Procaccianti Hotel Reit 10-K 26 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 23, 2021	Jun. 30, 2020
Document Information
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-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Interactive Data Current	Yes
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Entity Public Float			$ 36,007,047
Class K Common Stock
Document Information
Entity Common Stock, Shares Outstanding		3,684,206
Class K-I Common Stock
Document Information
Entity Common Stock, Shares Outstanding		823,558
Class K-T Common Stock
Document Information
Entity Common Stock, Shares Outstanding		47,769
Class A Common Stock
Document Information
Entity Common Stock, Shares Outstanding		581,410
Class B Common Stock
Document Information
Entity Common Stock, Shares Outstanding		125,000

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2020	Dec. 31, 2019
ASSETS
Property and equipment, net	$ 89,588,704	$ 63,367,852
Cash	7,404,266	11,370,148
Restricted cash	2,865,681	1,631,649
Accounts receivable, net	124,902	224,429
Due from related parties	68,050	400,446
Prepaid expenses and other assets, net	902,543	758,056
Total Assets	100,954,146	77,752,580
Liabilities
Mortgage notes payable, net	56,747,853	39,437,601
Other debt	1,018,917
Accounts payable, accrued expenses and other, net	2,705,897	2,692,823
Due to related parties	2,648,575	1,308,424
Total Liabilities	63,121,242	43,438,848
Commitments and Contingencies
Noncontrolling interest of the Operating Partnership	1,172,329
Stockholders' Equity
Additional paid-in capital	40,343,076	31,607,360
Cumulative loss	(6,092,421)	(2,265,816)
Cumulative distributions	(3,528,321)	(1,631,573)
Total Stockholders' Equity	30,772,185	27,748,776
Noncontrolling interest	5,888,390	6,564,956
Total Equity	36,660,575	34,313,732
Total Liabilities and Stockholders' Equity	100,954,146	77,752,580
Class K Common Stock
Stockholders' Equity
Common stock, value, issued	36,081	26,808
Class K-I Common Stock
Stockholders' Equity
Common stock, value, issued	6,668	4,917
Class K-T Common Stock
Stockholders' Equity
Common stock, value, issued	478	456
Class A Common Stock
Stockholders' Equity
Common stock, value, issued	5,374	5,374
Class B Common Stock
Stockholders' Equity
Common stock, value, issued	$ 1,250	$ 1,250

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
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	3,608,062	2,680,845
Common Stock, shares outstanding	3,608,062	2,680,845
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	666,728	491,718
Common Stock, shares outstanding	666,728	491,718
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	47,769	45,616
Common Stock, shares outstanding	47,769	45,616
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	537,410
Common Stock, shares outstanding	537,410	537,410
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

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenues
Total revenues	$ 13,091,480	$ 17,634,034
Expenses
Other property expenses	5,772,767	5,508,700
Property management fees to affiliates	393,134	530,307
Corporate general and administrative	1,488,376	1,445,599
Other fees to affiliates	979,460	352,288
Acquisition costs	94,133
Depreciation and amortization	3,011,904	2,247,028
Total expenses	14,882,055	14,534,102
Loss on acquisition	(133,521)
Operating income (loss)	(1,924,096)	3,099,932
Interest expense, net	(2,642,094)	(2,187,061)
Unrealized gain (loss) on interest rate swap	30,663	(173,204)
Net income (loss) before income taxes	(4,535,527)	739,667
Income tax benefit (expense)	(609)	(42,727)
Net income (loss)	(4,536,136)	696,940
Net income attributable to noncontrolling interest	(709,531)	593,988
Net income (loss) attributable to common stockholders	(3,826,605)	102,952
Class K Common Stock
Expenses
Net income (loss) attributable to common stockholders	$ (2,660,810)	$ 123,569
Net income (loss) per common share - basic and diluted (in dollars per share)	$ (0.81)	$ 0.06
Weighted average number of common shares outstanding - basic and diluted (in shares)	3,281,469	2,012,289
Class K-I Common Stock
Expenses
Net income (loss) attributable to common stockholders	$ (504,295)	$ 14,695
Net income (loss) per common share - basic and diluted (in dollars per share)	$ (0.81)	$ 0.06
Weighted average number of common shares outstanding - basic and diluted (in shares)	622,428	239,197
Class K-T Common Stock
Expenses
Net income (loss) attributable to common stockholders	$ (38,783)	$ 879
Net income (loss) per common share - basic and diluted (in dollars per share)	$ (0.81)	$ 0.06
Weighted average number of common shares outstanding - basic and diluted (in shares)	47,741	14,144
Class A Common Stock
Expenses
Net income (loss) attributable to common stockholders	$ (436,740)	$ 31,135
Net income (loss) per common share - basic and diluted (in dollars per share)	$ (0.81)	$ 0.06
Weighted average number of common shares outstanding - basic and diluted (in shares)	537,410	507,163
Class B Common Stock
Expenses
Net income (loss) attributable to common stockholders	$ (185,977)	$ (67,326)
Net income (loss) per common share - basic and diluted (in dollars per share)	$ (1.49)	$ (0.54)
Weighted average number of common shares outstanding - basic and diluted (in shares)	125,000	125,000
Rooms
Revenues
Total revenues	$ 11,467,514	$ 15,142,022
Expenses
Total expenses	2,387,384	3,030,502
Food and beverage
Revenues
Total revenues	1,195,057	2,053,282
Expenses
Total expenses	754,897	1,419,678
Other operating
Revenues
Total revenues	$ 428,909	$ 438,730

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND NONCONTROLLING INTEREST - USD ($)	Class K Common StockCommon Stock [Member]	Class K Common Stock	Class K-I Common StockCommon Stock [Member]	Class K-I Common Stock	Class K-T Common StockCommon Stock [Member]	Class K-T Common Stock	Class A Common StockCommon Stock [Member]	Class A Common Stock	Class B Common StockCommon Stock [Member]	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, 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	$ 13,198		$ 4,761		$ 450		$ 690				18,705,754			18,724,853		18,724,853
Issuance of common stock (in shares)	1,319,746		476,045		45,039		69,000
Issuance of common stock pursuant to distribution reinvestment plan	$ 29		$ 34		$ 1						61,263			61,327		61,327
Issuance of common stock pursuant to distribution reinvestment plan (in shares)	2,959		3,430		67
Commissions on sales of common stock and related dealer manager fees and stockholder servicing fees											(1,459,134)			(1,459,134)		(1,459,134)
Repurchase of common stock	$ (68)										(65,838)			(65,906)		(65,906)
Repurchase of common stock (in shares)	(6,778)
Other offering costs to affiliates											(1,358,793)			(1,358,793)		(1,358,793)
Net income (loss)												102,952		102,952	593,988	696,940
Distributions paid													(1,104,017)	(1,104,017)	(894,250)	(1,998,267)
BALANCE at Dec. 31, 2019	$ 26,808		$ 4,917		$ 456		$ 5,374		$ 1,250		31,607,360	(2,265,816)	(1,631,573)	27,748,776	6,564,956	34,313,732
BALANCE (in shares) at Dec. 31, 2019	2,680,845	2,680,845	491,718	491,718	45,616	45,616	537,410	537,410	125,000	125,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock	$ 9,410		$ 1,732		$ 20						10,464,841			10,476,003		10,476,003
Issuance of common stock (in shares)	940,938		173,199		2,000
Issuance of common stock pursuant to distribution reinvestment plan	$ 123		$ 82		$ 12						183,359			183,576		183,576
Issuance of common stock pursuant to distribution reinvestment plan (in shares)	12,279		8,143		1,153
Commissions on sales of common stock and related dealer manager fees and stockholder servicing fees											(898,901)			(898,901)		(898,901)
Repurchase of common stock	$ (260)		$ (63)		$ (10)						(313,546)			(313,879)		(313,879)
Repurchase of common stock (in shares)	(26,000)		(6,332)		(1,000)
Other offering costs to affiliates											(700,037)			(700,037)		(700,037)
Net income (loss)												(3,826,605)		(3,826,605)	(600,616)	(4,427,221)
Distributions paid													(1,896,748)	(1,896,748)	(196,000)	(2,092,748)
Contributions															120,050	120,050
BALANCE at Dec. 31, 2020	$ 36,081		$ 6,668		$ 478		$ 5,374		$ 1,250		$ 40,343,076	$ (6,092,421)	$ (3,528,321)	$ 30,772,185	$ 5,888,390	$ 36,660,575
BALANCE (in shares) at Dec. 31, 2020	3,608,062	3,608,062	666,728	666,728	47,769	47,769	537,410	537,410	125,000	125,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash Flows from Operating Activities:
Net income (loss)	$ (4,536,136)	$ 696,940
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization	3,011,904	2,247,028
Amortization of deferred financing costs and debt discount as interest	9,009	103,477
Amortization of key money loans	(53,485)	(53,500)
Loss on acquisition	133,521
Unrealized loss on interest rate swap	(30,663)	173,204
Changes in operating assets and liabilities:
Accounts receivable	110,010	(29,722)
Due from related parties	(367,641)	(259,707)
Prepaid expenses and other assets	(69,101)	(314,004)
Accounts payable, accrued expenses and other	(25,361)	139,350
Due to related parties	1,340,151	405,067
Net cash provided by (used in) operating activities	(477,792)	3,108,133
Cash Flows from Investing Activities:
Acquisition of hotel property, net	(12,240,256)
Capital improvements	(209,583)	(823,361)
Net cash used in investing activities	(12,449,839)	(823,361)
Cash Flows from Financing Activities:
Proceeds from issuance of common stock	10,476,003	18,724,853
Payment of commissions and dealer manager fees and stockholder servicing fees	(898,901)	(1,459,134)
Proceeds from mortgage note	2,000,000
Proceeds from other debt	1,018,917
Payments of mortgage notes principal	(202,467)	(1,744,000)
Payment of deferred financing costs	94,770
Payments of loans from affiliates		(6,600,000)
Distributions to stockholders	(1,713,172)	(1,042,690)
Distributions to noncontrolling interest	(196,000)	(894,250)
Contributions from noncontrolling interests	120,050
Repurchase of common stock	(313,879)	(65,906)
Net cash provided by financing activities	10,195,781	6,918,873
Increase (decrease) in cash and cash equivalents and restricted cash	(2,731,850)	9,203,645
Cash and cash equivalents and restricted cash, beginning of period	13,001,797	3,798,152
Cash and cash equivalents and restricted cash, end of period	$ 10,269,947	$ 13,001,797

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Supplemental Disclosure of Cash Flow Information
Cash and cash equivalents	$ 7,404,266	$ 11,370,148
Restricted cash	2,865,681	1,631,649
Total cash and cash equivalents and restricted cash shown on the consolidated statements of cash flows	10,269,947	13,001,797
Cash paid for interest	2,171,118	2,073,435
Cash paid for income taxes	29,918	25,344
Supplemental Disclosure of Noncash Transactions
Common stock issued pursuant to distribution reinvestment plan	183,576	61,327
Other offering costs paid to affiliates	(274,877)	(1,358,793)
Decrease in due from related parties	274,877	$ 1,358,793
Assumption of mortgage note payable	$ 15,598,479

Organization and Description of

Organization and Description of Business	12 Months Ended
	Dec. 31, 2020
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 used the proceeds from its Private Offering (defined below) and used and expects to continue to use the proceeds from its 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 (the “Operating Partnership”). The Company is the sole general partner of the Operating Partnership. As of December 31, 2020, the Company owned interests in four select-service hotels located in four states with a total of 483 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 (“A Shares”), 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 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 for the duration of 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 April 7, 2020, in response to the global pandemic of the novel coronavirus (“COVID-19”), the Company’s board of directors unanimously approved the temporary suspension of (i) the sale of K Shares, K-I Shares and K-T Shares in the Public Offering, effective as of April 7, 2020 and (ii) the operation of the DRIP, effective as of April 17, 2020. On June 10, 2020, the Company’s board of directors determined an estimated net asset value (“NAV”) per share of all classes of the Company’s capital stock, each calculated as of March 31, 2020, as follows: (i) $8.56 per K-Share; (ii) $8.55 per K-I Share; (iii) $8.56 per K-T Share; (iv) $0.00 per A Share; and (v) $0.00 per B Share and unanimously approved the resumption of the acceptance of subscriptions and the resumption of the operation of the DRIP, which became effective with the next authorized payment of distributions. The offering and total dollar amount available for purchase per class in the primary portion of the Public Offering are as follows: $7.95 per K-I Share (up to $125,000,000 in shares), $8.56 per K Share (up to $125,000,000 in shares) and $8.56 per K-T Share (up to $250,000,000 in shares). The DRIP offering prices and total dollar amount available for purchase in the Company’s DRIP are as follows: $8.13 per K-I Share (up to $12,500,000 in shares), $8.13 per K Share (up to $12,500,000 in shares), and $8.13 per K-T Share (up to $25,000,000 in shares). Since the commencement of the Public Offering and through December 31, 2020, the Company received approximately $30,189,759 in gross proceeds from the sale of K Shares, K-I Shares and K-T Shares in the Public Offering, including $131,936, $102,455 and $10,512 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 difference between the applicable estimated NAV per K Share and the applicable offering price of K-I Shares sold in the primary offering and any amount equal to any discount to the applicable offering price of K Shares, K-I Shares and K-T Shares (excluding volume discounts). On June 10, 2020, the board of directors authorized the extension of the term of the Company’s Public Offering until August 14, 2021, unless further extended by the board of directors as permitted under applicable law or earlier terminated by the board of directors. 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. On February 27, 2020, as partial consideration for the Company’s acquisition of the Hilton Garden Inn hotel property located in Providence, Rhode Island (“Hilton Garden Inn Providence”), the Operating Partnership issued 128,124 Class K units of limited partnership interests in the Operating Partnership (“Class K OP Units”) valued at $10.00 per Class K OP Unit. Such issuance represents a total investment of $1,281,244 in Class K OP Units. Individuals with direct or indirect interests in the sellers of the Hilton Garden Inn Providence who are direct or indirect owners of the Procaccianti Companies, Inc. (the “Sponsor”) and Procaccianti Hotel Advisors, LLC (“PHA”) received only Class K OP Units and no cash as consideration. The Company is externally managed by 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. Novel Coronavirus (COVID-19) In December 2019, the novel strain of coronavirus (“COVID-19”) was identified in Wuhan, China, subsequently spread to other regions of the world, and has resulted in significant travel restrictions and extended shutdown of numerous businesses in every state in the United States. In March 2020, the World Health Organization declared COVID-19 to be a global pandemic. Since late February 2020, COVID-19 has had and continues to have a significant effect on the hospitality industry. Thus far, responses to the COVID-19 outbreak have included mandates from federal, state and/or local authorities that have restricted travel and the conduct of business, such as stay-at-home orders, quarantines, travel bans, border closings, business closures and other similar measures, which have significantly reduced overall lodging demand. In response to a government mandates and health official orders, one of the Company’s hotels properties was instructed to close effective March 30, 2020 and remained closed until May 1, 2020, and other of the Company’s hotel properties were required to close food and beverage outlets. Since the beginning of March 2020, the Company has experienced significant declines in occupancy and revenue per available room (“RevPAR”) associated with COVID-19 throughout its hotel portfolio, which has had a negative impact on the Company’s operations and financial results. The full financial impact of the reduction in hotel demand caused by the pandemic cannot be reasonably estimated at this time due to uncertainty as to its severity and duration. Given the current availability and effectiveness of the COVID-19 vaccines, in addition to a decrease in government related mandates, the Company hopes to see an improvement in traveler sentiment. However, the Company expects that COVID-19 will continue to negatively affect the Company’s operating results and cash flow for at least the first-half of 2021. The Company implemented cost elimination and efficiency initiatives at each of the hotels by reducing labor costs and tempering certain services and amenities. The COVID-19 outbreak and associated responses could continue to negatively impact future hotel revenues and operations at the Company’s properties, which could result in a material impact to the Company’s future results of operations, cash flows and financial condition. The Company believes cash and restricted cash on hand, cash generated from operations, proceeds from the Company’s Public Offering and borrowings from other sources, including advances from the Company’s Sponsor, if necessary, will be sufficient to meet the Company’s anticipated cash needs for at least the next 12 months.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 2 - Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The Company consolidates variable interest entities (“VIEs”) as defined under the Consolidation Topic (“Topic 810”) of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) when it has the power to direct the activities that most significantly impact the VIE’s performance and the obligation to absorb losses or the right to receive benefits from the VIE that could be significant. At December 31, 2020, the assets of our VIEs were $66,554,450, and consist primarily of land, building, furniture, fixtures, and equipment and are available to satisfy our VIEs' obligations. The liabilities of our VIEs were $44,115,606 at December 31, 2020 and consist primarily of long-term debt. The Company has guaranteed certain obligations of its VIEs. The Company has no foreign operations or assets and its operating structure includes only one segment. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assumptions and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Investment in Real Estate Investment in real estate is stated at cost, less accumulated depreciation. Major improvements that extend the life of an asset are capitalized and depreciated over a period equal to the shorter of the life of the improvement or the remaining useful life of the asset. The cost of ordinary repairs and maintenance are charged to expense when incurred. Depreciation expense is computed using the straight-line and accelerated methods based upon the following estimated useful lives: Building 39 years Improvements 7-15 years Furniture, fixtures and equipment 3-7 years Real Estate Purchase Price Allocation Upon the acquisition of hotel properties, the Company evaluates whether the acquisition is a business combination or an asset acquisition. For both business combinations and asset acquisitions the Company allocates the purchase price of properties to acquired tangible assets and any assumed debt based on their fair value. For asset acquisitions, the Company capitalizes transaction costs and allocates the purchase price using a relative fair value method allocating all accumulated costs. For business combinations, the Company expenses transaction costs associated as incurred and allocates the purchase price based on the estimated fair value of each separately identifiable asset and liability. The tangible assets acquired consist of land, buildings, improvements, furniture, fixtures and equipment. The Company utilizes independent appraisals, as well as hotel construction costs and other available market data, to assist in the determination of the fair values of the tangible assets of an acquired property. The Company determines the fair value of any assumed debt by calculating the net present value of the scheduled mortgage payments using methods similar to those used by independent appraisers, including using a discounted cash flow analysis that uses appropriate discount or capitalization rates and available market information where applicable. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan as interest expense. In allocating the purchase price of each of the Company’s properties, the Company makes assumptions and uses various estimates, including, but not limited to, the estimated useful lives of the assets, the cost of replacing certain assets and discount rates used to determine present values. Many of these estimates are obtained from independent third-party appraisals. However, the Company is responsible for the source and use of these estimates. These estimates are based on judgment and subject to being imprecise; accordingly, if different estimates and assumptions were derived, the valuation of the various categories of the Company’s hotel properties or related intangibles could in turn result in a difference in the depreciation or amortization expense recorded in the Company’s consolidated financial statements. These variances could be material to the Company’s results of operations and financial condition. Impairment of Long-Lived Assets The Company reviews long-lived assets and certain identifiable intangibles, including franchise agreements with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset. Derivative Financial Instruments All derivative financial instruments are recorded at fair value in the Company’s consolidated balance sheet as an asset or liability. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designation of the derivative instrument. The Company’s objective in using derivatives is to add stability to interest expense and to manage the Company’s exposure to interest rate movements or other identified risks. Derivative instruments designated and qualifying as a hedge of the exposure to variability in expected future cash flows or other types of forecasted transactions are considered cash flow hedges. The changes in fair value for derivative instruments that are not designated as a hedge or that do not meet the hedge accounting criteria are recorded as an unrealized gain or loss in the consolidated statements of operations. Fair Value of Financial Instruments Under GAAP, the Company is required to disclose the fair value of certain financial instruments on a recurring basis. The accompanying consolidated balance sheets include the following financial instruments: cash, restricted cash, accounts receivable, accounts payable, mortgage notes payable and other debt. 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 driers 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 December 31, 2020, the estimated fair value of the mortgage notes payable was $54,993,341, compared to the carrying value of $56,870,288. These financial instruments are valued using Level 3 inputs through a discounted cash flow analysis of the contractual cash flows of the notes payable discounted at a market rate. 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. Cash and Cash Equivalents Cash and cash equivalents represent cash on hand or held in banks and highly liquid investments with original maturities of three months or less. Restricted Cash The Company maintains reserves for property taxes and capital improvements as required by the debt agreements. At December 31, 2020 and 2019, reserves for property taxes were $409,373 and $391,511, respectively, and reserves for capital improvements were $2,420,168 and $1,221,133, respectively. The Company also included $36,140 and $19,005 of guest advance deposits as restricted cash at December 31, 2020 and 2019, respectively. Accounts Receivable The Company records its accounts receivable at cost. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts, when deemed necessary, based on its history of past write offs, collections and current credit conditions. Accounts are written off based on management’s evaluation of the collectability of each account resulting from collection efforts. The Company has determined that no allowance for doubtful accounts was necessary at December 31, 2020 and 2019. Prepaid Expenses and Other Assets Prepaid expenses include prepaid insurance and hotel operating expenses. Other assets include inventories at the hotel properties, consisting of food and beverage, are valued at the lower of cost and net realizable value, using the FIFO (first-in first-out) method of accounting. Other assets also include the Company’s deferred income tax asset. Deferred Franchise Fees Franchise fee represents the initial franchise fee paid by the Company. The initial franchise fees of the agreements are recorded at cost and amortized on a straight-line basis over the term of the franchise agreements. Deferred Financing Costs Deferred finance fees are bank fees and other costs incurred in obtaining financing that are amortized on a straight-line basis over the term of the related debt. Deferred finance fees are presented as a direct reduction of the carrying amount of the mortgage notes payable on the consolidated balance sheet. Amortization of deferred finances fees is calculated using the straight-line method over the term of the related debt and is included in interest expense. Organization and Offering Costs Organization and offering costs (“O&O 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 O&O Costs against additional paid in capital on the consolidated balance sheet as it raises proceeds in its 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 December 31, 2020, 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 2017 through 2020 remaining subject to examination by federal and various state tax jurisdictions. Noncontrolling Interests Noncontrolling interest represents the portion of equity of Procaccianti Convertible Fund, LLC (“PCF”) held by owners other than the Company. Noncontrolling interest is reported in the 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 consolidated statement of operations. Noncontrolling Interest of the Operating Partnership Noncontrolling interest of the Operating Partnership represents the value of the 128,124 Class K OP Units that were issued to affiliate sellers in connection with the acquisition of the Hilton Garden Inn Providence. Noncontrolling interest of the Operating Partnership is reported in the mezzanine section of the consolidated balance sheet, as the units are redeemable at the request of the holder for cash equal to the fair market value of a K Share as defined in the Amended and Restated Agreement of Limited Partnership of Procaccianti Hotel REIT, L.P. (the “Amended and Restated Operating Partnership Agreement”). The Company may elect to acquire any such unit presented for redemption for one K Share or cash. Revenue, expenses, and net income attributable to both the Company and the noncontrolling interest of the Operating Partnership are reported in the consolidated statement 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. 3,000 non-vested restricted K Shares held by the Company's independent directors as of December 31, 2020 are included in the calculation of basic EPS because such shares have been issued and participate in distributions. The Company’s calculated earnings per share for the year ended December 31, 2020 and 2019, were as follows: Year Ended December 31, 2020 2019 Net income (loss) $ (3,826,605) $ 102,952 Less: Class K Common Stock dividends declared and accumulated 2,221,403 1,207,410 Less: Class K-I Common Stock dividends declared and accumulated 421,761 143,529 Less: Class K-T Common Stock dividends declared and accumulated 32,247 8,497 Less: Class A Common Stock dividends declared and accumulated 362,825 304,298 Undistributed net loss $ (6,864,841) $ (1,560,782) Class K Common Stock: Undistributed net loss $ (4,882,213) $ (1,083,841) Class K Common Stock dividends declared and accumulated 2,221,403 1,207,410 Net income ( loss) $ (2,660,810) $ 123,569 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 3,281,469 2,012,289 Class K-I Common Stock: Undistributed net loss $ (926,056) $ (128,834) Class K-I Common Stock dividends declared and accumulated 421,761 143,529 Net income ( loss) $ (504,295) $ 14,695 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 622,428 239,197 Class K-T Common Stock: Undistributed net loss $ (71,030) $ (7,618) Class K-T Common Stock dividends declared and accumulated 32,247 8,497 Net income ( loss) $ (38,783) $ 879 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 47,741 14,144 Class A Common Stock: Undistributed net loss $ (799,565) $ (273,163) Class A Common Stock dividends declared and accumulated 362,825 304,298 Net income ( loss) $ (436,740) $ 31,135 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 537,410 507,163 Class B Common Stock: Undistributed net loss $ (185,977) $ (67,326) Net income (loss) per common share, basic and diluted $ (1.49) $ (0.54) Weighted average number of common shares outstanding, basic and diluted 125,000 125,000 New Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 325): Measurement of Credit Losses on Financial Instruments (“ASU No. 2016-13”), which requires that entities use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. On January 1, 2020, the Company adopted ASU No. 2016-13 using the modified retrospective approach and the adoption did not have a material impact on the Company’s consolidated financial statements.

Investments in Hotels

Investments in Hotels	12 Months Ended
	Dec. 31, 2020
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 December 31, 2020: 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 $ 11,168,424 Staybridge Suites St. Petersburg 06/29/2017 (1) St. Petersburg, FL 51 % $ 20,500,000 119 $ 13,222,109 Hotel Indigo Traverse City 08/15/2018 Traverse City, MI 100 % $ 26,050,000 107 $ 15,092,000 Hilton Garden Inn Providence 02/27/2020 Providence, RI 100 % $ 28,500,000 137 $ 16,936,901 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. Investments in hotel properties consisted of the following as of December 31, 2020 and 2019: December 31, December 31, 2020 2019 Land $ 11,588,686 $ 7,987,069 Building and improvements 77,286,159 53,478,730 Furniture, fixtures, and equipment 7,244,831 5,435,758 Total cost 96,119,676 66,901,557 Accumulated depreciation (6,530,972) (3,533,705) Investment in hotel properties, net $ 89,588,704 $ 63,367,852 Depreciation expense for the years ended December 31, 2020 and 2019 was $2,997,262 and $2,236,553, respectively. Acquisition of the Hilton Garden Inn Providence On February 27, 2020, the Company, through its Operating Partnership, completed the acquisition of the membership interests in Gano Holdings, LLC (“Gano”) for a purchase price of $28,500,000. Gano owns 100% of the fee simple interest in the Hilton Garden Inn Providence, a 137-room select-service hotel property. The Procaccianti Group, LLC (“Procaccianti Group”), an affiliate of the Sponsor, had the right to purchase the membership interests in Gano pursuant to a Membership Interest Purchase Agreement by and among Procaccianti Group, as buyer, and TPG DP JV, LLC, ETJ Gano Holdings, Inc., PRJA Gano Holdings, LLC, EHI Gano Holdings, Inc. and TPG DP Investors, LLC, collectively as seller (“Seller”), dated as of January 14, 2020 (as amended, the “MIPA”). The Seller entities are affiliated with the Sponsor, and some are controlled by certain members of the investment committee members of PHA. On February 27, 2020, Procaccianti Group assigned, and the Operating Partnership assumed, Procaccianti Group’s right, title and interest in and under the MIPA, pursuant to an Assignment of Membership Interest Purchase Agreement, by and between Procaccianti Group and the Operating Partnership, giving the Operating Partnership the right to acquire the membership interests of Gano for the purchase price. The purchase price, exclusive of closing costs and typical hotel closing date adjustments, was comprised of three components as follows: (a) a $12,240,256 cash payment, (b) the issuance of 128,124 Class K OP Units of limited partnership interests in the Operating Partnership, valued at $10.00 per Class K OP Unit, and (c) the assumption of the existing debt balance on the Hilton Garden Inn Providence (the “Existing Debt”), as evidenced by a promissory note and other loan documents. The cash portion of the acquisition was funded with net proceeds from the Company’s Public Offering. Individuals with direct or indirect interests in the seller of the Hilton Garden Inn Providence who are direct or indirect owners of the Sponsor and PHA received only Class K OP Units and no cash as consideration. The value of the Class K OP Units of $1,281,244 is presented as noncontrolling interest in the Operating Partnership on the consolidated balance sheet as of December 31, 2020. The Company concluded its investment in the Hilton Garden Inn Providence was an asset acquisition in accordance with ASC 805, Business Combinations (“Topic 805”), as substantially all of the fair value of the gross assets acquired by the Company is concentrated in a group of similar identifiable assets. In accordance with Topic 810, in an asset acquisition under the VIE model, the difference in the fair value of the assets acquired and consideration paid is recognized in the income statement as a gain or loss on the transaction. Costs incurred as part of the asset acquisition transaction are not considered a component of the consideration transferred nor capitalized as a part of the cost of the assets acquired. In accordance with this guidance, the fair value of the assets acquired and liabilities assumed in the acquisition were recorded by the Company as follows and $72,149 of acquisition costs were expensed. Fair Value at February 27, 2020 Land $ 3,601,617 Building and improvements 23,732,408 Furniture, fixtures, and equipment 1,679,004 Other assets 100,511 Total assets acquired 29,113,540 Long-term debt (15,598,479) Other liabilities assumed (122,582) Net assets acquired 13,392,479 Purchase price 13,526,000 Loss on acquisition $ (133,521) The Company utilized an independent appraisal, as well as other available market data, to assist in the determination of the fair values of the assets acquired and debt assumed.

Other Assets

Other Assets	12 Months Ended
	Dec. 31, 2020
Other Assets
Other Assets	Note 4 – Other Assets Included in other assets at December 31, 2020 and 2019, are franchise fees of $257,750 and $197,392, respectively. The Company’s hotel properties each are operated pursuant to franchise agreements. The term of each current franchise agreement is for a 15 to 25‑year period and the agreements require the Company to, among other things, pay monthly fees that are calculated based on specified percentages of certain revenues. For the year ended December 31, 2020 and 2019, the Company amortized $14,642 and $10,475 of deferred franchise fees. These amounts are included in depreciation and amortization on the statement of operations. The future amortization of deferred franchise costs as of December 31, 2020 is as follows: Years Ending December 31, 2021 $ 15,476 2022 15,476 2023 15,476 2024 15,476 2025 15,476 Thereafter 180,370 Total $ 257,750

Mortgage Notes Payable

Mortgage Notes Payable	12 Months Ended
	Dec. 31, 2020
Mortgage Notes Payable
Mortgage Notes Payable	Note 5 – Mortgage Notes Payable Included in mortgage notes payable at December 31, 2020, is a $13,222,109 mortgage payable secured by the Staybridge Suites St. Petersburg (the “St. Petersburg Note”), a $11,168,424 mortgage payable secured by the Springhill Suites Wilmington (the “Wilmington Note”), $15,092,000 mortgage payable secured by the Hotel Indigo Traverse City (the “TCI Note”) and a $16,936,901 mortgage payable secured by the Hilton Garden Inn Providence (the “HGI Note”). The mortgage notes payable each contain customary affirmative covenants, negative covenants and events of default. The St. Petersburg Note required 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. All required payments have been made as of December 31, 2020. As a result of the negative impact of the COVID-19 pandemic, the Staybridge Suites St. Petersburg failed to maintain the required debt service coverage ratio as defined in the St. Petersburg Note loan documents for the period ended June 30, 2020. In August 2020, the Company received a written waiver of all debt service coverage testing for the test due for the periods ended June 30, 2020 and September 30, 2020, from its lender. The lender approved an additional modification of the debt service coverage test for the period ending December 31, 2020 and March 31, 2021. Therefore, as of December 31, 2020, the Staybridge Suites St. Petersburg was in compliance with its applicable covenants and all required payments have been made as agreed. The Wilmington Note required 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. All required payments have been made as of December 31, 2020. As a result of the negative impact of the COVID-19 pandemic, the Springhill Suites Wilmington failed to maintain the required debt service coverage ratio as defined in the Wilmington Note loan documents for the period ended December 31, 2020. In March 2021, the Company received a written waiver of all debt service coverage testing for the test due for the periods ended December 31, 2020 through June 30, 2021, from its lender. Therefore, as of December 31, 2020, the Springhill Suites Wilmington was in compliance with its applicable covenants and all required payments have been made as agreed. The TCI Note bears interest at LIBOR plus a LIBOR rate margin of 2.50% at December 31, 2020. 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. On April 21, 2020, a subsidiary of the Operating Partnership, entered into a First Amendment to Loan Agreement and Other Loan Documents (the “Hotel Indigo Loan Modification Documents”) with its existing lender, Citizens Bank, N.A. (“Citizens Bank”), to amend the terms of the TCI Note. Pursuant to the Hotel Indigo Loan Modification Documents, the interest only payments that were scheduled to be paid on April 1, 2020, May 1, 2020 and June 1, 2020 were deferred (collectively, the “Deferred Payments”). The Deferred Payments did not accrue interest but shall be deemed principal to be due and payable in full on or before June 30, 2021. As of December 31, 2020, the Hotel Indigo Traverse City repaid the deferred interest in full. The Hotel Indigo Loan Modification Documents also waived the Operating Partnership’s requirement to achieve the stated debt service coverage ratio for the period from January 1, 2020 through June 30, 2021 and provides that all net worth, liquidity and financial covenant testing and any requirements of the guarantor, TH Investment Holdings II, LLC, an affiliate of the Sponsor, to comply with such covenants are waived from January 1, 2020 through June 30, 2021. As of December 31, 2020, the Hotel Indigo Traverse City was compliant with its loan obligations, including applicable covenants, and all required payments have been made as agreed. The HGI Note requires monthly interest payments at a fixed rate of 4.25% through February 15, 2023, and monthly principal and interest payments based on a 30-year amortization schedule thereafter to maturity on May 15, 2025. The HGI Note is collateralized by the Hilton Garden Inn Providence, including equipment, and has been guaranteed by the Company. On April 23, 2020, the Operating Partnership, through its subsidiary, and the Company entered into an Omnibus Amendment and Reaffirmation Agreement (the “Hilton Garden Inn Loan Modification Agreement”) with the lender, to amend the terms of the mortgage loan and loan documents on the HGI Note. Pursuant to the Hilton Garden Inn Loan Modification Agreement, interest only payments that were due on the six consecutive payment dates starting with the payment scheduled for April 2020 are deferred until the date that is twelve months after the date each payment was originally due. The HGI Note resumed interest payments in October 2020. In addition, the Hilton Garden Inn Loan Modification Agreement provides that all financial covenant testing and any other requirements of the Operating Partnership to comply with such covenants are waived until the year ending December 31, 2021, and that all net worth, liquidity and financial covenant testing and any requirements of the Company as guarantor to comply with such covenants are waived until the year ending December 31, 2021. As of December 31, 2020, the HGI Note was compliant with the above referenced loan arrangements. Although the Company has taken steps to enhance its ability to maintain sufficient liquidity, as noted here and elsewhere in this Annual Report on Form 10-K, a protracted negative economic impact resulting from the COVID-19 pandemic may cause increased pressure on the Company’s ability to satisfy its mortgage loan covenants. Scheduled maturities of the mortgage notes payable as of December 31, 2020 are as follows: Years Ending December 31, 2021 $ 15,489,357 2022 415,485 2023 638,284 2024 23,393,336 Thereafter 16,482,972 Total $ 56,419,434 Interest expense on mortgage notes payable for the year ended December 31, 2020 and 2019 was $2,549,503 and $1,931,640, respectively. Also included in mortgage notes payable as of December 31, 2020, is $162,921 of net deferred financing costs and debt discounts and premiums. For the years ended December 31, 2020 and 2019, the Company amortized $9,009 and $103,477, respectively, of net deferred financing costs and debt discounts and premiums as interest expense.

Interest Rate Swap

Interest Rate Swap	12 Months Ended
	Dec. 31, 2020
Interest Rate Swap [Abstract]
Interest Rate Swap	Note 6 – Interest Rate Swap The Company is exposed to certain risks relating to its ongoing business operations, including the effect of changes in interest rates. The Company has an interest rate swap agreement to manage interest rate risk exposure on $15,092,000 of the TCI Note due in 2021. The value of interest rate swaps is primarily impacted by interest rates, market expectations about interest rates, and the remaining life of the instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of the fixed rate payer position and decrease the value of the variable rate payer position. As the remaining life of the interest rate swap decreases, the value of both positions will generally move towards zero. The following table summarizes the terms of the outstanding interest rate swap agreement: Notional Fair Value of Amount as of Liability as of December 31, Interest Effective Maturity December 31, Balance Sheet Location 2020 Rate (1) Date Date 2020 (2) Interest rate swap Accounts payable, accrued expenses and other, net $ 15,092,000 5.30 % 8/15/2018 8/15/2021 $ (289,412) 1) The interest rate consists of the underlying index swapped to a fixed rate rather than floating rate LIBOR, plus a premium. The Company notes that the maturity date of the interest rate swap is prior to the LIBOR phase-out deadline and therefore does not expect any impact to the terms or value of the swap. 2) Changes in fair value are recorded as unrealized gain (loss) in the consolidated statements of operations as the Company did not designate this interest rate swap as a hedge. The Company valued the interest rate swap using Level 2 inputs. Concurrent with the Hotel Indigo Loan Modification Documents, the Operating Partnership, through its subsidiary, entered into a Swap Modification Agreement with Citizens Bank (the “Swap Modification Agreement”) to modify the swap derivative contract with Citizens Bank that fixes the interest rate on the outstanding balance of the mortgage loan. The Swap Modification Agreement modified the requirements to make payments under the swap derivative contract and provided for a deferral of any payments during the period beginning on April 21, 2020 and ending on July 1, 2020. As of December 30, 2020, the Hotel Indigo Traverse City repaid the deferred swap interest and all required payments have been made as agreed.

Other Debt

Other Debt	12 Months Ended
	Dec. 31, 2020
Other Debt.
Other Debt	Note 7 – Other Debt On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") was adopted by the Federal Government, which, among other things, provided emergency assistance to qualifying businesses and individuals as a result of the COVID-19 pandemic. The CARES Act also included the establishment of the Paycheck Protection Program ("PPP"), a U.S. Small Business Administration (the “SBA”) loan to businesses with fewer than 500 employees that may be partially forgivable. As of December 31, 2020, the Company had received $1,018,917 in PPP loans relating to the four hotel properties (the "PPP Loans"). These loans are presented as other debt on the consolidated balance sheets. The PPP Loans accrue interest at 1.00% per annum and may be prepaid in whole or in part without penalty. The Company is not imputing additional interest at a market rate as GAAP guidance on imputing interest excludes transactions where interest rates are prescribed by a government agency. Pursuant to the CARES Act, the Company can apply for, and be granted, forgiveness for all or a portion of the PPP Loans. The loans’ principal and accrued interest are forgivable to the extent that the proceeds are used for eligible purposes, subject to limitations and ongoing rulemaking by the SBA, and that the Company maintains its payroll levels over a twenty-four week period following the loan date. The loan forgiveness amount may be reduced if the Company terminates employees or reduces salaries during the twenty-four week period. The Company used the proceeds from the PPP Loans to retain employees and maintain payroll and make mortgage and utility payments to support business continuity throughout the COVID-19 pandemic, which amounts are intended to be eligible for forgiveness, subject to the provisions of the CARES Act. The Company has applied for full forgiveness of all the loans and such applications are currently in review with the SBA. Upon formal written approval of the forgiveness application from the SBA, the Company intends to recognize a gain on loan extinguishment in the consolidated statement of operations equal to the amount forgiven. On January 11, 2021, the PPP opened an additional round of funding, which allowed eligible borrowers that had previously received a PPP loan to apply for a second draw PPP loan with the same general terms as the first. Second draw PPP loans can be used to help fund payroll costs, including benefits. Funds can also be used to pay mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. The Company applied for the second round of funding and has received $889,671 of the approximately $1,426,711 applied for as of March 26, 2021.

Loans from Franchisors

Loans from Franchisors	12 Months Ended
	Dec. 31, 2020
Loans from Franchisors
Loans from Franchisors	Note 8 – Loans from Franchisors Included in accounts payable, accrued expenses and other liabilities on the balance sheet at December 31, 2020 and 2019, is $985,784 and $1,039,284, respectively, of net key money loans received from franchisors or assumed upon acquisition. In accordance with the loan agreement with the respective franchisor, funds were released to the applicable hotel properties upon completion of a change of ownership, property improvement plan, and inspection and subsequent approval of the completed work by the franchisor. The outstanding principal balances of the loans are reduced on a straight-line basis over the remaining life of the franchise agreement. As of December 31, 2020, the Company had received $750,000 in loans from franchisors relating to the Staybridge Suites St. Petersburg and assumed a liability of $364,430 in connection with the acquisition of the Hotel Indigo Traverse City. During the years ended December 31, 2020 and 2019 amortized $53,500 and $53,500, respectively, as a reduction of franchise fees, which are included in rooms and other property expenses on the statement of operations.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2020
Related Party Transactions
Related Party Transactions	Note 9 – 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 November 22, 2019, the Company, the Operating Partnership and PHA entered into the Second Amendment to the Advisory Agreement (the “Advisory Agreement Amendment”) in order to revise certain terms regarding the accrual of interest on deferred acquisition, disposition and asset management fees, as well as the deferral of asset management fees paid to PHA. On July 28, 2020, 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 3, 2020. 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 these 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 December 31, 2020, 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 preceding clauses (ii) and (iii) are defined as an "Other Liquidity Event". Under the Advisory Agreement Amendment, deferred acquisition fees will accrue interest at a cumulative, non-compounded rate of 6.0% per annum until the day immediately following the Fifth Anniversary (as defined herein), at which time such interest will cease to further accrue. For the year ended December 31, 2020, the Company incurred $441,370 in acquisition fees related to the Hilton Garden Inn Providence. There were no acquisition fees incurred for the year ended December 31, 2019. Acquisition fees are included in other fees to affiliates on the consolidated statements of operations. As of December 31, 2020 and 2019, there were $979,350 and $537,980, respectively, of deferred acquisition fees included in due to related parties on the consolidated balance sheets. Interest expense on outstanding acquisition fees was $54,564 and $32,279, respectively, for the years ended December 31, 2020 and 2019, and is included in interest expense on the consolidated statement of operations and in due to related parties on the consolidated balance sheets. 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 Advisory Agreement Amendment clarified the duration of the asset management fee and accrual of interest on deferred asset management fees. The asset management fee will be payable to PHA quarterly in arrears, based on the 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 6% distributions have not been paid in full to the holders of the K Shares, K-I Shares, K-T Shares and any parity security. Any such deferred asset management fees will accrue interest at a cumulative, non-compounded rate of 6.0% per annum. If the Company has not completed a liquidation event by the fifth anniversary of the date the Company terminates the Public Offering (including any follow-on offering) (the "Fifth Anniversary"), on the day immediately following the Fifth Anniversary, (i) the asset management fees payable pursuant to the Advisory Agreement cease to accrue and (ii) interest that accrued at a non-compounded rate of 6.0% per annum on the deferred asset management fees will cease to accrue. For the avoidance of doubt, all accrued and unpaid principal and interest amounts in connection with the asset management fee at the Fifth Anniversary will remain outstanding. For the years ended December 31, 2020 and 2019, the Company incurred $538,089 and $352,288, respectively, in asset management fees. Asset management fees are included in other fees to affiliates on the consolidated statements of operations and in due to related parties on the consolidated balance sheets. Interest expense on the outstanding asset management fees was $51,605 and $24,449 for the years ended December 31, 2020 and 2019, respectively. These amounts are included in interest expense on the consolidated statements of operations and in due to related parties on the 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. Under the Advisory Agreement Amendment, deferred disposition fees will accrue interest at a cumulative, non-compounded rate of 6.0% per annum until the day immediately following the Fifth Anniversary, at which time such interest will cease to further accrue. There were no disposition fees incurred for the years ended December 31, 2020 and 2019. 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 December 31, 2020 and 2019 were paid directly by the Company and there have been no reimbursements to PHA. Organization and Offering Costs O&O 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 10 – “Stockholders’ Equity”. Certain O&O Costs have been incurred by PHA on behalf of the Company. As of December 31, 2020, the total amount of O&O 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 $8,408,151, of which $1,026,564 has been reimbursed through the issuance of A Shares to an affiliate of PHA and payments to PHA of $2,303,745. The Company may reimburse PHA and its affiliates for O&O 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 O&O Costs 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 December 31, 2020, $3,699,275 is reimbursable to PHA and its affiliates by the Company in the future, subject to the 15% cap. The Company records O&O Costs as charges against additional paid in capital on the consolidated balance sheets as the Company raises proceeds in its continuous Public Offering. These amounts represent 15% of the gross offering proceeds of the Private Offering and the Public Offering as of December 31, 2020, the maximum amount allowed to be recognized by the Company in its financial statements in accordance with the rules established by FINRA. The Company recognized O&O Costs of $1,598,938 and $2,817,927 for the years ended December 31, 2020 and 2019, respectively. As of December 31, 2020, the Company had a balance due to PHA for reimbursement of O&O Costs within the 15% cap of $121,786, which is included in due to related parties in the consolidated balance sheet as of December 31, 2020. As of the date of this filing, the Company has reimbursed PHA for this amount. Property Management Fee and Reimbursement Wholly owned subsidiaries of PCF and the Operating Partnership entered into hotel management agreements with affiliates of the Company for the management of each of the Company’s hotels. Under the terms of the management agreements, the manager operates and manages each hotel, including making all human resource decisions. The employees of the hotels are employed by the managers, however, pursuant to the management agreements, all compensation of hotel personnel is recorded as a direct operating expense of the hotel. The manager of each hotel is paid a base management fee equal to 3% of the respective hotel’s gross revenues and is also reimbursed for certain expenses and centralized service costs. The terms of the in-place management agreements expire June 28, 2021, May 23, 2021, August 14, 2023 and February 26, 2025, respectively, for the Staybridge Suites St. Petersburg, the Springhill Suites Wilmington, the Hotel Indigo Traverse City, and the Hilton Garden Inn Providence, respectively. Aggregate property management fees incurred for the years ended December 31, 2020 and 2019 were $393,134 and $530,307, respectively, and are included in property management fees to affiliates on the consolidated statements of operations. As of December 31, 2020 and 2019, $31,594 and $28,371, respectively, of accrued property management fees payable were included in due to related parties on the consolidated balance sheets. Aggregate net reimbursements for certain expenses for the years ended December 31, 2020 and 2019 were $118,708 and $57,879, respectively. As of December 31, 2020 and 2019, $16,172 and $11,665, respectively, of expense reimbursements were included in due to related parties on the consolidated balance sheets. During the years ended December 31, 2020 and 2019, the Company paid $324,055 and $228,302, respectively, to TPG Risk Services, LLC, an affiliate of the Company, for the reimbursement of prepaid insurance at the hotel properties. As of December 31, 2020 and 2019, $49,761 and $548, respectively, of prepaid insurance reimbursements were included in due to related parties on the consolidated balance sheets. 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 years ended December 31, 2020 and 2019, were $0 and $10,031, respectively, and capitalized as a part of the construction cost. During the years ended December 31, 2020 and 2019, the Company reimbursed TPG Construction, LLC, an affiliate of the Sponsor, $44,656 and $741,447, respectively, for capital expenditure costs incurred at the hotel properties. As of December 31, 2020 and 2019, $12,685 and $13,445, respectively, of construction reimbursements were included in the due to related parties balance. Included in the due from related parties balance at December 31, 2020 and 2019, was a $23,050 and $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 years ended December 31, 2020 and 2019. 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 shares of Class B common stock (“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 S2K Financial LLC (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. Amended and Restated Operating Partnership Agreement In connection with the Hilton Garden Inn Providence acquisition, effective February 27, 2020, the Company, as general partner of the Operating Partnership, Procaccianti Hotel REIT, LP, LLC and certain principals and affiliates of the Sponsor that were issued Class K OP Units entered into an Amended and Restated Operating Partnership Agreement. 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 1.65% and 2.85% for the years ended December 31, 2020 and 2019, 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 consolidated balance sheets at December 31, 2020 and 2019. Interest expense was $1,556 and $2,687 for the years ended December 31, 2020 and 2019, respectively, and is included in interest expense on the consolidated statements of operations and in due to related parties on the consolidated balance sheets. 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 July 11, 2019, the entire principal and accrued interest balance had been repaid. Interest expense for the year ended December 31, 2019 was $116,896, and is included in interest expense on the consolidated statements of operations.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2020
Stockholders’ Equity
Stockholders' Equity	Note 10 - 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, with a par value of $0.01 per share. 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 will be entitled to receive cumulative cash distributions on each share at the rate of 7.0% per annum of each share’s distribution base. Prior to March 31, 2020, distributions accrued 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 7.0% 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 will 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 will 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 December 31, 2020, under the Public Offering, the Company had issued 2,388,985 K Shares, 661,475 K-I Shares, and 47,540 K-T Shares to unaffiliated investors, resulting in receipt of gross proceeds of $23,363,950 from K Share issuances, $6,105,506 from K-I Share issuances, and $475,400 from K-T Share issuances. As of December 31, 2020, the Company had issued 15,237 K Shares, 11,574 K-I Shares and 1,219 K-T Shares pursuant to the DRIP, resulting in gross proceeds pursuant to the DRIP of $131,936, $102,455 and $10,512 respectively, As of December 31, 2020, the Company had issued 1,000 restricted K Shares to each of the Company's three independent directors for a total of 3,000 restricted K Shares in connection with the Company's long-term incentive plan, as described below. As of December 31, 2020, 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 December 31, 2020, there was no remaining receivable balance reflected in equity. As of December 31, 2020, 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 year ended December 31, 2020, pursuant to the primary portion of the Public Offering, the Company sold 940,188 K Shares for aggregate gross proceeds of $8,893,703, or $9.46 per K Share; 173,199 K-I Shares for aggregate gross proceeds of $1,562,300, or $9.02 per K-I Share; and 2,000 K-T Shares for aggregate gross proceeds of $20,000, or $10.00 per K-T Share. During the same period, pursuant to the DRIP, the Company had issued 12,279 K Shares at a price of $8.46 per K Share for aggregate gross proceeds of $103,834, 8,143 K-I Shares at a price of $8.58 per K-I Share for aggregate gross proceeds of $69,860, and 1,153 K-T Shares at a price of $8.57 per K-T Share for aggregate gross proceeds of $9,882. Subsequent to December 31, 2020 and through March 23, 2021, pursuant to the primary portion of the Public Offering, the Company sold approximately 77,144 K Shares to investors at a weighted average price of $8.53 per K Share for gross proceeds of $658,167. The Company sold approximately 156,830 K-I Shares to investors at a weighted average price of $7.95 per K-I Share for gross proceeds of $1,246,800. Additionally, on January 19, 2021, the Company received $440,000 from the sale of A Shares to THR in a private placement. On February 27, 2020, as partial consideration for the Company’s acquisition of the Hilton Garden Inn Providence, the Operating Partnership issued 128,124 Class K OP Units valued at $10.00 per Class K OP Unit. Such issuance represents a total investment of $1,281,244 in Class K OP Units of the Operating Partnership. Individuals with direct or indirect interests in the sellers of the Hilton Garden Inn Providence who are direct or indirect owners of the Company’s Sponsor and PHA received only Class K OP Units and no cash as consideration. In response to adverse effects of the COVID-19 pandemic, the Company’s board of directors unanimously approved the temporary suspension of (i) the sale of K Shares, K-I Shares and K-T Shares in the Public Offering, effective as of April 7, 2020 and (ii) the operation of the DRIP, effective as of April 17, 2020. On June 10, 2020, the Company’s board of directors unanimously approved the resumption of the acceptance of subscriptions and the resumption of the operation of the DRIP. PHA was obligated to purchase sufficient A Shares to fund payment of O&O Costs associated with the Private Offering, and is obligated to purchase sufficient A Shares to fund payment of O&O Costs 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 applicable 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 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 their affiliates. As of December 31, 2020, the Company recognized $1,058,501 of selling commissions and dealer manager fees in connection with the Private Offering. 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 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 commission and dealer manager fees are generally 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, 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 December 31, 2020, the Company recognized $2,483,014 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 portion of the Public 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 will 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 portion of the Public Offering in accordance with the terms set forth in the prospectus portion of the Registration Statement. As of December 31, 2020, the Company recognized $5,766 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 shares, 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), officer 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 and 2020 annual meetings of stockholders on July 11, 2019 and November 17, 2020, 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 estimated per share NAV 2 years 95.0% of most recent estimated per share NAV 3 years 97.5% of most recent estimated per share NAV 4 years 100.0% of most recent estimated per share NAV In the event of a stockholder’s death or disability 100.0% of most recent estimated 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. On March 20, 2020, the Company’s board of directors decided to temporarily suspend repurchases under the A&R SRP, effective with repurchase requests that would have been processed in April 2020 due to the negative impact of the COVID-19 pandemic on the Company’s portfolio at the time; provided, however, the Company continued to process repurchases due to death in accordance with the terms of its share repurchase program. On June 10, 2020, the Company’s board of directors determined to fully reopen the share repurchase program to all repurchase requests commencing with the next quarter Repurchase Date, beginning in July 2020. Shares will be repurchased subject to and upon the terms and conditions of the Company’s A&R SRP. During the year ended December 31, 2020, the Company fulfilled repurchase requests and repurchased K Shares, K-I Shares and K-T Shares pursuant to the share repurchase program as follows: Total Number of Shares Requested to Total Number of Average Price Paid For the Quarter Ended be Repurchased Shares Repurchased per Share March 31, 2020 23,500 — $ — June 30, 2020 8,832 23,500 $ 10.00 September 30, 2020 1,000 8,832 $ 8.03 December 31, 2020 1,000 1,000 $ 7.92 34,332 33,332 During the year ended December 31, 2020, the Company repurchased approximately $255,875 of K Shares, $50,084 of K-I Shares and $7,920 of K-T Shares, which represented all repurchase requests received in good order and eligible for repurchase through the December 31, 2020 Repurchase Date. The Company generally repurchases shares approximately 30 days following the end of the applicable quarter in which requests were received. As December 31, 2020, there was one outstanding and unfulfilled repurchase request for 1,000 K Shares. 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. On January 23, 2020, 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, 2019, to the holders of record of K Shares, K-I Shares and K-T Shares as of the close of business on January 28, 2020. With respect to the K Shares, K-I Shares and K-T Shares outstanding as of December 31, 2019, 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, 2019, was $378,942, or $0.0016438356 per K Share per day, $65,432, or $0.0016438356 per K-I Share per day, and $6,023, or $0.0016438356 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, 2020. On April 29, 2020, 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, 2020, to the holders of record of K Shares, K-I Shares and K-T Shares as of the close of business on April 30, 2020. With respect to the K Shares, K-I Shares and K-T Shares outstanding as of March 31, 2020, 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 December 31, 2019, was $453,908, or $0.0016393443 per K Share per day, $83,629, or $0.0016393443 per K-I Share per day, and $7,029 or $0.0016393443 per K-T Share per day, respectively. Such distributions were paid to stockholders in cash on May 1, 2020. On March 3, 2020, the Company’s stockholders approved to amend the Company’s charter (1) to increase the rate at which cash distributions on K Shares, K-I Shares and K-T Shares automatically accrue under the Company’s charter from 6% to 7% per annum of the K Share Distribution Base of such K Share, K-I Share Distribution Base of such K-I Share and K-T Share Distribution Base of such K-T Share, respectively, and (2) to increase the maximum rate at which distributions on A Shares may be authorized by the Company’s board of directors and declared by the Company from 6% to 7% of the stated value of an A Share ($10.00) from income and cash flow from ordinary operations on a cumulative basis. The changes pursuant to the Articles of Amendment to the Company’s charter are effective beginning with distributions that accrued on March 31, 2020. On October 27, 2020, 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, 2020, to the holders of record of K Shares, K-I Shares and K-T Shares as of the close of business on October 30, 2020. With respect to the K Shares, K-I Shares and K-T Shares outstanding as of June 30, 2020, 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 March 31, 2020, was $571,905, or $0.0019125683 per K Share per day, $109,943, or $0.0019125683 per K-I Share per day, and $8,352 or $0.0019125683 per K-T Share per day, respectively. Such distributions were paid to stockholders in cash or in additional shares pursuant to the DRIP on November 12, 2020. With respect to the K Shares, K-I Shares and K-T Shares outstanding as of September 30, 2020, the cumulative amount of distributions that had accumulated on a daily basis with respect to each K Share, K-I Share and K-T Share since June 30, 2020, was $584,848, or $0.0019125683 per K Share per day, $111,990, or $0.0019125683 per K-I Share per day, and $8,444 or $0.0019125683 per K-T Share per day, respectively. On October 27, 2020, the Company’s board of directors deemed it to be in the best interests of the Company for the Company to authorize, declare, and pay distributions in an aggregate amount representing approximately 30% of the accumulated distribution with respect to each K Share, K-I Share and K-T Share outstanding as of September 30, 2020, to the holders of record of K Shares, K-I Shares and K-T

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2020
Income Taxes
Income Taxes	Note 11 - Income Taxes The Company recognized consolidated income tax expense of $609 and a consolidated income tax expense of $42,727 for the years ended December 31, 2020 and 2019, respectively. These amounts relate to the operations of the Company’s TRSs, which had a consolidated net loss for the years ended December 31, 2019 and consolidated net income for the year ended December 31, 2020. At December 31, 2020 and 2019, the Company had net deferred tax assets of $33,105 and $27,521, respectively, due to temporary differences between the timing of the GAAP recognition and tax recognition of certain expenses and net operating losses. The Company has evaluated the positive and negative evidence bearing upon the realizability of its deferred tax assets and determined it is more likely than not that the Company will not recognize the benefits of the deferred tax assets, except for the net operating losses that can be carried back to offset income in prior years. As such, a valuation allowance has been established upon such deferred tax assets as of December 31, 2020. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies
Commitments and Contingencies	Note 12 - Commitments and Contingencies Economic Dependency The Company depends on PHA for certain services that are essential to the Company, including the identification, evaluation, negotiation, purchase and disposition of properties and other investments, management of the daily operations of the Company’s real estate portfolio, and other general and administrative responsibilities. In the event that PHA is unable to provide these services to the Company, the Company will be required to obtain such services from other sources, and the Company’s failure to identify such other sources could have an adverse impact on the Company’s financial condition and results of operations. The Company also depends upon the Dealer Manager for the sale of the Company’s shares of common stock in its offering. Legal Matters From time to time, the Company may become party to legal proceedings that arise in the ordinary course of its business. Management is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on the Company’s results of operations or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Additionally, the Company has not recorded any loss contingencies related to legal proceedings in which the potential loss is deemed to be remote. Environmental All real properties and the operations conducted on real properties are subject to federal, state and local laws and regulations relating to environmental protection and human health and safety. In connection with ownership and operation of real estate, the Company may be potentially liable for costs and damages related to environmental matters. The Company intends to take commercially reasonable steps to protect ourselves from the impact of these laws, including obtaining environmental assessments of all properties that the Company acquires.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2020
Subsequent Events
Subsequent Events	Note 13 - Subsequent Events On January 19, 2021, the Company issued $440,000 of A Shares to THR in a private placement.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions are eliminated in consolidation. The Company consolidates variable interest entities (“VIEs”) as defined under the Consolidation Topic (“Topic 810”) of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) when it has the power to direct the activities that most significantly impact the VIE’s performance and the obligation to absorb losses or the right to receive benefits from the VIE that could be significant. At December 31, 2020, the assets of our VIEs were $66,554,450, and consist primarily of land, building, furniture, fixtures, and equipment and are available to satisfy our VIEs' obligations. The liabilities of our VIEs were $44,115,606 at December 31, 2020 and consist primarily of long-term debt. The Company has guaranteed certain obligations of its VIEs. 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 consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assumptions and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Investment in Real Estate	Investment in Real Estate Investment in real estate is stated at cost, less accumulated depreciation. Major improvements that extend the life of an asset are capitalized and depreciated over a period equal to the shorter of the life of the improvement or the remaining useful life of the asset. The cost of ordinary repairs and maintenance are charged to expense when incurred. Depreciation expense is computed using the straight-line and accelerated methods based upon the following estimated useful lives: Building 39 years Improvements 7-15 years Furniture, fixtures and equipment 3-7 years
Real Estate Purchase Price Allocation	Real Estate Purchase Price Allocation Upon the acquisition of hotel properties, the Company evaluates whether the acquisition is a business combination or an asset acquisition. For both business combinations and asset acquisitions the Company allocates the purchase price of properties to acquired tangible assets and any assumed debt based on their fair value. For asset acquisitions, the Company capitalizes transaction costs and allocates the purchase price using a relative fair value method allocating all accumulated costs. For business combinations, the Company expenses transaction costs associated as incurred and allocates the purchase price based on the estimated fair value of each separately identifiable asset and liability. The tangible assets acquired consist of land, buildings, improvements, furniture, fixtures and equipment. The Company utilizes independent appraisals, as well as hotel construction costs and other available market data, to assist in the determination of the fair values of the tangible assets of an acquired property. The Company determines the fair value of any assumed debt by calculating the net present value of the scheduled mortgage payments using methods similar to those used by independent appraisers, including using a discounted cash flow analysis that uses appropriate discount or capitalization rates and available market information where applicable. Estimates of future cash flows are based on a number of factors including historical operating results, known and anticipated trends, and market and economic conditions. Any difference between the fair value and stated value of the assumed debt is recorded as a discount or premium and amortized over the remaining life of the loan as interest expense. In allocating the purchase price of each of the Company’s properties, the Company makes assumptions and uses various estimates, including, but not limited to, the estimated useful lives of the assets, the cost of replacing certain assets and discount rates used to determine present values. Many of these estimates are obtained from independent third-party appraisals. However, the Company is responsible for the source and use of these estimates. These estimates are based on judgment and subject to being imprecise; accordingly, if different estimates and assumptions were derived, the valuation of the various categories of the Company’s hotel properties or related intangibles could in turn result in a difference in the depreciation or amortization expense recorded in the Company’s consolidated financial statements. These variances could be material to the Company’s results of operations and financial condition.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets and certain identifiable intangibles, including franchise agreements with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the estimated fair value of the asset.
Derivative Financial Instruments	Derivative Financial Instruments All derivative financial instruments are recorded at fair value in the Company’s consolidated balance sheet as an asset or liability. Accounting for changes in the fair value of a derivative instrument depends on the intended use of the derivative instrument and the designation of the derivative instrument. The Company’s objective in using derivatives is to add stability to interest expense and to manage the Company’s exposure to interest rate movements or other identified risks. Derivative instruments designated and qualifying as a hedge of the exposure to variability in expected future cash flows or other types of forecasted transactions are considered cash flow hedges. The changes in fair value for derivative instruments that are not designated as a hedge or that do not meet the hedge accounting criteria are recorded as an unrealized gain or loss in the consolidated statements of operations.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Under GAAP, the Company is required to disclose the fair value of certain financial instruments on a recurring basis. The accompanying consolidated balance sheets include the following financial instruments: cash, restricted cash, accounts receivable, accounts payable, mortgage notes payable and other debt. 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 driers 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 December 31, 2020, the estimated fair value of the mortgage notes payable was $54,993,341, compared to the carrying value of $56,870,288. These financial instruments are valued using Level 3 inputs through a discounted cash flow analysis of the contractual cash flows of the notes payable discounted at a market rate.
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.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents represent cash on hand or held in banks and highly liquid investments with original maturities of three months or less.
Restricted Cash	Restricted Cash The Company maintains reserves for property taxes and capital improvements as required by the debt agreements. At December 31, 2020 and 2019, reserves for property taxes were $409,373 and $391,511, respectively, and reserves for capital improvements were $2,420,168 and $1,221,133, respectively. The Company also included $36,140 and $19,005 of guest advance deposits as restricted cash at December 31, 2020 and 2019, respectively.
Accounts Receivable	Accounts Receivable The Company records its accounts receivable at cost. On a periodic basis, the Company evaluates its accounts receivable and establishes an allowance for doubtful accounts, when deemed necessary, based on its history of past write offs, collections and current credit conditions. Accounts are written off based on management’s evaluation of the collectability of each account resulting from collection efforts. The Company has determined that no allowance for doubtful accounts was necessary at December 31, 2020 and 2019.
Prepaid Expenses and Other Assets	Prepaid Expenses and Other Assets Prepaid expenses include prepaid insurance and hotel operating expenses. Other assets include inventories at the hotel properties, consisting of food and beverage, are valued at the lower of cost and net realizable value, using the FIFO (first-in first-out) method of accounting. Other assets also include the Company’s deferred income tax asset.
Deferred Franchise Fees	Deferred Franchise Fees Franchise fee represents the initial franchise fee paid by the Company. The initial franchise fees of the agreements are recorded at cost and amortized on a straight-line basis over the term of the franchise agreements.
Deferred Financing Costs	Deferred Financing Costs Deferred finance fees are bank fees and other costs incurred in obtaining financing that are amortized on a straight-line basis over the term of the related debt. Deferred finance fees are presented as a direct reduction of the carrying amount of the mortgage notes payable on the consolidated balance sheet. Amortization of deferred finances fees is calculated using the straight-line method over the term of the related debt and is included in interest expense.
Organization and Offering Costs	Organization and Offering Costs Organization and offering costs (“O&O 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 O&O Costs against additional paid in capital on the consolidated balance sheet as it raises proceeds in its 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 December 31, 2020, 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 2017 through 2020 remaining subject to examination by federal and various state tax jurisdictions.
Noncontrolling Interests	Noncontrolling Interests Noncontrolling interest represents the portion of equity of Procaccianti Convertible Fund, LLC (“PCF”) held by owners other than the Company. Noncontrolling interest is reported in the 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 consolidated statement of operations.
Noncontrolling Interest of the Operating Partnership	Noncontrolling Interest of the Operating Partnership Noncontrolling interest of the Operating Partnership represents the value of the 128,124 Class K OP Units that were issued to affiliate sellers in connection with the acquisition of the Hilton Garden Inn Providence. Noncontrolling interest of the Operating Partnership is reported in the mezzanine section of the consolidated balance sheet, as the units are redeemable at the request of the holder for cash equal to the fair market value of a K Share as defined in the Amended and Restated Agreement of Limited Partnership of Procaccianti Hotel REIT, L.P. (the “Amended and Restated Operating Partnership Agreement”). The Company may elect to acquire any such unit presented for redemption for one K Share or cash. Revenue, expenses, and net income attributable to both the Company and the noncontrolling interest of the Operating Partnership are reported in the consolidated statement 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. 3,000 non-vested restricted K Shares held by the Company's independent directors as of December 31, 2020 are included in the calculation of basic EPS because such shares have been issued and participate in distributions. The Company’s calculated earnings per share for the year ended December 31, 2020 and 2019, were as follows: Year Ended December 31, 2020 2019 Net income (loss) $ (3,826,605) $ 102,952 Less: Class K Common Stock dividends declared and accumulated 2,221,403 1,207,410 Less: Class K-I Common Stock dividends declared and accumulated 421,761 143,529 Less: Class K-T Common Stock dividends declared and accumulated 32,247 8,497 Less: Class A Common Stock dividends declared and accumulated 362,825 304,298 Undistributed net loss $ (6,864,841) $ (1,560,782) Class K Common Stock: Undistributed net loss $ (4,882,213) $ (1,083,841) Class K Common Stock dividends declared and accumulated 2,221,403 1,207,410 Net income ( loss) $ (2,660,810) $ 123,569 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 3,281,469 2,012,289 Class K-I Common Stock: Undistributed net loss $ (926,056) $ (128,834) Class K-I Common Stock dividends declared and accumulated 421,761 143,529 Net income ( loss) $ (504,295) $ 14,695 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 622,428 239,197 Class K-T Common Stock: Undistributed net loss $ (71,030) $ (7,618) Class K-T Common Stock dividends declared and accumulated 32,247 8,497 Net income ( loss) $ (38,783) $ 879 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 47,741 14,144 Class A Common Stock: Undistributed net loss $ (799,565) $ (273,163) Class A Common Stock dividends declared and accumulated 362,825 304,298 Net income ( loss) $ (436,740) $ 31,135 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 537,410 507,163 Class B Common Stock: Undistributed net loss $ (185,977) $ (67,326) Net income (loss) per common share, basic and diluted $ (1.49) $ (0.54) Weighted average number of common shares outstanding, basic and diluted 125,000 125,000
New Accounting Standards	New Accounting Standards In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 325): Measurement of Credit Losses on Financial Instruments (“ASU No. 2016-13”), which requires that entities use a new forward-looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. On January 1, 2020, the Company adopted ASU No. 2016-13 using the modified retrospective approach and the adoption did not have a material impact on the Company’s consolidated financial statements.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2020
Summary of Significant Accounting Policies
Schedule of estimated useful lives of fixed assets	Building 39 years Improvements 7-15 years Furniture, fixtures and equipment 3-7 years
Schedule of EPS	Year Ended December 31, 2020 2019 Net income (loss) $ (3,826,605) $ 102,952 Less: Class K Common Stock dividends declared and accumulated 2,221,403 1,207,410 Less: Class K-I Common Stock dividends declared and accumulated 421,761 143,529 Less: Class K-T Common Stock dividends declared and accumulated 32,247 8,497 Less: Class A Common Stock dividends declared and accumulated 362,825 304,298 Undistributed net loss $ (6,864,841) $ (1,560,782) Class K Common Stock: Undistributed net loss $ (4,882,213) $ (1,083,841) Class K Common Stock dividends declared and accumulated 2,221,403 1,207,410 Net income ( loss) $ (2,660,810) $ 123,569 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 3,281,469 2,012,289 Class K-I Common Stock: Undistributed net loss $ (926,056) $ (128,834) Class K-I Common Stock dividends declared and accumulated 421,761 143,529 Net income ( loss) $ (504,295) $ 14,695 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 622,428 239,197 Class K-T Common Stock: Undistributed net loss $ (71,030) $ (7,618) Class K-T Common Stock dividends declared and accumulated 32,247 8,497 Net income ( loss) $ (38,783) $ 879 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 47,741 14,144 Class A Common Stock: Undistributed net loss $ (799,565) $ (273,163) Class A Common Stock dividends declared and accumulated 362,825 304,298 Net income ( loss) $ (436,740) $ 31,135 Net income (loss) per common share, basic and diluted $ (0.81) $ 0.06 Weighted average number of common shares outstanding, basic and diluted 537,410 507,163 Class B Common Stock: Undistributed net loss $ (185,977) $ (67,326) Net income (loss) per common share, basic and diluted $ (1.49) $ (0.54) Weighted average number of common shares outstanding, basic and diluted 125,000 125,000

Investments in Hotels (Tables)

Investments in Hotels (Tables)	12 Months Ended
	Dec. 31, 2020
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 $ 11,168,424 Staybridge Suites St. Petersburg 06/29/2017 (1) St. Petersburg, FL 51 % $ 20,500,000 119 $ 13,222,109 Hotel Indigo Traverse City 08/15/2018 Traverse City, MI 100 % $ 26,050,000 107 $ 15,092,000 Hilton Garden Inn Providence 02/27/2020 Providence, RI 100 % $ 28,500,000 137 $ 16,936,901 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.
Schedule of investments in hotel properties, fixed assets	December 31, December 31, 2020 2019 Land $ 11,588,686 $ 7,987,069 Building and improvements 77,286,159 53,478,730 Furniture, fixtures, and equipment 7,244,831 5,435,758 Total cost 96,119,676 66,901,557 Accumulated depreciation (6,530,972) (3,533,705) Investment in hotel properties, net $ 89,588,704 $ 63,367,852
Schedule of fair value of asset acquired	Fair Value at February 27, 2020 Land $ 3,601,617 Building and improvements 23,732,408 Furniture, fixtures, and equipment 1,679,004 Other assets 100,511 Total assets acquired 29,113,540 Long-term debt (15,598,479) Other liabilities assumed (122,582) Net assets acquired 13,392,479 Purchase price 13,526,000 Loss on acquisition $ (133,521)

Other Assets (Tables)

Other Assets (Tables)	12 Months Ended
	Dec. 31, 2020
Other Assets
Schedule of future amortization of deferred franchise costs	Years Ending December 31, 2021 $ 15,476 2022 15,476 2023 15,476 2024 15,476 2025 15,476 Thereafter 180,370 Total $ 257,750

Mortgage Notes Payable (Tables)

Mortgage Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2020
Mortgage Notes Payable
Scheduled of maturities of the mortgage notes payable	Years Ending December 31, 2021 $ 15,489,357 2022 415,485 2023 638,284 2024 23,393,336 Thereafter 16,482,972 Total $ 56,419,434

Interest Rate Swap (Tables)

Interest Rate Swap (Tables)	12 Months Ended
	Dec. 31, 2020
Interest Rate Swap [Abstract]
Schedule of outstanding interest rate swap agreement	The following table summarizes the terms of the outstanding interest rate swap agreement: Notional Fair Value of Amount as of Liability as of December 31, Interest Effective Maturity December 31, Balance Sheet Location 2020 Rate (1) Date Date 2020 (2) Interest rate swap Accounts payable, accrued expenses and other, net $ 15,092,000 5.30 % 8/15/2018 8/15/2021 $ (289,412) 1) The interest rate consists of the underlying index swapped to a fixed rate rather than floating rate LIBOR, plus a premium. The Company notes that the maturity date of the interest rate swap is prior to the LIBOR phase-out deadline and therefore does not expect any impact to the terms or value of the swap. 2) Changes in fair value are recorded as unrealized gain (loss) in the consolidated statements of operations as the Company did not designate this interest rate swap as a hedge. The Company valued the interest rate swap using Level 2 inputs.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2020
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 estimated per share NAV 2 years 95.0% of most recent estimated per share NAV 3 years 97.5% of most recent estimated per share NAV 4 years 100.0% of most recent estimated per share NAV In the event of a stockholder’s death or disability 100.0% of most recent estimated per share NAV
Schedule of share repurchase program	Total Number of Shares Requested to Total Number of Average Price Paid For the Quarter Ended be Repurchased Shares Repurchased per Share March 31, 2020 23,500 — $ — June 30, 2020 8,832 23,500 $ 10.00 September 30, 2020 1,000 8,832 $ 8.03 December 31, 2020 1,000 1,000 $ 7.92 34,332 33,332

Organization and Description _2

Organization and Description of Business (Details)	Dec. 31, 2020USD ($)stateroom$ / shares	Aug. 14, 2020USD ($)$ / shares	Feb. 27, 2020USD ($)$ / sharesshares	May 23, 2019USD ($)$ / shares	Aug. 14, 2018USD ($)$ / shares	Sep. 30, 2016USD ($)$ / sharesshares	Dec. 31, 2020USD ($)stateroomitem$ / shares	Jun. 10, 2020$ / shares	Dec. 31, 2019USD ($)$ / shares	Nov. 16, 2018$ / shares
Subsidiary, Sale of Stock
Number of owned interests in select - service hotels | item							4
Number of states select service hotels located | state	4						4
Number of select service hotels rooms | room	483						483
Weighted Average Number of Limited Partnership and General Partnership Unit Outstanding, Basic and Diluted | shares			128,124
Net Income (Loss), Per Outstanding Limited Partnership and General Partnership Unit, Basic and Diluted, Net of Tax			$ 10
Total investment | $	$ 89,588,704						$ 89,588,704		$ 63,367,852
Hilton Garden Inn Providence
Subsidiary, Sale of Stock
Number of Class K OP Units issued | shares			128,124
Value of Class K OP Units issued (in dollars per share)			$ 10
Total investment | $			$ 1,281,244
Cash consideration received by individuals with direct or indirect interests in the sellers of the hotel | $			$ 0
Initial public offering
Subsidiary, Sale of Stock
Amount of shares sold for termination of private offering prior to commencement of public offering | $	$ 30,189,759
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
Units issued, price per unit						$ 50
Class A Common Stock
Subsidiary, Sale of Stock
Common stock, par value per share (in dollars per share)	$ 0.01						$ 0.01		$ 0.01
Net Asset Value Per Share								$ 0
Class A Common Stock | Private offering
Subsidiary, Sale of Stock
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
Common stock, par value per share (in dollars per share)	0.01						$ 0.01		0.01
Net Asset Value Per Share								0
Class K Shares and Class A shares | Private offering
Subsidiary, Sale of Stock
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
Common stock, par value per share (in dollars per share)	0.01						0.01		0.01
Net Asset Value Per Share								8.56
Class K Common Stock | Distribution reinvestment plan
Subsidiary, Sale of Stock
Initial offering price per share	8.13			$ 9.50			$ 8.13
Amount of shares offered | $							$ 12,500,000
Proceeds from DRIP | $				$ 131,936
Class K Common Stock | Initial public offering
Subsidiary, Sale of Stock
Initial offering price per share		$ 8.56			$ 10
Amount of shares offered | $		$ 125,000,000
Class K Common Stock | Private offering
Subsidiary, Sale of Stock
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
Common stock, par value per share (in dollars per share)	0.01						$ 0.01		0.01
Shares issued price per share	10						10
Net Asset Value Per Share								8.55
Class K-I Common Stock | Distribution reinvestment plan
Subsidiary, Sale of Stock
Initial offering price per share	8.13			$ 9.50			$ 8.13
Amount of shares offered | $							$ 12,500,000
Proceeds from DRIP | $				$ 102,455
Class K-I Common Stock | Initial public offering
Subsidiary, Sale of Stock
Initial offering price per share		$ 7.95			9.50					$ 9.30
Amount of shares offered | $		$ 125,000,000
Class K-I Common Stock | Initial public offering | Distribution reinvestment plan
Subsidiary, Sale of Stock
Initial offering price per share										$ 9.50
Class K-T Common Stock
Subsidiary, Sale of Stock
Common stock, par value per share (in dollars per share)	0.01						$ 0.01		$ 0.01
Shares issued price per share	10						10
Net Asset Value Per Share								$ 8.56
Class K-T Common Stock | Distribution reinvestment plan
Subsidiary, Sale of Stock
Initial offering price per share	$ 8.13			$ 9.50			$ 8.13
Amount of shares offered | $							$ 25,000,000
Proceeds from DRIP | $				$ 10,512
Class K-T Common Stock | Initial public offering
Subsidiary, Sale of Stock
Initial offering price per share		$ 8.56			$ 10
Amount of shares offered | $		$ 250,000,000

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Estimated useful lives (Details)	12 Months Ended
	Dec. 31, 2020
Building [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	39 years
Improvements [Member] | Minimum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	7 years
Improvements [Member] | Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	15 years
Furniture, fixtures and equipment [Member] | Minimum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	3 years
Furniture, fixtures and equipment [Member] | Maximum
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives	7 years

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Calculated earnings per share (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share
Net income (loss)	$ (3,826,605)	$ 102,952
Undistributed net loss	(6,864,841)	(1,560,782)
Class K Common Stock
Earnings Per Share
Net income (loss)	(2,660,810)	123,569
Common Stock dividends declared and accumulated	2,221,403	1,207,410
Undistributed net loss	$ (4,882,213)	$ (1,083,841)
Net income (loss) per common share, basic and diluted (in dollars per share)	$ (0.81)	$ 0.06
Weighted average number of common shares outstanding, basic and diluted (in shares)	3,281,469	2,012,289
Class K-I Common Stock
Earnings Per Share
Net income (loss)	$ (504,295)	$ 14,695
Common Stock dividends declared and accumulated	421,761	143,529
Undistributed net loss	$ (926,056)	$ (128,834)
Net income (loss) per common share, basic and diluted (in dollars per share)	$ (0.81)	$ 0.06
Weighted average number of common shares outstanding, basic and diluted (in shares)	622,428	239,197
Class K-T Common Stock
Earnings Per Share
Net income (loss)	$ (38,783)	$ 879
Common Stock dividends declared and accumulated	32,247	8,497
Undistributed net loss	$ (71,030)	$ (7,618)
Net income (loss) per common share, basic and diluted (in dollars per share)	$ (0.81)	$ 0.06
Weighted average number of common shares outstanding, basic and diluted (in shares)	47,741	14,144
Class A Common Stock
Earnings Per Share
Net income (loss)	$ (436,740)	$ 31,135
Common Stock dividends declared and accumulated	362,825	304,298
Undistributed net loss	$ (799,565)	$ (273,163)
Net income (loss) per common share, basic and diluted (in dollars per share)	$ (0.81)	$ 0.06
Weighted average number of common shares outstanding, basic and diluted (in shares)	537,410	507,163
Class B Common Stock
Earnings Per Share
Net income (loss)	$ (185,977)	$ (67,326)
Undistributed net loss	$ (185,977)	$ (67,326)
Net income (loss) per common share, basic and diluted (in dollars per share)	$ (1.49)	$ (0.54)
Weighted average number of common shares outstanding, basic and diluted (in shares)	125,000	125,000

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Additional Information (Details)	Feb. 27, 2020shares	Dec. 31, 2020USD ($)segmentshares	Dec. 31, 2019USD ($)
Total of VIE and asset acquisition:
Assets		$ 100,954,146	$ 77,752,580
Liabilities		63,121,242	43,438,848
Carrying value of mortgage notes payable		56,747,853	39,437,601
Uncertain tax positions		$ 0
Number of segment | segment		1
Allowance for doubtful accounts		$ 0	0
Hilton Garden Inn Providence
Total of VIE and asset acquisition:
Number of Class K OP Units issued | shares	128,124
Procaccianti Convertible Fund, LLC (PCF)
Total of VIE and asset acquisition:
Reserves for property taxes		409,373	391,511
Reserves for capital improvements		2,420,168	1,221,133
Advance deposits		36,140	$ 19,005
Fair value of mortgage notes payable		54,993,341
Carrying value of mortgage notes payable		$ 56,870,288
Percentages of annual taxable income to stockholders		90.00%
Procaccianti Convertible Fund, LLC (PCF) | Restricted K shares | Director
Total of VIE and asset acquisition:
Number of shares issued and participate in dividends | shares		3,000
Procaccianti Convertible Fund, LLC (PCF) | Variable Interest Entity, Primary Beneficiary
Total of VIE and asset acquisition:
Assets		$ 66,554,450
Liabilities		$ 44,115,606

Investments in Hotels - Investm

Investments in Hotels - Investments in hotel properties (Details)	12 Months Ended
	Dec. 31, 2020USD ($)roomitem
Springhill Suites Wilmington Mayfaire
Schedule of Investments
Date Acquired	May 24, 2017	[1]
Location	Wilmington, NC
Ownership interest	51.00%
Contract Purchase Price	$ 18,000,000	[1],[2]
Rooms | item	120
Mortgage debt Outstanding	$ 11,168,424
Staybridge Suites St. Petersburg
Schedule of Investments
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	$ 13,222,109
Hotel Indigo Traverse City
Schedule of Investments
Date Acquired	Aug. 15, 2018
Location	Traverse City, MI
Ownership interest	100.00%
Contract Purchase Price	$ 26,050,000	[1],[2]
Rooms | item	107
Mortgage debt Outstanding	$ 15,092,000
Hilton Garden Inn Providence
Schedule of Investments
Date Acquired	Feb. 27, 2020
Location	Providence, RI
Ownership interest	100.00%
Contract Purchase Price	$ 28,500,000	[1],[2]
Rooms | item	137
Mortgage debt Outstanding	$ 16,936,901
[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.

Investments in Hotels - Inves_2

Investments in Hotels - Investment in hotel properties consist of fixed assets (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Investments in Hotels
Land	$ 11,588,686	$ 7,987,069
Building and improvements	77,286,159	53,478,730
Furniture, fixtures, and equipment	7,244,831	5,435,758
Total cost	96,119,676	66,901,557
Accumulated depreciation	(6,530,972)	(3,533,705)
Investment in hotel properties, net	$ 89,588,704	$ 63,367,852

Investments in Hotels - Acquisi

Investments in Hotels - Acquisition of the Hilton Garden Inn Providence Fair Value (Details) - USD ($)	Feb. 27, 2020	Dec. 31, 2020
Loss on acquisition		$ (133,521)
Hilton Garden Inn Providence | Nonrecurring
Other assets	$ 100,511
Total assets acquired	29,113,540
Long-term debt	(15,598,479)
Other liabilities assumed	(122,582)
Net assets acquired	13,392,479
Net purchase price	13,526,000
Loss on acquisition		$ (133,521)
Hilton Garden Inn Providence | Nonrecurring | Land [Member]
Property, plant and equipment	3,601,617
Hilton Garden Inn Providence | Nonrecurring | Building and improvements
Property, plant and equipment	23,732,408
Hilton Garden Inn Providence | Nonrecurring | Furniture, fixtures and equipment
Property, plant and equipment	$ 1,679,004

Investments in Hotels - Additio

Investments in Hotels - Additional Information (Details)	Feb. 27, 2020USD ($)room$ / sharesshares	Dec. 31, 2020USD ($)roomitem	Dec. 31, 2019USD ($)	Dec. 30, 2020USD ($)	Mar. 29, 2018
Business Acquisition [Line Items]
Depreciation		$ 2,997,262	$ 2,236,553
Number of Units in Real Estate Property | room		483
Dividends, Cash	$ 12,240,256
Weighted Average Number of Limited Partnership and General Partnership Unit Outstanding, Basic and Diluted | shares	128,124
Net Income (Loss), Per Outstanding Limited Partnership and General Partnership Unit, Basic and Diluted, Net of Tax | $ / shares	$ 10
Noncontrolling interest of the Operating Partnership		$ 1,172,329
Acquisition costs		$ 94,133
Hilton Garden Inn Providence
Business Acquisition [Line Items]
Rooms | item		137
Noncontrolling interest of the Operating Partnership				$ 1,281,244
Gano
Business Acquisition [Line Items]
Business Combination, Consideration Transferred	$ 28,500,000
Rooms | room	137
Procaccianti Convertible Fund, LLC (PCF)
Business Acquisition [Line Items]
Entity ownership percentage					51.00%
Hilton Garden Inn Providence
Business Acquisition [Line Items]
Acquisition costs	$ 72,149
Gano
Business Acquisition [Line Items]
Entity ownership percentage	100.00%

Other Assets - Future Amortizat

Other Assets - Future Amortization of Deferred Franchise Costs (Details)	12 Months Ended
	Dec. 31, 2020USD ($)
Other Assets
2021	$ 15,476
2022	15,476
2023	15,476
2024	15,476
2025	15,476
Thereafter	180,370
Total	$ 257,750

Other Assets - Additional Infor

Other Assets - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Other Assets [Line Items]
Franchise fees	$ 257,750	$ 197,392
Amortization of deferred franchise fees	$ 14,642	$ 10,475
Minimum
Other Assets [Line Items]
Term franchise agreement	15 years
Maximum
Other Assets [Line Items]
Term franchise agreement	25 years

Mortgage Notes Payable (Details

Mortgage Notes Payable (Details) - USD ($)	Aug. 15, 2018	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Mortgage notes payable, net		$ 56,747,853	$ 39,437,601
Repayments Of Mortgage Notes Principal		202,467	1,744,000
Interest expense on mortgage notes payable		2,549,503	1,931,640
Deferred finance costs and debt discounts		9,009	$ 103,477
Additional loans borrowed		$ 2,000,000
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		$ 162,921
Mortgage payable secured by the St. Pete Hotel
Debt Instrument [Line Items]
Mortgage notes payable, net		$ 13,222,109
Interest rate		4.34%
Interest payments		$ 66,255
Interest payment starting date		Aug. 1, 2020
Interest payment ending date		Jul. 1, 2024
Description of variable rate		Monthly
Mortgage Payable Secured By Wilmington Hotel [Member]
Debt Instrument [Line Items]
Mortgage notes payable, net		$ 11,168,424
Interest rate		4.49%
Interest payments		$ 57,026
Interest payment starting date		Jun. 1, 2020
Interest payment ending date		Jul. 1, 2024
Description of variable rate		Monthly
Mortgage Payable Secured By Wilmington Hotel Tci [Member]
Debt Instrument [Line Items]
Mortgage notes payable, net		$ 15,092,000
Debt instrument, basis spread on variable rate		2.50%
Mortgage Payable Secured By Wilmington Hotel Tci [Member] | Interest rate swap
Debt Instrument [Line Items]
Mortgage note due date	Aug. 15, 2021
Mortgage Payable Secured By Hilton Garden Inn Providence
Debt Instrument [Line Items]
Mortgage notes payable, net		$ 16,936,901

Mortgage Notes Payable - Schedu

Mortgage Notes Payable - Scheduled of Maturities (Details)	Dec. 31, 2020USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
2021	$ 15,489,357
2022	415,485
2023	638,284
2024	23,393,336
Thereafter	16,482,972
Total	$ 56,419,434

Interest Rate Swap - Summary of

Interest Rate Swap - Summary of Outstanding Interest Rate Swap (Details) - Interest rate swap	12 Months Ended
	Dec. 31, 2020USD ($)
Derivatives, Fair Value [Line Items]
Notional Amount	$ 15,092,000
Maturity Date	Aug. 15, 2021
Accounts payable, accrued expenses and other, net
Derivatives, Fair Value [Line Items]
Notional Amount	$ 15,092,000
Interest Rate	5.30%	[1]
Effective Date	Aug. 15, 2018
Maturity Date	Aug. 15, 2021
Fair Value of Liability	$ (289,412)
[1]	The interest rate consists of the underlying index swapped to a fixed rate rather than floating rate LIBOR, plus a premium. The Company notes that the maturity date of the interest rate swap is prior to the LIBOR phase-out deadline and therefore does not expect any impact to the terms or value of the swap.

Interest Rate Swap - Additional

Interest Rate Swap - Additional Information (Details) - Interest rate swap	12 Months Ended
	Dec. 31, 2020USD ($)
Derivatives, Fair Value [Line Items]
Notional Amount	$ 15,092,000
Mortgage note due date	Aug. 15, 2021

Other Debt (Details)

Other Debt (Details)	3 Months Ended	9 Months Ended
	Mar. 26, 2021USD ($)	Dec. 31, 2020USD ($)item
Debt Instrument [Line Items]
Proceeds from loan	$ 889,671
Paycheck Protection Program, CARES Act [Member]
Debt Instrument [Line Items]
Proceeds from loan		$ 1,018,917
Debt Instrument, Face Amount	$ 1,426,711
Number of hotel properties | item		4
Percentage of prepaid interest loan with out penalty		1.00%

Loans from Franchisors (Details

Loans from Franchisors (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Other Liabilities [Line Items]
Key money liability	$ 985,784	$ 1,039,284
Deferred revenue amortized	53,500	$ 53,500
PCF
Other Liabilities [Line Items]
PCF key money loan	750,000
TCI
Other Liabilities [Line Items]
TCI key money loan assumed	$ 364,430

Related Party Transactions - Ac

Related Party Transactions - Acquisition Fee, Asset Management Fee and Disposition Fee (Details) - Procaccianti Hotel Advisors, LLC ("PHA") - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions
Acquisition fees in due to related parties	$ 979,350	$ 537,980
Advisory agreement with PHA and Operating Partnership
Related Party Transactions
Percentage of total acquisition fee payable to PHA	1.50%
Non-compounded rate of interest on deferred acquisition fees	6.00%
Acquisition fee	$ 441,370	0
Accrued interest on outstanding acquisition fees	$ 54,564	32,279
One fourth of percentage of quarterly asset management fee	0.75%
Accumulated, accrued, and unpaid distributions percentage	6.00%
Non-compounded rate of interest on deferred asset management fees	6.00%
Asset management fees	$ 538,089	352,288
Accrued interest on outstanding asset management fees	$ 51,605	$ 24,449
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 ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions
Offering costs paid to PHA through issuance of A Shares	$ 274,877	$ 1,358,793
Due from related parties	68,050	400,446
Aggregate property management fees	393,134	530,307
Accrued property management fees payable	31,594	28,371
Aggregate net reimbursements	118,708	57,879
Reimbursement of prepaid insurance	49,761	548
Reimbursements expenses	16,172	11,665
Additional service fees	0	0
TPG Risk Services, LLC
Related Party Transactions
Reimbursement of prepaid insurance	324,055	228,302
Advisory agreement with PHA and Operating Partnership | Procaccianti Hotel Advisors, LLC ("PHA")
Related Party Transactions
Recognized organization and offering costs	$ 1,598,938	$ 2,817,927
Percentage of gross proceeds on public offering	15.00%
Percentage cap for reimbursement of organization and offering costs	15.00%
Organization and offering costs incurred by PHA and its affiliates	$ 8,408,151
Reimbursement of organization and offering costs through issuance of A shares	1,026,564
Reimbursement of common shares issuance to affiliate	2,303,745
Amount of organization and offering costs reimbursable	3,699,275
Due from related parties	$ 121,786
Hotel management agreement with PHR St. Petersburg Hotel Manager, LLC
Related Party Transactions
Percentage of hotel's gross revenues as base management fee	3.00%

Related Party Transactions - Co

Related Party Transactions - Construction Management Fee, Payment Upon Advisory Agreement Termination for Cause and Loans from Affiliates (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Aug. 15, 2018
Related Party Transactions
Construction Management Fees	$ 0	$ 10,031
Due to related parties	2,648,575	1,308,424
Due from related parties	68,050	400,446
Unsecured loan
Related Party Transactions
Principal amount			$ 6,600,000
Interest rate			4.75%
Interest Expense		116,896
TPG Construction, LLC
Related Party Transactions
Reimbursement of capital expenditure costs	44,656	741,447
Due to related parties	12,685	13,445
Due from related parties	23,050	$ 50,570
Procaccianti Hotel Advisors, LLC ("PHA")
Related Party Transactions
Principal amount	$ 94,194
Long Term Applicable Federal Rate	1.65%	2.85%
Interest Expense	$ 1,556	$ 2,687
Advisory agreement with PHA and Operating Partnership
Related Party Transactions
Stated value of A shares repurchased in Non-cause Advisory Agreement Termination	$ 10
Non-compounded annual rate of accrued interest on deferred fees if agreement terminates for cause	6.00%
Advisory agreement with PHA and Operating Partnership | Procaccianti Hotel Advisors, LLC ("PHA")
Related Party Transactions
Due from related parties	$ 121,786

Stockholders' Equity - Per shar

Stockholders' Equity - Per share repurchase price (Details)	12 Months Ended
	Dec. 31, 2020
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 estimated per share NAV
2 years
Class of Stock [Line Items]
Repurchase Price on Repurchase Date	95.0% of most recent estimated per share NAV
3 years
Class of Stock [Line Items]
Repurchase Price on Repurchase Date	97.5% of most recent estimated per share NAV
4 years
Class of Stock [Line Items]
Repurchase Price on Repurchase Date	100.0% of most recent estimated 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 estimated per share NAV

Stockholders' Equity - Repurcha

Stockholders' Equity - Repurchase requests and repurchased K Shares pursuant to the share repurchase program (Details) - Common Class K, KI, KT - $ / shares	3 Months Ended				12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2020
Class of Stock
Total Number of Shares Requested to be Repurchased	1,000	1,000	8,832	23,500	34,332
Total Number of Shares Repurchased	1,000	8,832	23,500	0	33,332
Average Price Paid per Share	$ 7.92	$ 8.03	$ 10	$ 0

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - $ / shares	Mar. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
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%	7.00%
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%	7.00%
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%	7.00%
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		7.00%
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
Common stock, voting rights		no voting rights
Percentage of excess cash available for distribution		12.50%
Percentage of remaining liquidation cash distribution on pro rata basis		12.50%

Stockholders' Equity - Long-ter

Stockholders' Equity - Long-term incentive plan - (Details)	Feb. 11, 2019directorshares	Dec. 31, 2020shares
Director
Class of Stock [Line Items]
Number of independent directors | director	3
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 - Share Re

Stockholders' Equity - Share Repurchase Program and Redeemable Common Stock - (Details) - USD ($)	Oct. 26, 2018	Dec. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Issuance of common stock		$ 10,476,003	$ 18,724,853
Value of share repurchase		$ 313,879	$ 65,906
Class K-I Common Stock
Class of Stock [Line Items]
Shares issued price per share		$ 10
Class K-T Common Stock
Class of Stock [Line Items]
Shares issued price per share		$ 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
Amount of share repurchased		$ 255,875
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	$ 2,000
Maximum balance of shares requested to be repurchased		100
Amount of share repurchased		$ 50,084
Prior period of share repurchase		30 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	$ 2,000
Maximum balance of shares requested to be repurchased		100
Amount of share repurchased		$ 7,920
Prior period of share repurchase		5 days
Repurchase requests period		2 years
One unfilled standard repurchase requests | Class K Common Stock
Class of Stock [Line Items]
Repurchase of common stock (in shares)		1,000

Stockholders' Equity - Distribu

Stockholders' Equity - Distributions - (Details) - USD ($)

Nov. 16, 2020

Oct. 27, 2020

Apr. 29, 2020

Jan. 23, 2020

Oct. 29, 2019

Jul. 31, 2019

Apr. 29, 2019

Jan. 25, 2019

Dec. 31, 2020

Sep. 30, 2020

Mar. 03, 2020

Dec. 31, 2019

Distribution Made to Limited Liability Company (LLC) Member

Cumulative distributions

$ 3,528,321

$ 1,631,573

Distributions | Class A Common Stock

Distribution Made to Limited Liability Company (LLC) Member

Cumulative amount of distribution per share per day

$ 10

Distributions | Class A Common Stock | Minimum

Distribution Made to Limited Liability Company (LLC) Member

Charter distribution percentage

6.00%

Distributions | Class A Common Stock | Maximum

Distribution Made to Limited Liability Company (LLC) Member

Charter distribution percentage

7.00%

Distributions | Class K Common Stock

Distribution Made to Limited Liability Company (LLC) Member

Cumulative distributions

$ 571,905

$ 453,908

$ 378,942

$ 331,011

$ 272,176

$ 225,280

$ 193,826

$ 584,848

Cumulative amount of distribution per share per day

$ 0.0019125682

$ 0.0016393443

$ 0.00164383557

$ 0.00164383557

$ 0.00164383557

$ 0.00164383557

$ 0.00164383557

$ 0.0019125682

Date of Record

Oct. 30, 2020

Apr. 30, 2020

Jan. 28, 2020

Oct. 31, 2019

Aug. 1, 2019

Apr. 30, 2019

Jan. 28, 2019

Distribution Date

Nov. 12, 2020

May 1, 2020

Jan. 31, 2020

Nov. 1, 2019

Aug. 2, 2019

May 1, 2019

Jan. 31, 2019

Declaration Date

Oct. 27, 2020

Apr. 29, 2020

Jan. 23, 2020

Oct. 29, 2019

Jul. 31, 2019

Apr. 29, 2019

Jan. 25, 2019

Percentage of distributions that can be authorized, declared, and paid

30.00%

Dividends paid

$ 175,453

Dividends per share cash paid

$ 0.0005737701

Distributions | Class K Common Stock | Minimum

Distribution Made to Limited Liability Company (LLC) Member

Charter distribution percentage

6.00%

Distributions | Class K Common Stock | Maximum

Distribution Made to Limited Liability Company (LLC) Member

Charter distribution percentage

7.00%

Distributions | Class K-I Common Stock

Distribution Made to Limited Liability Company (LLC) Member

Cumulative distributions

$ 109,943

$ 83,629

$ 65,432

$ 50,842

$ 22,536

$ 4,722

$ 1,123

$ 111,990

Cumulative amount of distribution per share per day

$ 0.0019125682

$ 0.0016393443

$ 0.00164383557

$ 0.00164383557

$ 0.00164383557

$ 0.00164383557

$ 0.00164383557

$ 0.0019125682

Date of Record

Oct. 30, 2020

Apr. 30, 2020

Jan. 28, 2020

Oct. 31, 2019

Aug. 1, 2019

Apr. 30, 2019

Jan. 28, 2019

Distribution Date

Oct. 30, 2020

May 1, 2020

Jan. 31, 2020

Nov. 1, 2019

Aug. 2, 2019

May 1, 2019

Jan. 31, 2019

Declaration Date

Oct. 27, 2020

Apr. 29, 2020

Jan. 23, 2020

Oct. 29, 2019

Jul. 31, 2019

Apr. 29, 2019

Jan. 25, 2019

Percentage of distributions that can be authorized, declared, and paid

30.00%

Dividends paid

$ 33,597

Dividends per share cash paid

$ 0.0005737701

Distributions | Class K-I Common Stock | Minimum

Distribution Made to Limited Liability Company (LLC) Member

Charter distribution percentage

6.00%

Distributions | Class K-I Common Stock | Maximum

Distribution Made to Limited Liability Company (LLC) Member

Charter distribution percentage

7.00%

Distributions | Class K-T Common Stock

Distribution Made to Limited Liability Company (LLC) Member

Cumulative distributions

$ 8,352

$ 7,029

$ 6,023

$ 1,857

$ 531

$ 88

$ 29

$ 8,444

Cumulative amount of distribution per share per day

$ 0.0019125682

$ 0.0016393443

$ 0.00164383557

$ 0.00164383557

$ 0.00164383557

$ 0.00164383557

$ 0.00136986515

$ 0.0019125682

Date of Record

Oct. 30, 2020

Apr. 30, 2020

Jan. 28, 2020

Oct. 31, 2019

Aug. 1, 2019

Apr. 30, 2019

Jan. 28, 2019

Distribution Date

Oct. 30, 2020

May 1, 2020

Jan. 31, 2020

Nov. 1, 2019

Aug. 2, 2019

May 1, 2019

Jan. 31, 2019

Declaration Date

Oct. 27, 2020

Apr. 29, 2020

Jan. 23, 2020

Oct. 29, 2019

Jul. 31, 2019

Apr. 29, 2019

Jan. 25, 2019

Percentage of distributions that can be authorized, declared, and paid

30.00%

Dividends paid

$ 2,533

Dividends per share cash paid

$ 0.0005737701

Distributions | Class K-T Common Stock | Minimum

Distribution Made to Limited Liability Company (LLC) Member

Charter distribution percentage

6.00%

Distributions | Class K-T Common Stock | Maximum

Distribution Made to Limited Liability Company (LLC) Member

Charter distribution percentage

7.00%

Stockholders' Equity - Additi_2

Stockholders' Equity - Additional Information 1 (Details)	Mar. 26, 2021USD ($)$ / sharesshares	Jan. 19, 2021USD ($)	Feb. 27, 2020USD ($)$ / sharesshares	Sep. 29, 2016shares	Dec. 31, 2020USD ($)director$ / sharesshares	Dec. 31, 2019USD ($)shares	Sep. 30, 2016$ / shares
Class of Stock
Proceeds from issuance of common stock | $					$ 10,476,003	$ 18,724,853
Value of issuance of common stock | $					10,476,003	18,724,853
Total investment | $					89,588,704	$ 63,367,852
Hilton Garden Inn Providence
Class of Stock
Number of Class K OP Units issued			128,124
Value of Class K OP Units issued (in dollars per share) | $ / shares			$ 10
Total investment | $			$ 1,281,244
Cash consideration received by individuals with direct or indirect interests in the sellers of the hotel | $			$ 0
Private offering
Class of Stock
Selling commissions and dealer manager fees | $					1,058,501
Dealer manager | Initial public offering
Class of Stock
Selling commissions and dealer manager fees | $					2,483,014
Value of stockholder servicing fee | $					$ 5,766
Class K Common Stock
Class of Stock
Common stock, shares issued					3,608,062	2,680,845
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 | Distribution reinvestment plan
Class of Stock
Issuance of common stock (in shares)					15,237
Value of issuance of common stock | $					$ 131,936
Class K Common Stock | Private offering
Class of Stock
Shares issued price per share | $ / shares							$ 10
Class K Common Stock | Unaffiliated investors | Initial public offering
Class of Stock
Common stock, shares issued					2,388,985
Proceeds from issuance of common stock | $					$ 23,363,950
Class K Common Stock | Unaffiliated investors | Private offering
Class of Stock
Common stock, shares issued					1,253,618
Proceeds from issuance of common stock | $					$ 12,398,660
Class K Common Stock | Dealer manager | Initial public offering
Class of Stock
Dealer manager selling commissions percentage					7.00%
Dealer manager fee, percentage					3.00%
Class K Common Stock | Dealer manager | Private offering
Class of Stock
Dealer manager selling commissions percentage					7.00%
Dealer manager fee, percentage					3.00%
Class K Common Stock | Investors | Distribution reinvestment plan
Class of Stock
Issuance of common stock (in shares)					12,279
Shares issued price per share | $ / shares					$ 8.46
Value of issuance of common stock | $					$ 103,834
Class K Common Stock | Investors | Initial public offering
Class of Stock
Issuance of common stock (in shares)					940,188
Shares issued price per share | $ / shares					$ 9.46
Value of issuance of common stock | $					$ 8,893,703
Class K Common Stock | Three Independent director
Class of Stock
Number of restricted shares issued					3,000
Number of independent directors | director					3
Class K Common Stock | Independent director one
Class of Stock
Number of restricted shares issued					1,000
Class K Common Stock | Independent director two
Class of Stock
Number of restricted shares issued					1,000
Class K Common Stock | Independent director three
Class of Stock
Number of restricted shares issued					1,000
Class A Common Stock
Class of Stock
Common stock, shares issued					537,410	537,410
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
Common stock, shares issued					23,000
Proceeds from issuance of common stock | $					$ 230,000
Class A Common Stock | TPG Hotel REIT Investor, LLC (THR)
Class of Stock
Common stock, shares issued					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
Class A Common Stock | Procaccianti Hotel Advisors, LLC ("PHA")
Class of Stock
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
Common stock, shares issued					125,000	125,000
Percentage of excess liquidation cash if A shares repurchased in Non-cause Advisory Agreement Termination					12.50%
Class B Common Stock | Dealer manager
Class of Stock
Number of shares issued in exchange of notes receivable				125,000
Class K-I Common Stock
Class of Stock
Common stock, shares issued					666,728	491,718
Shares issued price per share | $ / shares					$ 10
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%
Class K-I Common Stock | Initial public offering | Distribution reinvestment plan
Class of Stock
Issuance of common stock (in shares)					11,574
Value of issuance of common stock | $					$ 102,455
Class K-I Common Stock | Unaffiliated investors | Initial public offering
Class of Stock
Common stock, shares issued					661,475
Proceeds from issuance of common stock | $					$ 6,105,506
Class K-I Common Stock | Dealer manager | Initial public offering
Class of Stock
Dealer manager fee, percentage					3.00%
Class K-I Common Stock | Investors | Distribution reinvestment plan
Class of Stock
Issuance of common stock (in shares)					8,143
Shares issued price per share | $ / shares					$ 8.58
Value of issuance of common stock | $					$ 69,860
Class K-I Common Stock | Investors | Initial public offering
Class of Stock
Issuance of common stock (in shares)					173,199
Shares issued price per share | $ / shares					$ 9.02
Value of issuance of common stock | $					$ 1,562,300
Class K-T Common Stock
Class of Stock
Common stock, shares issued					47,769	45,616
Shares issued price per share | $ / shares					$ 10
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 | Distribution reinvestment plan
Class of Stock
Issuance of common stock (in shares)					1,219
Value of issuance of common stock | $					$ 10,512
Class K-T Common Stock | Unaffiliated investors | Initial public offering
Class of Stock
Common stock, shares issued					47,540
Proceeds from issuance of common stock | $					$ 475,400
Class K-T Common Stock | Dealer manager | Initial public offering
Class of Stock
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
Issuance of common stock (in shares)					1,153
Shares issued price per share | $ / shares					$ 8.57
Value of issuance of common stock | $					$ 9,882
Class K-T Common Stock | Investors | Initial public offering
Class of Stock
Issuance of common stock (in shares)					2,000
Shares issued price per share | $ / shares					$ 10
Value of issuance of common stock | $					$ 20,000
Subsequent event | Class K Common Stock | Investors | Initial public offering
Class of Stock
Issuance of common stock (in shares)	77,144
Shares issued price per share | $ / shares	$ 8.53
Value of issuance of common stock | $	$ 658,167
Subsequent event | Class A Common Stock | Investors | Private offering
Class of Stock
Proceeds from issuance of common stock | $		$ 440,000
Subsequent event | Class K-I Common Stock | Investors | Initial public offering
Class of Stock
Issuance of common stock (in shares)	156,830
Shares issued price per share | $ / shares	$ 7.95
Value of issuance of common stock | $	$ 1,246,800

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes
Income tax benefit (expense)	$ (609)	$ (42,727)
Net deferred tax asset	$ 33,105	$ 27,521

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Jan. 19, 2021	Dec. 31, 2020	Dec. 31, 2019
Proceeds from Issuance of Common Stock		$ 10,476,003	$ 18,724,853
TPG Hotel REIT Investor, LLC (THR) | Class A Common Stock
Proceeds from Issuance of Common Stock		3,844,095
Initial public offering | Unaffiliated investors | Class K Common Stock
Proceeds from Issuance of Common Stock		23,363,950
Initial public offering | Unaffiliated investors | Class K-I Common Stock
Proceeds from Issuance of Common Stock		6,105,506
Initial public offering | Unaffiliated investors | Class K-T Common Stock
Proceeds from Issuance of Common Stock		475,400
Private offering | Unaffiliated investors | Class K Common Stock
Proceeds from Issuance of Common Stock		12,398,660
Private offering | Unaffiliated investors | Class A Common Stock
Proceeds from Issuance of Common Stock		$ 230,000
Private offering | Investors | Class A Common Stock | Subsequent event
Proceeds from Issuance of Common Stock	$ 440,000