Value 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 (5,000 ) $ 19.40 Balance of non-vested shares as of December 31, 2022 0 $

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
The composition of the Company’s restricted cash as of December 31, 2022 and 2021 are as follows (in thousands):	Under certain management and debt agreements existing at December 31, 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 December 31, 2022 and 2021 are as follows (in thousands): December 31, 2022 2021 Real estate taxes $ 4,499 $ 4,447 Insurance 376 382 Hotel furniture and fixtures 8,053 5,483 Debt service 3,205 2,762 Property improvement plan 158 158 Total restricted cash $ 16,291 $ 13,232

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2022
Income Tax Disclosure [Abstract]
The income tax expense (benefit) for the years ended December 31, 2022 and 2021 consisted of the following (in thousands):	The income tax expense (benefit) for the years ended December 31, 2022 and 2021 consisted of the following (in thousands): Years ended December 31, 2022 2021 Current expense (benefit) $ 146 $ (17 ) Deferred benefit (2,806 ) (4,530 ) Valuation provision for deferred benefit 2,806 4,530 Total expense (benefit) $ 146 $ (17 ) Federal $ (2,806 ) $ (4,530 ) Valuation provision for federal taxes 2,806 4,530 State 146 (17 ) Total tax expense (benefit) $ 146 $ (17 )

REAL ESTATE ASSETS AND ACCUMU_2

REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (Tables)	12 Months Ended
	Dec. 31, 2022
SEC Schedule, 12-28, Real Estate Companies, Investment in Real Estate and Accumulated Depreciation Disclosure [Abstract]
SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION	SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION Initial Cost to Company Total Cost Description Location Ownership Percent Encumbrances Land Building, Improvements, and FF&E Total Cost Capitalized Subsequent to Acquisition Land Building, Improvements and FF&E Total (1) Accumulated+ Depreciation and Amortization Original Date of Construction Date Acquired Residence Inn Austin Austin, Texas 100.0 % $ 15,465 $ 4,310 $ 23,190 $ 27,500 (2) $ 954 $ 4,310 $ 24,135 $ 28,445 $ 5,336 2014 October 15, 2015 Springhill Suites Seattle Seattle, Washington 100.0 % 42,812 14,040 60,060 74,100 9,272 14,040 69,332 83,372 14,258 2001 May 24, 2016 Homewood Suites Woodlands The Woodlands, Texas 100.0 % 8,420 2,828 14,528 17,356 597 2,828 15,125 17,953 2,905 2001 September 27, 2017 Hyatt Place Germantown Germantown, Tennessee 100.0 % 6,342 1,874 14,200 16,074 733 1,874 14,933 16,807 2,957 2009 September 27, 2017 Hyatt Place North Charleston North Charleston, South Carolina 100.0 % 6,553 783 13,023 13,806 615 783 13,638 14,421 2,676 2009 September 27, 2017 Hampton Inn Austin Austin, Texas 100.0 % 9,844 4,329 14,999 19,328 788 4,329 15,787 20,116 3,386 1997 September 27, 2017 Residence Inn Grapevine Grapevine, Texas 100.0 % 11,360 2,028 23,217 25,245 639 2,028 23,856 25,884 4,554 2007 September 27, 2017 Marriott Courtyard Lyndhurst Lyndhurst, New Jersey - (3 ) 17,986 2,663 36,884 39,547 538 2,663 37,422 40,085 7,050 1990 September 27, 2017 Hilton Garden Inn Austin Austin, Texas 100.0 % 17,026 9,058 20,230 29,288 1,055 9,058 21,285 30,343 4,752 2002 September 27, 2017 Hampton Inn Great Valley Frazer, Pennsylvania 100.0 % 7,429 1,730 13,555 15,285 1,846 1,730 15,401 17,131 3,736 1998 September 27, 2017 Embassy Suites Nashville Nashville, Tennessee 100.0 % 38,811 14,805 67,402 82,207 4,751 14,805 72,153 86,958 13,467 2001 September 27, 2017 Homewood Suites Austin Austin, Texas 100.0 % 10022 4,218 14,617 18,835 1,021 4,218 15,638 19,856 3,464 1998 September 27, 2017 TownPlace Suites Fort Worth Fort Worth, Texas - (3 ) 5,645 4,240 7,002 11,242 293 4,240 7,295 11,535 1,714 1998 September 27, 2017 Hampton Inn Houston Houston, Texas 100.0 % 4,022 3,550 6,408 9,958 3,403 3,550 9,811 13,361 3,043 1995 September 27, 2017 Residence Inn Houston Medical Center Houston, Texas 100.0 % 28,083 6,480 45,520 52,000 174 6,480 45,694 52,174 5,666 2019 April 29, 2019 Total $ 228,820 $ 76,936 $ 374,835 $ 451,771 $ 26,670 $ 76,936 $ 401,505 $ 478,441 $ 78,964 (1) The aggregate cost of real estate for federal income tax purposes was $ 434 (2) Includes gain on acquisition of hotel property of $ 2.0 million (3) 100% of the Class B membership interests of a joint venture. MOODY NATIONAL REIT II, INC. SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (CONTINUED) DECEMBER 31, 2022 and 2021 2022 2021 Real estate: Balance at the beginning of the year $ 476,390 $ 475,820 Improvements and additions 2,051 570 Balance at the end of the year $ 478,441 $ 476,390 Accumulated depreciation: Balance at the beginning of the year $ 63,418 $ 48,019 Depreciation 15,546 15,399 Balance at the end of the year $ 78,964 $ 63,418

Organization (Details Narrative

Organization (Details Narrative)		12 Months Ended
	Jan. 18, 2018 USD ($)	Dec. 31, 2022 USD ($) 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	$ 990,000,000
Special Limited Partnership Interests		$ 1,000	$ 1,000
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, authorized, value					$ 1,000,000,000
Common stock authorized in distribution reinvestment plan, value					100,000,000
IPO [Member] | Maximum [Member]
Common stock, authorized, value					$ 1,100,000,000
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		$ 234,600,000
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		$ 87,200,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details Narrative)	12 Months Ended
	Dec. 31, 2022 USD ($) Number shares	Dec. 31, 2021 USD ($) shares
Minimum number of shareholders to qualify as REIT | Number	100
Minimum percentage of taxable income to be distributed	90%
Federal deposit insurance corporation protection limits	$ 250,000
Exceeded federally insured limits	1,500,000
Marketable securities, unrealized gain (loss)		$ 397,000
Marketable securities, realized gain (loss)		245,000
Dividend income	0	1,000
Accumulated amortization of deferred franchise costs	$ 466,000	$ 383,000
Non vested shares of restricted common stock | shares	0	5,000
Affiliated Entity [Member]
Percentage of organization and offering costs	15%
Total offering costs	$ 21,100,000
Offering cost directly incurred by company	12,300,000
Offering cost reimbursed to advisor	8,800,000
Due to Advisor for reimbursable offering costs	0
Affiliated Entity [Member] | Follow-on offering [Member]
Total offering costs	2,700,000
Offering cost directly incurred by company	0
Offering cost reimbursed to advisor	2,700,000
Affiliated Entity [Member] | IPO [Member]
Total offering costs	18,400,000
Offering cost directly incurred by company	12,300,000
Offering cost reimbursed to advisor	$ 6,100,000

Depreciation expense is compute

Depreciation expense is computed using the straight-line method based upon the following estimated useful lives: (Details)	12 Months Ended
	Dec. 31, 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 December 31, 2022 and 2021 (in thousands): (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounting Policies [Abstract]
Cash and cash equivalents	$ 4,912	$ 6,049
Restricted cash	16,291	13,232
Total cash and cash equivalents and restricted cash	$ 21,203	$ 19,281	$ 10,502

Expected future amortization of

Expected future amortization of deferred franchise costs as of December 31, 2022 is as follows (in thousands): (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Years Ending December 31,
Total	$ 676	$ 684
Franchise Rights [Member]
Years Ending December 31,
2023	85
2024	85
2025	85
2026	84
2027	75
Thereafter	262
Total	$ 676

Expected future amortization _2

Expected future amortization of debt issuance costs as of December 31, 2022 is as follows (in thousands): (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Accounting Policies [Abstract]
Debt issuance costs, accumulated amortization	$ 6,100	$ 5,400
Years Ending December 31,
2023	632
2024	440
2025	154
2026	34
2027
Total	$ 1,260	$ 1,937

The following table sets forth

The following table sets forth summary information regarding the Company’s investment in hotel properties as of December 31, 2022 (all $ amounts in thousands): (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2022 USD ($) Number
Real Estate Properties [Line Items]
Property Name	Totals
Original Purchase Price	$ 451,771
Rooms | Number	2,123
Mortgage Debt Outstanding	$ 228,820
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	$ 15,465	[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	$ 41,812	[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	$ 8,420	[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	$ 6,342	[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	$ 6,553	[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	$ 9,844	[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	$ 11,360	[2]
Marriott Courtyard Inn Lyndhurst [Member] | MN Lyndhurst Venture, LLC [Member]
Real Estate Properties [Line Items]
Ownership Percentage	100%
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	$ 17,986	[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	$ 17,026	[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	$ 7,429	[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	$ 38,811	[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	$ 10,022	[2]
Townplace Suites Fort Worth [Member] | MN Fort Worth Venture, LLC [Member]
Real Estate Properties [Line Items]
Ownership Percentage	100%
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	$ 5,645	[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	$ 4,022	[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	$ 28,083	[2]
[1]Excludes closing costs and includes gain on acquisition.[2]As of December 31, 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 100 100

Investment in hotel propertie_2

Investment in hotel properties consisted of the following at December 31, 2022 and 2021 (all amounts in thousands): (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Real Estate [Abstract]
Land	$ 76,936	$ 76,936
Buildings and improvements	338,938	338,729
Furniture, fixtures and equipment	62,567	60,725
Total cost	478,441	476,390
Accumulated depreciation	(78,964)	(63,418)
Investment in hotel properties, net	$ 399,477	$ 412,972

Debt (Details Narrative)

Debt (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2022	Jun. 30, 2021	Dec. 31, 2022	Dec. 31, 2021	Mar. 30, 2021
Debt Instrument [Line Items]
Borrowings maximum percentage of net assets				300%
Related party note				$ 235,060,000	$ 239,739,000
Fair value of notes payable				$ 236,000,000	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
Line of Credit Facility, Remaining Borrowing Capacity						2,000,000
Line of Credit Facility, Maximum Borrowing Capacity						$ 10,000,000
Maturity date				Mar. 29, 2024
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] | Related Party Note [Member]
Debt Instrument [Line Items]
Interest rate				8.93%
Related party note				$ 10,000,000	10,000,000
Moody National Capital LLC [Member] | Second Related Party Note [Member]
Debt Instrument [Line Items]
Principal amount			$ 10,000,000
Extend maturity date			2 years
Maturity date			Jun. 30, 2024
Interest rate				10.93%
Related party note				$ 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
Maturity date	Aug. 20, 2024
Interest rate				11.93%
Related party note				$ 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
Maturity date		Apr. 13, 2025
Interest rate				12.93%
Related party note				$ 110,500
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%

As of December 31, 2022 and 202

As of December 31, 2022 and 2021, the Company’s mortgage notes payable secured by the respective assets, consisted of the following ($ amounts in thousands): (Details) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Principal	$ 236,320,000	$ 241,676,000
Debt Issuance Costs, Net	(1,260,000)	(1,937,000)
Total notes payable, net of unamortized debt issuance costs	235,060,000	239,739,000
Residence Inn Austin Hotel [Member]
Debt Instrument [Line Items]
Principal	$ 15,465,000	15,757,000
Interest Rate	4.58%
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]
Principal	$ 41,812,000	42,634,000
Interest Rate	4.38%
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]
Principal	$ 8,420,000	8,594,000
Interest Rate	4.69%
Maturity Date	Apr. 11, 2025
Hyatt Place Germantown [Member]
Debt Instrument [Line Items]
Principal	$ 6,342,000	6,524,000
Interest Rate	4.30%
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]
Principal	$ 6,553,000	6,730,000
Interest Rate	5.193%
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]
Payment of cash deposit	$ 100,000
Hampton Inn Austin [Member]
Debt Instrument [Line Items]
Principal	$ 9,844,000	10,073,000
Interest Rate	5.426%
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]
Principal	$ 11,360,000	11,625,000
Interest Rate	5.25%
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.  $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
Marriott Courtyard Lyndhurst [Member]
Debt Instrument [Line Items]
Principal	$ 17,986,000	18,420,000
Interest Rate	4.70%
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]
Principal	$ 17,026,000	17,564,000
Interest Rate	4.53%
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. $1.62 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	1,620,000
Deferred payments payable	2,360,000
Hampton Inn Great Valley [Member]
Debt Instrument [Line Items]
Principal	$ 7,429,000	7,617,000
Interest Rate	4.70%
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 2021 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]
Principal	$ 38,811,000	39,660,000
Interest Rate	4.2123%
Maturity Date	Jul. 11, 2025
Description of Loan Modifications	April 2020 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]
Principal	$ 10,022,000	10,311,000
Interest Rate	4.65%
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]
Principal	$ 5,645,000	5,783,000
Interest Rate	4.70%
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]
Principal	$ 4,022,000	4,181,000
Interest Rate	9.50%
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]
Principal	$ 28,083,000	28,703,000
Interest Rate	5%
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]
Principal	$ 7,500,000	$ 7,500,000
Interest Rate	3.75%
Maturity Date	2051-11

Scheduled maturities of the Com

Scheduled maturities of the Company’s notes payable as of December 31, 2022 are as follows (in thousands): (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Years ending December 31,
2023	$ 21,681
2024	90,498
2025	77,532
2026	39,141
2027	147
Thereafter	7,321
Total	$ 236,320

Equity (Details Narrative)

Equity (Details Narrative) - USD ($)		12 Months Ended
	Aug. 15, 2014	Dec. 31, 2022	Dec. 31, 2021
Class of Stock [Line Items]
Common Stock, Shares Authorized		1,000,000,000	1,000,000,000
Preferred Stock, Shares Authorized		100,000,000	100,000,000
Common Stock, Par or Stated Value Per Share		$ 0.01	$ 0.01
Common Stock, Shares, Issued		13,640,000	13,640,000
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number		60,000
Noncontrolling interests in Operating Partnership		$ 2,338,000	$ 2,762,000
Partners' Capital Account, Units		316,037
Net Income (Loss) Attributable to Noncontrolling Interest		$ 424,000	$ 633,000
Public Offerings [Member]
Class of Stock [Line Items]
Common Stock, Shares, Issued		10,200,000
Mergers [Member]
Class of Stock [Line Items]
Common Stock, Shares, Issued		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

Schedule of shares outstanding

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

The composition of the amounts

The composition of the amounts due to (due from) related parties, net as of December 31, 2022 and 2021 is as follows (in thousands): (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021
Related Party Transactions [Abstract]
Operating expense reimbursement	$ 252,000	$ 338,000
Asset management fee	3,467,000	(233,000)
Accounts payable to Property Manager	4,425,000	848,000
Total due to related parties, net	$ 8,144,000	$ 953,000

Related Party Arrangements (Det

Related Party Arrangements (Details Narrative) - USD ($)	1 Months Ended	5 Months Ended	12 Months Ended
	Jan. 16, 2018	Jun. 12, 2017	Dec. 31, 2022	Dec. 31, 2021
Related Party Transaction [Line Items]
Special Limited Partnership Interests			$ 1,000	$ 1,000
Operating expenses			7,000,000
Operating expenses incurred by Advisor			1,800,000
Operating expenses reimbursed			1,800,000
Due to Advisor for operating expense reimbursement			252,000	338,000
Notes payable, related parties			30,111,000	28,474,000
Debt [Member]
Related Party Transaction [Line Items]
Notes payable, related parties			30,110,500
Parent Company [Member]
Related Party Transaction [Line Items]
Operating expenses			5,200,000
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%
Total offering costs			$ 21,100,000
Total offering costs			12,300,000
Reimbursed offering cost			8,800,000
Offering Costs Payables			$ 0
Previous percentage of acquisition fee			1.50%
Percentage of acquisition fee			3.85%
Percentage of base acquisition fee			1.50%
Percentage of contingent advisor payment			2.35%
Debt financing fee percentage			1%
Debt financing fee refinanced percentage			0.75%
Asset Management Fee Percentage			1%
Maximum contract sales price percentage for disposition fee			3%
Maximum contract sales price percentage paid to unaffiliated parties			6%
Advisor expense reimbursement - alternative 1			2%
Advisor expense reimbursement - alternative 2			25%
Operating expenses exceeding limitation			$ 0
Affiliated Entity [Member] | Asset Management [Member]
Related Party Transaction [Line Items]
Property manager property management fees			3,400,000	3,400,000
Accounting fees			450,000	450,000
Affiliated Entity [Member] | IPO [Member]
Related Party Transaction [Line Items]
Total offering costs			18,400,000
Total offering costs			12,300,000
Reimbursed offering cost			6,100,000
Affiliated Entity [Member] | Follow-on offering [Member]
Related Party Transaction [Line Items]
Total offering costs			2,700,000
Total offering costs			0
Reimbursed offering cost			$ 2,700,000
Moody National Hospitality Management LLC [Member]
Related Party Transaction [Line Items]
Monthly hotel management fee percentage			4%
Agreement term			10 years
Annual incentive fee fee percentage			15%
Asset Management Fee Percentage			8.50%
Moody National Hospitality Management LLC [Member] | Investment Advisory, Management and Administrative Service [Member]
Related Party Transaction [Line Items]
Asset Management Fees			$ 4,800,000	$ 4,800,000

The following is a summary of a

The following is a summary of activity under the Independent Directors Compensation Plan for the years ended December 31, 2022 and 2021: (Details) - Independent Directors Compensation Plan [Member] - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 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	(5,000)	(5,000)
Shares vested	$ 19.40	$ 23.50
Balance of non-vested shares at end	0	5,000

Incentive Award Plan (Details N

Incentive Award Plan (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based Payment Arrangement, Expense	$ 79,000	$ 117,000
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Management [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	0
Independent Directors Compensation Plan [Member] | Restricted Stock [Member] | Management [Member] | IPO [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Entitlement deferred compensation arrangement with individual shares issued	5,000
Minimum offering amount threshold	$ 2,000,000
Deferred compensation arrangement with individual shares issued 1	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]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	1,935,000

Subordinated Participation In_2

Subordinated Participation Interest (Details Narrative)	Dec. 31, 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 December 31, 2022 and 2021 are as follows (in thousands): (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]
Real estate taxes	$ 4,499	$ 4,447
Insurance	376	382
Hotel furniture and fixtures	8,053	5,483
Debt service	3,205	2,762
Property improvement plan	158	158
Total restricted cash	$ 16,291	$ 13,232

Commitments and Contingencies_2

Commitments and Contingencies (Details Narrative) - Moody National REIT I, Inc. [Member] - USD ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Loss Contingencies [Line Items]
Franchise fees	$ 6,900,000	$ 5,000,000
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 ($)	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Net operating loss carry-forwards	$ 12,400,000
Deferred tax assets	2,300,000	$ 2,300,000
Deferred tax assets, valuation allowance	$ 17,300,000	$ 14,500,000
Description of loss carryforwards expiration	20CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents33 through 2038 if not utilized by then
Subsidiaries [Member]
Net operating loss carry-forwards	$ 93,400,000
Subsidiaries [Member] | Moody National REIT I, Inc. [Member]
Net operating loss carry-forwards	8,300,000
Capital Loss Carryforward [Member]
Capital loss carry-forward	$ 900,000

The income tax expense (benefit

The income tax expense (benefit) for the years ended December 31, 2022 and 2021 consisted of the following (in thousands): (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Current expense (benefit)	$ 146	$ (17)
Deferred benefit	(2,806)	(4,530)
Valuation provision for deferred benefit	2,806	4,530
Total tax expense (benefit)	146	(17)
Federal	(2,806)	(4,530)
Valuation provision for federal taxes	2,806	4,530
State	$ 146	$ (17)

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member]	1 Months Ended
	Mar. 29, 2023
Subsequent Event [Line Items]
Ownership percentage by third party	2.70%
Percentage of common stock purchased by third party	1.90%

SCHEDULE III REAL ESTATE ASSETS

SCHEDULE III REAL ESTATE ASSETS AND ACCUMULATED DEPRECIATION (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2022	Dec. 31, 2021
Real Estate Properties [Line Items]
Encumbrances		$ 228,820
Initial Cost of land		76,936
Initial Cost of building, improvements and FF&E		374,835
Total Initial Cost to Company		451,771
Cost Capitalized Subsequent to Aquisition		26,670
Total Cost of land		76,936
Total Cost of building, improvements and FF&E		401,505
Total Cost		478,441	$ 476,390
Accumulated Depreciation and Amortization		78,964	63,418
Tax basis cost of real estate		434,000
Gain on acquisition of hotel property		2,000,000
Real estate:
Balance at the beginning of the year		476,390	475,820
Improvements and additions		2,051	570
Balance at the end of the year		478,441	476,390
Accumulated depreciation:
Balance at the beginning of the year		63,418	48,019
Depreciation		15,546	15,399
Balance at the end of the year		$ 78,964	$ 63,418
Wholly Owned Properties [Member]
Real Estate Properties [Line Items]
Description		Residence Inn Austin
Location		Austin, Texas
Ownership percent		100%
Encumbrances		$ 15,465
Initial Cost of land		4,310
Initial Cost of building, improvements and FF&E		23,190
Total Initial Cost to Company	[1]	27,500
Cost Capitalized Subsequent to Aquisition		954
Total Cost of land		4,310
Total Cost of building, improvements and FF&E		24,135
Total Cost	[2]	28,445
Accumulated Depreciation and Amortization		$ 5,336
Original Date of Construction		2014
Date Acquired		Oct. 15, 2015
Real estate:
Balance at the end of the year	[2]	$ 28,445
Accumulated depreciation:
Balance at the end of the year		$ 5,336
Wholly Owned Properties 14 [Member]
Real Estate Properties [Line Items]
Description		Springhill Suites Seattle
Location		Seattle, Washington
Ownership percent		100%
Encumbrances		$ 42,812
Initial Cost of land		14,040
Initial Cost of building, improvements and FF&E		60,060
Total Initial Cost to Company		74,100
Cost Capitalized Subsequent to Aquisition		9,272
Total Cost of land		14,040
Total Cost of building, improvements and FF&E		69,332
Total Cost	[2]	83,372
Accumulated Depreciation and Amortization		$ 14,258
Original Date of Construction		2001
Date Acquired		May 24, 2016
Real estate:
Balance at the end of the year	[2]	$ 83,372
Accumulated depreciation:
Balance at the end of the year		$ 14,258
Wholly Owned Properties 1 [Member]
Real Estate Properties [Line Items]
Description		Homewood Suites   Woodlands
Location		The Woodlands, Texas
Ownership percent		100%
Encumbrances		$ 8,420
Initial Cost of land		2,828
Initial Cost of building, improvements and FF&E		14,528
Total Initial Cost to Company		17,356
Cost Capitalized Subsequent to Aquisition		597
Total Cost of land		2,828
Total Cost of building, improvements and FF&E		15,125
Total Cost	[2]	17,953
Accumulated Depreciation and Amortization		$ 2,905
Original Date of Construction		2001
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 17,953
Accumulated depreciation:
Balance at the end of the year		$ 2,905
Wholly Owned Properties 2 [Member]
Real Estate Properties [Line Items]
Description		Hyatt Place Germantown
Location		Germantown, Tennessee
Ownership percent		100%
Encumbrances		$ 6,342
Initial Cost of land		1,874
Initial Cost of building, improvements and FF&E		14,200
Total Initial Cost to Company		16,074
Cost Capitalized Subsequent to Aquisition		733
Total Cost of land		1,874
Total Cost of building, improvements and FF&E		14,933
Total Cost	[2]	16,807
Accumulated Depreciation and Amortization		$ 2,957
Original Date of Construction		2009
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 16,807
Accumulated depreciation:
Balance at the end of the year		$ 2,957
Wholly Owned Properties 3 [Member]
Real Estate Properties [Line Items]
Description		Hyatt Place North Charleston
Location		North Charleston, South Carolina
Ownership percent		100%
Encumbrances		$ 6,553
Initial Cost of land		783
Initial Cost of building, improvements and FF&E		13,023
Total Initial Cost to Company		13,806
Cost Capitalized Subsequent to Aquisition		615
Total Cost of land		783
Total Cost of building, improvements and FF&E		13,638
Total Cost	[2]	14,421
Accumulated Depreciation and Amortization		$ 2,676
Original Date of Construction		2009
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 14,421
Accumulated depreciation:
Balance at the end of the year		$ 2,676
Wholly Owned Properties 4 [Member]
Real Estate Properties [Line Items]
Description		Hampton Inn Austin
Location		Austin, Texas
Ownership percent		100%
Encumbrances		$ 9,844
Initial Cost of land		4,329
Initial Cost of building, improvements and FF&E		14,999
Total Initial Cost to Company		19,328
Cost Capitalized Subsequent to Aquisition		788
Total Cost of land		4,329
Total Cost of building, improvements and FF&E		15,787
Total Cost	[2]	20,116
Accumulated Depreciation and Amortization		$ 3,386
Original Date of Construction		1997
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 20,116
Accumulated depreciation:
Balance at the end of the year		$ 3,386
Wholly Owned Properties 5 [Member]
Real Estate Properties [Line Items]
Description		Residence Inn   Grapevine
Location		Grapevine, Texas
Ownership percent		100%
Encumbrances		$ 11,360
Initial Cost of land		2,028
Initial Cost of building, improvements and FF&E		23,217
Total Initial Cost to Company		25,245
Cost Capitalized Subsequent to Aquisition		639
Total Cost of land		2,028
Total Cost of building, improvements and FF&E		23,856
Total Cost	[2]	25,884
Accumulated Depreciation and Amortization		$ 4,554
Original Date of Construction		2007
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 25,884
Accumulated depreciation:
Balance at the end of the year		$ 4,554
Wholly Owned Properties 6 [Member]
Real Estate Properties [Line Items]
Description		Marriott Courtyard Lyndhurst
Location		Lyndhurst, New Jersey
Ownership percent	[3]
Encumbrances		$ 17,986
Initial Cost of land		2,663
Initial Cost of building, improvements and FF&E		36,884
Total Initial Cost to Company		39,547
Cost Capitalized Subsequent to Aquisition		538
Total Cost of land		2,663
Total Cost of building, improvements and FF&E		37,422
Total Cost	[2]	40,085
Accumulated Depreciation and Amortization		$ 7,050
Original Date of Construction		1990
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 40,085
Accumulated depreciation:
Balance at the end of the year		$ 7,050
Wholly Owned Properties 7 [Member]
Real Estate Properties [Line Items]
Description		Hilton Garden Inn  Austin
Location		Austin, Texas
Ownership percent		100%
Encumbrances		$ 17,026
Initial Cost of land		9,058
Initial Cost of building, improvements and FF&E		20,230
Total Initial Cost to Company		29,288
Cost Capitalized Subsequent to Aquisition		1,055
Total Cost of land		9,058
Total Cost of building, improvements and FF&E		21,285
Total Cost	[2]	30,343
Accumulated Depreciation and Amortization		$ 4,752
Original Date of Construction		2002
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 30,343
Accumulated depreciation:
Balance at the end of the year		$ 4,752
Wholly Owned Properties 8 [Member]
Real Estate Properties [Line Items]
Description		Hampton Inn Great Valley
Location		Frazer, Pennsylvania
Ownership percent		100%
Encumbrances		$ 7,429
Initial Cost of land		1,730
Initial Cost of building, improvements and FF&E		13,555
Total Initial Cost to Company		15,285
Cost Capitalized Subsequent to Aquisition		1,846
Total Cost of land		1,730
Total Cost of building, improvements and FF&E		15,401
Total Cost	[2]	17,131
Accumulated Depreciation and Amortization		$ 3,736
Original Date of Construction		1998
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 17,131
Accumulated depreciation:
Balance at the end of the year		$ 3,736
Wholly Owned Properties 9 [Member]
Real Estate Properties [Line Items]
Description		Embassy Suites  Nashville
Location		Nashville, Tennessee
Ownership percent		100%
Encumbrances		$ 38,811
Initial Cost of land		14,805
Initial Cost of building, improvements and FF&E		67,402
Total Initial Cost to Company		82,207
Cost Capitalized Subsequent to Aquisition		4,751
Total Cost of land		14,805
Total Cost of building, improvements and FF&E		72,153
Total Cost	[2]	86,958
Accumulated Depreciation and Amortization		$ 13,467
Original Date of Construction		2001
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 86,958
Accumulated depreciation:
Balance at the end of the year		$ 13,467
Wholly Owned Properties 10 [Member]
Real Estate Properties [Line Items]
Description		Homewood Suites Austin
Location		Austin, Texas
Ownership percent		100%
Encumbrances		$ 10,022
Initial Cost of land		4,218
Initial Cost of building, improvements and FF&E		14,617
Total Initial Cost to Company		18,835
Cost Capitalized Subsequent to Aquisition		1,021
Total Cost of land		4,218
Total Cost of building, improvements and FF&E		15,638
Total Cost	[2]	19,856
Accumulated Depreciation and Amortization		$ 3,464
Original Date of Construction		1998
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 19,856
Accumulated depreciation:
Balance at the end of the year		$ 3,464
Wholly Owned Properties 11 [Member]
Real Estate Properties [Line Items]
Description		TownPlace Suites  Fort Worth
Location		Fort Worth, Texas
Ownership percent	[3]
Encumbrances		$ 5,645
Initial Cost of land		4,240
Initial Cost of building, improvements and FF&E		7,002
Total Initial Cost to Company		11,242
Cost Capitalized Subsequent to Aquisition		293
Total Cost of land		4,240
Total Cost of building, improvements and FF&E		7,295
Total Cost	[2]	11,535
Accumulated Depreciation and Amortization		$ 1,714
Original Date of Construction		1998
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 11,535
Accumulated depreciation:
Balance at the end of the year		$ 1,714
Wholly Owned Properties 12 [Member]
Real Estate Properties [Line Items]
Description		Hampton Inn Houston
Location		Houston, Texas
Ownership percent		100%
Encumbrances		$ 4,022
Initial Cost of land		3,550
Initial Cost of building, improvements and FF&E		6,408
Total Initial Cost to Company		9,958
Cost Capitalized Subsequent to Aquisition		3,403
Total Cost of land		3,550
Total Cost of building, improvements and FF&E		9,811
Total Cost	[2]	13,361
Accumulated Depreciation and Amortization		$ 3,043
Original Date of Construction		1995
Date Acquired		Sep. 27, 2017
Real estate:
Balance at the end of the year	[2]	$ 13,361
Accumulated depreciation:
Balance at the end of the year		$ 3,043
Wholly Owned Properties 13 [Member]
Real Estate Properties [Line Items]
Description		Residence Inn Houston Medical Center
Location		Houston, Texas
Ownership percent		100%
Encumbrances		$ 28,083
Initial Cost of land		6,480
Initial Cost of building, improvements and FF&E		45,520
Total Initial Cost to Company		52,000
Cost Capitalized Subsequent to Aquisition		174
Total Cost of land		6,480
Total Cost of building, improvements and FF&E		45,694
Total Cost	[2]	52,174
Accumulated Depreciation and Amortization		$ 5,666
Original Date of Construction		2019
Date Acquired		Apr. 29, 2019
Real estate:
Balance at the end of the year	[2]	$ 52,174
Accumulated depreciation:
Balance at the end of the year		$ 5,666
[1]Includes gain on acquisition of hotel property of $ 2.0 million 434