Procaccianti Hotel Reit 10-Q 13 Nov 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Nov. 11, 2019
Entity Registrant Name	PROCACCIANTI HOTEL REIT, INC.
Entity Central Index Key	0001692345
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Current Reporting Status	Yes
Entity Shell Company	false
Class K Common Stock
Entity Common Stock, Shares Outstanding		2,485,580
Class K-I Common Stock
Entity Common Stock, Shares Outstanding		422,561
Class K-T Common Stock
Entity Common Stock, Shares Outstanding		36,616
Class A Common Stock
Entity Common Stock, Shares Outstanding		537,410
Class B Common Stock
Entity Common Stock, Shares Outstanding		125,000

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2019	Dec. 31, 2018
ASSETS
Property and equipment, net	$ 63,821,605	$ 64,781,045
Cash	8,423,371	1,999,092
Restricted cash	1,788,831	1,799,060
Accounts receivable, net	312,242	194,707
Due from related parties	612,728	1,499,532
Prepaid expenses and other assets, net	577,579	454,526
Total Assets	75,536,356	70,727,962
Liabilities
Mortgage notes payable, net	39,411,733	41,078,124
Accounts payable, accrued expenses and other, net	3,283,013	2,433,769
Due to related parties	1,250,566	7,503,357
Total Liabilities	43,945,312	51,015,250
Stockholders' Equity
Additional paid-in capital	28,079,990	15,724,108
Cumulative loss	(2,060,407)	(2,368,768)
Cumulative distributions	(1,247,863)	(527,556)
Total Stockholders' Equity	24,806,287	12,847,494
Noncontrolling interest	6,784,757	6,865,218
Total Equity	31,591,044	19,712,712
Total Liabilities and Stockholders' Equity	75,536,356	70,727,962
Class K Common Stock
Stockholders' Equity
Common stock, value, issued	23,721	13,649
Total Equity	23,721	13,649
Class K-I Common Stock
Stockholders' Equity
Common stock, value, issued	3,886	122
Total Equity	3,886	122
Class K-T Common Stock
Stockholders' Equity
Common stock, value, issued	336	5
Total Equity	336	5
Class A Common Stock
Stockholders' Equity
Common stock, value, issued	5,374	4,684
Total Equity	5,374	4,684
Class B Common Stock
Stockholders' Equity
Common stock, value, issued	1,250	1,250
Total Equity	$ 1,250	$ 1,250

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Common stock, shares authorized	248,125,000
Class K Common Stock
Common stock, par value per share (in dollars per share)	$ 0.01			$ 0.01
Common stock, shares authorized	55,500,000			55,500,000
Common stock, shares issued	2,372,121			1,364,918
Common Stock, shares outstanding	2,372,121	1,983,883	1,663,570	1,364,918	1,251,118	1,106,219	842,287	549,091
Class K-I Common Stock
Common stock, par value per share (in dollars per share)	$ 0.01			$ 0.01
Common stock, shares authorized	55,500,000			55,500,000
Common stock, shares issued	388,618			12,243
Common Stock, shares outstanding	388,618	213,321	66,517	12,243	10	10	10
Class K-T Common Stock
Common stock, par value per share (in dollars per share)	$ 0.01			$ 0.01
Common stock, shares authorized	116,000,000			116,000,000
Common stock, shares issued	33,562			510
Common Stock, shares outstanding	33,562	6,050	510	510	10	10	10
Class A Common Stock
Common stock, par value per share (in dollars per share)	$ 0.01			$ 0.01
Common stock, shares authorized	21,000,000			21,000,000
Common stock, shares issued	537,410			468,410
Common Stock, shares outstanding	537,410	537,410	468,410	468,410	318,410	310,410	306,410	222,410
Class B Common Stock
Common stock, par value per share (in dollars per share)	$ 0.01			$ 0.01
Common stock, shares authorized	125,000			125,000
Common stock, shares issued	125,000			125,000
Common Stock, shares outstanding	125,000	125,000	125,000	125,000	125,000	125,000	125,000	125,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenues
Total revenues	$ 5,887,227	$ 3,932,477	$ 14,163,451	$ 6,588,510
Expenses
Other property expenses	1,722,693	1,245,403	4,415,922	2,024,317
Property management fees to affiliates	177,041	118,062	425,866	197,761
Corporate general and administrative	310,610	384,094	1,112,934	896,880
Other fees to affiliates	88,358	474,335	263,699	637,942
Acquisition costs				302,380
Depreciation and amortization	566,107	430,292	1,667,979	779,656
Total expenses	4,209,776	3,601,200	11,318,357	6,418,802
Gain on acquisition				42,026
Operating income	1,677,451	331,277	2,845,094	211,734
Interest expense	(559,535)	(475,709)	(1,686,174)	(770,118)
Unrealized loss on interest rate swap	(18,543)		(245,891)
Net income (loss) before income taxes	1,099,373	(144,432)	913,029	(558,384)
Income tax benefit (expense)	(12,303)	10,837	13,121	(75,703)
Net income (loss)	1,087,070	(133,595)	926,150	(634,087)
Net income attributable to noncontrolling interest	116,903	166,877	617,789	382,519
Net income (loss) attributable to common stockholders	970,167	(300,472)	308,361	(1,016,606)
Class K Common Stock
Expenses
Net income (loss) attributable to common stockholders	$ 676,592	$ (206,426)	$ 254,119	$ (668,300)
Net income (loss) per common share - basic and diluted (in dollars per share)	$ 0.31	$ (0.17)	$ 0.14	$ (0.69)
Weighted average number of common shares outstanding - basic and diluted (in shares)	2,188,750	1,210,468	1,846,052	965,580
Class K-I Common Stock
Expenses
Net income (loss) attributable to common stockholders	$ 103,925	$ (2)	$ 23,969	$ (5)
Net income (loss) per common share - basic and diluted (in dollars per share)	$ 0.31	$ (0.17)	$ 0.14	$ (0.69)
Weighted average number of common shares outstanding - basic and diluted (in shares)	336,183	10	174,002	8
Class K-T Common Stock
Expenses
Net income (loss) attributable to common stockholders	$ 3,796	$ (2)	$ 767	$ (5)
Net income (loss) per common share - basic and diluted (in dollars per share)	$ 0.31	$ (0.17)	$ 0.14	$ (0.69)
Weighted average number of common shares outstanding - basic and diluted (in shares)	12,280	10	5,489	8
Class A Common Stock
Expenses
Net income (loss) attributable to common stockholders	$ 166,119	$ (53,819)	$ 68,398	$ (205,679)
Net income (loss) per common share - basic and diluted (in dollars per share)	$ 0.31	$ (0.17)	$ 0.14	$ (0.69)
Weighted average number of common shares outstanding - basic and diluted (in shares)	537,410	315,562	496,970	297,153
Class B Common Stock
Expenses
Net income (loss) attributable to common stockholders	$ 19,735	$ (40,223)	$ (38,892)	$ (142,617)
Net income (loss) per common share - basic and diluted (in dollars per share)	$ 0.16	$ (0.32)	$ (0.31)	$ (1.14)
Weighted average number of common shares outstanding - basic and diluted (in shares)	125,000	125,000	125,000	125,000
Rooms
Revenues
Total revenues	$ 4,929,444	$ 3,344,628	$ 12,145,003	$ 5,872,001
Expenses
Total expenses	849,288	658,670	2,309,268	1,215,989
Food and beverage
Revenues
Total revenues	830,559	514,332	1,683,477	605,364
Expenses
Total expenses	495,679	290,344	1,122,689	363,877
Other operating
Revenues
Total revenues	$ 127,224	$ 73,517	$ 334,971	$ 111,145

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND NONCONTROLLING INTEREST - USD ($)	Class K Common Stock	Class K-I Common Stock	Class K-T Common Stock	Class A Common Stock	Class B Common Stock	Additional Paid-in Capital	Cumulative Loss	Cumulative Distributions	Total Procaccianti Hotel REIT, Inc. Stockholders' Equity	Noncontrolling Interest	Total
BALANCE at Dec. 31, 2017	$ 5,491			$ 2,224	$ 1,250	$ 6,147,007	$ (691,587)	$ (33,123)	$ 5,431,262		$ 5,431,262
BALANCE (in shares) at Dec. 31, 2017	549,091			222,410	125,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 2,932			$ 840		3,749,267			3,753,039		3,753,039
Issuance of common stock (in shares)	293,196	10	10	84,000
Commissions on sales of common stock and related dealer manager fees and stockholder servicing fees						(259,734)			(259,734)		(259,734)
Other offering costs to affiliates						(303,192)			(303,192)		(303,192)
Due from TPG Hotel REIT Investor, LLC						303,192			303,192		303,192
Purchase of PCF										$ 7,755,013	7,755,013
Net income (loss)							(550,085)		(550,085)	22,244	(527,841)
Distributions paid								(61,071)	(61,071)		(61,071)
BALANCE at Mar. 31, 2018	$ 8,423			$ 3,064	$ 1,250	9,636,540	(1,241,672)	(94,194)	8,313,411	7,777,257	16,090,668
BALANCE (in shares) at Mar. 31, 2018	842,287	10	10	306,410	125,000
BALANCE at Dec. 31, 2017	$ 5,491			$ 2,224	$ 1,250	6,147,007	(691,587)	(33,123)	5,431,262		5,431,262
BALANCE (in shares) at Dec. 31, 2017	549,091			222,410	125,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)											(634,087)
BALANCE at Sep. 30, 2018	$ 12,511			$ 3,184	$ 1,250	13,350,167	(1,708,193)	(344,475)	11,314,444	7,214,657	18,529,101
BALANCE (in shares) at Sep. 30, 2018	1,251,118	10	10	318,410	125,000
BALANCE at Mar. 31, 2018	$ 8,423			$ 3,064	$ 1,250	9,636,540	(1,241,672)	(94,194)	8,313,411	7,777,257	16,090,668
BALANCE (in shares) at Mar. 31, 2018	842,287	10	10	306,410	125,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 2,639			$ 40		2,665,042			2,667,721		2,667,721
Issuance of common stock (in shares)	263,932			4,000
Commissions on sales of common stock and related dealer manager fees and stockholder servicing fees						(229,137)			(229,137)		(229,137)
Transfers to redeemable common stock						(73,430)			(73,430)		(73,430)
Other offering costs to affiliates						(171,051)			(171,051)		(171,051)
Due from TPG Hotel REIT Investor, LLC						171,051			171,051		171,051
Net income (loss)							(166,049)		(166,049)	193,398	27,349
Distributions paid								(102,690)	(102,690)	(423,075)	(525,765)
BALANCE at Jun. 30, 2018	$ 11,062			$ 3,104	$ 1,250	11,999,015	(1,407,721)	(196,884)	10,409,826	7,547,580	17,957,406
BALANCE (in shares) at Jun. 30, 2018	1,106,219	10	10	310,410	125,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 1,474			$ 80		1,542,645			1,544,199		1,544,199
Issuance of common stock (in shares)	147,399			8,000
Commissions on sales of common stock and related dealer manager fees and stockholder servicing fees						(134,170)			(134,170)		(134,170)
Transfers to redeemable common stock						23,125			23,125		23,125
Repurchase of common stock	$ (25)					(23,100)			(23,125)		(23,125)
Repurchase of common stock (in shares)	(2,500)
Other offering costs to affiliates						(97,430)			(97,430)		(97,430)
Due from TPG Hotel REIT Investor, LLC						40,082			40,082		40,082
Net income (loss)							(300,472)		(300,472)	166,877	(133,595)
Distributions paid								(147,591)	(147,591)	(499,800)	(647,391)
BALANCE at Sep. 30, 2018	$ 12,511			$ 3,184	$ 1,250	13,350,167	(1,708,193)	(344,475)	11,314,444	7,214,657	18,529,101
BALANCE (in shares) at Sep. 30, 2018	1,251,118	10	10	318,410	125,000
BALANCE at Dec. 31, 2018	$ 13,649	$ 122	$ 5	$ 4,684	$ 1,250	15,724,108	(2,368,768)	(527,556)	12,847,494	6,865,218	19,712,712
BALANCE (in shares) at Dec. 31, 2018	1,364,918	12,243	510	468,410	125,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 2,987	$ 542				3,464,643			3,468,172		3,468,172
Issuance of common stock (in shares)	298,646	54,156
Issuance of common stock pursuant to distribution reinvestment plan		$ 1				1,175			1,176		1,176
Issuance of common stock pursuant to distribution reinvestment plan (in shares)	6	118
Commissions on sales of common stock and related dealer manager fees and stockholder servicing fees						(304,574)			(304,574)		(304,574)
Other offering costs to affiliates						(215,829)			(215,829)		(215,829)
Net income (loss)							(749,178)		(749,178)	250,606	(498,572)
Distributions paid								(194,978)	(194,978)	(36,750)	(231,728)
BALANCE at Mar. 31, 2019	$ 16,636	$ 665	$ 5	$ 4,684	$ 1,250	18,669,523	(3,117,946)	(722,534)	14,852,283	7,079,074	21,931,357
BALANCE (in shares) at Mar. 31, 2019	1,663,570	66,517	510	468,410	125,000
BALANCE at Dec. 31, 2018	$ 13,649	$ 122	$ 5	$ 4,684	$ 1,250	15,724,108	(2,368,768)	(527,556)	12,847,494	6,865,218	19,712,712
BALANCE (in shares) at Dec. 31, 2018	1,364,918	12,243	510	468,410	125,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock (in shares)	2,500
Repurchase of common stock	$ (23,125)
Net income (loss)											926,150
BALANCE at Sep. 30, 2019	$ 23,721	$ 3,886	$ 336	$ 5,374	$ 1,250	28,079,990	(2,060,407)	(1,247,863)	24,806,287	6,784,757	31,591,044
BALANCE (in shares) at Sep. 30, 2019	2,372,121	388,618	33,562	537,410	125,000
BALANCE at Mar. 31, 2019	$ 16,636	$ 665	$ 5	$ 4,684	$ 1,250	18,669,523	(3,117,946)	(722,534)	14,852,283	7,079,074	21,931,357
BALANCE (in shares) at Mar. 31, 2019	1,663,570	66,517	510	468,410	125,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 3,200	$ 1,465	$ 56	$ 690		5,302,214			5,307,625		5,307,625
Issuance of common stock (in shares)	319,983	146,495	5,540	69,000
Issuance of common stock pursuant to distribution reinvestment plan	$ 3	$ 3				6,068			6,074		6,074
Issuance of common stock pursuant to distribution reinvestment plan (in shares)	330	309
Commissions on sales of common stock and related dealer manager fees and stockholder servicing fees						(364,267)			(364,267)		(364,267)
Other offering costs to affiliates						(432,787)			(432,787)		(432,787)
Net income (loss)							87,372		87,372	250,280	337,652
Distributions paid								(230,086)	(230,086)	(294,000)	(524,086)
BALANCE at Jun. 30, 2019	$ 19,839	$ 2,133	$ 61	$ 5,374	$ 1,250	23,180,751	(3,030,574)	(952,620)	19,226,214	7,035,354	26,261,568
BALANCE (in shares) at Jun. 30, 2019	1,983,883	213,321	6,050	537,410	125,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 3,897	$ 1,745	$ 275			5,774,679			5,780,596		5,780,596
Issuance of common stock (in shares)	389,755	174,463	27,500
Issuance of common stock pursuant to distribution reinvestment plan	$ 10	$ 8				17,356			17,374		17,374
Issuance of common stock pursuant to distribution reinvestment plan (in shares)	983	834	12
Commissions on sales of common stock and related dealer manager fees and stockholder servicing fees						(446,801)			(446,801)		(446,801)
Repurchase of common stock	$ (25)					(23,100)			(23,125)		(23,125)
Repurchase of common stock (in shares)	(2,500)
Other offering costs to affiliates						(422,895)			(422,895)		(422,895)
Net income (loss)							970,167		970,167	116,903	1,087,070
Distributions paid								(295,243)	(295,243)	(367,500)	(662,743)
BALANCE at Sep. 30, 2019	$ 23,721	$ 3,886	$ 336	$ 5,374	$ 1,250	$ 28,079,990	$ (2,060,407)	$ (1,247,863)	$ 24,806,287	$ 6,784,757	$ 31,591,044
BALANCE (in shares) at Sep. 30, 2019	2,372,121	388,618	33,562	537,410	125,000

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash Flows from Operating Activities:
Net income (loss)	$ 926,150	$ (634,087)
Adjustments to reconcile net income (loss) to cash provided by operating activities:
Depreciation and amortization	1,667,979	779,656
Amortization of deferred financing costs and debt discount as interest	77,609	27,142
Amortization of key money loans	(40,125)	(14,521)
Gain on acquisition		(42,026)
Unrealized loss on interest rate swap	245,891	0
Changes in operating assets and liabilities:
Accounts receivable	(117,535)	(261,580)
Due from related parties	(184,707)	(504,978)
Prepaid expenses and other assets	(130,908)	(119,541)
Accounts payable, accrued expenses and other	643,478	1,051,374
Due to related parties	347,209	937,919
Net cash provided by operating activities	3,435,041	1,219,358
Cash Flows from Investing Activities:
Investment in PCF, net of cash acquired		(6,739,673)
Acquisition of hotel property, net		(26,061,459)
Capital improvements	(700,684)	(234,456)
Net cash used in investing activities	(700,684)	(33,035,588)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock	14,556,393	7,964,959
Payment of commissions and dealer manager fees and stockholder servicing fees	(1,115,642)	(623,041)
Proceeds from mortgage note		17,836,000
Payments of mortgage notes principal	(1,744,000)
Payment of deferred financing costs		223,510
Proceeds from loans from affiliates		6,661,071
Payments of loans from affiliates	(6,600,000)	0
Proceeds from loans from franchisors		750,000
Distributions to stockholders	(695,683)	(311,352)
Distributions to noncontrolling interest	(698,250)	(922,875)
Repurchase of common stock	23,125	23,125
Net cash provided by financing activities	3,679,693	31,108,127
Increase (decrease) in cash and cash equivalents and restricted cash	6,414,050	(708,103)
Cash and cash equivalents and restricted cash, beginning of period	3,798,152	5,657,515
Cash and cash equivalents and restricted cash, end of period	$ 10,212,202	$ 4,949,412

Supplemental Disclosure of Cash

Supplemental Disclosure of Cash Flow Information - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Supplemental Disclosure of Cash Flow Information
Cash and cash equivalents	$ 8,423,371	$ 2,990,968
Restricted cash	1,788,831	1,958,444
Total cash and cash equivalents and restricted cash shown on the consolidated statements of cash flows	10,212,202	4,949,412
Cash paid for interest	1,498,188	686,235
Cash paid for income taxes	23,700	400
Supplemental Disclosure of Noncash Transactions
Common stock issued pursuant to distribution reinvestment plan	24,624
Other offering costs paid to affiliates	(1,071,511)	(514,325)
Decrease in due from related parties	$ 1,071,511	$ (514,325)

Organization and Description of

Organization and Description of Business	9 Months Ended
	Sep. 30, 2019
Organization and Description of Business
Organization and Description of Business	Note 1 - Organization and Description of Business Procaccianti Hotel REIT, Inc. (the “Company”) was incorporated under the general corporation laws of the State of Maryland on August 24, 2016. The Company expects to use the proceeds from its Private Offering (defined below) and Public Offering (defined below) to acquire and own a diverse portfolio of hospitality properties consisting primarily of select-service, extended-stay, and compact full-service hotel properties throughout the United States (“U.S.”). The Company elected to be taxed as a real estate investment trust (“REIT”) for U.S. federal income tax purposes commencing with its taxable year ended December 31, 2018. Substantially all of the Company’s business is conducted through Procaccianti Hotel REIT, L.P., a Delaware limited partnership that is wholly-owned by the Company (the “Operating Partnership”). The Company is the sole general partner of the Operating Partnership. As of September 30, 2019, the Company owned interests in three select-service hotels located in three states with a total of 346 rooms. For more information on the Company’s real estate portfolio, see Note 3 – “Investments in Hotels.” On September 30, 2016, the Company commenced a private offering (“Private Offering”) of shares of Class K common stock, $0.01 par value per share (“K Shares”), and units, which are comprised of four K Shares and one share of Class A common stock, each with a $0.01 par value per share (“Units”), for $10.00 per K Share and $50.00 per Unit, with a targeted maximum offering of  $150,000,000 in K Shares (including K Shares sold as part of a Unit) to accredited investors only pursuant to a confidential private placement memorandum exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). The Company terminated its Private Offering prior to the commencement of the Public Offering, and, as of such termination, received approximately $15,582,755 in gross proceeds from the sale of K Shares and A Shares, including Units, in the Private Offering. Of the $15,582,755 in gross proceeds raised, $2,954,095 was from the sale of shares of Class A common stock (“A Shares”) to TPG Hotel REIT Investor, LLC (“THR”) to fund organization and offering expenses associated with the K Shares and Units. With the A Share proceeds from the Private Offering, the Company paid $782,705 in selling commissions, $275,794 in dealer manager fees and recognized $1,083,912 in other offering costs with respect to the Private Offering. On August 14, 2018, the Company commenced its initial public offering (“Public Offering”) pursuant to a registration statement on Form S‑11 (Registration No. 333‑217578) (“Registration Statement”), filed under the Securities Act with the U.S. Securities and Exchange Commission (“SEC”), to offer up to $550,000,000 in shares of common stock, including $500,000,000 in shares of common stock pursuant to the primary offering, consisting of the following three share classes: K Shares, at an initial offering price of $10.00 per K Share, Class K-I common stock, (“K-I Shares”), at an initial offering price of $9.50 per K-I Share and Class K-T common stock (“K-T Shares”), at an initial offering price of $10.00 per K-T Share and $50,000,000 in shares of common stock pursuant to the Company’s distribution reinvestment plan (the “DRIP”) at $9.50 per K Share, $9.50 per K-I Share and $9.50 per K-T Share. On November 16, 2018, the Company revised the offering price per K-I Share in the primary offering from $9.50 to $9.30 per K-I Share, exclusive of the DRIP, which remained at $9.50 per K-I Share. On May 23, 2019, the Company's board of directors determined an estimated NAV per share of all classes of the Company's capital stock, each calculated as of March 31, 2019, as follows: (i) $10.00 per K Share; (ii) $10.00 per K-I Share; (iii) $10.00 per K-T Share; (iv) $3.97 per A Share; and (v) $0.00 per share of Class B capital stock ("B Shares"). On March 22, 2018, the Company's board of directors determined an estimated NAV per share of all classes of the Company's capital stock, each calculated as of February 28, 2018, as follows: (i) $10.00 per K Share; (ii) $10.00 per K-I Share; (iii) $10.00 per K-T Share; (iv) $0.00 per A Share; and (v) $0.00 per B Share. Since the commencement of the Public Offering and through September 30, 2019, the Company received approximately $15,325,017 in gross proceeds from the sale of K Shares, K-I Shares and K-T Shares in the Public Offering, including $12,527, $11,986 and $112 of gross proceeds from K Shares, K-I Shares and K-T Shares issued pursuant to the DRIP, respectively. Additionally, the Company received $2,190,000 from the sale of A Shares to THR from a private placement, proceeds of which were used to fund the payment of organization and offering expenses related to the Public Offering and also to account for the differences between the applicable NAV per K-I Share and the applicable offering price per K-I Share and any amount equal to any discount to the initial offering price of K Shares, K-I Shares and K-T Shares (excluding volume discounts). The Company expects to offer shares of common stock in the Public Offering over a two-year period. If the Company has not sold all of the shares to be offered in the Public Offering within two years from the effective date of the Registration Statement, the Company may continue the Public Offering until August 14, 2021. The Company may, in its discretion, terminate the Public Offering at any time. If the Company’s board of directors determines that it is in the Company’s best interest, the Company may conduct follow-on public offerings upon the termination of the Public Offering. The Company’s charter does not restrict its ability to conduct offerings in the future. The Company is externally managed by Procaccianti Hotel Advisors, LLC (“PHA”) pursuant to an Advisory Agreement by and among the Company, its Operating Partnership and PHA. PHA is an affiliate of the Company’s sponsor, Procaccianti Companies, Inc. (“Sponsor”).

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 - Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements of the Company are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements have been condensed or omitted. The Company believes the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018. In the opinion of management, all adjustments, which include only normal recurring adjustments considered necessary for a fair and consistent presentation, have been included in these condensed consolidated financial statements. Operating results for the three and nine months ended September 30, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. Certain reclassifications have been made to the prior year’s financial statements to conform to the current year’s presentation. The Company acquired a 51% interest in, and became a co-manager of, Procaccianti Convertible Fund, LLC (“PCF”) on March 29, 2018. The Company determined that PCF is a variable interest entity (“VIE”) as defined under the Consolidation Topic (“Topic 810”) of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). The Company has the power to direct the activities that most significantly impact PCF’s performance and the obligation to absorb losses or the right to receive benefits from PCF that could be significant to PCF and is, therefore, the primary beneficiary of PCF and consolidates the accounts of PCF. The assets of PCF were $38,952,599 at September 30, 2019, and consist primarily of land, building, furniture, fixtures, and equipment. The liabilities of PCF were $26,059,071 at September 30, 2019, and consist primarily of long-term debt. The assets of PCF are available to satisfy PCF’s obligations. The Company has no foreign operations or assets and its operating structure includes only one segment. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assumptions and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments Under GAAP, the Company is required to disclose certain financial instruments at fair value on a recurring basis. The accompanying condensed consolidated balance sheets include the following financial instruments: cash, restricted cash, accounts receivable, accounts payable and mortgage notes payable. The Company considers the carrying value of cash, restricted cash, accounts receivable and accounts payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability in an orderly transaction. The hierarchy for inputs used in measuring fair value is as follows: · Level 1 : unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; · Level 2 : quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and · Level 3 : prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. As of September 30, 2019, the estimated fair value of the mortgage notes payable was $40,723,058, compared to the carrying value of $39,548,322. These financial instruments are valued using Level 2 inputs. The Company also has an interest rate swap that is valued using Level 2 inputs. For more information, see Note 5 – “Interest Rate Swap.” Revenue Recognition Revenue is generally recognized as services are performed. Revenue represents primarily rooms, food and beverage, and other fees. The Company collects sales tax from all nonexempt customers and remits the entire amount to the appropriate states upon collection from the customer. The Company’s accounting policy is to exclude the tax collected and remitted to the state from revenue and expense. Restricted Cash The Company maintains reserves for property taxes and capital improvements as required by the debt agreements. At September 30, 2019, reserves for property taxes were $542,864 and reserves for capital improvements were $1,226,962. The Company also included $19,005 of guest advance deposits as restricted cash at September 30, 2019. Organization and Offering Costs Organization and offering costs include selling commissions, dealer manager fees, stockholder servicing fees and any other elements of underwriting compensation, legal, accounting, printing, mailing and filing fees and expenses, due diligence expenses of participating broker-dealers supported by detailed and itemized invoices, costs in connection with preparing sales materials, design and website expenses, fees and expenses of the Company’s transfer agent, fees to attend retail seminars sponsored by participating broker-dealers and reimbursements for customary travel, lodging, and meals. The Company charges organization and offering costs against additional paid in capital on the condensed consolidated balance sheet as it raises proceeds in its continuous Public Offering. Income Taxes The Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), and has operated as a REIT, commencing with the taxable year ended December 31, 2018. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders (which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to U.S. federal income tax to the extent it distributes qualifying dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year following the year it initially elects to be taxed as a REIT, it will be subject to U.S. federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for U.S. federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to its stockholders. Because the Company is prohibited from operating hotel properties pursuant to certain tax laws relating to its qualification as a REIT, the entities through which the Company owns hotel properties will lease the hotel properties to one or more taxable REIT subsidiaries (“TRSs”). A TRS is a corporate subsidiary of a REIT that jointly elects, with the REIT, to be treated as a TRS of the REIT, and that pays U.S. federal income tax at regular corporate rates on its taxable income. The Company accounts for income taxes of its TRSs 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 financial statements if it is more likely than not that the tax position will be sustained upon examination. At September 30, 2019, the Company had no material uncertain tax positions. 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 2016 through 2018 remaining subject to examination by federal and various state tax jurisdictions. Noncontrolling Interest Noncontrolling interest represents the portion of equity of PCF held by owners other than the Company. Noncontrolling interest is reported in the condensed consolidated balance sheets within equity, separately from stockholders’ equity. Revenue, expenses, and net income attributable to both the Company and the noncontrolling interest are reported in the condensed consolidated statements of operations. Per Share Data The Company calculates its basic and diluted earnings per common share (“EPS”) utilizing the two-class method. Under the two-class method, both basic and diluted EPS are calculated for each class of common stock considering distributions declared and accumulated, and the rights of common shares and participating securities in any undistributed earnings. Undistributed earnings are allocated to all outstanding common shares based on the relative percentage of each class of shares to the total number of outstanding shares. Non-vested shares of restricted Class K common stock totaling 2,250 K Shares as of September 30, 2019 held by the Company’s independent directors are included in the calculation of basic EPS because such shares have been issued and participate in distributions. The Company’s calculated EPS for the three and nine months ended September 30, 2019 and 2018, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income (loss) $ 970,167 $ (300,472) $ 308,361 $ (1,016,606) Less: Class K Common Stock distributions declared and accumulated 331,039 183,082 828,495 433,362 Less: Class K-I Common Stock distributions declared and accumulated 50,849 2 78,107 4 Less: Class K-T Common Stock distributions declared and accumulated 1,857 2 2,475 4 Less: Class A Common Stock distributions declared and accumulated 81,274 47,723 223,024 133,353 Undistributed net income (loss) $ 505,148 $ (531,281) $ (823,740) $ (1,583,329) Class K Common Stock: Undistributed net income (loss) $ 345,553 $ (389,508) $ (574,376) $ (1,101,662) Class K Common Stock distributions declared and accumulated 331,039 183,082 828,495 433,362 Net income (loss) $ 676,592 $ (206,426) $ 254,119 $ (668,300) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 2,188,750 1,210,468 1,846,052 965,580 Class K-I Common Stock: Undistributed net income (loss) $ 53,076 $ (4) $ (54,138) $ (9) Class K-I Common Stock distributions declared and accumulated 50,849 2 78,107 4 Net income (loss) $ 103,925 $ (2) $ 23,969 $ (5) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 336,183 174,002 Class K-T Common Stock: Undistributed net income (loss) $ 1,939 $ (4) $ (1,708) $ (9) Class K-T Common Stock distributions declared and accumulated 1,857 2 2,475 4 Net income (loss) $ 3,796 $ (2) $ 767 $ (5) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 12,280 10 5,489 8 Class A Common Stock: Undistributed net income (loss) $ 84,845 $ (101,542) $ (154,626) $ (339,032) Class A Common Stock distributions declared and accumulated 81,274 47,723 223,024 133,353 Net income (loss) $ 166,119 $ (53,819) $ 68,398 $ (205,679) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 537,410 315,562 496,970 297,153 Class B Common Stock: Undistributed net income (loss) $ 19,735 $ (40,223) $ (38,892) $ (142,617) Net income (loss) per common share, basic and diluted $ 0.16 $ (0.32) $ (0.31) $ (1.14) Weighted average number of common shares outstanding, basic and diluted 125,000 125,000 125,000 125,000 New Accounting Standards In February 2016, the FASB issued ASU No. 2016‑02, “ Leases” (“ASU No. 2016‑02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). ASU No. 2016‑02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. ASU No. 2016‑02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted the standard effective January 1, 2019, and applied the package of practical expedients that allows an entity to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases and (iii) initial direct costs for any expired or existing leases. The Company applied the optional transition method in ASU No. 2018‑11, “ Leases ”, which allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if any. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018‑13, “ Fair Value Measurement (Topic 820):Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements” (“ASU No. 2018‑13”). ASU No. 2018-13 requires new disclosures of changes in unrealized gains and losses in other comprehensive income for recurring Level 3 fair value of instruments held at the balance sheet date, as well as the range and weighted average or other quantitative information, if more relevant, of significant unobservable inputs for recurring and nonrecurring Level 3 fair values. Certain disclosures are now eliminated, specifically around the valuation process required for Level 3 fair values, policy for timing of transfers between levels of the fair value hierarchy, as well as amounts and reason for transfers between Levels 1 and 2. ASU No. 2018‑13 is effective for fiscal years and interim periods beginning after December 15, 2019. The adoption of this standard is not expected to have a material effect on the Company’s existing disclosures.

Investments in Hotels

Investments in Hotels	9 Months Ended
	Sep. 30, 2019
Investments in Hotels
Investments in Hotels	Note 3 – Investments in Hotels The following table sets forth summary information regarding the Company’s investments in hotel properties as of September 30, 2019: Contract Mortgage Date Ownership Purchase Debt Property Name Acquired Location Interest Price (1) (2) Rooms Outstanding Springhill Suites Wilmington 05/24/2017 (1) Wilmington, NC 51 % $ 18,000,000 120 $ 11,268,000 Staybridge Suites St. Petersburg 06/29/2017 (1) St. Petersburg, FL 51 % $ 20,500,000 119 $ 13,325,000 Hotel Indigo Traverse City 08/15/2018 Traverse City,MI 100 % $ 26,050,000 107 $ 15,092,000 (3) (1) Represents the date and contract purchase price of PCF’s acquisition of the Springhill Suites Wilmington property (the “Springhill Suites Wilmington”) and the Staybridge Suites St. Petersburg property (the “Staybridge Suites St. Petersburg”). The Company exercised its option under an option agreement to purchase a 51% membership interest in PCF on March 29, 2018. (2) Contract purchase price excludes acquisition fees and costs. (3) Original principal loan balance was $17,836,000. As of September 30, 2019, the Company repaid $2,744,000 of the original outstanding principal balance. Investments in hotel properties consisted of the following as of September 30, 2019 and December 31, 2018: September 30, December 31, 2019 2018 Land $ 7,987,069 $ 7,987,069 Building and improvements 53,466,513 53,318,816 Furniture, fixtures, and equipment 5,325,299 4,759,475 Construction in progress — 12,837 Total cost 66,778,881 66,078,197 Accumulated depreciation (2,957,276) (1,297,152) Property and equipment, net $ 63,821,605 $ 64,781,045 Depreciation expense was $563,489 and $426,830 for the three months ended September 30, 2019 and 2018, respectively. Depreciation expense was $1,660,124 and $774,177 for the nine months ended September 30, 2019 and 2018, respectively.

Mortgage Notes Payable

Mortgage Notes Payable	9 Months Ended
	Sep. 30, 2019
Mortgage Notes Payable
Mortgage Notes Payable	Note 4 – Mortgage Notes Payable Included in mortgage notes payable at September 30, 2019, is a $13,325,000 mortgage payable secured by the Staybridge Suites St. Petersburg (the “St. Petersburg Note”), a $11,268,000 mortgage payable secured by the Springhill Suites Wilmington (the “Wilmington Note”) and a $15,092,000 mortgage payable secured by the Hotel Indigo Traverse City (the “TCI Note”). The St. Petersburg Note requires monthly interest payments at 4.34% through August 1, 2020, and subsequent to August 1, 2020, monthly principal and interest payments of $66,255 through July 1, 2024, the maturity date. The St. Petersburg Note is collateralized by the Staybridge Suites St. Petersburg, including equipment, and has been guaranteed by TH Investment Holdings II, LLC, an affiliate of the Sponsor. The Wilmington Note requires monthly interest payments at 4.49% through June 1, 2020, and subsequent to June 1, 2020, monthly principal and interest payments of $57,026 through June 1, 2024, the maturity date. The Wilmington Note is collateralized by the Springhill Suites Wilmington, including equipment, and has been guaranteed by TH Investment Holdings II, LLC, an affiliate of the Sponsor. The TCI Note was entered into on August 15, 2018 and had an original principal balance of $17,836,000. As of September 30, 2019, the Company had prepaid $2,744,000 outstanding on the TCI Note. The TCI Note bears interest at LIBOR plus a LIBOR rate margin of 2.50% at September 30, 2019. The TCI Note provides for interest only monthly payments until maturity. The principal amount will be due on the maturity date, which is August 15, 2021; provided, however, the maturity date may be extended by up to three additional one-year periods, provided no default exists and with prior written notice of at least 45 days before scheduled maturity. The TCI Note is collateralized by the Hotel Indigo Traverse City, including equipment, and has been guaranteed by TH Investment Holdings II, LLC, an affiliate of the Sponsor. The mortgage notes payable each contain customary affirmative covenants, negative covenants and events of default and at September 30, 2019, the Company was in compliance with such covenants. Interest expense on mortgage notes payable for the three months ended September 30, 2019 and 2018 was $517,001 and $409,540, respectively. Interest expense on mortgage notes payable for the nine months ended September 30, 2019 and 2018 was $1,449,205 and $954,371, respectively. Also included in mortgage notes payable as of September 30, 2019, is $403,887 of deferred financing costs and debt discounts. For the three and nine months ended September 30, 2019, the Company amortized $25,870 and $77,609, respectively, of deferred financing costs and debt discounts as interest expense.

Interest Rate Swap

Interest Rate Swap	9 Months Ended
	Sep. 30, 2019
Interest Rate Swap
Interest Rate Swap	Note 5 – Interest Rate Swap On August 15, 2018, the Company entered into an interest rate swap derivative contract with a notional amount of $15,092,000 and a strike rate of 2.80%. The interest rate swap contract terminates on August 15, 2021. The estimated fair value of the interest rate swap at September 30, 2019, is a liability of $392,581, which is included in accounts payable, accrued expenses and other on the condensed consolidated balance sheets. The Company valued the interest rate swap using Level 2 inputs. Changes in the fair value of the interest rate swap are recorded as an unrealized gain (loss) in the condensed consolidated statements of operations, as the Company did not designate this interest rate swap as a hedge. For the three and nine months ended September 30, 2019, the Company recognized an unrealized loss of $18,543 and $245,891, respectively, in the condensed consolidated statements of operations.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2019
Related Party Transactions
Related Party Transactions	Note 6 - Related Party Transactions The Company entered into the Amended and Restated Advisory Agreement on August 2, 2018, with PHA and the Operating Partnership (as amended and renewed, the “Advisory Agreement”). The Advisory Agreement has a one-year term, subject to renewals upon mutual consent of PHA and the Company’s independent directors for an unlimited number of successive one-year periods. On July 31, 2019, the board of directors of the Company, including all independent directors of the Company, after review of PHA’s performance during the last year, authorized the Company to execute a mutual consent to renew the Advisory Agreement, by and among the Company, the Operating Partnership and PHA. The renewal was for a one-year term and was effective on August 2, 2019. Pursuant to the Advisory Agreement, PHA oversees the Company’s day-to-day operations, including the provision of general ledger accounting, fund accounting, legal services, investor relations, and other administrative services. PHA also performs, or oversees the performance of, the Company’s corporate operations and required administrative services, which include maintaining required financial records and preparing reports to stockholders and filings with the SEC. In addition, PHA assists an independent valuation firm and the Company’s board of directors in calculating and determining the Company’s NAV, and assists the Company in overseeing the preparation and filing of tax returns, payment of expenses and for the performance of administrative and professional services rendered to the Company by others. The Company reimburses PHA for certain expenses and pays PHA certain fees pertaining to services provided. Operating Expenses The Company is also required to reimburse PHA for costs incurred in providing administrative services. PHA is required to allocate the cost of such services to the Company based on objective factors such as total assets, revenues and/or time allocations. At least annually, the Company’s board of directors will review the amount of administrative services expense reimbursable to PHA to determine whether such amounts are reasonable in relation to the services provided. As of September 30, 2019, PHA has forfeited its right to collect reimbursement for providing these administrative services provided through such date. Acquisition Fee The Company will pay PHA acquisition fees as described below: Acquisition Fee : Fee for providing services including selecting, evaluating and acquiring potential investments, or the acquisition fee. The total acquisition fee payable to PHA shall equal 1.5% of the Gross Contract Purchase Price of an investment, which, as defined in the Advisory Agreement, represents the amount actually paid or allocated in respect of the purchase of an investment, inclusive of acquisition expenses and any indebtedness assumed or incurred. Payment of such fee will be deferred until the occurrence of a (i) liquidation event (i.e., any voluntary or involuntary liquidation or dissolution of the Company, including as a result of the sale of all or substantially all of the Company’s assets for cash or other consideration), (ii) the Company’s sale or merger in a transaction that provides stockholders with cash, securities or a combination of cash and securities, (iii) the listing of the Company’s shares of common stock on a national securities exchange, or (iv) the termination of the Advisory Agreement, other than for cause, or the non-renewal of the Advisory Agreement. The deferred acquisition fees will accrue interest at a cumulative, non-compounded rate of 6% annum. The preceding clauses (ii) and (iii) are defined as an “Other Liquidity Event”. There were no acquisition fees incurred for the three and nine months ended September 30, 2019. For the three and nine months ended September 30, 2018, the Company incurred $413,001 and $537,980 in acquisition fees, respectively. Acquisition fees are included in other fees to affiliates on the condensed consolidated statement of operations and in due to related parties on the condensed consolidated balance sheets. As of September 30, 2019, there were $537,980 of deferred acquisition fees included in due to related parties on the condensed consolidated balance sheets. Interest expense on outstanding acquisition fees was $8,136 and $24,143, respectively, for the three and nine months ended September 30, 2019, and is included in interest expense on the condensed consolidated statement of operations and in due to related parties on the condensed consolidated balance sheets. Interest expense on outstanding acquisition fees for the three and nine months ended September 30, 2018, was $5,013 and $6,944, respectively. Asset Management Fee The Company will pay PHA asset management fees as described below: Asset Management Fee : Quarterly fee equal to one-fourth of 0.75% of the adjusted cost of the Company’s assets and the amounts actually paid or allocated in respect of the acquisition of loans, before reduction for depreciation, amortization, impairment charges, and cumulative acquisition costs charged to expense in accordance with GAAP, or the asset management fee. The adjusted cost will include the purchase price, acquisition expenses, capital expenditures, and other customary capitalized costs. The asset management fee will be payable quarterly in arrears, based on adjusted cost on the last date of the prior quarter, adjusted for appropriate closing dates for individual investments. Payment of the asset management fee will be deferred on a quarterly basis if at any time all accumulated, accrued, and unpaid distributions have not been paid in full to holders of the K Shares, K-I Shares, K-T Shares and any parity securities. Any such deferred asset management fees will accrue interest at a cumulative, non-compounded rate of 6% per annum. For the three and nine months ended September 30, 2019, the Company incurred $88,358 and $263,700 in asset management fees, respectively. For the three and nine months ended September 30, 2018, the Company incurred $61,334 and $99,962 in asset management fees, respectively. Asset management fees are included in other fees to affiliates on the condensed consolidated statements of operations and in due to related parties on the condensed consolidated balance sheets. Interest expense on the outstanding asset management fees was $6,822 and $16,301 for the three and nine months ended September 30, 2019, respectively. Interest expense the outstanding asset management fees was $1,320 and $1,899 for the three and nine months ended September 30, 2018, respectively. These amounts are included in interest expense on the condensed consolidated statements of operations and in due to related parties on the condensed consolidated balance sheets. Disposition Fee The Company will pay PHA disposition fees as described below: Disposition Fee : Fee for providing a substantial amount of services in connection with the sale of a property or real estate-related assets, as determined by a majority of the Company’s independent directors, or the disposition fee. The disposition fee will equal one-half of the brokerage commissions paid on the sale of an investment. In no event will the disposition fee exceed 1.5% of the sales price of each investment. Payment of the disposition fee to PHA will be deferred until the occurrence of (i) a liquidation event, (ii) an Other Liquidity Event, or (iii) the termination of the Advisory Agreement, other than for cause, or the non-renewal of the Advisory Agreement. The deferred disposition fees will accrue interest at a cumulative, non-compounded rate of 6% per annum. There were no disposition fees incurred for the three and nine months ended September 30, 2019 and 2018. Acquisition Expenses The Company will reimburse PHA for acquisition expenses actually incurred (excluding personnel costs) related to selecting, evaluating, and making investments on the Company’s behalf. All acquisition expenses as of September 30, 2019 and 2018 were paid directly by the Company and there have been no reimbursements to PHA. Organization and Offering Costs Organization and offering costs include selling commissions, dealer manager fees, stockholder servicing fees and any other elements of underwriting compensation, as well as legal, accounting, printing, mailing and filing fees and expenses, due diligence expenses of participating broker-dealers supported by detailed and itemized invoices, costs in connection with preparing sales materials, design and website expenses, fees and expenses of the Company’s transfer agent, fees to attend retail seminars sponsored by participating broker-dealers and reimbursements for customary travel, lodging, and meals. For more information regarding selling commissions, dealer manager fees, stockholder servicing fees and any other elements of underwriting compensation, see Note 7 – “Stockholders’ Equity”. Certain organization and offering costs have been incurred by PHA on behalf of the Company. As of September 30, 2019, the total amount of organization and offering costs, exclusive of selling commissions, dealer manager fees and stockholder servicing fees, incurred by PHA and its affiliates related to the Private Offering and the Public Offering was $7,161,152, of which $1,026,564 has been reimbursed through the issuance of A Shares to an affiliate of PHA and payment to PHA of $1,438,214. The Company may reimburse PHA and its affiliates for organization and offering costs incurred on the Company’s behalf, but only to the extent the reimbursement would not cause the selling commissions, dealer manager fees, stockholder servicing fees and other organization and offering expenses to exceed 15% of the gross offering proceeds of the Public Offering as of the termination of the Public Offering, or the 15% cap. As of September 30, 2019, $3,439,594 is reimbursable to PHA and its affiliates by the Company in the future, subject to the 15% cap. The Company records organization and offering costs as charges against additional paid-in capital on the condensed consolidated balance sheet as the Company raises proceeds in its continuous Public Offering. These amounts represent 15% of each of the gross offering proceeds of the Private Offering and the Public Offering as of September 30, 2019, respectively. The Company recognized organization and offering costs of $2,187,153 and $1,194,714 for the nine months ended September 30, 2019 and 2018, respectively. Of the organization and offering costs recognized in the condensed consolidated balance sheets, $0 and $571,673 were paid to PHA through the issuance of A Shares for the nine months ended September 30, 2019 and 2018, respectively. Advances to PHA As of September 30, 2019, the Company had advanced $730,000 to PHA for general and administrative expenses to be paid by PHA on behalf of the Company. Actual general and administrative expenses paid by PHA on behalf of the Company as of September 30, 2019 were $392,253 and the excess amount advanced of $337,747 is included in due from related parties in the condensed consolidated balance sheet as of September 30, 2019. As of September 30, 2019, the Company advanced $1,659,674 to PHA for organization and offering costs expected to be recognizable through the termination of the Public Offering as permitted by the Advisory Agreement. The excess of the amount advanced over the $1,435,263 recognized as organization and offering costs as of September 30, 2019 of $224,411 is included in due from related parties in the condensed consolidated balance sheet as of September 30, 2019. Property Management Fee and Reimbursement A wholly-owned subsidiary of PCF entered into hotel management agreements with PHR St. Petersburg Hotel Manager, LLC (the “St. Petersburg Manager”) to operate and manage the Staybridge Suites St. Petersburg, and with PHR Wilmington Hotel Manager, LLC (the “Wilmington Manager”) to operate and manage the Springhill Suites Wilmington, including making all human resource decisions. The St. Petersburg Manager and the Wilmington Manager are related to PCF through common ownership. The term of each agreement is four years, commencing on June 29, 2017 for the Staybridge Suites St. Petersburg and on May 24, 2017 for the Springhill Suites Wilmington. The employees of the hotels are employed by St. Petersburg Manager and Wilmington Manager; however, pursuant to the management agreements, all compensation of hotel personnel is recorded as a direct operating expense of the hotels. The St. Petersburg Manager and the Wilmington Manager are paid a base management fee equal to 3% of the respective hotel’s gross revenues. The St. Petersburg Manager and the Wilmington Manager are also reimbursed for certain expenses and centralized service costs. A wholly-owned subsidiary of the Operating Partnership entered into a hotel management agreement with PHR Traverse City Hotel Manager, LLC (the “TCI Manager”) to operate and manage the Hotel Indigo Traverse City, including making all human resource decisions. The TCI Manager is related to the Hotel Indigo Traverse City, through common ownership. The term of the agreement is five years, commencing on August 15, 2018. The employees of the hotels are employed by the TCI Manager, however, pursuant to the management agreement, all compensation of hotel personnel is to be recorded as a direct operating expense of the hotel. The TCI Manager is paid a base management fee equal to 3% of the hotel’s gross revenues. The TCI Manager is also reimbursed for certain expenses and centralized service costs. Aggregate property management fees incurred for the three and nine months ended September 30, 2019 were $177,041 and $425,866, respectively, and are included in property management fees to affiliates on the condensed consolidated statements of operations. Aggregate management fees earned for the three and nine months ended September 30, 2018 were $118,062 and $197,761, respectively. As of September 30, 2019, $54,668 of accrued property management fees payable were included in due to related parties on the condensed consolidated balance sheet. Aggregate net reimbursements for certain expenses for the three and nine months ended September 30, 2019 were $14,467 and $42,423, respectively. As of September 30, 2019, $715 of expense reimbursements were included in due to related parties on the condensed consolidated balance sheet. During the three and nine months ended September 30, 2019, the Company paid $162,367 and $221,940, respectively, to TPG Risk Services, LLC, an affiliate of the Sponsor, for the reimbursement of prepaid insurance at the hotel properties Construction Management Fee The Company pays its property managers or third parties selected by PHA, after requesting bids from such parties, a construction management fee (which may include expense reimbursements) based on market rates for such services in the markets in which the hotel properties are located and will take into account the nature of the services to be performed, which generally will constitute the supervision or coordination of any construction, improvements, refurbishments, renovations, or restorations of the Company’s hotel properties. If PHA selects the property manager or another affiliate of the Sponsor to perform such services, any resulting agreement must be approved by a majority of the Company’s board of directors, including a majority of its independent directors. Construction management fees incurred during the three and nine months ended September 30, 2019, were $8,083 and $30,870, respectively, and capitalized as a part of the construction cost. There were no construction management fees incurred for the three and nine months ended September 30, 2018. During the three and nine months ended September 30, 2019, the Company reimbursed TPG Construction, LLC, an affiliate of the Sponsor, $148,428 and $694,004, respectively, for capital expenditure costs incurred at the hotel properties. As of September 30, 2019, $47,442 of construction reimbursements were included in the due to related parties balance. Included in the due from related parties balance at September 30, 2019, was a $50,570 receivable from TPG Construction, LLC relating to working capital requests to provide funding for vendors and contractor deposits at the Hotel Indigo Traverse City. Additional Service Fees If the Company requests that PHA or its affiliates perform other services, including but not limited to, renovation evaluations, the compensation terms for those services must be approved by a majority of the Company’s board of directors, including a majority of the independent directors. No such fees for additional services were incurred for the three and nine months ended September 30, 2019 and 2018. Payment Upon Listing of Shares If the Company lists any of its shares of capital stock on a national securities exchange (which automatically results in a termination of the Advisory Agreement), the Company will be obligated to pay PHA the amount PHA would be entitled to receive on account of deferred asset management fees, acquisition fees, and disposition fees (and any accrued interest thereon) as if the Company liquidated and received liquidation proceeds equal to the market value of the Company, which is limited to the excess of market value over the liquidation preference on K Shares, K-I Shares and K-T Shares. Payment Upon a Merger or Acquisition Transaction If the Company terminates the Advisory Agreement in connection with or in contemplation of a transaction involving a merger or acquisition, the Company would be obligated to pay PHA the amount PHA would be entitled to receive as if the Company liquidated and received net liquidation proceeds equal to the consideration paid to the stockholders in such transaction. Payment Upon Other Advisory Agreement Termination The Company may elect not to renew the Advisory Agreement. The Company has the right to terminate the Advisory Agreement without cause, or other than in connection with a listing of the Company’s shares or a transaction involving a merger or acquisition or other than for cause (“Non-cause Advisory Agreement Termination”). If a Non-cause Advisory Agreement Termination were to occur, the Company would be obligated to make a cash payment to PHA in the amount of any deferred asset management fees, plus any interest accrued thereon, the full acquisition fees previously earned, plus interest accrued thereon, and the full disposition fees previously earned, plus any interest accrued thereon, regardless of the value of the Company’s assets or net assets. The Company would be obligated to repurchase its A Shares for an amount equal to the greater of: (1) any accrued common ordinary distributions on the A Shares plus the stated value of the outstanding A Shares ($10.00 per A Share) or (2) the amount the holders of A Shares would be entitled to receive if the Company liquidated and received net liquidation proceeds equal to the fair market value (determined by appraisals as of the termination date) of the Company’s investments less any loans secured by such investments, limited in the case of non-recourse loans to the value of investments securing such loans. Any B Shares then outstanding would remain outstanding. The amounts payable on account of the repurchase of A Shares may be paid, in the discretion of a majority of the Company’s board of directors, including a majority of the Company’s independent directors, in the form of promissory notes bearing interest at the then-current rate, as determined in good faith by a majority of the Company’s independent directors. Payment Upon Advisory Agreement Termination for Cause If the Company terminates the Advisory Agreement for cause, the Company would not have a current obligation to make any payments to PHA or to S2K Servicing LLC (formerly known as Colony S2K Servicing LLC), an affiliate of the dealer manager. However, any A Shares and B Shares held by them or their affiliates would remain outstanding. In addition, any deferred asset management fees, plus any interest accrued thereon, the full acquisition fees previously earned, plus any interest accrued thereon, and the full disposition fees previously earned, plus any interest accrued thereon, would remain outstanding obligations, and the deferred fees would continue to accrue interest at a non-compounded annual rate of 6.0%. Such deferred fees and interest thereon would be payable upon a liquidation event. Loans from Affiliates The Company has combined subordinated promissory notes of $94,194 from PHA that bear interest at the current blended long term applicable federal rate (“AFR”). The blended long term AFR was 2.81% for the three months ended September 30, 2019 and 2018, and 2.87% and 2.80% for the nine months ended September 30, 2019 and 2018, respectively. The maturity date of the notes is the date after all outstanding K Shares have received all accumulated, accrued and unpaid distributions due and owing under the terms of the Company’s organization documents and the liquidation preference on the K Shares pursuant to the Company’s organization documents has been paid in full, as well as upon any event of default. These amounts are included in due to related parties on the condensed consolidated balance sheet at September 30, 2019 and December 31, 2018. Interest expense was $666 and $2,021 for the three and nine months ended September 30, 2019, respectively, and is included in interest expense on the condensed consolidated statements of operations and in due to related parties on the condensed consolidated balance sheets. Interest expense was $666 and $1,976 for the three and nine months ended September 30, 2018, respectively. On August 15, 2018, in connection with the acquisition of the Hotel Indigo Traverse City, the Company entered into an unsecured loan with its Sponsor in the principal amount of $6,600,000, evidenced by a promissory note (“Promissory Note”). The Promissory Note accrued interest at the rate of 4.75% per annum and had a maturity date of August 16, 2019. The Promissory Note was approved by a majority of the Company’s board of directors, including a majority of the independent directors. The Company used proceeds from the sale of K Shares, K-I Shares and K-T Shares sold in the primary offering to prepay the Promissory Note. As of September 30, 2019, the entire principal and accrued interest balance had been repaid. Interest expense for the three and nine months ended September 30, 2019 was $1,041 and $116,896, respectively, and is included in interest expense on the condensed consolidated statements of operations.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2019
Stockholders' Equity
Stockholders' Equity	Note 7 - Stockholders’ Equity Under the Company’s charter, the total number of shares of common stock authorized for issuance is 248,125,000, consisting of 55,500,000 K Shares, 55,500,000 K-I Shares, 116,000,000 K-T Shares, 21,000,000 A Shares, and 125,000 B Shares. The Company’s K Shares, K-I Shares and K-T Shares entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote and to receive distributions as authorized by the Company’s board of directors. Holders of K Shares, K-I Shares and K-T Shares are entitled to receive cumulative cash distributions on each share at the rate of 6.0% per annum of each share’s distribution base. The distribution base will initially be $10.00 per K Share, $10.00 per K-I Share and $10.00 per K-T Share and will be reduced for distributions that the board of directors declares and pays out of net sales proceeds from the sale or disposition of assets to the extent such distributions are not used to pay accumulated, accrued, and unpaid dividends on such K Shares, K-I Shares, and K-T Shares. K Shares, K-I Shares and K-T Shares will rank, on a pro rata basis, senior to all other classes of stock with respect to distribution rights and rights upon the Company’s liquidation. In certain situations (other than upon liquidation), the Company may have excess cash available for distribution and the board of directors may authorize special distributions in which case the holders of K Shares, K-I Shares and K-T Shares would receive 50% of any such excess cash. Holders of K Shares, K-I Shares and K-T Shares would also generally be entitled to receive 50% of any remaining liquidation cash pro rata based on the number of K Shares, K-I Shares and K-T Shares outstanding. A Shares entitle the holders to one vote per share on all matters upon which stockholders are entitled to vote and to receive distributions and other distributions of excess cash as authorized by the Company’s board of directors. Following the payment of all accumulated, accrued and unpaid distributions on K Shares, K-I Shares and K-T Shares and payment of any accrued asset management fees (and any interest thereon), each A Share will be entitled to receive distributions at a rate not to exceed 6.0% of the stated value of $10.00 per share from income and cash flow from ordinary operations on a cumulative basis. In certain situations (other than upon liquidation), the Company may have excess cash available for distribution and the board of directors may authorize special distributions in which case the holders of A Shares would receive 37.5% of any such excess cash on a pro rata basis. A Shares would also generally be entitled to receive 37.5% of any remaining liquidation cash pro rata based on the number of A Shares outstanding. B Shares have no voting rights, other than the right to vote on and approve any further issuances of an increase of the authorized number of B Shares. In addition, if the Company were to list any shares of its common stock on a national securities exchange, the Company will repurchase its B Shares in accordance with its charter. Holders of B Shares are not entitled to distributions; however, in certain situations (other than upon liquidation) the Company may have excess cash available for distribution and the board of directors may authorize special distributions in which case the holders of B Shares would receive 12.5% of any such excess cash on a pro rata basis. Holders of B Shares would also generally be entitled to receive 12.5% of any remaining liquidation cash pro rata based on the number of B Shares outstanding. At the termination of the Private Offering, the Company had issued 1,253,618 K Shares and 23,000 A Shares to unaffiliated investors, resulting in receipt of gross proceeds of $12,398,660 from K Share issuances and $230,000 from A Share issuances. A Shares sold to unaffiliated investors were issued as part of a Unit. As of September 30, 2019, under the primary portion of the Public Offering, the Company had issued 1,137,435 K Shares, 387,346 K-I Shares, and 33,540 K-T Shares to unaffiliated investors, resulting in receipt of gross proceeds of $11,360,443 from K Share issuances, $3,604,550 from K-I Share issuances, and $335,400 from K-T Share issuances. As of September 30, 2019, the Company had issued 1,319 K Shares, 1,262 K-I Shares and 12 K-T Shares pursuant to the DRIP, resulting in gross proceeds pursuant to the DRIP of $12,527, $11,986 and $112 respectively. As of September 30, 2019, the Company had issued 750 restricted K Shares to each of the Company’s three independent directors for a total of 2,250 restricted K Shares in connection with the Company’s long-term incentive plan, as described below. As of September 30, 2019, the Company had issued 384,410 A Shares to THR, an affiliate of PHA, for aggregate proceeds of $3,844,095, or $10.00 per share. In addition, the Company issued 130,000 additional A Shares to THR in exchange for notes receivable, payable to the Company upon demand. The note receivable from THR was reduced for amounts reimbursed to PHA by the Company for certain costs incurred on the Company’s behalf. As of September 30, 2018, there was no remaining receivable balance reflected in equity. As of September 30, 2019, the Company sold 10 K-I Shares for aggregate proceeds of $100, or $10.00 per K-I Share and sold 10 K-T Shares for aggregate proceeds of $100, or $10.00 per K-T Share to an affiliate of the Company. In addition, on September 29, 2016, the Company issued 125,000 B shares to S2K Servicing LLC. During the nine months ended September 30, 2019, pursuant to the primary portion of the Public Offering, the Company sold 1,006,135 K Shares for aggregate gross proceeds of $10,047,443, or $9.99 per K Share; 375,113 K-I Shares for aggregate gross proceeds of $3,488,550, or $9.30 per K-I Share; and 33,040 K-T Shares for aggregate gross proceeds of $330,400, or $10.00 per K-T Share. During the same period, pursuant to the DRIP, the Company had issued 1,319 K Shares at a price of $9.50 per K Share for aggregate gross proceeds of $12,527, 1,262 K-I Shares at a price of $9.50 per K-I Share for aggregate gross proceeds of $11,986, and 12 K-T Shares at a price of $9.50 per K-T Share for aggregate gross proceeds of $112. Subsequent to September 30, 2019 and through November 11, 2019, pursuant to the primary portion of the Public Offering, the Company sold approximately 116,098 K Shares to investors at a weighted average price of $9.97 per K Share for gross proceeds of $1,157,500. The Company sold approximately 31,774 K-I Shares to investors at a weighted average price of $9.30 per K-I Share for gross proceeds of $295,496. The Company sold approximately 3,000 K-T Shares to investors at a weighted average price of 10.00 per K-T Share for gross proceeds of $30,000. During the same period, pursuant to the DRIP, the Company issued 1,640 K Shares to investors at a price of $9.50 per K Share for gross proceeds of $15,575, 2,169 K-I Shares at a price of $9.50 per K-I Share for gross proceeds of $20,610 and 55 K-T Shares to investors at a price of $9.50 per K-T Share for gross proceeds of $518. PHA was obligated to purchase sufficient A Shares to fund payment of organization and offering expenses associated with the Private Offering, and is obligated to purchase sufficient A Shares to fund payment of organization and offering expenses related to the Public Offering and also to account for the difference between the applicable NAV per K-I Share and the applicable offering price per K-I Share and any amount equal to any discount to the initial offering price of K Shares, K-I Shares and K-T Shares (excluding volume discounts). PHA’s obligation can be fulfilled by its affiliates, including the Sponsor or entities affiliated with the Sponsor. The Company paid S2K Financial LLC (the “dealer manager”) , as dealer manager of the Private Offering, selling commissions of up to 7% of the gross offering proceeds from the sale of K Shares and Units in the Private Offering. The dealer manager re-allowed all selling commissions to participating broker-dealers. The Company also paid the dealer manager a dealer manager fee of up to 3% of the gross offering proceeds from the sale of K Shares and Units. The dealer manager could re-allow a portion of its dealer manager fees to participating broker-dealers. Selling commissions and dealer manager fees were paid with proceeds from the sale of A Shares to PHA or its affiliates. There were no selling commissions or dealer manager fees payable on account of shares of any class purchased by PHA, S2K Servicing LLC, or any of their affiliates. The Company pays the dealer manager selling commissions of up to 7% of the gross offering proceeds from the sale of K Shares and selling commissions of up to 3% of the gross offering proceeds from the sale of K-T Shares sold in the primary portion of the Public Offering. No selling commissions are payable in connection with the sale of K-I Shares. The dealer manager may re-allow all selling commissions to participating broker-dealers. The Company also pays the dealer manager a dealer manager fee of up to 3% of the gross offering proceeds from the sale of K Shares, K-I Shares and K-T Shares sold in the primary portion of the Public Offering. The dealer manager may allow a portion of its dealer manager fees to participating broker-dealers. Selling commissions and dealer manager fees are generally be paid with proceeds from the sale of A Shares to PHA or its affiliates. There are no selling commissions or dealer manager fees payable on account of shares of any class purchased by PHA, or S2K Servicing LLC, or any K Shares, K-I Shares and K-T Shares sold pursuant to the DRIP. The selling commissions and dealer manager fees may be reduced or waived in connection with certain categories of sales. As of September 30, 2019, the Company recognized $1,245,965 of selling commissions and dealer manager fees in connection with the Public Offering. The Company also pays the dealer manager with respect to each K-T Share sold in the primary portion of the Public Offering a stockholder servicing fee equal to 1%, annualized, of the amount of the Company’s estimated NAV per K-T Share for each K-T Share purchased in the primary offering, for providing services to a holder of K-T Shares. The stockholder servicing fee accrues daily and is payable monthly in arrears. The dealer manager expects to reallow all or a portion of the stockholder servicing fee to participating broker-dealers and servicing broker-dealers. The Company will cease paying the stockholder servicing fee with respect to K-T Shares sold in the primary offering in accordance with the terms set forth in the prospectus portion of the Registration Statement. As of September 30, 2019, the Company recognized $422 of stockholder servicing fees in connection with the Public Offering. If the Company’s board of directors determines, in any year, that the Company has excess cash, the Company’s board of directors will declare a special distribution entitling (a) the holders of K Shares, K-I Shares, K-T Shares to share, pro rata in accordance with the number of K Shares, K-I Shares and K-T Shares, 50% of such excess cash (or 87.5% of such excess cash if the A Shares have been repurchased in connection with a Non-cause Advisory Agreement Termination); (b) the holders of B Shares to share, pro rata in accordance with the number of B Shares, 12.5% of excess cash; and (c) the holders of A Shares (including PHA or its affiliates) to share, pro rata in accordance with the number of A Shares, 37.5% of such excess cash (unless all such A Shares previously have been repurchased in connection with a Non-cause Advisory Agreement Termination, in which case the excess cash otherwise apportioned to the A Shares would be distributed to the holders of the K Shares, K-I Shares and K-T Shares as noted above). Upon a liquidation event, any remaining liquidation cash will be paid as a special distribution (a) to the holders of K Shares, K-I Shares and K-T Shares, pro rata in accordance with the number of K Shares, K-I Shares and K-T Shares, 50% of such excess cash (or 87.5% of such excess cash if the A Shares have been repurchased in connection with a Non-cause Advisory Agreement Termination); (b) to the holders of B Shares, pro rata in accordance with the number of B Shares, 12.5% of excess cash; and (c) to the holders of A Shares (including PHA or its affiliates), pro rata in accordance with the number of A Shares, 37.5% of such excess cash (unless all such A Shares previously have been repurchased in connection with a Non-cause Advisory Agreement Termination, in which case the excess cash otherwise apportioned to the A Shares would be distributed to the holders of the K Shares, K-I Shares and K-T Shares as noted above). The Company established a long-term incentive plan pursuant to which the Company’s board of directors (including independent directors), officers and employees, PHA and its affiliates and their respective employees, employees of entities that provide services to the Company, managers of the Company’s advisor or directors or managers of entities that provide services to the Company and their respective employees, certain of the Company’s consultants and certain consultants to PHA and its affiliates or entities that provide services to the Company and their respective employees may be granted incentive awards in the form of restricted stock, options, and other equity-based awards. In accordance with the Company’s long-term incentive plan, each new independent director that joins the Company’s board of directors is awarded 250 restricted K Shares in connection to his or her initial election to the board of directors. In addition, in connection with an independent director’s re-election to the Company’s board of directors at each annual meeting of stockholders, he or she will receive an additional 250 restricted K Shares. Restricted K Shares issued to independent directors will vest in equal amounts annually over a four-year period on and following the first anniversary of the date of grant in increments of 25% per annum; provided, however, that the restricted K Shares will become fully vested on the earlier to occur of (1) the termination of the independent director’s service as a director due to his or her death or disability, or (2) a change in control of the Company. On February 11, 2019, the Company issued 500 restricted K Shares to each of the Company’s three independent directors for a total of 1,500 restricted K Shares. These awards were in relation to their initial election to the board of directors and their re-election. An additional 250 restricted K Shares were awarded to each independent director upon his or her re-election at the Company’s 2019 annual meeting of stockholders on July 11, 2019. In addition to the stock awards, the Company pays each of its independent directors annual compensation of $27,500, pro-rated for a partial term. In addition, the independent directors are paid for attending meetings as follows: (1) $1,000 for each board meeting attended in person, (2) $500 for each board meeting attended via teleconference, (3) $500 for each audit committee meeting attended in person ($375 for attendance by the chairperson of the audit committee at each meeting of the audit committee), and (4) $250 for each audit committee meeting attended via teleconference. In the event that there is a board meeting and one or more committees on a single day, the fees paid to each director will be limited to $1,500 per day. Director compensation is an operating expense of the Company. The Company recorded an operating expense of $27,000 and $20,625 for the three months ended September 30, 2019 and 2018, respectively, and $76,875 and $64,875 for the nine months ended September 30, 2019 and 2018, respectively, related to the independent directors’ annual compensation, which is included in corporate general and administrative expenses in the accompanying consolidated statements of operations. As of September 30, 2019, and December 31, 2018, $27,000 and $27,000 is included in accounts payable, accrued expenses and other, net on the condensed consolidated balance sheets, respectively. Share Repurchase Program and Redeemable Common Stock The Company’s share repurchase program may provide eligible stockholders with limited, interim liquidity by enabling them to sell shares back to the Company, subject to restrictions and applicable law. The Company is not required to repurchase shares. The share repurchase program is only intended to provide interim liquidity to stockholders until a liquidity event occurs, such as the commencement of execution on a plan of liquidation, the listing of the K Shares, K-I Shares or K-T Shares (or successor security) on a national securities exchange, or the Company’s merger with a listed company. The Company cannot guarantee that a liquidity event will occur. On October 26, 2018, the Company’s board of directors approved and adopted the Amended and Restated Share Repurchase Program (the “A&R SRP”). The A&R SRP provides that the Company will not repurchase in excess of 5.0% of the weighted average number of K Shares, K-I Shares and K-T Shares outstanding during the trailing 12 months prior to the end of the fiscal quarter for which repurchases are being paid (provided, however, that while shares subject to a repurchase requested upon the death of a stockholder will be included in calculating the maximum number of shares that may be repurchased, shares subject to a repurchase requested upon the death of a stockholder will not be subject to the percentage cap). Additionally, in the event that any stockholder fails to maintain a minimum balance of $2,000 of K Shares, K-I Shares or K-T Shares, the Company may repurchase all of the shares held by that stockholder at the per share repurchase price in effect on the date the Company determines that the stockholder has failed to meet the minimum balance, less any applicable repurchase discount. Minimum account repurchases will apply even in the event that the failure to meet the minimum balance is caused solely by a decline in the Company’s estimated NAV per share. In addition, the Company’s repurchase of any shares will be limited to the extent that the Company does not have, as determined in the Company’s board of directors’ discretion, sufficient funds available to fund any such repurchase. Most of the Company’s assets will consist of properties which cannot be readily liquidated without affecting the Company’s ability to realize full value upon their disposition. Therefore, the Company may not have sufficient liquid resources to satisfy all repurchase requests. In addition, the Company’s board of directors may amend, suspend (in whole or in part) or terminate the A&R SRP at any time upon 30 days’ notice to stockholders. Further, the Company’s board of directors reserves the right, in its sole discretion, to reject any requests for repurchases. In the event the Company cannot repurchase all shares presented for repurchase in any fiscal quarter, based upon insufficient cash available and/or the limit on the number of shares it may repurchase, the Company would give first priority to the repurchase of deceased stockholders’ shares. The Company would next give priority to (i) requests of stockholders with “qualifying disabilities” (as defined in the A&R SRP), and in the discretion of the Company’s board of directors, stockholders with another involuntary exigent circumstance, such as bankruptcy, and (ii) next, to requests for full repurchases of accounts with a balance of 100 or less shares at the time the Company receives the request, in order to reduce the expense of maintaining small accounts. Thereafter, the Company will honor the remaining quarterly repurchase requests on a pro-rata basis. Unfulfilled requests will be carried over automatically to subsequent repurchase periods unless a stockholder withdraws a request pursuant to the terms of the A&R SRP. Repurchases of K Shares, K-I Shares and K-T Shares will be made quarterly upon written request to the Company at least 15 days prior to the end of the applicable quarter. Valid repurchase requests will be honored approximately 30 days following the end of the applicable quarter (the “Repurchase Date”). Stockholders may withdraw their repurchase request at any time up to five business days prior to the Repurchase Date. No shares can be repurchased under the Company’s A&R SRP until after the first anniversary of the date of purchase of such shares; provided, however, that this holding period shall not apply to repurchases requested within two years after the death or disability of a stockholder. Additionally, any shares purchased pursuant to the Company’s DRIP will be excluded from the one-year holding requirement. For stockholders that have made more than one purchase of K Shares, K-I Shares or K-T Shares in the Public Offering and/or Private Offering, the one-year holding period will be calculated separately with respect to each such purchase. Repurchases of K Shares, K-I Shares and K-T Shares, when requested, are at the Company’s sole discretion and generally will be made quarterly. Shares repurchased under the A&R SRP program will become unissued shares and will not be resold unless such sales are made pursuant to transactions that are registered or exempt from registration under applicable securities laws. The Company will not pay its Sponsor, board of directors, PHA or their affiliates any fees to complete transactions under the A&R SRP. The per share repurchase price will depend on the length of time the stockholder has held such shares as follows: Share Purchase Anniversary Repurchase Price on Repurchase Date Less than 1 year No Repurchase Allowed 1 year 92.5% of most recent per share NAV 2 years 95.0% of most recent per share NAV 3 years 97.5% of most recent per share NAV 4 years 100.0% of most recent per share NAV In the event of a stockholder's death or disability 100.0% of most recent per share NAV Notwithstanding the foregoing, pursuant to securities laws and regulations, at any time the Company is engaged in an offering, the repurchase amount shall never be more than the current offering price of such shares. Shares repurchased in connection with a stockholder’s bankruptcy or other exigent circumstance, in the sole discretion of the Company’s board of directors, within one year from the purchase date will be repurchased at a price per share equal to the price per share the Company would pay had the stockholder held the shares for one year from the purchase date. The purchase price for repurchased shares will be adjusted for any stock dividends, combinations, splits, recapitalizations, or similar corporate actions with respect to the Company’s common stock. If the Company has sold any properties and have made one or more special distributions to stockholders of all or a portion of the net proceeds from such sales, the per share repurchase price will be reduced by the net sale proceeds per share distributed to stockholders prior to the repurchase date to the extent such distributions are not used to pay accumulated, accrued and unpaid distributions on such K Shares, K-I Shares and K-T Shares. The Company’s board of directors will, in its sole discretion, determine which distributions, if any, constitute a special distribution. While the Company’s board of directors does not have specific criteria for determining a special distribution, the Company expects that a special distribution will occur only upon the sale of a property and the subsequent distribution of net sale proceeds. The Company generally repurchases shares approximately 30 days following the end of the applicable quarter in which requests were received. During the nine months ended September 30, 2019, the Company repurchased 2,500 K Shares for $23,125, or $9.25 per K Share. The Company's board of directors approved outstanding repurchase requests received during the three months ended September 30, 2019, and on November 1, 2019, the Company repurchased 4,278 K Shares for $42,781, or $10.00 per K Share. Distributions On January 25, 2019, the Company’s board of directors authorized the payment of distributions with respect to each K Share, K-I Share and K-T Share outstanding as of December 31, 2018, to the holders of record of K Shares, K-I Shares and K-T Shares as of the close of business on January 28, 2019. The board of directors determined that, with respect to the K Shares, K-I Share and K-T Share outstanding as of December 31, 2018, the cumulative amount of distributions that had accrued on a daily basis with respect to each K Share, K-I Shares and K-T Shares since September 30, 2018, was $193,826, or $0.0016438356 per K Share per day, $1,123, or $0.0016438356 per K-I Share per day, and $29, or $0.0013698656 per K-T Share per day, respectively. Such distributions were paid to stockholders in cash or in additional shares pursuant to the DRIP on January 31, 2019. On April 29, 2019, the Company’s board of directors authorized the payment of distributions with respect to each K Share, K-I Share and K-T Share outstanding as of March 31, 2019, to the holders of record of K Shares, K-I Shares and K-T Shares as of the close of business on April 30, 2019. With respect to the K Shares, K-I Shares and K-T Shares outstanding as of March 31, 2019, the cumulative amount of distributions that had accrued on a daily basis with respect to each K Share and K-I Share outstanding since December 31, 2018, and with respect to each K-T Share outstanding since the date the first K-T Share was issued by the Company less any distributions previously paid with respect to such K-T Shares, was $225,280, $4,722, and $88, respectively, or $0.0016438356 per K Share per day, $0.0016438356 per K-I Share per day, and $0.0016438356 per K-T Share per day. Such distributions were paid to stockholders in cash or in additional shares pursuant to the DRIP on May 1, 2019. On July 31, 2019, the Company's board of directors authorized the payment of distributions with respect to each K Share, K-I Share and K-T Share outstanding as of June 30, 2019, to the holders of record of K Shares, K-I Shares and K-T Shares as of the close of business on August 1, 2019. With respect to the K Shares, K-I Shares and K-T Shares outstanding as of June 30, 2019, the cumulative amount of distributions that had accrued on a daily basis with respect to each K Share, K-I Share and K-T Share outstanding since March 31, 2019, was $272,176, $22,536, and $531, respectively, or $0.0016438356 per K Share per day, $0.0016438356 per K-I Share per day, and $0.0016438356 per K-T Share per day. Such distributions were paid to stockholders in cash or in additional shares pursuant to the DRIP on August 2, 2019. On October 29, 2019, the Company's board of directors authorized the payment of distributions with respect to each K Share, K-I Share and K-T Share outstanding as of September 30, 2019, to the holders of record of K Shares, K-I Shares and K-T Shares as of the close of business on October 31, 2019. With respect to the K Shares, K-I Shares and K-T Shares outstanding as of September 30, 2019, the cumulative amount of distributions that had accrued on a daily basis with respect to each K Share, K-I Share and K-T Share outstanding since June 30, 2019, was $331,011, $50,842, and $1,857, respectively, or $0.0016438356 per K Share per day, $0.0016438356 per K-I Share per day, and $0.0016438356 per K-T Share per day. Such distributions were paid to stockholders in cash or in additional shares pursuant to the DRIP on November 1, 2019.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2019
Income Taxes
Income Taxes	Note 8 - Income Taxes The Company recognized a consolidated income tax expense of $12,303 for the three months ended September 30, 2019, and a consolidated income tax benefit of $13,121 for the nine months ended September 30, 2019. The Company recognized a consolidated income tax benefit of $10,837 and a consolidated income tax expense of $75,703 for the three and nine months ended September 30, 2018, respectively. These amounts relate to the operations of the Company’s TRSs.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements of the Company are unaudited. Certain information and disclosures required by U.S. generally accepted accounting principles (“GAAP”) for complete financial statements have been condensed or omitted. The Company believes the disclosures made are adequate to make the information presented not misleading. However, the accompanying condensed consolidated financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018. In the opinion of management, all adjustments, which include only normal recurring adjustments considered necessary for a fair and consistent presentation, have been included in these condensed consolidated financial statements. Operating results for the three and nine months ended September 30, 2019, are not necessarily indicative of the results that may be expected for the year ending December 31, 2019. The condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. Certain reclassifications have been made to the prior year’s financial statements to conform to the current year’s presentation. The Company acquired a 51% interest in, and became a co-manager of, Procaccianti Convertible Fund, LLC (“PCF”) on March 29, 2018. The Company determined that PCF is a variable interest entity (“VIE”) as defined under the Consolidation Topic (“Topic 810”) of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). The Company has the power to direct the activities that most significantly impact PCF’s performance and the obligation to absorb losses or the right to receive benefits from PCF that could be significant to PCF and is, therefore, the primary beneficiary of PCF and consolidates the accounts of PCF. The assets of PCF were $38,952,599 at September 30, 2019, and consist primarily of land, building, furniture, fixtures, and equipment. The liabilities of PCF were $26,059,071 at September 30, 2019, and consist primarily of long-term debt. The assets of PCF are available to satisfy PCF’s obligations. The Company has no foreign operations or assets and its operating structure includes only one segment.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assumptions and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Under GAAP, the Company is required to disclose certain financial instruments at fair value on a recurring basis. The accompanying condensed consolidated balance sheets include the following financial instruments: cash, restricted cash, accounts receivable, accounts payable and mortgage notes payable. The Company considers the carrying value of cash, restricted cash, accounts receivable and accounts payable to approximate the fair value of these financial instruments based on the short duration between origination of the instruments and their expected realization. A fair value measurement is based on the assumptions that market participants would use in pricing an asset or liability in an orderly transaction. The hierarchy for inputs used in measuring fair value is as follows: · Level 1 : unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities; · Level 2 : quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which significant inputs and significant value drivers are observable in active markets; and · Level 3 : prices or valuation techniques where little or no market data is available that requires inputs that are both significant to the fair value measurement and unobservable. As of September 30, 2019, the estimated fair value of the mortgage notes payable was $40,723,058, compared to the carrying value of $39,548,322. These financial instruments are valued using Level 2 inputs. The Company also has an interest rate swap that is valued using Level 2 inputs. For more information, see Note 5 – “Interest Rate Swap.”
Revenue Recognition	Revenue Recognition Revenue is generally recognized as services are performed. Revenue represents primarily rooms, food and beverage, and other fees. The Company collects sales tax from all nonexempt customers and remits the entire amount to the appropriate states upon collection from the customer. The Company’s accounting policy is to exclude the tax collected and remitted to the state from revenue and expense.
Restricted Cash	Restricted Cash The Company maintains reserves for property taxes and capital improvements as required by the debt agreements. At September 30, 2019, reserves for property taxes were $542,864 and reserves for capital improvements were $1,226,962. The Company also included $19,005 of guest advance deposits as restricted cash at September 30, 2019.
Organization and Offering Costs	Organization and Offering Costs Organization and offering costs include selling commissions, dealer manager fees, stockholder servicing fees and any other elements of underwriting compensation, legal, accounting, printing, mailing and filing fees and expenses, due diligence expenses of participating broker-dealers supported by detailed and itemized invoices, costs in connection with preparing sales materials, design and website expenses, fees and expenses of the Company’s transfer agent, fees to attend retail seminars sponsored by participating broker-dealers and reimbursements for customary travel, lodging, and meals. The Company charges organization and offering costs against additional paid in capital on the condensed consolidated balance sheet as it raises proceeds in its continuous Public Offering.
Income Taxes	Income Taxes The Company elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), and has operated as a REIT, commencing with the taxable year ended December 31, 2018. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of its annual REIT taxable income to its stockholders (which is computed without regard to the dividends-paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with GAAP). As a REIT, the Company generally will not be subject to U.S. federal income tax to the extent it distributes qualifying dividends to its stockholders. If the Company fails to qualify as a REIT in any taxable year following the year it initially elects to be taxed as a REIT, it will be subject to U.S. federal income tax on its taxable income at regular corporate income tax rates and generally will not be permitted to qualify for treatment as a REIT for U.S. federal income tax purposes for the four taxable years following the year during which qualification is lost unless the Internal Revenue Service grants the Company relief under certain statutory provisions. Such an event could materially adversely affect the Company’s net income and net cash available for distribution to its stockholders. Because the Company is prohibited from operating hotel properties pursuant to certain tax laws relating to its qualification as a REIT, the entities through which the Company owns hotel properties will lease the hotel properties to one or more taxable REIT subsidiaries (“TRSs”). A TRS is a corporate subsidiary of a REIT that jointly elects, with the REIT, to be treated as a TRS of the REIT, and that pays U.S. federal income tax at regular corporate rates on its taxable income. The Company accounts for income taxes of its TRSs 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 financial statements if it is more likely than not that the tax position will be sustained upon examination. At September 30, 2019, the Company had no material uncertain tax positions. 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 2016 through 2018 remaining subject to examination by federal and various state tax jurisdictions.
Noncontrolling Interest	Noncontrolling Interest Noncontrolling interest represents the portion of equity of PCF held by owners other than the Company. Noncontrolling interest is reported in the condensed consolidated balance sheets within equity, separately from stockholders’ equity. Revenue, expenses, and net income attributable to both the Company and the noncontrolling interest are reported in the condensed consolidated statements of operations.
Per Share Data	Per Share Data The Company calculates its basic and diluted earnings per common share (“EPS”) utilizing the two-class method. Under the two-class method, both basic and diluted EPS are calculated for each class of common stock considering distributions declared and accumulated, and the rights of common shares and participating securities in any undistributed earnings. Undistributed earnings are allocated to all outstanding common shares based on the relative percentage of each class of shares to the total number of outstanding shares. Non-vested shares of restricted Class K common stock totaling 2,250 K Shares as of September 30, 2019 held by the Company’s independent directors are included in the calculation of basic EPS because such shares have been issued and participate in distributions. The Company’s calculated EPS for the three and nine months ended September 30, 2019 and 2018, were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income (loss) $ 970,167 $ (300,472) $ 308,361 $ (1,016,606) Less: Class K Common Stock distributions declared and accumulated 331,039 183,082 828,495 433,362 Less: Class K-I Common Stock distributions declared and accumulated 50,849 2 78,107 4 Less: Class K-T Common Stock distributions declared and accumulated 1,857 2 2,475 4 Less: Class A Common Stock distributions declared and accumulated 81,274 47,723 223,024 133,353 Undistributed net income (loss) $ 505,148 $ (531,281) $ (823,740) $ (1,583,329) Class K Common Stock: Undistributed net income (loss) $ 345,553 $ (389,508) $ (574,376) $ (1,101,662) Class K Common Stock distributions declared and accumulated 331,039 183,082 828,495 433,362 Net income (loss) $ 676,592 $ (206,426) $ 254,119 $ (668,300) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 2,188,750 1,210,468 1,846,052 965,580 Class K-I Common Stock: Undistributed net income (loss) $ 53,076 $ (4) $ (54,138) $ (9) Class K-I Common Stock distributions declared and accumulated 50,849 2 78,107 4 Net income (loss) $ 103,925 $ (2) $ 23,969 $ (5) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 336,183 174,002 Class K-T Common Stock: Undistributed net income (loss) $ 1,939 $ (4) $ (1,708) $ (9) Class K-T Common Stock distributions declared and accumulated 1,857 2 2,475 4 Net income (loss) $ 3,796 $ (2) $ 767 $ (5) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 12,280 10 5,489 8 Class A Common Stock: Undistributed net income (loss) $ 84,845 $ (101,542) $ (154,626) $ (339,032) Class A Common Stock distributions declared and accumulated 81,274 47,723 223,024 133,353 Net income (loss) $ 166,119 $ (53,819) $ 68,398 $ (205,679) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 537,410 315,562 496,970 297,153 Class B Common Stock: Undistributed net income (loss) $ 19,735 $ (40,223) $ (38,892) $ (142,617) Net income (loss) per common share, basic and diluted $ 0.16 $ (0.32) $ (0.31) $ (1.14) Weighted average number of common shares outstanding, basic and diluted 125,000 125,000 125,000 125,000
New Accounting Standards	New Accounting Standards In February 2016, the FASB issued ASU No. 2016‑02, “ Leases” (“ASU No. 2016‑02”), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). ASU No. 2016‑02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. ASU No. 2016‑02 is effective for reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted the standard effective January 1, 2019, and applied the package of practical expedients that allows an entity to not reassess (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases and (iii) initial direct costs for any expired or existing leases. The Company applied the optional transition method in ASU No. 2018‑11, “ Leases ”, which allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, if any. The adoption did not have a material impact on the Company’s condensed consolidated financial statements. In August 2018, the FASB issued ASU No. 2018‑13, “ Fair Value Measurement (Topic 820):Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurements” (“ASU No. 2018‑13”). ASU No. 2018-13 requires new disclosures of changes in unrealized gains and losses in other comprehensive income for recurring Level 3 fair value of instruments held at the balance sheet date, as well as the range and weighted average or other quantitative information, if more relevant, of significant unobservable inputs for recurring and nonrecurring Level 3 fair values. Certain disclosures are now eliminated, specifically around the valuation process required for Level 3 fair values, policy for timing of transfers between levels of the fair value hierarchy, as well as amounts and reason for transfers between Levels 1 and 2. ASU No. 2018‑13 is effective for fiscal years and interim periods beginning after December 15, 2019. The adoption of this standard is not expected to have a material effect on the Company’s existing disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2019
Summary of Significant Accounting Policies
Schedule of EPS	Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Net income (loss) $ 970,167 $ (300,472) $ 308,361 $ (1,016,606) Less: Class K Common Stock distributions declared and accumulated 331,039 183,082 828,495 433,362 Less: Class K-I Common Stock distributions declared and accumulated 50,849 2 78,107 4 Less: Class K-T Common Stock distributions declared and accumulated 1,857 2 2,475 4 Less: Class A Common Stock distributions declared and accumulated 81,274 47,723 223,024 133,353 Undistributed net income (loss) $ 505,148 $ (531,281) $ (823,740) $ (1,583,329) Class K Common Stock: Undistributed net income (loss) $ 345,553 $ (389,508) $ (574,376) $ (1,101,662) Class K Common Stock distributions declared and accumulated 331,039 183,082 828,495 433,362 Net income (loss) $ 676,592 $ (206,426) $ 254,119 $ (668,300) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 2,188,750 1,210,468 1,846,052 965,580 Class K-I Common Stock: Undistributed net income (loss) $ 53,076 $ (4) $ (54,138) $ (9) Class K-I Common Stock distributions declared and accumulated 50,849 2 78,107 4 Net income (loss) $ 103,925 $ (2) $ 23,969 $ (5) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 336,183 174,002 Class K-T Common Stock: Undistributed net income (loss) $ 1,939 $ (4) $ (1,708) $ (9) Class K-T Common Stock distributions declared and accumulated 1,857 2 2,475 4 Net income (loss) $ 3,796 $ (2) $ 767 $ (5) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 12,280 10 5,489 8 Class A Common Stock: Undistributed net income (loss) $ 84,845 $ (101,542) $ (154,626) $ (339,032) Class A Common Stock distributions declared and accumulated 81,274 47,723 223,024 133,353 Net income (loss) $ 166,119 $ (53,819) $ 68,398 $ (205,679) Net income (loss) per common share, basic and diluted $ 0.31 $ (0.17) $ 0.14 $ (0.69) Weighted average number of common shares outstanding, basic and diluted 537,410 315,562 496,970 297,153 Class B Common Stock: Undistributed net income (loss) $ 19,735 $ (40,223) $ (38,892) $ (142,617) Net income (loss) per common share, basic and diluted $ 0.16 $ (0.32) $ (0.31) $ (1.14) Weighted average number of common shares outstanding, basic and diluted 125,000 125,000 125,000 125,000

Investments in Hotels (Tables)

Investments in Hotels (Tables)	9 Months Ended
	Sep. 30, 2019
Investments in Hotels
Schedule of investments in hotel properties	Contract Mortgage Date Ownership Purchase Debt Property Name Acquired Location Interest Price (1) (2) Rooms Outstanding Springhill Suites Wilmington 05/24/2017 (1) Wilmington, NC 51 % $ 18,000,000 120 $ 11,268,000 Staybridge Suites St. Petersburg 06/29/2017 (1) St. Petersburg, FL 51 % $ 20,500,000 119 $ 13,325,000 Hotel Indigo Traverse City 08/15/2018 Traverse City,MI 100 % $ 26,050,000 107 $ 15,092,000 (3) (1) Represents the date and contract purchase price of PCF’s acquisition of the Springhill Suites Wilmington property (the “Springhill Suites Wilmington”) and the Staybridge Suites St. Petersburg property (the “Staybridge Suites St. Petersburg”). The Company exercised its option under an option agreement to purchase a 51% membership interest in PCF on March 29, 2018. (2) Contract purchase price excludes acquisition fees and costs. (3) Original principal loan balance was $17,836,000. As of September 30, 2019, the Company repaid $2,744,000 of the original outstanding principal balance.
Schedule of investments in hotel properties, fixed assets	September 30, December 31, 2019 2018 Land $ 7,987,069 $ 7,987,069 Building and improvements 53,466,513 53,318,816 Furniture, fixtures, and equipment 5,325,299 4,759,475 Construction in progress — 12,837 Total cost 66,778,881 66,078,197 Accumulated depreciation (2,957,276) (1,297,152) Property and equipment, net $ 63,821,605 $ 64,781,045

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2019
Stockholders' Equity
Schedule of length of time use to calculate repurchase price	Share Purchase Anniversary Repurchase Price on Repurchase Date Less than 1 year No Repurchase Allowed 1 year 92.5% of most recent per share NAV 2 years 95.0% of most recent per share NAV 3 years 97.5% of most recent per share NAV 4 years 100.0% of most recent per share NAV In the event of a stockholder's death or disability 100.0% of most recent per share NAV

Organization and Description _2

Organization and Description of Business (Details)	May 23, 2019USD ($)$ / shares	Aug. 14, 2018USD ($)	Sep. 30, 2016USD ($)$ / sharesshares	Sep. 30, 2019USD ($)stateroomitem$ / shares	Nov. 01, 2019$ / shares	Mar. 31, 2019$ / shares	Dec. 31, 2018$ / shares	Nov. 16, 2018$ / shares	Feb. 28, 2018$ / shares
Subsidiary, Sale of Stock [Line Items]
Number of owned interests in select - service hotels | item				3
Number of states select service hotels located | state				3
Number of select service hotels rooms | room				346
Initial public offering
Subsidiary, Sale of Stock [Line Items]
Amount of shares sold for termination of private offering prior to commencement of public offering | $				$ 15,325,017
Amount of shares authorized under IPO | $		$ 550,000,000
Amount of shares offered | $		$ 500,000,000
Estimated net asset value | $	$ 50,000,000
Private offering
Subsidiary, Sale of Stock [Line Items]
Units issued, price per unit			$ 50
Class A Common Stock
Subsidiary, Sale of Stock [Line Items]
Common stock, par value per share (in dollars per share)				$ 0.01			$ 0.01
Class A Common Stock | Director
Subsidiary, Sale of Stock [Line Items]
Net Asset Value Per Share						$ 3.97			$ 0
Class A Common Stock | Private offering
Subsidiary, Sale of Stock [Line Items]
Number of shares consist in one units | shares			1
Common stock, par value per share (in dollars per share)			$ 0.01
Amount of shares sold for termination of private offering prior to commencement of public offering | $			$ 2,954,095	$ 2,190,000
Selling commissions | $			782,705
Dealer manager fees | $			275,794
Other offering costs | $			1,083,912
Class B Common Stock
Subsidiary, Sale of Stock [Line Items]
Common stock, par value per share (in dollars per share)				$ 0.01			0.01
Class B Common Stock | Director
Subsidiary, Sale of Stock [Line Items]
Shares issued price per share						0			0
Class K Shares and Class A shares | Private offering
Subsidiary, Sale of Stock [Line Items]
Amount of shares sold for termination of private offering prior to commencement of public offering | $			$ 15,582,755
Class K Common Stock
Subsidiary, Sale of Stock [Line Items]
Common stock, par value per share (in dollars per share)				0.01			0.01
Shares issued price per share				9.25	$ 10
Class K Common Stock | Distribution reinvestment plan
Subsidiary, Sale of Stock [Line Items]
Initial offering price per share	$ 9.50
Proceeds from DRIP | $	$ 12,527
Class K Common Stock | Initial public offering
Subsidiary, Sale of Stock [Line Items]
Initial offering price per share	$ 10
Shares issued price per share									10
Net Asset Value Per Share						10
Class K Common Stock | Private offering
Subsidiary, Sale of Stock [Line Items]
Number of shares consist in one units | shares			4
Targeted maximum offering | $			$ 150,000,000
Common stock, par value per share (in dollars per share)			$ 0.01
Shares issued price per share			$ 10
Class K-I Common Stock
Subsidiary, Sale of Stock [Line Items]
Common stock, par value per share (in dollars per share)				0.01			0.01
Shares issued price per share				10
Class K-I Common Stock | Distribution reinvestment plan
Subsidiary, Sale of Stock [Line Items]
Initial offering price per share	$ 9.50
Proceeds from DRIP | $	$ 11,986
Class K-I Common Stock | Initial public offering
Subsidiary, Sale of Stock [Line Items]
Initial offering price per share	$ 9.50							$ 9.30
Shares issued price per share									10
Net Asset Value Per Share						10
Class K-I Common Stock | Initial public offering | Distribution reinvestment plan
Subsidiary, Sale of Stock [Line Items]
Initial offering price per share								$ 9.50
Class K-T Common Stock
Subsidiary, Sale of Stock [Line Items]
Common stock, par value per share (in dollars per share)				0.01			$ 0.01
Shares issued price per share				$ 10
Class K-T Common Stock | Distribution reinvestment plan
Subsidiary, Sale of Stock [Line Items]
Initial offering price per share	$ 9.50
Proceeds from DRIP | $	$ 112
Class K-T Common Stock | Initial public offering
Subsidiary, Sale of Stock [Line Items]
Initial offering price per share	$ 10
Shares issued price per share									$ 10
Net Asset Value Per Share						$ 10

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - EPS (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Undistributed net income (loss)	$ 505,148	$ (531,281)	$ (823,740)	$ (1,583,329)
Net income (loss)	970,167	(300,472)	308,361	(1,016,606)
Class K Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Undistributed net income (loss)	345,553	(389,508)	(574,376)	(1,101,662)
Common Stock distributions declared and accumulated	331,039	183,082	828,495	433,362
Net income (loss)	$ 676,592	$ (206,426)	$ 254,119	$ (668,300)
Net income (loss) per common share - basic and diluted (in dollars per share)	$ 0.31	$ (0.17)	$ 0.14	$ (0.69)
Weighted average number of common shares outstanding, basic and diluted (in shares)	2,188,750	1,210,468	1,846,052	965,580
Class K-I Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Undistributed net income (loss)	$ 53,076	$ (4)	$ (54,138)	$ (9)
Common Stock distributions declared and accumulated	50,849	2	78,107	4
Net income (loss)	$ 103,925	$ (2)	$ 23,969	$ (5)
Net income (loss) per common share - basic and diluted (in dollars per share)	$ 0.31	$ (0.17)	$ 0.14	$ (0.69)
Weighted average number of common shares outstanding, basic and diluted (in shares)	336,183	10	174,002	8
Class K-T Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Undistributed net income (loss)	$ 1,939	$ (4)	$ (1,708)	$ (9)
Common Stock distributions declared and accumulated	1,857	2	2,475	4
Net income (loss)	$ 3,796	$ (2)	$ 767	$ (5)
Net income (loss) per common share - basic and diluted (in dollars per share)	$ 0.31	$ (0.17)	$ 0.14	$ (0.69)
Weighted average number of common shares outstanding, basic and diluted (in shares)	12,280	10	5,489	8
Class A Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Undistributed net income (loss)	$ 84,845	$ (101,542)	$ (154,626)	$ (339,032)
Common Stock distributions declared and accumulated	81,274	47,723	223,024	133,353
Net income (loss)	$ 166,119	$ (53,819)	$ 68,398	$ (205,679)
Net income (loss) per common share - basic and diluted (in dollars per share)	$ 0.31	$ (0.17)	$ 0.14	$ (0.69)
Weighted average number of common shares outstanding, basic and diluted (in shares)	537,410	315,562	496,970	297,153
Class B Common Stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Undistributed net income (loss)	$ 19,735	$ (40,223)	$ (38,892)	$ (142,617)
Net income (loss)	$ 19,735	$ (40,223)	$ (38,892)	$ (142,617)
Net income (loss) per common share - basic and diluted (in dollars per share)	$ 0.16	$ (0.32)	$ (0.31)	$ (1.14)
Weighted average number of common shares outstanding, basic and diluted (in shares)	125,000	125,000	125,000	125,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Additional information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Total of VIE and asset acquisition:
Carrying value of mortgage notes payable	$ 39,411,733	$ 41,078,124
Procaccianti Convertible Fund, LLC (PCF)
Total of VIE and asset acquisition:
Reserves for property taxes	542,864
Reserves for capital improvements	1,226,962
Advance deposits	19,005
Fair value of mortgage notes payable	40,723,058
Carrying value of mortgage notes payable	$ 39,548,322
Percentages of annual taxable income to stockholders	90.00%
Procaccianti Convertible Fund, LLC (PCF) | Restricted common stock | Director | Class K Common Stock
Total of VIE and asset acquisition:
Number of shares issued and participate in dividends	2,250
Procaccianti Convertible Fund, LLC (PCF) | Variable Interest Entity, Primary Beneficiary
Total of VIE and asset acquisition:
Variable interest entity, ownership percentage	51.00%
Variable interest entity, total assets	$ 38,952,599
Variable interest entity, total liabilities	$ 26,059,071

Investments in Hotels - Investm

Investments in Hotels - Investments in hotel properties (Details)	9 Months Ended
	Sep. 30, 2019USD ($)room
Schedule of Investments [Line Items]
Mortgage debt Outstanding	$ 17,836,000
Springhill Suites Wilmington Mayfaire
Schedule of Investments [Line Items]
Date Acquired	Apr. 25, 2017	[1]
Location	Wilmington, NC
Ownership interest	51.00%
Contract Purchase Price	$ 18,000,000	[1],[2]
Rooms | room	120
Mortgage debt Outstanding	$ 11,268,000
Staybridge Suites St. Petersburg
Schedule of Investments [Line Items]
Date Acquired	Jun. 29, 2017	[1]
Location	St. Petersburg, FL
Ownership interest	51.00%
Contract Purchase Price	$ 20,500,000	[1],[2]
Rooms | room	119
Mortgage debt Outstanding	$ 13,325,000
Hotel Indigo Traverse City
Schedule of Investments [Line Items]
Date Acquired	Aug. 15, 2018
Location	Traverse City,MI
Ownership interest	100.00%
Contract Purchase Price	$ 26,050,000	[1],[2]
Rooms | room	107
Mortgage debt Outstanding	$ 15,092,000	[3]
[1]	Represents the date and contract purchase price of PCF’s acquisition of the Springhill Suites Wilmington property (the “Springhill Suites Wilmington”) and the Staybridge Suites St. Petersburg property (the “Staybridge Suites St. Petersburg”). The Company exercised its option under an option agreement to purchase a 51% membership interest in PCF on March 29, 2018.
[2]	Contract purchase price excludes acquisition fees and costs.
[3]	Original principal loan balance was $17,836,000. As of September 30, 2019, the Company repaid $2,744,000 of the original outstanding principal balance.

Investments in Hotels - Inves_2

Investments in Hotels - Investment in hotel properties consist of fixed assets (Details) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Investments in Hotels
Land	$ 7,987,069	$ 7,987,069
Building and improvements	53,466,513	53,318,816
Furniture, fixtures, and equipment	5,325,299	4,759,475
Construction in progress		12,837
Total cost	66,778,881	66,078,197
Accumulated depreciation	(2,957,276)	(1,297,152)
Property and equipment, net	$ 63,821,605	$ 64,781,045

Investments in Hotels - Additio

Investments in Hotels - Additional information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Mar. 29, 2018
Business Acquisition [Line Items]
Principal amount	$ 17,836,000		$ 17,836,000
Repayment of outstanding principal balance			2,744,000
Depreciation expense	$ 563,489	$ 426,830	$ 1,660,124	$ 774,177
Procaccianti Convertible Fund, LLC (PCF)
Business Acquisition [Line Items]
Entity ownership percentage					51.00%

Mortgage Notes Payable (Details

Mortgage Notes Payable (Details) - USD ($)	Aug. 15, 2018	Aug. 15, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Mortgage notes payable, net			$ 39,411,733		$ 39,411,733		$ 41,078,124
Mortgage notes payable			17,836,000		17,836,000
Repayment of outstanding principal balance					2,744,000
Interest expense on mortgage notes payable					1,449,205	$ 954,371
Deferred finance costs and debt discounts			25,870		77,609	$ 27,142
Interest expense on mortgage notes payable			517,001	$ 409,540
Interest rate swap
Debt Instrument [Line Items]
Mortgage note due date	Aug. 15, 2021
Mortgage payable secured by Staybridge Suites St Petersburg
Debt Instrument [Line Items]
Mortgage notes payable, net			$ 13,325,000		$ 13,325,000
Interest rate			4.34%		4.34%
Interest payments					$ 66,255
Interest payment starting date					Aug. 1, 2020
Interest payment ending date					Jul. 1, 2024
Mortgage payable secured by The Springhill Suites Wilmington Mayfaire
Debt Instrument [Line Items]
Mortgage notes payable, net			$ 11,268,000		$ 11,268,000
Interest rate			4.49%		4.49%
Interest payments					$ 57,026
Interest payment starting date					Jun. 1, 2020
Interest payment ending date					Jun. 1, 2024
Mortgage payable secured by the Hotel Indigo Traverse City
Debt Instrument [Line Items]
Mortgage notes payable, net			$ 15,092,000		$ 15,092,000
Mortgage notes payable	$ 17,836,000	$ 17,836,000
Repayment of outstanding principal balance					$ 2,744,000
Debt Instrument, Basis Spread on Variable Rate					2.50%
Description of variable rate					LIBOR rate
Mortgage payable secured by the Hotel Indigo Traverse City | Interest rate swap
Debt Instrument [Line Items]
Mortgage note due date		Aug. 15, 2021
Mortgage payable
Debt Instrument [Line Items]
Deferred finance costs and debt discounts					$ 403,887

Interest Rate Swap (Details)

Interest Rate Swap (Details) - USD ($)	Aug. 15, 2018	Sep. 30, 2019	Sep. 30, 2019
Derivatives, Fair Value [Line Items]
Unrealized loss on interest rate swap		$ (18,543)	$ (245,891)
Interest rate swap
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	$ 15,092,000
Interest Rate	2.80%
Mortgage note due date	Aug. 15, 2021
Fair Value of Liability	$ 392,581

Related Party Transactions - Ac

Related Party Transactions - Acquisition Fee, Asset Management Fee and Disposition Fee (Details) - Advisory agreement with PHA and Operating Partnership - Procaccianti Hotel Advisors, LLC ("PHA") - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Related Party Transaction [Line Items]
Term of agreement			1 year
Percentage of total acquisition fee payable to PHA			1.50%
Non-compounded rate of interest on deferred acquisition fees			6.00%
Acquisition fee	$ 413,001		$ 537,980
Acquisition fees in due to related parties			537,980
Accrued interest on outstanding acquisition fees	8,136	$ 5,013	$ 24,143	$ 6,944
One fourth of percentage of quarterly asset management fee			0.75%
Non-compounded rate of interest on deferred asset management fees			6.00%
Asset management fees	88,358	61,334	$ 263,700	99,962
Accrued interest on outstanding asset management fees	$ 6,822	$ 1,320	$ 16,301	$ 1,899
Maximum percentage of sales price of real estate investment as disposition fee			1.50%
Non-compounded rate of interest on deferred disposition fees			6.00%

Related Party Transactions - Or

Related Party Transactions - Organization and Offering Costs, Advances to PHA and Property Management Fee and Reimbursement (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Related Party Transaction [Line Items]
Offering costs paid to PHA through issuance of A Shares			$ 1,071,511	$ 514,325
Due from related parties	$ 612,728		612,728		$ 1,499,532
Aggregate property management fees	177,041	$ 118,062	425,866	197,761
Accrued property management fees payable	54,668		54,668
Aggregate net reimbursements	14,467		42,423
Reimbursements expenses			715
TPG Risk Services, LLC
Related Party Transaction [Line Items]
Reimbursement of prepaid insurance	162,367		221,940
Advisory agreement with PHA and Operating Partnership
Related Party Transaction [Line Items]
Due from related parties	224,411		224,411
Advances for organization and offering costs			1,435,263
Advisory agreement with PHA and Operating Partnership | Procaccianti Hotel Advisors, LLC ("PHA")
Related Party Transaction [Line Items]
Recognized organization and offering costs			$ 2,187,153	1,194,714
Percentage of gross proceeds on public offering			15.00%
Offering costs paid to PHA through issuance of A Shares			$ 0	$ 571,673
Organization and offering costs incurred by PHA and its affiliates	7,161,152		7,161,152
Reimbursement of organization and offering costs through issuance of A shares	1,026,564		1,026,564
Reimbursement of common shares issuance to affiliate	1,438,214		1,438,214
Amount of organization and offering costs reimbursable	3,439,594		3,439,594
Advance payment to PHA for general and administrative expenses			730,000
Due from related parties	$ 337,747		337,747
Actual general and administrative expenses paid			392,253
Advances for organization and offering costs			$ 1,659,674
Term of agreement			1 year
Hotel management agreement with PHR St. Petersburg Hotel Manager, LLC
Related Party Transaction [Line Items]
Term of agreement			4 years
Percentage of hotel's gross revenues as base management fee			3.00%
Hotel management agreements with PHR Traverse City Hotel Manager, LLC (the TCI Manager)
Related Party Transaction [Line Items]
Term of agreement			5 years
Percentage of hotel's gross revenues as base management fee			3.00%

Related Party Transactions - Co

Related Party Transactions - Construction Management Fee, Payment Upon Other Advisory Agreement Termination and Loans from Affiliates (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018	Aug. 15, 2018
Related Party Transaction [Line Items]
Construction Management Fees	$ 8,083		$ 30,870
Due from related parties	612,728		612,728		$ 1,499,532
Principal amount	17,836,000		17,836,000
Due to related parties	1,250,566		1,250,566		$ 7,503,357
Unsecured loan
Related Party Transaction [Line Items]
Principal amount						$ 6,600,000
Interest rate						4.75%
Interest expense	1,041		116,896
TPG Construction, LLC
Related Party Transaction [Line Items]
Reimbursement of capital expenditure costs	148,428		694,004
Due from related parties	50,570		50,570
Due to related parties	47,442		47,442
Procaccianti Hotel Advisors, LLC ("PHA")
Related Party Transaction [Line Items]
Principal amount	94,194		94,194
Interest expense	$ 666	$ 666	$ 2,021	$ 1,976
Percentage of long term applicable federal rate	2.81%	2.81%	2.87%	2.80%
Advisory agreement with PHA and Operating Partnership
Related Party Transaction [Line Items]
Due from related parties	$ 224,411		$ 224,411
Stated value of A shares repurchased in Non-cause Advisory Agreement Termination	$ 10		$ 10
Non-compounded annual rate of accrued interest on deferred fees if agreement terminates for cause	6.00%		6.00%
Advisory agreement with PHA and Operating Partnership | Procaccianti Hotel Advisors, LLC ("PHA")
Related Party Transaction [Line Items]
Due from related parties	$ 337,747		$ 337,747

Stockholders' Equity - Per shar

Stockholders' Equity - Per share repurchase price (Details)	9 Months Ended
	Sep. 30, 2019
Less than 1 year
Class of Stock [Line Items]
Repurchase Price on Repurchase Date	No Repurchase Allowed
1 year
Class of Stock [Line Items]
Repurchase Price on Repurchase Date	92.5% of most recent per share NAV
2 years
Class of Stock [Line Items]
Repurchase Price on Repurchase Date	95.0% of most recent per share NAV
3 years
Class of Stock [Line Items]
Repurchase Price on Repurchase Date	97.5% of most recent per share NAV
4 years
Class of Stock [Line Items]
Repurchase Price on Repurchase Date	100.0% of most recent per share NAV
In the event of a stockholder's death or disability
Class of Stock [Line Items]
Repurchase Price on Repurchase Date	100.0% of most recent per share NAV

Stockholders' Equity - Addition

Stockholders' Equity - Additional information 1 (Details) - $ / shares	9 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Class of Stock [Line Items]
Common stock, shares authorized	248,125,000
Class K Common Stock
Class of Stock [Line Items]
Common stock, shares authorized	55,500,000	55,500,000
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, voting rights	one vote
Rate of cumulative cash distributions	6.00%
Base distribution per share	$ 10
Percentage of excess cash available for distribution	50.00%
Percentage of remaining liquidation cash distribution on pro rata basis	50.00%
Class K-I Common Stock
Class of Stock [Line Items]
Common stock, shares authorized	55,500,000	55,500,000
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, voting rights	one vote
Rate of cumulative cash distributions	6.00%
Base distribution per share	$ 10
Percentage of excess cash available for distribution	50.00%
Percentage of remaining liquidation cash distribution on pro rata basis	50.00%
Class K-T Common Stock
Class of Stock [Line Items]
Common stock, shares authorized	116,000,000	116,000,000
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, voting rights	one vote
Rate of cumulative cash distributions	6.00%
Base distribution per share	$ 10
Percentage of excess cash available for distribution	50.00%
Percentage of remaining liquidation cash distribution on pro rata basis	50.00%
Class A Common Stock
Class of Stock [Line Items]
Common stock, shares authorized	21,000,000	21,000,000
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Common stock, voting rights	one vote
Rate of cumulative cash distributions	6.00%
Base distribution per share	$ 10
Percentage of excess cash available for distribution	37.50%
Percentage of remaining liquidation cash distribution on pro rata basis	37.50%
Class B Common Stock
Class of Stock [Line Items]
Common stock, shares authorized	125,000	125,000
Common stock, par value per share (in dollars per share)	$ 0.01	$ 0.01
Percentage of excess cash available for distribution	12.50%
Percentage of remaining liquidation cash distribution on pro rata basis	12.50%

Stockholders' Equity - Additi_2

Stockholders' Equity - Additional information 2 (Details)	Nov. 01, 2019USD ($)$ / sharesshares	Nov. 11, 2019USD ($)$ / sharesshares	Sep. 29, 2016shares	Sep. 30, 2019USD ($)director$ / sharesshares	Jun. 30, 2019USD ($)shares	Mar. 31, 2019USD ($)shares	Sep. 30, 2018USD ($)shares	Jun. 30, 2018USD ($)shares	Mar. 31, 2018USD ($)shares	Sep. 30, 2019USD ($)director$ / sharesshares	Sep. 30, 2018USD ($)	Dec. 31, 2018shares	Feb. 28, 2018$ / shares	Sep. 30, 2016$ / shares
Class of Stock [Line Items]
Proceeds from issuance of common stock | $										$ 14,556,393	$ 7,964,959
Value of issuance of common stock | $				$ 5,780,596	$ 5,307,625	$ 3,468,172	$ 1,544,199	$ 2,667,721	$ 3,753,039
Value of share repurchase | $				23,125			$ 23,125
S2K Servicing LLC (S2K) | Initial public offering
Class of Stock [Line Items]
Selling commissions and dealer manager fees | $				$ 1,245,965						1,245,965
Value of stockholder servicing fee | $										$ 422
Class K Common Stock
Class of Stock [Line Items]
Common stock, shares issued				2,372,121						2,372,121		1,364,918
Issuance of common stock (in shares)				389,755	319,983	298,646	147,399	263,932	293,196	2,500
Shares issued price per share | $ / shares	$ 10			$ 9.25						$ 9.25
Value of issuance of common stock | $				$ 3,897	$ 3,200	$ 2,987	$ 1,474	$ 2,639	$ 2,932
Value of share repurchase | $				$ 25			$ 25			$ 23,125
Percentage of excess cash as special distribution declared on pro rata basis										50.00%
Percentage of excess liquidation cash as special distribution declared on pro rata basis										50.00%
Class K Common Stock | Initial public offering
Class of Stock [Line Items]
Shares issued price per share | $ / shares													$ 10
Class K Common Stock | Initial public offering | Distribution reinvestment plan
Class of Stock [Line Items]
Issuance of common stock (in shares)										1,319
Value of issuance of common stock | $										$ 12,527
Class K Common Stock | Private offering
Class of Stock [Line Items]
Shares issued price per share | $ / shares														$ 10
Class K Common Stock | Unaffiliated investors | Initial public offering
Class of Stock [Line Items]
Common stock, shares issued				1,137,435						1,137,435
Proceeds from issuance of common stock | $										$ 11,360,443
Class K Common Stock | Unaffiliated investors | Private offering
Class of Stock [Line Items]
Common stock, shares issued				1,253,618						1,253,618
Proceeds from issuance of common stock | $										$ 12,398,660
Class K Common Stock | S2K Servicing LLC (S2K) | Initial public offering
Class of Stock [Line Items]
Dealer manager selling commissions percentage										7.00%
Dealer manager fee, percentage										3.00%
Class K Common Stock | S2K Servicing LLC (S2K) | Private offering
Class of Stock [Line Items]
Dealer manager selling commissions percentage										7.00%
Selling commissions, percentage										3.00%
Class K Common Stock | Investors | Distribution reinvestment plan
Class of Stock [Line Items]
Issuance of common stock (in shares)										1,319
Shares issued price per share | $ / shares				$ 9.50						$ 9.50
Value of issuance of common stock | $										$ 12,527
Class K Common Stock | Investors | Initial public offering
Class of Stock [Line Items]
Issuance of common stock (in shares)										1,006,135
Shares issued price per share | $ / shares				$ 9.99						$ 9.99
Value of issuance of common stock | $										$ 10,047,443
Class K Common Stock | Three Independent director
Class of Stock [Line Items]
Number of restricted shares issued										2,250
Number of independent directors | director				3						3
Class K Common Stock | Independent director one
Class of Stock [Line Items]
Number of restricted shares issued										750
Class K Common Stock | Independent director two
Class of Stock [Line Items]
Number of restricted shares issued										750
Class K Common Stock | Independent director three
Class of Stock [Line Items]
Number of restricted shares issued										750
Class A Common Stock
Class of Stock [Line Items]
Common stock, shares issued				537,410						537,410		468,410
Issuance of common stock (in shares)					69,000		8,000	4,000	84,000
Value of issuance of common stock | $					$ 690		$ 80	$ 40	$ 840
Percentage of excess cash if A shares repurchased in Non-cause Advisory Agreement Termination										87.50%
Percentage of excess liquidation cash if A shares repurchased in Non-cause Advisory Agreement Termination										87.50%
Class A Common Stock | Unaffiliated investors | Private offering
Class of Stock [Line Items]
Common stock, shares issued				23,000						23,000
Proceeds from issuance of common stock | $										$ 230,000
Class A Common Stock | TPG Hotel REIT Investor, LLC (THR)
Class of Stock [Line Items]
Common stock, shares issued				384,410						384,410
Proceeds from issuance of common stock | $										$ 3,844,095
Number of shares issued in exchange of notes receivable										130,000
Shares issued price per share | $ / shares				$ 10						$ 10
Class A Common Stock | Procaccianti Hotel Advisors, LLC ("PHA")
Class of Stock [Line Items]
Percentage of excess cash if A shares repurchased in Non-cause Advisory Agreement Termination										37.50%
Percentage of excess liquidation cash if A shares repurchased in Non-cause Advisory Agreement Termination										37.50%
Class B Common Stock
Class of Stock [Line Items]
Common stock, shares issued				125,000						125,000		125,000
Percentage of excess cash as special distribution declared on pro rata basis										12.50%
Percentage of excess liquidation cash as special distribution declared on pro rata basis										12.50%
Class B Common Stock | S2K Servicing LLC (S2K)
Class of Stock [Line Items]
Number of shares issued in exchange of notes receivable			125,000
Class K-I Common Stock
Class of Stock [Line Items]
Common stock, shares issued				388,618						388,618		12,243
Issuance of common stock (in shares)				174,463	146,495	54,156			10
Shares issued price per share | $ / shares				$ 10						$ 10
Value of issuance of common stock | $				$ 1,745	$ 1,465	$ 542
Number of shares sold (in shares)										10
Value of shares sold | $										$ 100
Percentage of excess cash as special distribution declared on pro rata basis										50.00%
Percentage of excess liquidation cash as special distribution declared on pro rata basis										50.00%
Class K-I Common Stock | Initial public offering
Class of Stock [Line Items]
Shares issued price per share | $ / shares													10
Class K-I Common Stock | Initial public offering | Distribution reinvestment plan
Class of Stock [Line Items]
Issuance of common stock (in shares)										1,262
Value of issuance of common stock | $										$ 11,986
Class K-I Common Stock | Unaffiliated investors | Initial public offering
Class of Stock [Line Items]
Common stock, shares issued				387,346						387,346
Proceeds from issuance of common stock | $										$ 3,604,550
Class K-I Common Stock | S2K Servicing LLC (S2K) | Initial public offering
Class of Stock [Line Items]
Dealer manager fee, percentage										3.00%
Class K-I Common Stock | Investors | Distribution reinvestment plan
Class of Stock [Line Items]
Issuance of common stock (in shares)										1,262
Shares issued price per share | $ / shares				$ 9.50						$ 9.50
Value of issuance of common stock | $										$ 11,986
Class K-I Common Stock | Investors | Initial public offering
Class of Stock [Line Items]
Issuance of common stock (in shares)										375,113
Shares issued price per share | $ / shares				$ 9.30						$ 9.30
Value of issuance of common stock | $										$ 3,488,550
Class K-T Common Stock
Class of Stock [Line Items]
Common stock, shares issued				33,562						33,562		510
Issuance of common stock (in shares)				27,500	5,540				10
Shares issued price per share | $ / shares				$ 10						$ 10
Value of issuance of common stock | $				$ 275	$ 56
Number of shares sold (in shares)										10
Value of shares sold | $										$ 100
Percentage of excess cash as special distribution declared on pro rata basis										50.00%
Percentage of excess liquidation cash as special distribution declared on pro rata basis										50.00%
Class K-T Common Stock | Initial public offering
Class of Stock [Line Items]
Shares issued price per share | $ / shares													$ 10
Class K-T Common Stock | Initial public offering | Distribution reinvestment plan
Class of Stock [Line Items]
Issuance of common stock (in shares)										12
Value of issuance of common stock | $										$ 112
Class K-T Common Stock | Unaffiliated investors | Initial public offering
Class of Stock [Line Items]
Common stock, shares issued				33,540						33,540
Proceeds from issuance of common stock | $										$ 335,400
Class K-T Common Stock | S2K Servicing LLC (S2K) | Initial public offering
Class of Stock [Line Items]
Dealer manager selling commissions percentage										3.00%
Dealer manager fee, percentage										3.00%
Stockholder servicing fee, percentage										1.00%
Class K-T Common Stock | Investors | Distribution reinvestment plan
Class of Stock [Line Items]
Issuance of common stock (in shares)										12
Shares issued price per share | $ / shares				$ 9.50						$ 9.50
Value of issuance of common stock | $										$ 112
Class K-T Common Stock | Investors | Initial public offering
Class of Stock [Line Items]
Issuance of common stock (in shares)										33,040
Shares issued price per share | $ / shares				$ 10						$ 10
Value of issuance of common stock | $										$ 330,400
Subsequent event | Class K Common Stock
Class of Stock [Line Items]
Issuance of common stock (in shares)	4,278
Value of share repurchase | $	$ 42,781
Subsequent event | Class K Common Stock | Investors | Distribution reinvestment plan
Class of Stock [Line Items]
Issuance of common stock (in shares)		1,640
Shares issued price per share | $ / shares		$ 9.50
Value of issuance of common stock | $		$ 15,575
Subsequent event | Class K Common Stock | Investors | Initial public offering
Class of Stock [Line Items]
Issuance of common stock (in shares)		116,098
Shares issued price per share | $ / shares		$ 9.97
Value of issuance of common stock | $		$ 1,157,500
Subsequent event | Class K-I Common Stock | Investors | Distribution reinvestment plan
Class of Stock [Line Items]
Issuance of common stock (in shares)		2,169
Shares issued price per share | $ / shares		$ 9.50
Value of issuance of common stock | $		$ 20,610
Subsequent event | Class K-I Common Stock | Investors | Initial public offering
Class of Stock [Line Items]
Issuance of common stock (in shares)		31,774
Shares issued price per share | $ / shares		$ 9.30
Value of issuance of common stock | $		$ 295,496
Subsequent event | Class K-T Common Stock | Investors | Distribution reinvestment plan
Class of Stock [Line Items]
Issuance of common stock (in shares)		55
Shares issued price per share | $ / shares		$ 9.50
Subsequent event | Class K-T Common Stock | Investors | Initial public offering
Class of Stock [Line Items]
Issuance of common stock (in shares)		3,000
Shares issued price per share | $ / shares		$ 10
Value of issuance of common stock | $		$ 30,000
Subsequent event | Class K-T Common Stock | Investors | Initial public offering | Distribution reinvestment plan
Class of Stock [Line Items]
Value of issuance of common stock | $		$ 518

Stockholders' Equity - Additi_3

Stockholders' Equity - Additional information 3 (Details) - USD ($)	Feb. 11, 2019	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2018
Director
Class of Stock [Line Items]
Annual compensation paid to independent directors				$ 27,500
Amount for each board meeting attended in person				1,000
Amount for each board meeting attended via teleconference				500
Amount for each audit committee meeting attended in person				500
Amount for each audit committee meeting attended in person by chairperson				375
Amount for each audit committee meeting attended via teleconference				250
Maximum fees paid to each director per day				1,500
Director | Accounts payable, accrued expenses and other, net
Class of Stock [Line Items]
Annual compensation paid to independent directors				27,000		$ 27,000
Director | Corporate general and administrative expenses
Class of Stock [Line Items]
Annual compensation paid to independent directors		$ 27,000	$ 20,625	$ 76,875	$ 64,875
Long-term incentive plan | Director | Restricted K shares
Class of Stock [Line Items]
Number of shares awarded	500			250
Additional number of shares awarded				250
Award vesting period				4 years
Award vesting increments percentage				25.00%
Award terms				(1) the termination of the independent director's service as a director due to his or her death or disability, or (2) a change in control of the Company.
Number of shares issuable in future	250
Long-term incentive plan | Independent director two | Restricted K shares
Class of Stock [Line Items]
Number of shares awarded	500
Number of shares issuable in future	250
Long-term incentive plan | Independent director three | Restricted K shares
Class of Stock [Line Items]
Number of shares awarded	500
Number of shares issuable in future	250
Long-term incentive plan | Three independent directors | Restricted K shares
Class of Stock [Line Items]
Number of shares awarded	1,500

Stockholders' Equity - Additi_4

Stockholders' Equity - Additional information 4 (Details) - USD ($)	Nov. 01, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Sep. 30, 2019
Class of Stock [Line Items]
Issuance of common stock		$ 5,780,596	$ 5,307,625	$ 3,468,172	$ 1,544,199	$ 2,667,721	$ 3,753,039
Class K Common Stock
Class of Stock [Line Items]
Issuance of common stock (in shares)		389,755	319,983	298,646	147,399	263,932	293,196	2,500
Issuance of common stock		$ 3,897	$ 3,200	$ 2,987	$ 1,474	$ 2,639	$ 2,932
Shares issued price per share	$ 10	$ 9.25						$ 9.25
Class K Common Stock | Subsequent event
Class of Stock [Line Items]
Issuance of common stock (in shares)	4,278
Class K-I Common Stock
Class of Stock [Line Items]
Issuance of common stock (in shares)		174,463	146,495	54,156			10
Issuance of common stock		$ 1,745	$ 1,465	$ 542
Shares issued price per share		$ 10						10
Class K-T Common Stock
Class of Stock [Line Items]
Issuance of common stock (in shares)		27,500	5,540				10
Issuance of common stock		$ 275	$ 56
Shares issued price per share		$ 10						$ 10
A&R SRP | Class K Common Stock
Class of Stock [Line Items]
Percentage of weighted average number of shares outstanding								5.00%
Minimum balance required to be maintained by stockholders								$ 2,000
Maximum balance of shares requested to be repurchased								100
Prior period of share repurchase								15 days
Repurchase requests period								30 days
A&R SRP | Class K-I Common Stock
Class of Stock [Line Items]
Percentage of weighted average number of shares outstanding								5.00%
Minimum balance required to be maintained by stockholders								$ 0
Maximum balance of shares requested to be repurchased								100
Prior period of share repurchase								15 days
Repurchase requests period								30 days
A&R SRP | Class K-T Common Stock
Class of Stock [Line Items]
Percentage of weighted average number of shares outstanding								5.00%
Minimum balance required to be maintained by stockholders								$ 0
Maximum balance of shares requested to be repurchased								100
Prior period of share repurchase								15 days
Repurchase requests period								30 days

Stockholders' Equity - Additi_5

Stockholders' Equity - Additional information 5 (Details) - USD ($)	Nov. 01, 2019	Oct. 29, 2019	Oct. 31, 2019	Oct. 29, 2019	Jul. 31, 2019	Apr. 29, 2019	Jan. 25, 2019	Sep. 30, 2019	Dec. 31, 2018
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Cumulative distributions								$ 1,247,863	$ 527,556
Distributions | Class K Common Stock
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Cumulative distributions					$ 272,176	$ 225,280	$ 193,826
Cumulative amount of distribution per share per day					$ 0.0016438356	$ 0.0016438356	$ 0.0016438356
Date of Record					Aug. 1, 2019	Apr. 30, 2019	Jan. 28, 2019
Distribution Date					Aug. 2, 2019	May 1, 2019	Jan. 31, 2019
Declaration Date					Jul. 31, 2019	Apr. 29, 2019	Jan. 25, 2019
Distributions | Class K Common Stock | Subsequent event
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Cumulative distributions			$ 331,011
Cumulative amount of distribution per share per day			$ 0.0016438356
Date of Record				Oct. 31, 2019
Distribution Date			Nov. 2, 2019
Declaration Date		Oct. 31, 2019
Distributions | Class K-I Common Stock
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Cumulative distributions					$ 22,536	$ 4,722	$ 1,123
Cumulative amount of distribution per share per day					$ 0.0016438356	$ 0.0016438356	$ 0.0016438356
Date of Record					Aug. 1, 2019	Apr. 30, 2019	Jan. 28, 2019
Distribution Date					Aug. 2, 2019	May 1, 2019	Jan. 31, 2019
Declaration Date					Jul. 31, 2019	Apr. 29, 2019	Jan. 25, 2019
Distributions | Class K-I Common Stock | Subsequent event
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Cumulative distributions			$ 50,842
Cumulative amount of distribution per share per day			$ 0.0016438356
Date of Record				Oct. 31, 2019
Distribution Date			Nov. 2, 2019
Declaration Date				Oct. 31, 2019
Distributions | Class K-T Common Stock
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Cumulative distributions					$ 531	$ 88	$ 29
Cumulative amount of distribution per share per day					$ 0.0016438356	$ 0.0016438356	$ 0.0013698651
Date of Record					Aug. 1, 2019	Apr. 30, 2019	Jan. 28, 2019
Distribution Date					Aug. 2, 2019	May 1, 2019	Jan. 31, 2019
Declaration Date					Jul. 31, 2019	Apr. 29, 2019	Jan. 25, 2019
Distributions | Class K-T Common Stock | Subsequent event
Distribution Made to Limited Liability Company (LLC) Member [Line Items]
Cumulative distributions			$ 1,857
Cumulative amount of distribution per share per day			$ 0.0016438356
Date of Record				Oct. 31, 2019
Distribution Date	Nov. 1, 2019
Declaration Date				Oct. 31, 2019

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Taxes
Income tax benefit (expense)	$ (12,303)	$ 10,837	$ 13,121	$ (75,703)