Lodging Fund Reit Iii 10-Q 12 Nov 20 2020 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 12, 2020
Document and Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Entity Registrant Name	LODGING FUND REIT III, INC.
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		7,597,657
Entity Central Index Key	0001745032
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Assets
Investment in hotel properties, net of accumulated depreciation of $3,830,419 and $1,255,712	$ 101,071,376	$ 65,408,308
Cash and cash equivalents	7,440,804	10,898,556
Restricted cash	4,282,199	5,275,815
Accounts receivable, net	440,942	107,976
Franchise fees, net	972,065	721,690
Prepaid expenses and other assets	1,504,755	1,623,584
Total Assets	115,712,141	84,035,929
Liabilities and Equity
Debt, net	64,820,623	40,980,632
Accounts payable	1,124,484	543,669
Accrued expenses	1,501,167	582,750
Distributions payable	1,300,168	342,515
Due to related parties	767,795	966,379
Other liabilities	865,178	434,974
Total liabilities	70,379,415	43,850,919
Commitments and contingencies (See Note 10)
Equity
Preferred stock, $0.01 par value, 100,000,000 shares authorized; no shares issued and outstanding
Common stock, $0.01 par value, 900,000,000 shares authorized; 7,448,276 and 6,005,743 shares issued and outstanding	74,482	60,057
Additional paid-in capital	73,062,764	58,961,101
Accumulated deficit	(28,468,708)	(18,396,163)
Total stockholders' equity	44,668,538	40,624,995
Total equity	45,332,726	40,185,010
Total Liabilities and Equity	115,712,141	84,035,929
Series B LP Units
Equity
Non-controlling interest	(834,030)	$ (439,985)
Series GO LP Units
Equity
Non-controlling interest	$ 1,498,218

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Accumulated depreciation	$ 3,830,419	$ 1,255,712
Preferred stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	900,000,000	900,000,000
Common stock, shares issued	7,448,276	6,005,743
Common stock, shares outstanding	7,448,276	6,005,743

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues
Revenues	$ 4,293,086	$ 3,394,809	$ 10,786,146	$ 5,737,728
Expenses
Property operations	1,466,175	1,243,043	4,159,882	2,121,567
General and administrative	972,407	1,542,964	3,474,099	3,187,082
Sales and marketing	278,931	319,061	876,533	725,268
Franchise fees	339,187	341,890	869,944	565,776
Management fees	422,290	279,502	1,163,523	486,087
Acquisition expense	44,154	200,271	382,148	508,260
Depreciation	884,597	427,422	2,575,731	739,680
Total expenses	4,407,741	4,354,153	13,501,860	8,333,720
Other Income (Expense)
Other income (expense), net	(49,116)	(12,141)	267,928	(39,698)
Interest expense	(803,501)	(466,028)	(2,366,750)	(889,177)
Total other income (expense)	(852,617)	(478,169)	(2,098,822)	(928,875)
Net Loss Before Income Taxes	(967,272)	(1,437,513)	(4,814,536)	(3,524,867)
Income tax benefit (expense)	559,176		815,222	59,556
Net Loss	(408,096)	(1,437,513)	(3,999,314)	(3,465,311)
Net Loss Attributable to Common Stockholders	$ (375,293)	$ (1,363,337)	$ (3,787,245)	$ (3,291,181)
Basic and Diluted Net Loss Per Share of Common Stock	$ (0.05)	$ (0.34)	$ (0.54)	$ (1.19)
Weighted-average Shares of Common Stock Outstanding, Basic and Diluted	7,384,189	4,012,732	7,013,281	2,754,783
Series B LP Units
Other Income (Expense)
Net loss attributable to non-controlling interest	$ (20,388)	$ (74,176)	$ (199,654)	$ (174,130)
Series GO LP Units
Other Income (Expense)
Net loss attributable to non-controlling interest	(12,415)		(12,415)
Room
Revenues
Revenues	4,235,255	3,375,317	10,623,696	5,708,031
Other
Revenues
Revenues	$ 57,831	$ 19,492	$ 162,450	$ 29,697

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total Stockholder's Equity	Non-controlling InterestSeries B LP Units	Non-controlling InterestSeries GO LP Units	Total
Balance - Beginning at Dec. 31, 2018	$ 11,350	$ 11,083,985	$ (4,041,428)	$ 7,053,907	$ (69,217)		$ 6,984,690
Balance - Beginning (Shares) at Dec. 31, 2018	1,135,010
Issuance of common stock	$ 7,894	7,814,618		7,822,512			7,822,512
Issuance of common stock (Shares)	789,455
Offering costs			(1,628,240)	(1,628,240)			(1,628,240)
Distributions declared			(266,076)	(266,076)	(14,004)		(280,080)
Distributions reinvested	$ 123	115,352		115,475			115,475
Distributions reinvested (Shares)	12,269
Net loss			(975,020)	(975,020)	(50,563)		(1,025,583)
Balance - Ending at Mar. 31, 2019	$ 19,367	19,013,955	(6,910,764)	12,122,558	(133,784)		11,988,774
Balance - Ending (Shares) at Mar. 31, 2019	1,936,734
Balance - Beginning at Dec. 31, 2018	$ 11,350	11,083,985	(4,041,428)	7,053,907	(69,217)		6,984,690
Balance - Beginning (Shares) at Dec. 31, 2018	1,135,010
Net loss							(3,465,311)
Balance - Ending at Sep. 30, 2019	$ 46,733	45,962,641	(14,160,963)	31,848,411	(319,874)		31,528,537
Balance - Ending (Shares) at Sep. 30, 2019	4,673,321
Balance - Beginning at Mar. 31, 2019	$ 19,367	19,013,955	(6,910,764)	12,122,558	(133,784)		11,988,774
Balance - Beginning (Shares) at Mar. 31, 2019	1,936,734
Issuance of common stock	$ 13,320	13,141,931		13,155,251			13,155,251
Issuance of common stock (Shares)	1,331,980
Offering costs			(1,955,447)	(1,955,447)			(1,955,447)
Distributions declared			(480,146)	(480,146)	(25,272)		(505,418)
Distributions reinvested	$ 201	191,193		191,394			191,394
Distributions reinvested (Shares)	20,147
Net loss			(952,825)	(952,825)	(49,390)		(1,002,215)
Balance - Ending at Jun. 30, 2019	$ 32,888	32,347,079	(10,299,182)	22,080,785	(208,446)		21,872,339
Balance - Ending (Shares) at Jun. 30, 2019	3,288,861
Issuance of common stock	$ 13,564	13,349,317		13,362,881			13,362,881
Issuance of common stock (Shares)	1,356,405
Offering costs			(1,790,648)	(1,790,648)			(1,790,648)
Distributions declared			(707,796)	(707,796)	(37,252)		(745,048)
Distributions reinvested	$ 281	266,245		266,526			266,526
Distributions reinvested (Shares)	28,055
Net loss			(1,363,337)	(1,363,337)	(74,176)		(1,437,513)
Balance - Ending at Sep. 30, 2019	$ 46,733	45,962,641	(14,160,963)	31,848,411	(319,874)		31,528,537
Balance - Ending (Shares) at Sep. 30, 2019	4,673,321
Balance - Beginning at Dec. 31, 2019	$ 60,057	58,961,101	(18,396,163)	40,624,995	(439,985)		40,185,010
Balance - Beginning (Shares) at Dec. 31, 2019	6,005,743
Issuance of common stock	$ 9,569	9,371,964		9,381,533			9,381,533
Issuance of common stock (Shares)	956,897
Offering costs			(1,520,647)	(1,520,647)			(1,520,647)
Distributions declared			(1,144,602)	(1,144,602)	(60,308)		(1,204,910)
Distributions reinvested	$ 440	417,846		418,286			418,286
Distributions reinvested (Shares)	44,030
Redemptions	$ (100)	(91,900)		(92,000)			(92,000)
Redemptions (Shares)	(10,000)
Net loss			(1,314,880)	(1,314,880)	(69,156)		(1,384,036)
Balance - Ending at Mar. 31, 2020	$ 69,966	68,659,011	(22,376,292)	46,352,685	(569,449)		45,783,236
Balance - Ending (Shares) at Mar. 31, 2020	6,996,670
Balance - Beginning at Dec. 31, 2019	$ 60,057	58,961,101	(18,396,163)	40,624,995	(439,985)		40,185,010
Balance - Beginning (Shares) at Dec. 31, 2019	6,005,743
Net loss							(3,999,314)
Balance - Ending at Sep. 30, 2020	$ 74,482	73,062,764	(28,468,708)	44,668,538	(834,030)	$ 1,498,218	45,332,726
Balance - Ending (Shares) at Sep. 30, 2020	7,448,276
Balance - Beginning at Mar. 31, 2020	$ 69,966	68,659,011	(22,376,292)	46,352,685	(569,449)		45,783,236
Balance - Beginning (Shares) at Mar. 31, 2020	6,996,670
Issuance of common stock	$ 1,978	1,931,108		1,933,086			1,933,086
Issuance of common stock (Shares)	197,824
Offering costs			(602,779)	(602,779)			(602,779)
Distributions declared			(1,247,245)	(1,247,245)	(65,941)		(1,313,186)
Net loss			(2,097,071)	(2,097,071)	(110,111)		(2,207,182)
Balance - Ending at Jun. 30, 2020	$ 71,944	70,590,119	(26,323,387)	44,338,676	(745,501)		43,593,175
Balance - Ending (Shares) at Jun. 30, 2020	7,194,494
Issuance of common stock	$ 1,569	1,537,441		1,539,010			1,539,010
Issuance of common stock (Shares)	156,866
Issuance of GO Units						1,700,005	1,700,005
Offering costs			(469,860)	(469,860)		(189,372)	(659,232)
Distributions declared			(1,300,168)	(1,300,168)	(68,141)		(1,368,309)
Distributions reinvested	$ 1,485	1,409,203		1,410,688			1,410,688
Distributions reinvested (Shares)	148,494
Redemptions	$ (516)	(473,999)		(474,515)			(474,515)
Redemptions (Shares)	(51,578)
Net loss			(375,293)	(375,293)	(20,388)	(12,415)	(408,096)
Balance - Ending at Sep. 30, 2020	$ 74,482	$ 73,062,764	$ (28,468,708)	$ 44,668,538	$ (834,030)	$ 1,498,218	$ 45,332,726
Balance - Ending (Shares) at Sep. 30, 2020	7,448,276

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Distributions declared (in dollars per share)	$ 0.175	$ 0.175	$ 0.175	$ 0.175	$ 0.175	$ 0.175

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash Flows from Operating Activities:
Net loss	$ (3,999,314)	$ (3,465,311)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation	2,575,731	739,680
Amortization	206,405	211,719
Write-off of unamortized deferred financing costs		25,629
Loss on disposal of fixed assets	3,276
Deferred tax assets, net	(817,184)	78,792
Change in operating assets and liabilities:
Accounts receivable	(332,966)	(88,082)
Franchise fees	(300,000)	(525,000)
Due from related parties		1,285
Prepaid expenses and other assets	936,013	221,445
Accounts payable	314,034	315,412
Accrued expenses	1,156,987	360,476
Due to related parties	(303,082)	(450,762)
Other liabilities	(38,876)	821,284
Net cash used in operating activities	(598,976)	(1,753,433)
Cash Flows from Investing Activities:
Acquisitions of hotel properties	(27,190,749)	(34,252,464)
Improvements and additions to hotel properties	(1,052,889)	(103,925)
Net cash used in investing activities	(28,243,638)	(34,356,389)
Cash Flows from Financing Activities:
Proceeds from mortgage debt	13,790,742	24,343,368
Proceeds from lines of credit	6,200,000	500,000
Proceeds from PPP loans	763,100
Principal payments on mortgage debt	(451,419)	(108,483)
Principal payments on lines of credit	(6,200,000)	(5,729,000)
Payments of deferred financing costs	(650,072)	(844,288)
Proceeds from issuance of common stock	12,853,629	34,340,642
Proceeds from issuance of GO Units	1,700,005
Payments of offering costs	(2,617,351)	(5,150,737)
Payments for shares redeemed	(92,000)
Distributions paid	(905,388)	(777,636)
Net cash provided by financing activities	24,391,246	46,573,866
Net change in cash, cash equivalents, and restricted cash	(4,451,368)	10,464,044
Beginning Cash, Cash Equivalents, and Restricted Cash	16,174,371	4,532,404
Ending Cash, Cash Equivalents, and Restricted Cash	11,723,003	14,996,448
Supplemental Disclosure of Cash Flow Information:
Interest paid, net of amounts capitalized	1,489,472	589,742
Income taxes paid	1,963
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Debt assumed in connection with hotel property acquisition	9,998,437	9,424,156
Paid-in-kind interest	226,988
Offering costs included in accounts payable	266,781	51,173
Offering costs included in due to related parties	(89,892)	140,822
Offering costs included in accrued expenses	(11,582)	31,603
Distributions included in due to related parties	194,390	13,899
Redemptions included in other liabilities	474,515
Reinvested distributions	1,828,974	573,397
Reconciliation of Cash, Cash Equivalents, and Restricted Cash:
Cash and cash equivalents, beginning of period	10,898,556	3,732,404
Restricted cash, beginning of period	5,275,815	800,000
Cash, cash equivalents, and restricted cash, beginning of period	11,723,003	14,996,448
Cash and cash equivalents, end of period	7,440,804	12,366,862
Restricted cash, end of period	4,282,199	2,629,586
Cash, cash equivalents, and restricted cash, end of period	$ 11,723,003	$ 14,996,448

ORGANIZATION

ORGANIZATION	9 Months Ended
	Sep. 30, 2020
ORGANIZATION
ORGANIZATION	1. ORGANIZATION Lodging Fund REIT III, Inc. (“LF REIT III”), was formed on April 9, 2018 as a Maryland corporation. LF REIT III, together with its subsidiaries (the “Company”), was formed for the principal purpose of acquiring, through purchase or contribution, direct or indirect ownership interests in a diverse portfolio of limited-service, select-service and extended stay hotel properties located primarily in “America’s Heartland,” which the Company defines as the geographic area from North Dakota to Texas and the Appalachian Mountains to the Rocky Mountains. LF REIT III has elected to be treated as a real estate investment trust, or REIT, for federal income tax purposes beginning with the taxable year ended December 31, 2018. The Company’s business activities are directed and managed by Legendary Capital REIT III, LLC (the “Advisor”) and its affiliates, which are related parties through common management, pursuant to the Amended and Restated Advisory Agreement (the “Advisory Agreement”), dated June 1, 2018. Substantially all of the Company’s assets and liabilities are held by, and substantially all of its operations are conducted through, Lodging Fund REIT III OP, LP (the “Operating Partnership,” or “OP”), a subsidiary of LF REIT III. The OP has three voting classes of partnership units, Common General Partnership Units (“GP Units”), Interval Units and Common Limited Partnership Units (“Common LP Units”), and three classes of non-voting partnership units, Series B Limited Partnership Units (“Series B LP Units”), Series Growth & Opportunity (“GO”) Limited Partnership Units (“Series GO LP Units”), and Series T Limited Partnership Units (“Series T LP Units”). LF REIT III was the sole general partner of the OP, as of September 30, 2020 and December 31, 2019. As of September 30, 2020, there were no outstanding Common LP Units, Interval Units, or Series T LP Units, there were 1,000 outstanding Series B LP Units, all of which were owned by the Advisor, and 246,621 Series GO LP Units. On June 1, 2018, the Company commenced a private offering of shares of common stock, $0.01 par value per share, with a maximum offering of $100,000,000 (the “Offering”) to accredited investors only, pursuant to a confidential private placement memorandum exempt from registration under the Securities Act of 1933, as amended. In addition to sales of common shares for cash, the Company has adopted a dividend reinvestment plan (“DRIP”), which permits stockholders to reinvest their distributions back into the Company. As of September 30, 2020, the Company had issued and sold 7,509,854 shares of common stock, including 281,857 shares attributable to the DRIP, and received aggregate proceeds of $73.7 million. On April 29, 2020, the Company classified and designated 7,000,000 shares of authorized but unissued common stock, $0.01 par value per share, as shares of “Interval Common Stock,” to be part of the Offering. The offering of the Interval Common Stock, is a maximum offering of $30,000,000, which may be increased to $60,000,000 in the sole discretion of the Company’s board of directors, (the “Interval Share Offering”) to accredited investors only, pursuant to a confidential private placement memorandum exempt from registration under the Securities Act of 1933, as amended. As of September 30, 2020, the Company had not issued or sold any shares of Interval Common Stock. On June 15, 2020, the Operating Partnership commenced a private offering of limited partnership units in the OP, designated as Series GO LP Units, with a maximum offering of $20,000,000, which may be increased to $30,000,000 in the sole discretion of LF REIT III as the General Partner of the OP, (the “GO Unit Offering”) to accredited investors only, pursuant to a confidential private placement memorandum exempt from registration under the Securities Act of 1933, as amended. As of September 30, 2020, the Company had issued and sold 246,621 Series GO LP Units and received aggregate proceeds of $1.7 million.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation —The accompanying unaudited consolidated financial statements and related notes have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the SEC applicable to interim financial information. Accordingly, the unaudited financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. The financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, and which, in the opinion of management, are necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The consolidated financial statements include the accounts of LF REIT III and its subsidiaries. For the controlled subsidiaries that are not wholly-owned, the interests owned by an entity other than the Company represent a noncontrolling interest, which is presented separately in the consolidated financial statements. The Company has no foreign operations or assets and its operating structure includes only one reportable Segment. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates —The preparation of the Company’s consolidated financial statements and the accompanying notes in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the amounts of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. During the first quarter of 2020, there was a global outbreak of a novel coronavirus, or COVID-19, which has spread to over 200 countries and territories, including the United States, and has spread to every state in the United States. The World Health Organization has designated COVID-19 as a pandemic, and numerous countries, including the United States, have declared national emergencies with respect to COVID-19. The impact of the outbreak on the U.S. and world economies has been evolving, and as cases of COVID-19 have continued to be identified in additional countries, there have been international mandates, and mandates in the United States from federal, state and local authorities, instituting quarantines and stay-at-home orders, closing schools, and instituting restrictions on travel and/or limiting operations of non-essential offices and retail centers. Such actions are adversely impacting many industries, with the travel and hospitality industries being particularly adversely affected. Although our hotel properties have remained open through the pandemic in 2020, our occupancy levels have been lower than historical levels. The outbreak could have a continued adverse impact on economic and market conditions, and could trigger a continued slowdown in leisure and business travel, which is adversely impacting the travel and hospitality industries. The fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions. The Company believes the estimates and assumptions underlying the Company’s consolidated financial statements are reasonable and supportable based on the information available as of September 30, 2020, however uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of September 30, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19. Revenue Recognition —Revenues consist of amounts derived from hotel operations, including room sales and other hotel revenues, and are presented on a disaggregated basis in the Company’s consolidated statements of operations. These revenues are recorded net of any sales and occupancy taxes collected from the hotel guests. All revenues are recorded on an accrual basis as they are earned. Any cash received prior to a guest’s arrival is recorded as an advance deposit from the guest and recognized as revenue at the time of the guest’s occupancy at the hotel property. Investment in Hotel Properties —The Company evaluates whether each hotel property acquisition should be accounted for as an asset acquisition or a business combination. If substantially all of the fair value of the gross assets acquired is concentrated in a single asset or a group of similar identifiable assets, then the transaction is considered to be an asset acquisition. All of the Company’s acquisitions since inception have been determined to be asset acquisitions. Transaction costs associated with asset acquisitions are capitalized and transaction costs associated with business combinations would be expensed as incurred. The Company’s acquisitions generally consist of land, land improvements, buildings, building improvements, and furniture, fixtures and equipment (“FF&E”). The Company may also acquire intangible assets or liabilities related to in-place leases, management agreements, debt, and advanced bookings. For transactions determined to be asset acquisitions, the Company allocates the purchase price among the assets acquired and the liabilities assumed on a relative fair value basis at the date of acquisition. The Company determines the fair value of assets acquired and liabilities assumed with the assistance of third-party valuation specialists, using cash flow analysis as well as available market and cost data. The determination of fair value includes making numerous estimates and assumptions. The difference between the fair value and the face value of debt assumed in connection with an acquisition is recorded as a premium or discount and amortized to interest expense over the remaining term of the debt assumed. The valuation of assumed debt liabilities is based on our estimate of the current market rates for similar liabilities in effect at the acquisition date. The Company’s investments in hotel properties are carried at cost and are depreciated using the straight-line method over the estimated useful lives of 15 years for land improvements, 15 years for building improvements, 40 years for buildings and three to seven years for FF&E. Maintenance and repair costs are expensed in the period incurred and major renewals or improvements to the hotel properties are capitalized. Interest incurred in connection with the financing of real estate under development or renovation is capitalized as an additional cost of development. The Company discontinues the capitalization of interest once the real estate development or renovation project is substantially complete. The Company assesses the carrying value of its hotel properties whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The recoverability is measured by comparing the carrying amount of the property to the estimated future undiscounted cash flows of the property, which take into account current market conditions and the Company’s intent with respect to holding or disposing of the hotel properties. If the Company’s analysis indicates that the carrying value is not recoverable on an undiscounted cash flow basis, the Company will recognize an impairment loss for the amount by which the carrying value exceeds the fair value. The fair value is determined through various valuation techniques, including internally developed discounted cash flow models, comparable market transactions or third-party appraisals. The use of projected future cash flows is based on assumptions that are consistent with a market participant’s future expectations for the industry and the economy in general and the Company’s expected use of the underlying hotel properties. The assumptions and estimates related to the future cash flows and the capitalization rates are complex and subjective in nature. Changes in economic and operating conditions, including those occurring as a result of the impact of the COVID-19 pandemic, that occur subsequent to a current impairment analysis and the Company’s ultimate use of the hotel property could impact the assumptions and result in future impairment losses to the hotel properties. Non-controlling Interests —Non-controlling interests represent the portion of equity in a subsidiary held by owners other than the Company. Non-controlling interests are reported in the consolidated balance sheets within equity, separate from stockholders’ equity. Revenue and expenses attributable to both the Company and the non-controlling interests are reported in the consolidated statements of operations, with net income or loss attributable to non-controlling interests reported separately from net income or loss attributable to the Company. Cash and Cash Equivalents —Cash and cash equivalents include cash in bank accounts as well as highly liquid investments with an original maturity of three months or less. The Company deposits cash with several high-quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to an insurance limit of $250,000. At times, the Company’s cash and cash equivalents may exceed federally insured levels. Restricted Cash —Restricted cash consists of earnest money deposits related to hotel property acquisitions, as well as certain funds maintained in escrow accounts to fund future payments for insurance, property tax obligations, and reserves for future capital expenditures, as required by our debt agreements. As of September 30, 2020 and December 31, 2019, restricted cash on the accompanying consolidated balance sheet included $1.8 million and $2.6 million, respectively, of earnest money deposits. Accounts Receivable —Accounts receivable consist primarily of receivables due from hotel guests for room stays and meeting and banquet room rentals, which are uncollateralized customer obligations. Management determines the likelihood of collectability of receivables on an individual customer basis, based on the amount of time the balance has been outstanding, likelihood of collecting, and the customer’s current economic status. Deferred Financing Costs —Deferred financing costs represent commitment fees, origination fees, legal fees, and other costs associated with obtaining financing. Deferred financing costs are presented on the consolidated balance sheets as a direct deduction from the carrying amount of the related debt liability. These costs are amortized to interest expense over the terms of the respective financing agreements using the straight-line method, which approximates the effective interest method. The Company expenses unamortized deferred financing costs when the associated financing agreement is refinanced or repaid before maturity unless certain criteria are met that would allow for the carryover of such costs to the refinanced agreement. Costs incurred in connection with potential financial transactions that are not completed are expensed in the period in which it is determined the financing will not be completed. Offering Costs —The Company has incurred certain costs related directly to the Company’s equity offerings consisting of, among other costs, commissions, legal, due diligence costs, printing, marketing, filing fees, postage, data processing fees, and other offering related costs. These costs are capitalized and recorded as a reduction of equity proceeds on the accompanying consolidated balance sheets. Property Operations Expenses —Property operations expenses consist of expenses related to room rental, food and beverage sales, telephone usage, and other miscellaneous service costs, as well as all costs of operating the Company’s hotel properties such as building repairs, maintenance, property taxes, utilities, and other related costs. Management Fees —Management fees include expenses incurred for management services provided for the day-to-day operations of our hotel properties, which are charged at a base rate of 3-4% of gross revenues, any ancillary fees for hotel property management, and asset management fees, which may be charged at an annual rate of up to 0.75% of gross assets and are paid to the Advisor. Franchise Fees —The Company pays initial fees related to hotel franchise rights prior to acquiring a hotel property. The fees are included in prepaid expenses and other assets until the time the related hotel property is acquired. Initial franchise fees related to hotel properties that are acquired are amortized on a straight-line basis over the life of the agreement. Initial franchise fees related to hotel properties that are not acquired are refunded to the Company, net of any associated fees, and any fees are expensed as incurred. Franchise fees on the accompanying consolidated statements of operations include the amortization of initial franchise fees, as well as monthly fees paid to franchisors for royalty, marketing, and reservation fees and other related costs. Acquisition Costs —The Company incurs costs during the review of potential hotel property acquisitions including legal fees, environmental reviews, market studies, financial advisory services, and other professional service fees. If the Company does complete a property acquisition, an acquisition fee of up to 1.4% is charged by the Advisor, based on the purchase price of the property plus any estimated property improvement plan (“PIP”) costs. For transactions determined to be asset acquisitions, these costs are capitalized as part of the overall cost of the project if the property is ultimately acquired. For transactions determined to be business combinations, these costs would be expensed in the period incurred. Acquisition-related and acquisition due diligence costs that relate to a property that is not acquired, are expensed and included in acquisition costs on the accompanying consolidated statements of operations. Prior to the ultimate determination of whether a property will be acquired or not, acquisition-related and acquisition due diligence costs are recorded as, and included in, prepaid expenses and other assets on the accompanying consolidated balance sheets. Net Loss Per Share of Common Stock —Basic net loss per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net loss per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. Basic and diluted net loss per common share were the same for the periods presented. Income Taxes —The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it distribute at least 90% of its REIT taxable income, subject to certain adjustments and excluding any net capital gain, to stockholders. The Company’s intention is to adhere to the REIT qualification requirements and to maintain its qualification for taxation as a REIT. As a REIT, the Company is generally not subject to U.S. federal corporate income tax on the portion of taxable income that is distributed to stockholders. If the Company fails to qualify for taxation as a REIT in any taxable year, the Company will be subject to U.S. federal income taxes at regular corporate rates and it may not be able to qualify as a REIT for four subsequent taxable years. As a REIT, the Company may be subject to certain state and local taxes on its income and property, and to U.S. federal income and excise taxes on undistributed taxable income. Taxable income from non-REIT activities managed through the Company’s taxable REIT subsidiary (“TRS”) is subject to U.S. federal, state, and local income taxes at the applicable rates. The TRS accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax basis, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company performs periodic reviews for any uncertain tax positions and, if necessary, will record the expected future tax consequences of uncertain tax positions in the consolidated financial statements. Fair Value Measurement —The Company establishes fair value measures based on the fair value definition and hierarchy levels established by GAAP. These fair values are based on a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 —Observable inputs such as quoted prices in active markets. Level 2 —Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3 —Unobservable inputs in which there is little or no market data, which require a reporting entity to develop its own assumptions. The Company’s estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. The Company classifies assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement. Reclassifications —Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation with no effect on previously reported net income or stockholders’ equity. In prior year consolidated financial statements distributions payable were included in accrued expenses. Recent Accounting Pronouncements —The Company, as an emerging growth company, has elected to use the extended transition period which allows us to defer the adoption of new or revised accounting standards. This allows the Company to adopt new or revised accounting standards as of the effective date for non-public business entities. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014‑09, Revenue from Contracts with Customers (Topic 606). The core principle of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014‑09 is effective for fiscal years beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. We adopted ASU 2014‑09 as of January 1, 2019 . There have not been, nor do we anticipate, any reclassifications or significant impacts on our consolidated financial statements as a result of this adoption. In February 2016, the FASB issued ASU No. 2016‑02, “Leases” (“ASU No. 2016‑02”) (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). ASU No. 2016‑02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. ASU No. 2016‑02 is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. We plan to adopt ASU 2016‑02 for the year ending December 31, 2021. We do not anticipate any reclassifications or significant impacts on our consolidated financial statements as a result of this adoption.

INVESTMENT IN HOTEL PROPERTIES

INVESTMENT IN HOTEL PROPERTIES	9 Months Ended
	Sep. 30, 2020
INVESTMENT IN HOTEL PROPERTIES
INVESTMENT IN HOTEL PROPERTIES	3. INVESTMENT IN HOTEL PROPERTIES Investment in hotel properties as of September 30, 2020 and December 31, 2019 consisted of the following: September 30, December 31, 2020 2019 Land and land improvements $ 10,324,772 $ 7,738,495 Building and building improvements 85,200,699 53,238,276 Furniture, fixtures, and equipment 8,929,990 5,687,249 Construction in progress 446,334 — Investment in hotel properties, at cost 104,901,795 66,664,020 Less: accumulated depreciation (3,830,419) (1,255,712) Investment in hotel properties, net $ 101,071,376 $ 65,408,308 As of September 30, 2020, the Company owned seven hotel properties with an aggregate of 706 rooms located in six states. Acquisitions of Hotel Properties The Company acquired two properties during the nine months ended September 30, 2020 and four properties during the year ended December 31, 2019. Each of the Company’s hotel acquisitions to date have been determined to be asset acquisitions. The table below outlines the details of the properties acquired during the nine months ended September 30, 2020. 2020 Acquisitions Number Date of Guest Purchase Transaction % Hotel Property Type Location Acquired Rooms Price Costs Total Interest Fairfield Inn & Suites Limited Service Lubbock, TX January 8, 2020 101 $ 15,150,000 $ 496,431 $ 15,646,431 100 % Homewood Suites Extended Stay Southaven, MS February 21, 2020 99 20,500,000 445,090 20,945,090 100 % 200 $ 35,650,000 $ 941,521 $ 36,591,521 The table below outlines the details of the properties acquired during the year ended December 31, 2019. 2019 Acquisitions Number Date of Guest Purchase Transaction % Hotel Property Type Location Acquired Rooms Price Costs Total Interest Hampton Inn & Suites Limited Service Pineville, NC March 19, 2019 111 $ 13,897,358 $ 303,744 $ 14,201,102 100 % Hampton Inn Limited Service Eagan, MN June 19, 2019 122 13,950,000 278,333 14,228,333 100 % Home2 Suites Extended Stay Prattville, AL July 11, 2019 90 14,750,000 356,014 15,106,014 100 % Home2 Suites Extended Stay Lubbock, TX December 30, 2019 100 14,150,000 284,776 14,434,776 100 % 423 $ 56,747,358 $ 1,222,867 $ 57,970,225 The aggregate purchase price for the hotel properties acquired during the nine months ended September 30, 2020 and the year ended December 31, 2019 were allocated as follows: September 30, December 31, 2020 2019 Land and land improvements $ 2,576,166 $ 6,201,529 Building and building improvements 31,605,174 47,412,115 Furniture, fixtures, and equipment 3,007,846 4,772,707 Total assets acquired 37,189,186 58,386,351 Premium on assumed debt (597,665) (416,126) Total liabilities assumed (597,665) (416,126) Total purchase price (1) 36,591,521 57,970,225 Assumed mortgage debt 9,400,772 17,283,415 Net purchase price $ 27,190,749 $ 40,686,810 (1) Total purchase price includes purchase price plus all transaction costs.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2020
DEBT
DEBT	4. DEBT Lines of Credit On August 22, 2018, the Company entered into a $3.0 million revolving line of credit, collateralized by 300,000 partnership units of Lodging Fund REIT III OP, LP. The line of credit has a variable interest rate equal to the U.S. Prime Rate, plus 1.00%, with a minimum rate of 5.00%. As of September 30, 2020, and December 31, 2019, the interest rate was 5.00% and 5.75%, respectively. The line of credit requires monthly payments of interest only, with all principal due at maturity on November 22, 2020. The line of credit is partially guaranteed by each of Corey Maple and Norman Leslie, as executive officers of the Company and members of the Advisor, each in the amount of $1.2 million. As of September 30, 2020 and December 31, 2019, there was no outstanding balance on the line of credit. On February 10, 2020, the Company entered into a $5.0 million revolving line of credit. The line of credit requires monthly payments of interest only, with all outstanding principal amounts being due and payable at maturity on February 10, 2021. The line of credit has a variable interest rate equal to the U.S. Prime Rate, plus 0.50%, resulting in an effective rate of 3.75% per annum as of September 30, 2020. The line of credit is secured by the Company’s Cedar Rapids Property and Eagan Property, which are also subject to term loans with the same lender, and 100,000 Common LP Units of the Operating Partnership. The line of credit includes cross-collateralization and cross-default provisions such that the existing mortgage loan agreements with respect to the Cedar Rapids Property and the Eagan Property, as well as future loan agreements that the Company may enter into with this lender, are cross-defaulted and cross-collateralized with each other. The line of credit, including all cross-collateralized debt, is guaranteed by Corey Maple. As of September 30, 2020, there was no outstanding balance on the line of credit. On November 15, 2018, the Company entered into a $25.0 million revolving line of credit to provide immediate funds to acquire hotel properties. The facility had a variable interest rate equal to 30‑day LIBOR, plus 3.25% and an initial term of 12 months. Each advance made under the facility was secured by a hotel property, required monthly payments of interest for the first three months following the advance, and monthly payments of principal and interest thereafter. The Company drew $5.2 million on the line of credit in connection with the purchase of the Cedar Rapids Property, which was repaid in full in March 2019 when the Cedar Rapids property was refinanced. The line of credit was closed in September 2019. Mortgage Debt As of September 30, 2020, the Company had $64.6 million in outstanding mortgage debt secured by each of its seven properties, with maturity dates ranging from June 2024 to April 2029, with fixed interest rates ranging from 3.70% to 5.33%, and a weighted-average interest rate of 4.54%. The original terms of the loans generally require monthly payments of principal and interest on an amortized basis, with certain loans allowing for an interest-only period up to 12 months following origination, and generally require a balloon payment due at maturity. As of September 30, 2020 and December 31, 2019, certain mortgage debt was guaranteed by the members of the Advisor. The Company was in compliance with all required debt covenants related to its mortgage debt as of September 30, 2020 and December 31, 2019. Forbearance Agreements and Loan Amendments On April 17, 2020, the Company entered into a Change In Terms Agreement (the “Cedar Rapids Amendment”), amending the terms of the its original Promissory Note (the “Cedar Rapids Note”), dated March 5, 2019 in the original principal amount of $5.9 million. Pursuant to the Cedar Rapids Amendment, the maturity date of the Cedar Rapids Note was extended from March 1, 2024, to September 1, 2024, the requirement to make any replacement reserve deposits was waived until March 1, 2021, and the requirement to make any payments of principal and interest was deferred until October 1, 2020. In addition to the Cedar Rapids Amendment, the lender has also waived the required financial covenants under the terms of the Cedar Rapids Note through December 31, 2020. On April 17, 2020, the Company entered into a Change In Terms Agreement (the “Eagan Amendment”), amending the terms of the its original Promissory Note (the “Eagan Note”), dated June 19, 2019 in the original principal amount of $9.4 million. Pursuant to the Eagan Amendment, the maturity date of the Eagan Note was extended from July 1, 2024, to January 1, 2025, the requirement to make any replacement reserve deposits was waived until June 1, 2021, and the requirement to make any payments of principal and interest was deferred until October 1, 2020. In addition to the Eagan Amendment, the lender has also waived the required financial covenants under the terms of the Eagan Note through December 31, 2020. On April 22, 2020, the Company entered into a Forbearance Agreement (the “Prattville Forbearance Agreement”), effective May 1, 2020, amending the terms of its original loan agreement (the “Prattville Loan”), dated July 11, 2019, in the original principal amount of $9.6 million. Pursuant to the Prattville Forbearance Agreement, the Company did not make interest payments that were due and payable during the Prattville Forbearance Period (as defined below) which constituted events of default under the terms of the Prattville Loan (collectively, the “Prattville Projected Events of Default”). However, during the Prattville Forbearance Period , the lender agreed to forbear from exercising any available rights and remedies under the Prattville Loan and other Loan Documents (as defined in the Prattville Loan) to the extent such rights and remedies arise as a result of the Prattville Projected Events of Default. The lender further agreed to defer the interest accrued during the Prattville Forbearance Period such that the accrued interest of $100,878 was paid-in-kind and added to the outstanding principal balance of the loan. The forbearance period (the “Prattville Forbearance Period”) was the period from May 1, 2020 through July 31, 2020. On August 14, 2020, the Prattville Loan was amended (the “Prattville Amendment”) to waive the Prattville Projected Events of Default and to adjust other terms of the Prattville Loan. The Prattville Amendment, among other things, extended the required PIP completion date to align with the extension provided by the franchise agreement, adjusted certain financial covenants, put into place certain liquidity requirements and added restrictions on capital expenditures, related party payments, including management fees payable to NHS and loan guarantee fees, and cash distributions until certain financial covenants are achieved. Pursuant to the Prattville Forbearance Agreement and Prattville Amendment, until certain financial covenants are achieved, the borrower may not make any payments for capital expenditures or any distributions and must maintain a minimum cash balance of $155,000 in its hotel operating account. The restriction on distributions precludes the borrower subsidiary entities from making distributions of cash to the Operating Partnership, and as of September 30, 2020, the borrower subsidiary entities had cash balances in the amount of $698,930, which is included in cash and cash equivalents on the accompanying consolidated balance sheets. On April 22, 2020, the Company entered into a Forbearance Agreement (the “Southaven Forbearance Agreement”), effective May 1, 2020, amending the terms of its original loan agreement (the “Southaven Loan”), dated February 21, 2020, in the original principal amount of $13.5 million. Pursuant to the Southaven Forbearance Agreement, the Company did not make interest payments that were due and payable during the Southaven Forbearance Period (as defined below) which constituted events of default under the terms of the Southaven Loan (collectively, the “Southaven Projected Events of Default”). However, during the Southaven Forbearance Period , the lender agreed to forbear from exercising any available rights and remedies under the Southaven Loan and other Loan Documents (as defined in the Southaven Loan) to the extent such rights and remedies arise as a result of the Southaven Projected Events of Default. The lender further agreed to defer the interest accrued during the Southaven Forbearance Period such that the accrued interest of $126,110 was paid-in-kind and added to the outstanding principal balance of the loan. The forbearance period (the “Southaven Forbearance Period”) was the period from May 1, 2020 through July 31, 2020. On August 14, 2020, the Southaven Loan was amended (the “Southaven Amendment”) to waive the Southaven Projected Events of Default and to adjust other terms of the Southaven Loan. The Southaven Amendment, among other things, extended the required PIP completion date to align with the extension provided by the franchise agreement, adjusted certain financial covenants, put into place certain liquidity requirements and added restrictions on capital expenditures, related party payments, including loan guarantee fees, and cash distributions until certain financial covenants are achieved. Pursuant to the Southaven Forbearance Agreement and Southaven Amendment, until certain financial covenants are achieved, the borrower may not make any payments for capital expenditures or any distributions and must maintain a minimum cash balance of $225,000 in its hotel operating account. The restriction on distributions precludes the borrower subsidiary entities from making distributions of cash to the Operating Partnership, and as of September 30, 2020, the borrower subsidiary entities had cash balances in the amount of $1,055,980, which is included in cash and cash equivalents on the accompanying consolidated balance sheets. Paycheck Protection Program (“PPP”) Loans In April 2020, the Company entered into six unsecured promissory notes under the Paycheck Protection Program (the “PPP”), totaling $763,100. The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was passed in March 2020, and is administered by the U.S. Small Business Administration (the “SBA”). The term of each PPP loan is 2 years, which may be extended to 5 years at the Company’s election. The interest rate on each PPP loan is 1.0% per annum, which shall be deferred for a period of time. After the initial deferral period, each loan requires monthly payments of principal and interest until maturity with respect to any portion of such PPP loan which is not forgiven as described below. The initial deferral period ends at either i) the date the SBA remits the borrower’s loan forgiveness amount, or ii) if the Company has not applied for loan forgiveness, 10 months after the end of the borrower’s loan forgiveness covered period. The Company’s covered period ended September 25, 2020, for two of its PPP loans and ended October 2, 2020, for four of its PPP loans. The Company is permitted to prepay each PPP loan at any time with no prepayment penalties. Under the terms of the CARES Act, PPP loan recipients can apply for, and be granted, forgiveness for all or a portion of loans granted under the PPP. Such forgiveness will be determined, subject to limitations and ongoing rulemaking by the SBA, based on the use of loan proceeds for payroll costs and mortgage interest, rent or utility costs and the maintenance of employee and compensation levels. As of September 30, 2020, the outstanding balance of the PPP Loans was $763,100, and the Company had not applied for any forgiveness, but we intend to do so. The Company is currently in its initial deferral period and will not be required to start making payments until we apply for forgiveness. The following table describes the Company’s mortgage debt, lines of credit and PPP loans, including the interest rate, maturity date, and the outstanding balance as of September 30, 2020 and December 31, 2019 for such debt obligations. Interest Outstanding Outstanding Rate as of Balance as of Balance as of September 30, Maturity September 30, December 31, Hotel Property 2020 Date 2020 2019 Holiday Inn Express - Cedar Rapids (1) 5.33% 09/01/2024 $ 5,858,134 $ 5,527,392 Hampton Inn & Suites - Pineville 5.13% 06/06/2024 9,020,427 9,154,289 Hampton Inn - Eagan 4.60% 01/01/2025 9,317,589 9,369,276 Home2 Suites - Prattville (1) 4.13% 08/01/2024 9,701,422 9,620,000 Home2 Suites - Lubbock 4.69% 10/06/2026 7,845,997 8,000,430 Fairfield Inn & Suites - Lubbock 4.93% 04/06/2029 9,308,790 — Homewood Suites - Southaven (1) 3.70% 03/03/2025 13,586,110 — Total Mortgage Debt 64,638,470 41,671,387 $3.0 million line of credit 5.00% (2) 11/22/2020 — — $5.0 million line of credit 3.75% (3) 2/10/2021 — — Total Lines of Credit — — PPP Loans 1.00% Various (4) 763,100 — Premium on assumed debt, net 887,933 389,285 Deferred financing costs, net (1,468,880) (1,080,040) Debt, net $ 64,820,623 $ 40,980,632 (1) Per the original loan terms, the loan was interest-only for the first 12 months after origination, then monthly principal and interest payments, with a balloon payment at maturity. (2) Variable interest rate equal to U.S. Prime Rate plus 1.00%, with a minimum rate of 5.00%. (3) Variable interest rate equal to U.S. Prime Rate plus 0.50%. (4) Two PPP Loans totaling $286,100 mature on April 10, 2022, and four PPP Loans totaling $477,000 mature on April 17, 2022. Future Minimum Payments As of September 30, 2020, the future minimum principal payments on the Company’s debt were as follows: 2020 (October 1, 2020 to December 31, 2020) $ 349,354 2021 1,848,609 2022 1,656,836 2023 1,554,615 2024 23,835,059 Thereafter 36,157,097 65,401,570 Premium on assumed debt, net 887,933 Deferred financing costs, net (1,468,880) $ 64,820,623

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2020
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	5. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments as of September 30, 2020 and December 31, 2019 consisted of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, lines of credit, PPP loans, and mortgage debt. With the exception of the Company’s mortgage debt, the carrying amounts of the financial instruments presented in the consolidated financial statements approximate their fair value as of September 30, 2020. The fair value of the Company’s mortgage debt was estimated by discounting each loan’s future cash flows over the remaining term of the mortgage using current borrowing rates for debt instruments with similar terms and maturities, which are Level 3 inputs in the fair value hierarchy. As of September 30, 2020, the estimated fair value of the Company’s mortgage debt was $67.5 million, compared to the gross carrying value $64.6 million. As of December 31, 2019, the estimated fair value of the Company’s mortgage debt was $42.7 million, compared to the gross carrying value $41.7 million.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2020
INCOME TAXES
INCOME TAXES	6. INCOME TAXES The Company’s effective tax rate is lower than the U.S. federal statutory rate of 21% primarily because the Company’s earnings (losses), other than those generated by the Company’s TRS, are not generally subject to federal corporate and state income taxes due to the Company’s REIT election and the recording of a partial valuation allowance on the Company’s TRS net deferred tax assets. The Company paid federal and state income taxes totaling $1,963 and $0 during the nine months ended September 30, 2020 and 2019, respectively. The Company did not have any uncertain tax positions as of September 30, 2020 or December 31, 2019. The Company’s TRS generated a net operating loss (“NOL”) for taxable income purposes for the years ended December 31, 2019 and 2018, and expects to generate a NOL for taxable income purposes for the year ending December 31, 2020, all of which can be carried forward to offset future taxable income. As of September 30, 2020, the Company had recorded net deferred tax assets of $1.0 million, primarily attributable to its NOLs generated in the current period and prior periods, net of temporary differences primarily related to depreciation and a valuation allowance. As of September 30, 2020, the Company had recorded a partial valuation allowance against its deferred tax assets of $600,901, which represents the estimated amount of deferred tax assets related to NOL carryforwards which will not be utilized by the TRS in future years. As of December 31, 2019, the Company had recorded net deferred tax assets of $205,808, primarily attributable to its NOLs generated in the current period and prior periods, net of temporary differences primarily related to depreciation. The Company’s NOLs will expire in 2038‑2039 for state tax purposes and will not expire for federal tax purposes. As of September 30, 2020, the tax years 2018 and 2019 remain subject to potential examination by the U.S. Internal Revenue Service (“IRS”) and various state tax jurisdictions. The CARES Act contains numerous income tax provisions, such as temporarily relaxing limitations on the deductibility of interest expense, accelerating depreciable lives of certain qualified building improvements, and allowing for NOL’s arising in tax years beginning after December 31, 2017 and before January 1, 2021 to be carried back to each of the preceding 5-year periods. In addition, for tax years beginning prior to 2021, the CARES Act removed the 80% absorption limitation previously enacted under the Tax Cuts and Jobs Act of 2017. The income tax aspects of the CARES Act are not expected to have a material impact on the Company’s financial statements.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	7. RELATED PARTY TRANSACTIONS Legendary Capital REIT III, LLC — Corey Maple and Norman Leslie, each hold a 50% ownership interest in the Advisor. Substantially all of the Company’s business is managed by the Advisor and its affiliates, pursuant to the Advisory Agreement. The Company has no direct employees. The employees of Legendary Capital, LLC (the “Sponsor”), an affiliate of the Advisor, provide services to the Company related to the negotiations of property acquisitions and financing, asset management, accounting, investor relations, and all other administrative services. The Company reimburses the Advisor and its affiliates, at cost, for certain expenses incurred on behalf of the Company. The Advisory Agreement has a term of 10 years. The Advisor earns a one-time acquisition fee of up to 1.4% of the hotel purchase price including funds allocated for any PIP at the time of each hotel property acquisition, a financing fee of up to 1.4% of the hotel purchase price including funds allocated for any PIP at the time of closing the initial financing, and an annual asset management fee of up to 0.75% of the gross assets of the Company, which is payable on a monthly basis. The Advisor may also be paid a refinancing fee of up to 0.75% of the principal amount of any refinancing at the time of closing the refinancing, and a disposition fee equal to between 0.0% and 4.0% of the hotel sales price, payable at the closing of the disposition, and real estate commissions of up to 3.0% of the hotel purchase price in connection with the sale of a hotel property in which the Advisor or its affiliates provided substantial services, but in no event greater than one-half of the total commissions paid with respect to such property if a commission is paid to a third-party as well as the Advisor, and in no event will total commissions exceed 5.0% of the hotel sales price. Certain affiliates of the Advisor may receive an annual guarantee fee equal to 1.0% per annum of the guaranty amount, payable on a monthly basis, for debt obligations of the hotel properties personally guaranteed by such affiliates. The Advisor may earn an annual subordinated performance fee equal to 20% of the distributions after the common stockholders and Operating Partnership limited partners (other than the Series B LP Unit holders) have received a 6% cumulative, but not compounded, return per annum. Per the terms of the Operating Partnership’s operating agreement, the Advisor may receive distributions from the Operating Partnership in connection with their ownership of non-voting Series B LP Units. The Advisor’s ownership of Series B LP Units is presented as non-controlling interest on the accompanying consolidated financial statements. In years other than the year of liquidation, after the Company’s common stockholders have received a 6% cumulative but not compounded return on their original capital contributions, the Advisor receives distributions equal to 5% of the total distributions made. In the year of liquidation, termination, merger or other cessation of the general partner, or the liquidation of the Operating Partnership, holders of the Series B LP Units shall be distributed an amount equal to 5% of the limited partners’ capital contributions after the common stockholders and the limited partners have received a return of their original capital contributions plus a 6% cumulative but not compounded return. In the year of liquidation, termination, merger or other cessation of the general partner, or the liquidation of the Operating Partnership holders of the Series B LP Units shall also be distributed an amount equal to 20% of the net proceeds from the sale of the properties, after the common stockholders and the limited partners have received a return of their original capital contributions plus a 6% cumulative but not compounded return from all distributions. The Advisor and its affiliates may be reimbursed by the Company for certain organization and offering expenses in connection with the Company’s securities offerings, including legal, printing, marketing and other offering related costs and expenses. Following the termination of the Offering, the Advisor will reimburse the Company for any such amounts incurred by the Company in excess of 15% of the gross proceeds of the Offering. In addition, the Company may pay directly or reimburse the Advisor and its affiliates for certain costs incurred in connection with its provision of services to the Company, including certain acquisition costs, financing costs, and sales and marketing costs, as well as an allocable share of general and administrative overhead costs. All reimbursements are paid to the Advisor and its affiliates at cost. Fees and reimbursements incurred and payable to the Advisor and its affiliates, for the three and nine months ended September 30, 2020 and 2019, and the amounts outstanding and payable as of September 30, 2020 and December 31, 2019, were as follows: Incurred Incurred Payable as of For the Three Months Ended September 30, For the Nine Months Ended September 30, September 30, December 31, 2020 2019 2020 2019 2020 2019 Fees: Acquisition fees $ — $ 208,551 $ 501,949 $ 605,118 $ — $ 213,402 Financing fees — 208,551 501,949 605,118 — 213,402 Asset management fees 213,097 105,990 617,397 188,326 71,194 81,389 Performance fees — — — — — 68,534 $ 213,097 $ 523,092 $ 1,621,295 $ 1,398,562 $ 71,194 $ 576,727 Reimbursements: Offering costs $ 165,583 $ 481,225 $ 953,275 $ 1,511,304 $ 25,882 $ 122,833 General and administrative 455,337 800,239 1,831,638 1,930,527 81,374 120,386 Sales and marketing 37,203 112,583 145,489 281,907 5,840 3,333 Acquisition costs 23,914 43,157 93,038 922,609 10,596 31,966 Other (income) expense, net (43,361) 1,939 (503,180) 11,560 5,479 — $ 638,676 $ 1,439,143 $ 2,520,260 $ 4,657,907 $ 129,171 $ 278,518 For three and nine months ended September 30, 2020, the Operating Partnership recorded distributions payable to the Advisor in the amount of $68,141 and $194,390, respectively, in connection with the Advisor’s ownership of Series B LP Units. For the three and nine months ended September 30, 2019, the Operating Partnership recorded distributions payable to the Advisor in the amount of $37,252 and $76,528, respectively. As of September 30, 2020 and December 31, 2019, the Company had distributions payable to the Advisor in the amount of $258,007 and $63,617, respectively. As of September 30, 2020, Corey Maple owned 54,754 shares of the Company’s common stock. For three and nine months ended September 30, 2020, the Company recorded distributions in the amount of $9,582 and $28,399, respectively, to Mr. Maple in connection with his ownership of shares of the Company’s common stock. For the three and nine months ended September 30, 2019, the Company recorded distributions in the amount of $9,409 and $28,226, respectively, to Mr. Maple in connection with his ownership of shares of the Company’s common stock. As of September 30, 2020, Norman Leslie owned 54,754 shares of the Company’s common stock. For three and nine months ended September 30, 2020, the Company recorded distributions in the amount of $9,582 and $28,399, respectively, to Mr. Leslie in connection with his ownership of shares of the Company’s common stock. For the three and nine months ended September 30, 2019, the Company recorded distributions in the amount of $9,409 and $28,226, respectively, to Mr. Leslie in connection with his ownership of shares of the Company’s common stock. The members of the Advisor personally guaranty certain loans of the Company and may receive a guarantee fee of up to 1.0% per annum of the guaranty amount. Corey Maple, is a guarantor of the Company’s loans secured by the hotel properties located in Prattville, Alabama and Southaven, Mississippi, which had original loan amounts of $9.6 million and $13.5 million, respectively, and is a guarantor of the Company’s $5.0 million line of credit which is secured by the hotel properties located in Cedar Rapids, Iowa and Eagan, Minnesota, and 100,000 Common LP Units of Lodging Fund REIT III OP, LP. Norman Leslie, is a guarantor of the Company’s loan secured by the Company’s hotel property in Pineville, North Carolina, which had an original loan amount of $9.3 million. Mr. Maple and Mr. Leslie are also guarantors of the Company’s $3.0 million line of credit, each in the amount of $1.2 million. For the three and nine months ended September 30, 2020, the Company incurred $80,665 and $230,362 of loan guarantee fees, respectively. As of September 30, 2020, there were $230,362 of loan guarantee fees outstanding and payable. No guarantee fees were assessed for the nine months ended September 30, 2019, and no guarantee fees were outstanding and payable at December 31, 2019. NHS, LLC dba National Hospitality Services (“NHS”) —NHS, which is wholly-owned by Norman Leslie, provides property management and hotel operations management services for several of the Company’s hotel properties, pursuant to individual management agreements. The agreements have an initial term expiring on December 31st of the fifth full calendar year following the effective date of the agreement, which automatically renews for a period of five years on each successive five-year period, unless terminated in accordance with its terms. NHS earns a monthly base management fee for property management services, including overseeing the day-to-day operations of the hotel properties equal to 4% of gross revenue. NHS may also earn an accounting fee of $14.00 per room for accounting services, payable monthly, and an administrative fee equal to 0.60% of gross revenues for administrative and other services. The Company reimburses NHS for certain costs of operating the properties incurred on behalf of the Company. All reimbursements are paid to NHS at cost. Fees and reimbursements incurred and payable to NHS for the three and nine months ended September 30, 2020 and 2019, and amounts outstanding and payable as of September 30, 2020 and December 31, 2019, were as follows: Incurred Incurred Payable as of For the Three Months Ended September 30, For the Nine Months Ended September 30, September 30, December 31, 2020 2019 2020 2019 2020 2019 Fees: Management fees $ 130,649 $ 136,971 $ 347,689 $ 230,647 $ 50,739 $ 30,024 Administrative fees 20,242 31,493 54,092 47,169 7,631 4,617 Accounting fees 25,494 17,052 76,472 31,948 9,775 4,303 $ 176,385 $ 185,516 $ 478,253 $ 309,764 $ 68,145 $ 38,944 Reimbursements $ 77,496 $ 90,823 $ 213,995 $ 137,436 $ 12,009 $ 8,572 One Rep Construction, LLC (“One Rep”) —Corey Maple, Norman Leslie, and David Ekman, each hold a 33.33% ownership interest in One Rep. David Ekman is a member of the Company’s board of directors. One Rep, is a construction management company which provides construction oversight, project management, and other related services to the Company, pursuant to individual construction management agreements. For the services provided, One Rep is paid a construction management fee equal to 6% of the total project costs. The Company reimburses One Rep for certain costs incurred on behalf of the Company, and all reimbursements are paid to One Rep at cost. Fees and reimbursements incurred and payable to One Rep for the three and nine months ended September 30, 2020 and 2019, and amounts outstanding and payable as of September 30, 2020 and December 31, 2019, were as follows: Incurred Incurred Payable as of For the Three Months Ended September 30, For the Nine Months Ended September 30, September 30, December 31, 2020 2019 2020 2019 2020 2019 Fees: Construction Management fees $ 13,268 $ — $ 40,544 $ — $ 1,847 $ — Reimbursements $ 49,884 $ 2,162 $ 79,409 $ 2,162 $ 8,627 $ 18,500

MANAGEMENT AND FRANCHISE AGREEM

MANAGEMENT AND FRANCHISE AGREEMENTS	9 Months Ended
	Sep. 30, 2020
MANAGEMENT AND FRANCHISE AGREEMENTS
MANAGEMENT AND FRANCHISE AGREEMENTS	8. MANAGEMENT AND FRANCHISE AGREEMENTS As of September 30, 2020, six of the hotel properties owned by the Company were subject to a property management agreement with NHS, as discussed in Note 7. The Pineville Property is managed on a day-to-day basis by Beacon IMG, Inc. (“Beacon”), pursuant to a sub-management agreement. The Southaven Property is managed by Vista Host, Inc. (“Vista Host”), pursuant to a property management agreement with an initial term expiring on February 21, 2025, which will automatically renew for two successive 5-year periods unless terminated earlier in accordance with its terms. Vista Host earns a monthly base management fee for property management services, including overseeing the day-to-day operations of the hotel properties equal to 3% of gross revenue. Vista Host may also earn an incentive management fee if certain year-over-year operational metrics are achieved. The Company reimburses Vista Host for certain costs of operating the properties incurred on behalf of the Company. All reimbursements are paid to Vista Host at cost. As of September 30, 2020, all of the Company’s hotel properties were operated under franchise agreements with initial terms of 10 to 18 years. Franchise agreements allow the hotel properties to operate under the respective brands. Pursuant to the franchise agreements, the Company pays a royalty fee of 5% to 6% of room revenue, plus additional fees for marketing, central reservation systems and other franchisor costs. Certain hotels are also charged a program fee of generally between 3% and 4% of room revenue. The Company also paid an initial fee of $50,000 to $175,000, depending on the property and franchise, at the time of entering into each franchise agreement which is being amortized over the term of each agreement.

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	9 Months Ended
	Sep. 30, 2020
STOCKHOLDERS' EQUITY
STOCKHOLDERS’ EQUITY	9. STOCKHOLDERS’ EQUITY The Company is authorized to issue 900,000,000 shares of common stock and 100,000,000 shares of preferred stock. Generally, each share of common stock entitles the holder to one vote per share for on all matters upon which stockholders are entitled to vote and to receive distributions as authorized by the Company’s board of directors. The Interval Common Stock described below do not have voting rights. The rights of the holders of shares of preferred stock may be defined at such time any series of preferred shares are issued. On April 29, 2020, the Company filed with the Maryland State Department of Assessments and Taxation articles supplementary (the “Articles Supplementary”) to the Company’s charter, to classify and designate 7,000,000 shares of authorized but unissued common stock, $0.01 par value per share, of the Company, as non-voting shares of Interval Common Stock and to set the terms of the Interval Common Stock. Common Stock Initial Offering On June 1, 2018, the Company commenced a private offering of shares of common stock, $0.01 par value per share, at a price of $10.00 per share, with a maximum offering of $100,000,000, to accredited investors only pursuant to a confidential private placement memorandum exempt from registration under the Securities Act of 1933, as amended. Dividend Reinvestment Plan The Company has adopted a dividend reinvestment plan (“DRIP”), which permits stockholders to reinvest their distributions back into the Company, purchasing shares of common stock at 95% of the then-current share net asset value (“NAV”). Distributions Distributions are determined by the board of directors based on the Company’s financial condition and other relevant factors. For the three months ended March 31, 2020, the board of directors declared a cash distribution at a daily rate of $0.00191781 per share of common stock to the stockholders of record on each calendar day within the quarter. F or the three months ended June 30, 2020, the board of directors declared a distribution, payable to each stockholder in shares of common stock issued through the DRIP, or at the election of the stockholder, in shares of common stock valued at $10.00 per share, at a daily rate of $0.00191781 per share of common stock to the stockholders of record on each calendar day within the quarter. On July 24, 2020, the Company paid distributions of $0.4 million, declared for daily record dates for each day in the period from March 1, 2020, through March 31, 2020, which included $0.2 million of distributions paid pursuant to the DRIP. On July 31, 2020, the Company issued $1.2 million in shares of common stock, consisting of 131,267 shares of common stock, as a stock distribution declared for daily record dates in the period from April 1, 2020 through June 30, 2020. All of such shares were issued through the DRIP. F or the three months ended September 30, 2020, the board of directors declared a distribution, payable to each stockholder, to be paid 30% in cash (or through the DRIP if then currently enrolled in the DRIP) and 70% in shares of common stock issued through the DRIP, or at the election of the stockholder, in shares of common stock valued at $10.00 per share, at a daily rate of $0.00191781 per share of common stock to the stockholders of record on each calendar day within the quarter. For the nine months ended September 30, 2019, the board of directors declared a cash distribution at a daily rate of $0.00191781 per share of common stock to the stockholders of record on each calendar day within each respective calendar quarter. Share Repurchase Plan The board of directors has adopted a share repurchase plan that may enable its stockholders to have their shares repurchased in limited circumstances. In its sole discretion, the board of directors could choose to terminate or suspend the plan or to amend its provisions without stockholder approval. The repurchase plan may be reviewed and modified by the board of directors as it deems necessary in its sole discretion. The price at which the Company will repurchase shares is dependent on the amount of time the holder has owned the shares, and the then current value of the shares. There are several limitations on the Company’s ability to repurchase shares under the share repurchase plan, including, but not limited to, a limitation that during any calendar year, the maximum number of shares potentially eligible for repurchase can only be the number of shares that the Company could purchase with the amount of net proceeds from the sale of shares under the Company’s dividend reinvestment plan during the prior calendar year. The board of directors may, in its sole discretion, reject any request for repurchase and may, at any time and without stockholder approval, upon 10 business days’ written notice to the stockholders (i) amend, suspend or terminate its share repurchase plan and (ii) increase or decrease the funding available for the repurchase of shares pursuant to our share repurchase plan. As of September 30, 2020, the Company had $232,618 available for eligible repurchases, after taking into account the accrued repurchases of $474,515 for repurchase requests received during the month of September 2020. Interval Common Stock Distributions H olders of shares of Interval Common Stock will be entitled to receive, when and as authorized by the board of directors of the Company and declared by the Company, distributions at a rate equal to 86% of the distribution rate for the Company’s common stock as authorized by the board of directors and declared by the Company. Distributions on the Interval Shares may be paid in cash, capital stock of the Company or a combination of cash and capital stock of the Company as determined by the board of directors, and will be paid at such times as distributions are paid to the holders of common stock. Repurchase Plan The board of directors has adopted a repurchase plan for the Interval Common Stock (the “Repurchase Plan”). The Repurchase Plan is generally available to holders of Interval Common Stock who have held their shares of Interval Common Stock (“Interval Shares”) for at least 1 year. The Repurchase Plan provides that so long as the Repurchase Reserve (defined below) exists, the Company will repurchase up to the lesser of (i) 5% of the aggregate value of the Interval Shares (“Interval Shares Value”) on the last day of the same calendar quarter of the preceding year and (ii) 5% of the Interval Shares Value on the last day of the preceding calendar quarter. After the Repurchase Reserve has been exhausted, the Company will limit repurchases of Interval Shares to repurchases that can be made with the net proceeds from the dividend reinvestment plan for the Interval Shares received in the prior calendar year up to the lesser of (i) 1.25% per calendar quarter and (ii) 5% per calendar year of the Interval Shares Value. The limitations described in this paragraph are referred to as the “Repurchase Limitations.” The Company will establish a reserve (the “Repurchase Reserve”) of liquid assets in an amount equal to 20% of the aggregate gross proceeds from the Company’s private offering of Interval Shares, which will be comprised of cash and cash-like instruments, government securities, publicly traded REIT shares and other publicly traded securities (the “Reserve Assets”), but which is expected to primarily include publicly traded REIT shares. The Repurchase Reserve will be used solely to repurchase the Interval Shares. The board of directors may, but has no obligation to, increase the amount of the Repurchase Reserve at any time. The Company will have no obligation to restore any amounts resulting from a decline in value of the Reserve Assets. After the Repurchase Reserve has been exhausted, subject to the Repurchase Limitations, the Company will use only the net proceeds from the dividend reinvestment plan received in the prior calendar year to repurchase the Interval Shares. Subject to the Repurchase Limitations, on the applicable repurchase date, the Company will repurchase the Interval Shares timely submitted for repurchase for a price equal to the NAV per share of the Company’s common stock on such repurchase date as determined by the board of directors. The board of directors may, upon 10 days’ written notice to the holders of Interval Shares, amend, suspend or terminate the Repurchase Plan at any time, and such amendment, suspension or termination may be implemented immediately. Notwithstanding the foregoing, the Repurchase Plan may not be terminated prior to the date the Repurchase Reserve is exhausted. Interval Share Offering The Company is offering up to 3,000,000 shares of Interval Common Stock in the Company’s ongoing private offering, which amount may be increased to up to 6,000,000 Interval Shares in the sole discretion of the board of directors. Except as otherwise provided in the offering memorandum, the initial purchase price for the Interval Shares is $10.00 per Interval Share, with Interval Shares purchased in the Company’s dividend reinvestment plan at an initial price of $9.50 per Interval Share. As of September 30, 2020, the Company had not issued or sold any shares of Interval Common Stock. Non-Controlling Interest – Series GO LP Units Distributions The holders of Series GO LP Units will not receive any distributions from the Operating Partnership until after they have held their Series GO LP Units for a period of 18 months. Thereafter, the Series GO Limited Partners will receive the same distributions payable to the holders of the Common LP Units and GP Units (together with the Series GO LP Units and Interval Units, the “Participating Partnership Units”), other than with respect to proceeds received upon the sale or exchange of a property which are not reinvested in additional properties. Upon the sale of all or substantially all of the GP Units held by LF REIT III or any sale, exchange or merger of LF REIT III or the Operating Partnership (each, a “Termination Event”), or with respect to proceeds received upon the sale or exchange of a property which are not reinvested in additional properties, distributions will be made between the Series GO LP Units and the other Participating Partnership Units as follows: (i) first, to the Participating Partnership Units in proportion to their Partnership Units until the GP Units (the Common LP Units and the Interval Units) have received 70% of their original capital contributions (determined on a grossed-up basis) reduced by any prior distributions received in connection with the sale of a property in which the sale proceeds are not reinvested in additional properties; (ii) second, to the Participating Partnership Units in proportion to their Partnership Units until each Participating Partnership Unit has received a Participating Amount ($1.00 for any period after December 31, 2020, $2.00 for any period after December 31, 2021 and $3.00 for any period after December 31, 2022, determined as a singular determination and not a cumulative determination); (iii) third, to the Participating Partnership Units (other than the Series GO LP Units) in proportion to their Partnership Units until the GP Units have received any remaining unreturned original capital contributions; (iv) fourth, to the Series GO Limited Partners in proportion to their Series GO LP Units until the amount distributed to the Series GO Limited Partners per Series GO LP Unit is equal to the amount distributed to the Participating Partnership Units per Participating Partnership Unit (other than the Series GO Limited Partners) pursuant to (iii); and (v) thereafter, to the Participating Partnership Units in proportion to their Participating Partnership Units. GO Unit Offering On June 15, 2020, the Operating Partnership commenced a private offering of limited partnership units in the OP, designated as Series GO LP Units, with a maximum offering of $20,000,000, which may be increased to $30,000,000 in the sole discretion of LF REIT III as the General Partner of the OP, to accredited investors only, pursuant to a confidential private placement memorandum exempt from registration under the Securities Act of 1933, as amended. As of September 30, 2020, the Company had issued and sold 246,621 Series GO LP Units and received aggregate proceeds of $1.7 million.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES Impact of COVID-19 — As further discussed in Note 2, the full extent of the impact of COVID-19 on the U.S. and world economies generally, and the Company’s business in particular, is uncertain. As of September 30, 2020, no contingencies have been recorded on the Company’s consolidated balance sheet as a result of COVID-19, however as the global pandemic continues, it may have long-term impacts on the Company’s financial condition, results of operations, and cash flows. Refer to Note 2 for further discussion of COVID-19. 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, cash flows or financial condition, which would require accrual or disclosure of the contingency and possible range of loss. Property Acquisitions — The seller of the Pineville Property, may be entitled to additional cash consideration if the property exceeds certain performance criteria based on increases in the property’s net operating income (“NOI”) for a selected 12‑month period of time. At any time during the period beginning April 1, 2021 through the date of the final NOI determination (on or about April 30, 2023), the seller of the property may make a one-time election to receive the additional consideration. The variable amount of the additional consideration, if any, is based on the excess of the property’s actual NOI over a base NOI for the applicable 12‑month calculation period divided by the stated cap rate for such calculation period. Further, if the Company sells the Pineville Property or terminates the sub-management agreement with Beacon, an affiliate of the seller, without cause prior to March 31, 2021, the Company will be required to pay liquidated damages of at least $1.0 million unless the seller elects to receive the additional consideration described above. As of September 30, 2020, no additional consideration had paid to the seller of the Pineville Property, and no election to receive the additional consideration had been made. In November 2019, the Company entered into a purchase agreement, to acquire 3 hotel properties in Pennsylvania, from a third party group of sellers (collectively, the “PA Sellers”), for $46.9 million plus closing costs, subject to adjustment as provided in the purchase agreement. The Company has deposited a total of $1.5 million into escrow as earnest money (the “Earnest Money”) pending the closing or termination of the purchase agreement. In July 2020, the Company and the PA Sellers exchanged written notices of default with one another in accordance with the terms of the purchase agreement. The notice from each party was based on allegations that the other party failed to perform its obligations under the purchase agreement. On October 27, 2020, the PA Sellers filed a lawsuit against Lodging Fund REIT III OP, LP in the Supreme Court of Pennsylvania alleging breach of the purchase agreement. The PA Sellers seek the full amount of the Earnest Money and recovery of fees and expenses incurred in bringing the lawsuit. The lawsuit is in an early stage and the likelihood of any material loss in connection with the case cannot be determined at this time. As a result, no amount was recorded related to this matter as of September 30, 2020, the Earnest Money remained in escrow and is included in restricted cash on the accompanying consolidated balance sheets. In September 2020, the Company entered into a Contribution Agreement (the “Contribution Agreement”), pursuant to which the owner of a hotel property in Aurora, Colorado, agreed to contribute the property to the Operating Partnership. The aggregate consideration for the hotel property is $33.1 million plus closing costs, subject to adjustment as provided in the Contribution Agreement. The consideration consists of the assumption by the Operating Partnership of $19.5 million in existing debt secured by the hotel property, the issuance by the Operating Partnership of $12.2 million in Series T LP Units of the Operating Partnership, and the payment by the Operating Partnership of $1.5 million in cash. As required by the Contribution Agreement, the Company has deposited $250,000 into escrow as earnest money pending the closing or termination of the Contribution Agreement, and is currently in the due diligence period, as described in the Contribution Agreement, continuing to evaluate the potential property contribution. Except in certain circumstances described in the Contribution Agreement, if the Operating Partnership fails to perform its obligations under the Contribution Agreement, it will forfeit the earnest money.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	11. SUBSEQUENT EVENTS Distributions Paid On October 13, 2020, the Company paid distributions totaling $1.3 million, consisting of $0.2 million in cash distributions and $1.1 million of distributions paid in shares of common stock issued through the DRIP, for daily record dates in the period from July 1, 2020 through September 30, 2020. Share Repurchases On October 21, 2020, the Company repurchased 51,578 shares of common stock for $474,515, per the terms of the share repurchase plan, related to repurchase requests received during the month of September 2020. Status of the GO Unit Offering As of November 12, 2020, the Company’s GO Unit Offering remained open for new investment, and since the inception of the offering the Company had issued and sold 492,702 Series GO LP Units, resulting in the receipt of gross GO Unit Offering proceeds of $3.4 million. Status of the Offering As of November 12, 2020, the Company’s private offering of common stock remained open for new investment, and since the inception of the offering the Company had issued and sold 7,659,235 shares of common stock, including 392,812 shares issued pursuant to the DRIP, resulting in the receipt of gross offering proceeds of $75.1 million. ******

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation —The accompanying unaudited consolidated financial statements and related notes have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the SEC applicable to interim financial information. Accordingly, the unaudited financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. The financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, and which, in the opinion of management, are necessary for a fair and consistent presentation of the results for such periods. Operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. The consolidated financial statements include the accounts of LF REIT III and its subsidiaries. For the controlled subsidiaries that are not wholly-owned, the interests owned by an entity other than the Company represent a noncontrolling interest, which is presented separately in the consolidated financial statements. The Company has no foreign operations or assets and its operating structure includes only one reportable Segment. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates —The preparation of the Company’s consolidated financial statements and the accompanying notes in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and the amounts of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. During the first quarter of 2020, there was a global outbreak of a novel coronavirus, or COVID-19, which has spread to over 200 countries and territories, including the United States, and has spread to every state in the United States. The World Health Organization has designated COVID-19 as a pandemic, and numerous countries, including the United States, have declared national emergencies with respect to COVID-19. The impact of the outbreak on the U.S. and world economies has been evolving, and as cases of COVID-19 have continued to be identified in additional countries, there have been international mandates, and mandates in the United States from federal, state and local authorities, instituting quarantines and stay-at-home orders, closing schools, and instituting restrictions on travel and/or limiting operations of non-essential offices and retail centers. Such actions are adversely impacting many industries, with the travel and hospitality industries being particularly adversely affected. Although our hotel properties have remained open through the pandemic in 2020, our occupancy levels have been lower than historical levels. The outbreak could have a continued adverse impact on economic and market conditions, and could trigger a continued slowdown in leisure and business travel, which is adversely impacting the travel and hospitality industries. The fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions. The Company believes the estimates and assumptions underlying the Company’s consolidated financial statements are reasonable and supportable based on the information available as of September 30, 2020, however uncertainty over the ultimate impact COVID-19 will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of September 30, 2020 inherently less certain than they would be absent the current and potential impacts of COVID-19.
Revenue Recognition	Revenue Recognition —Revenues consist of amounts derived from hotel operations, including room sales and other hotel revenues, and are presented on a disaggregated basis in the Company’s consolidated statements of operations. These revenues are recorded net of any sales and occupancy taxes collected from the hotel guests. All revenues are recorded on an accrual basis as they are earned. Any cash received prior to a guest’s arrival is recorded as an advance deposit from the guest and recognized as revenue at the time of the guest’s occupancy at the hotel property.
Investment in Hotel Properties	Investment in Hotel Properties —The Company evaluates whether each hotel property acquisition should be accounted for as an asset acquisition or a business combination. If substantially all of the fair value of the gross assets acquired is concentrated in a single asset or a group of similar identifiable assets, then the transaction is considered to be an asset acquisition. All of the Company’s acquisitions since inception have been determined to be asset acquisitions. Transaction costs associated with asset acquisitions are capitalized and transaction costs associated with business combinations would be expensed as incurred. The Company’s acquisitions generally consist of land, land improvements, buildings, building improvements, and furniture, fixtures and equipment (“FF&E”). The Company may also acquire intangible assets or liabilities related to in-place leases, management agreements, debt, and advanced bookings. For transactions determined to be asset acquisitions, the Company allocates the purchase price among the assets acquired and the liabilities assumed on a relative fair value basis at the date of acquisition. The Company determines the fair value of assets acquired and liabilities assumed with the assistance of third-party valuation specialists, using cash flow analysis as well as available market and cost data. The determination of fair value includes making numerous estimates and assumptions. The difference between the fair value and the face value of debt assumed in connection with an acquisition is recorded as a premium or discount and amortized to interest expense over the remaining term of the debt assumed. The valuation of assumed debt liabilities is based on our estimate of the current market rates for similar liabilities in effect at the acquisition date. The Company’s investments in hotel properties are carried at cost and are depreciated using the straight-line method over the estimated useful lives of 15 years for land improvements, 15 years for building improvements, 40 years for buildings and three to seven years for FF&E. Maintenance and repair costs are expensed in the period incurred and major renewals or improvements to the hotel properties are capitalized. Interest incurred in connection with the financing of real estate under development or renovation is capitalized as an additional cost of development. The Company discontinues the capitalization of interest once the real estate development or renovation project is substantially complete. The Company assesses the carrying value of its hotel properties whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The recoverability is measured by comparing the carrying amount of the property to the estimated future undiscounted cash flows of the property, which take into account current market conditions and the Company’s intent with respect to holding or disposing of the hotel properties. If the Company’s analysis indicates that the carrying value is not recoverable on an undiscounted cash flow basis, the Company will recognize an impairment loss for the amount by which the carrying value exceeds the fair value. The fair value is determined through various valuation techniques, including internally developed discounted cash flow models, comparable market transactions or third-party appraisals. The use of projected future cash flows is based on assumptions that are consistent with a market participant’s future expectations for the industry and the economy in general and the Company’s expected use of the underlying hotel properties. The assumptions and estimates related to the future cash flows and the capitalization rates are complex and subjective in nature. Changes in economic and operating conditions, including those occurring as a result of the impact of the COVID-19 pandemic, that occur subsequent to a current impairment analysis and the Company’s ultimate use of the hotel property could impact the assumptions and result in future impairment losses to the hotel properties.
Non-controlling Interests	Non-controlling Interests —Non-controlling interests represent the portion of equity in a subsidiary held by owners other than the Company. Non-controlling interests are reported in the consolidated balance sheets within equity, separate from stockholders’ equity. Revenue and expenses attributable to both the Company and the non-controlling interests are reported in the consolidated statements of operations, with net income or loss attributable to non-controlling interests reported separately from net income or loss attributable to the Company.
Cash and Cash Equivalents	Cash and Cash Equivalents —Cash and cash equivalents include cash in bank accounts as well as highly liquid investments with an original maturity of three months or less. The Company deposits cash with several high-quality financial institutions. These deposits are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to an insurance limit of $250,000. At times, the Company’s cash and cash equivalents may exceed federally insured levels.
Restricted Cash	Restricted Cash —Restricted cash consists of earnest money deposits related to hotel property acquisitions, as well as certain funds maintained in escrow accounts to fund future payments for insurance, property tax obligations, and reserves for future capital expenditures, as required by our debt agreements. As of September 30, 2020 and December 31, 2019, restricted cash on the accompanying consolidated balance sheet included $1.8 million and $2.6 million, respectively, of earnest money deposits.
Accounts Receivable	Accounts Receivable —Accounts receivable consist primarily of receivables due from hotel guests for room stays and meeting and banquet room rentals, which are uncollateralized customer obligations. Management determines the likelihood of collectability of receivables on an individual customer basis, based on the amount of time the balance has been outstanding, likelihood of collecting, and the customer’s current economic status.
Deferred Financing Costs	Deferred Financing Costs —Deferred financing costs represent commitment fees, origination fees, legal fees, and other costs associated with obtaining financing. Deferred financing costs are presented on the consolidated balance sheets as a direct deduction from the carrying amount of the related debt liability. These costs are amortized to interest expense over the terms of the respective financing agreements using the straight-line method, which approximates the effective interest method. The Company expenses unamortized deferred financing costs when the associated financing agreement is refinanced or repaid before maturity unless certain criteria are met that would allow for the carryover of such costs to the refinanced agreement. Costs incurred in connection with potential financial transactions that are not completed are expensed in the period in which it is determined the financing will not be completed.
Offering Costs	Offering Costs —The Company has incurred certain costs related directly to the Company’s equity offerings consisting of, among other costs, commissions, legal, due diligence costs, printing, marketing, filing fees, postage, data processing fees, and other offering related costs. These costs are capitalized and recorded as a reduction of equity proceeds on the accompanying consolidated balance sheets.
Property Operations Expenses	Property Operations Expenses —Property operations expenses consist of expenses related to room rental, food and beverage sales, telephone usage, and other miscellaneous service costs, as well as all costs of operating the Company’s hotel properties such as building repairs, maintenance, property taxes, utilities, and other related costs.
Management Fees	Management Fees —Management fees include expenses incurred for management services provided for the day-to-day operations of our hotel properties, which are charged at a base rate of 3-4% of gross revenues, any ancillary fees for hotel property management, and asset management fees, which may be charged at an annual rate of up to 0.75% of gross assets and are paid to the Advisor.
Franchise Fees	Franchise Fees —The Company pays initial fees related to hotel franchise rights prior to acquiring a hotel property. The fees are included in prepaid expenses and other assets until the time the related hotel property is acquired. Initial franchise fees related to hotel properties that are acquired are amortized on a straight-line basis over the life of the agreement. Initial franchise fees related to hotel properties that are not acquired are refunded to the Company, net of any associated fees, and any fees are expensed as incurred. Franchise fees on the accompanying consolidated statements of operations include the amortization of initial franchise fees, as well as monthly fees paid to franchisors for royalty, marketing, and reservation fees and other related costs.
Acquisition Costs	Acquisition Costs —The Company incurs costs during the review of potential hotel property acquisitions including legal fees, environmental reviews, market studies, financial advisory services, and other professional service fees. If the Company does complete a property acquisition, an acquisition fee of up to 1.4% is charged by the Advisor, based on the purchase price of the property plus any estimated property improvement plan (“PIP”) costs. For transactions determined to be asset acquisitions, these costs are capitalized as part of the overall cost of the project if the property is ultimately acquired. For transactions determined to be business combinations, these costs would be expensed in the period incurred. Acquisition-related and acquisition due diligence costs that relate to a property that is not acquired, are expensed and included in acquisition costs on the accompanying consolidated statements of operations. Prior to the ultimate determination of whether a property will be acquired or not, acquisition-related and acquisition due diligence costs are recorded as, and included in, prepaid expenses and other assets on the accompanying consolidated balance sheets.
Net Loss Per Share of Common Stock	Net Loss Per Share of Common Stock —Basic net loss per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net loss per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. Basic and diluted net loss per common share were the same for the periods presented.
Income Taxes	Income Taxes —The Company has elected to be taxed as a REIT under Sections 856 through 860 of the Internal Revenue Code of 1986, as amended. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that it distribute at least 90% of its REIT taxable income, subject to certain adjustments and excluding any net capital gain, to stockholders. The Company’s intention is to adhere to the REIT qualification requirements and to maintain its qualification for taxation as a REIT. As a REIT, the Company is generally not subject to U.S. federal corporate income tax on the portion of taxable income that is distributed to stockholders. If the Company fails to qualify for taxation as a REIT in any taxable year, the Company will be subject to U.S. federal income taxes at regular corporate rates and it may not be able to qualify as a REIT for four subsequent taxable years. As a REIT, the Company may be subject to certain state and local taxes on its income and property, and to U.S. federal income and excise taxes on undistributed taxable income. Taxable income from non-REIT activities managed through the Company’s taxable REIT subsidiary (“TRS”) is subject to U.S. federal, state, and local income taxes at the applicable rates. The TRS accounts for income taxes using the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax basis, and for net operating loss, capital loss and tax credit carryforwards. The deferred tax assets and liabilities are measured using the enacted income tax rates in effect for the year in which those temporary differences are expected to be realized or settled. The effect on the deferred tax assets and liabilities from a change in tax rates is recognized in earnings in the period when the new rate is enacted. However, deferred tax assets are recognized only to the extent that it is more likely than not that they will be realized based on consideration of all available evidence, including the future reversals of existing taxable temporary differences, future projected taxable income and tax planning strategies. Valuation allowances are provided if, based upon the weight of the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company performs periodic reviews for any uncertain tax positions and, if necessary, will record the expected future tax consequences of uncertain tax positions in the consolidated financial statements.
Fair Value Measurement	Fair Value Measurement —The Company establishes fair value measures based on the fair value definition and hierarchy levels established by GAAP. These fair values are based on a three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1 —Observable inputs such as quoted prices in active markets. Level 2 —Directly or indirectly observable inputs, other than quoted prices in active markets. Level 3 —Unobservable inputs in which there is little or no market data, which require a reporting entity to develop its own assumptions. The Company’s estimates of fair value were determined using available market information and appropriate valuation methods. Considerable judgment is necessary to develop estimated fair value. The use of different market assumptions or estimation methods may have a material effect on the estimated fair value amounts. The Company classifies assets and liabilities in the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement.
Reclassifications	Reclassifications —Certain prior year amounts in the consolidated financial statements have been reclassified to conform to the current year presentation with no effect on previously reported net income or stockholders’ equity. In prior year consolidated financial statements distributions payable were included in accrued expenses.
Recent Accounting Pronouncements	Recent Accounting Pronouncements —The Company, as an emerging growth company, has elected to use the extended transition period which allows us to defer the adoption of new or revised accounting standards. This allows the Company to adopt new or revised accounting standards as of the effective date for non-public business entities. In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014‑09, Revenue from Contracts with Customers (Topic 606). The core principle of the new standard is that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014‑09 is effective for fiscal years beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. We adopted ASU 2014‑09 as of January 1, 2019 . There have not been, nor do we anticipate, any reclassifications or significant impacts on our consolidated financial statements as a result of this adoption. In February 2016, the FASB issued ASU No. 2016‑02, “Leases” (“ASU No. 2016‑02”) (Topic 842), which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). ASU No. 2016‑02 requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right of use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. ASU No. 2016‑02 is effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. We plan to adopt ASU 2016‑02 for the year ending December 31, 2021. We do not anticipate any reclassifications or significant impacts on our consolidated financial statements as a result of this adoption.

INVESTMENT IN HOTEL PROPERTIES

INVESTMENT IN HOTEL PROPERTIES (Tables)	9 Months Ended
	Sep. 30, 2020
INVESTMENT IN HOTEL PROPERTIES
Schedule of investment in hotel properties	September 30, December 31, 2020 2019 Land and land improvements $ 10,324,772 $ 7,738,495 Building and building improvements 85,200,699 53,238,276 Furniture, fixtures, and equipment 8,929,990 5,687,249 Construction in progress 446,334 — Investment in hotel properties, at cost 104,901,795 66,664,020 Less: accumulated depreciation (3,830,419) (1,255,712) Investment in hotel properties, net $ 101,071,376 $ 65,408,308
Schedule of acquisitions of hotel properties	The table below outlines the details of the properties acquired during the nine months ended September 30, 2020. 2020 Acquisitions Number Date of Guest Purchase Transaction % Hotel Property Type Location Acquired Rooms Price Costs Total Interest Fairfield Inn & Suites Limited Service Lubbock, TX January 8, 2020 101 $ 15,150,000 $ 496,431 $ 15,646,431 100 % Homewood Suites Extended Stay Southaven, MS February 21, 2020 99 20,500,000 445,090 20,945,090 100 % 200 $ 35,650,000 $ 941,521 $ 36,591,521 The table below outlines the details of the properties acquired during the year ended December 31, 2019. 2019 Acquisitions Number Date of Guest Purchase Transaction % Hotel Property Type Location Acquired Rooms Price Costs Total Interest Hampton Inn & Suites Limited Service Pineville, NC March 19, 2019 111 $ 13,897,358 $ 303,744 $ 14,201,102 100 % Hampton Inn Limited Service Eagan, MN June 19, 2019 122 13,950,000 278,333 14,228,333 100 % Home2 Suites Extended Stay Prattville, AL July 11, 2019 90 14,750,000 356,014 15,106,014 100 % Home2 Suites Extended Stay Lubbock, TX December 30, 2019 100 14,150,000 284,776 14,434,776 100 % 423 $ 56,747,358 $ 1,222,867 $ 57,970,225
Schedule of aggregate purchase price for the hotel properties	September 30, December 31, 2020 2019 Land and land improvements $ 2,576,166 $ 6,201,529 Building and building improvements 31,605,174 47,412,115 Furniture, fixtures, and equipment 3,007,846 4,772,707 Total assets acquired 37,189,186 58,386,351 Premium on assumed debt (597,665) (416,126) Total liabilities assumed (597,665) (416,126) Total purchase price (1) 36,591,521 57,970,225 Assumed mortgage debt 9,400,772 17,283,415 Net purchase price $ 27,190,749 $ 40,686,810 (1) Total purchase price includes purchase price plus all transaction costs.

DEBT - (Tables)

DEBT - (Tables)	9 Months Ended
	Sep. 30, 2020
DEBT
Schedule of debt outstanding	Interest Outstanding Outstanding Rate as of Balance as of Balance as of September 30, Maturity September 30, December 31, Hotel Property 2020 Date 2020 2019 Holiday Inn Express - Cedar Rapids (1) 5.33% 09/01/2024 $ 5,858,134 $ 5,527,392 Hampton Inn & Suites - Pineville 5.13% 06/06/2024 9,020,427 9,154,289 Hampton Inn - Eagan 4.60% 01/01/2025 9,317,589 9,369,276 Home2 Suites - Prattville (1) 4.13% 08/01/2024 9,701,422 9,620,000 Home2 Suites - Lubbock 4.69% 10/06/2026 7,845,997 8,000,430 Fairfield Inn & Suites - Lubbock 4.93% 04/06/2029 9,308,790 — Homewood Suites - Southaven (1) 3.70% 03/03/2025 13,586,110 — Total Mortgage Debt 64,638,470 41,671,387 $3.0 million line of credit 5.00% (2) 11/22/2020 — — $5.0 million line of credit 3.75% (3) 2/10/2021 — — Total Lines of Credit — — PPP Loans 1.00% Various (4) 763,100 — Premium on assumed debt, net 887,933 389,285 Deferred financing costs, net (1,468,880) (1,080,040) Debt, net $ 64,820,623 $ 40,980,632 (1) Per the original loan terms, the loan was interest-only for the first 12 months after origination, then monthly principal and interest payments, with a balloon payment at maturity. (2) Variable interest rate equal to U.S. Prime Rate plus 1.00%, with a minimum rate of 5.00%. (3) Variable interest rate equal to U.S. Prime Rate plus 0.50%. (4) Two PPP Loans totaling $286,100 mature on April 10, 2022, and four PPP Loans totaling $477,000 mature on April 17, 2022.
Schedule of future minimum principal payments	2020 (October 1, 2020 to December 31, 2020) $ 349,354 2021 1,848,609 2022 1,656,836 2023 1,554,615 2024 23,835,059 Thereafter 36,157,097 65,401,570 Premium on assumed debt, net 887,933 Deferred financing costs, net (1,468,880) $ 64,820,623

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2020
Legendary Capital REIT III, LLC
Related Party Transactions
Schedule of fees and reimbursements incurred and payable	Incurred Incurred Payable as of For the Three Months Ended September 30, For the Nine Months Ended September 30, September 30, December 31, 2020 2019 2020 2019 2020 2019 Fees: Acquisition fees $ — $ 208,551 $ 501,949 $ 605,118 $ — $ 213,402 Financing fees — 208,551 501,949 605,118 — 213,402 Asset management fees 213,097 105,990 617,397 188,326 71,194 81,389 Performance fees — — — — — 68,534 $ 213,097 $ 523,092 $ 1,621,295 $ 1,398,562 $ 71,194 $ 576,727 Reimbursements: Offering costs $ 165,583 $ 481,225 $ 953,275 $ 1,511,304 $ 25,882 $ 122,833 General and administrative 455,337 800,239 1,831,638 1,930,527 81,374 120,386 Sales and marketing 37,203 112,583 145,489 281,907 5,840 3,333 Acquisition costs 23,914 43,157 93,038 922,609 10,596 31,966 Other (income) expense, net (43,361) 1,939 (503,180) 11,560 5,479 — $ 638,676 $ 1,439,143 $ 2,520,260 $ 4,657,907 $ 129,171 $ 278,518
NHS
Related Party Transactions
Schedule of fees and reimbursements incurred and payable	Incurred Incurred Payable as of For the Three Months Ended September 30, For the Nine Months Ended September 30, September 30, December 31, 2020 2019 2020 2019 2020 2019 Fees: Management fees $ 130,649 $ 136,971 $ 347,689 $ 230,647 $ 50,739 $ 30,024 Administrative fees 20,242 31,493 54,092 47,169 7,631 4,617 Accounting fees 25,494 17,052 76,472 31,948 9,775 4,303 $ 176,385 $ 185,516 $ 478,253 $ 309,764 $ 68,145 $ 38,944 Reimbursements $ 77,496 $ 90,823 $ 213,995 $ 137,436 $ 12,009 $ 8,572
One Rep Construction, LLC
Related Party Transactions
Schedule of fees and reimbursements incurred and payable	Incurred Incurred Payable as of For the Three Months Ended September 30, For the Nine Months Ended September 30, September 30, December 31, 2020 2019 2020 2019 2020 2019 Fees: Construction Management fees $ 13,268 $ — $ 40,544 $ — $ 1,847 $ — Reimbursements $ 49,884 $ 2,162 $ 79,409 $ 2,162 $ 8,627 $ 18,500

ORGANIZATION - (Details)

ORGANIZATION - (Details)	9 Months Ended
	Sep. 30, 2020USD ($)segmentVote$ / sharesshares	Jun. 15, 2020USD ($)	Apr. 29, 2020USD ($)$ / sharesshares	Dec. 31, 2019$ / sharesshares	Jun. 01, 2018USD ($)$ / shares
Organization
Number of reportable segments | segment	1
Number of voting classes of partnership units | Vote	3
Number of non voting classes of partnership units | Vote	3
Common stock, par value (in dollars per share) | $ / shares	$ 0.01			$ 0.01
Common stock, shares authorized	900,000,000			900,000,000
Cumulative number of shares issued	7,509,854
Cumulative number of shares issued pursuant to the DRIP	281,857
Cumulative gross proceeds from issuance of stock | $	$ 73,700,000
Proceeds from issuance of GO Units | $	$ 1,700,005
Interval Common Stock
Organization
Common stock, par value (in dollars per share) | $ / shares			$ 0.01
Number of shares of common stock designated as non-voting shares of Interval Common Stock			7,000,000
Private offering
Organization
Common stock, par value (in dollars per share) | $ / shares					$ 0.01
Maximum offering | $					$ 100,000,000
Private offering | Interval Common Stock
Organization
Common stock, par value (in dollars per share) | $ / shares			$ 0.01
Number of shares of common stock designated as non-voting shares of Interval Common Stock			7,000,000
Maximum offering | $			$ 30,000,000
Maximum offering per the sole discretion of the Company's board of directors | $			$ 60,000,000
Series GO LP Units
Organization
Units issued and sold	246,621
Series GO LP Units | Private offering
Organization
Maximum offering | $		$ 20,000,000
Maximum offering per the sole discretion of the General Partner | $		$ 30,000,000
Units issued and sold	246,621
Proceeds from issuance of GO Units | $	$ 1,700,000
Operating Partnership | Common LP Units
Organization
Number of outstanding partnership units	0
Operating Partnership | Series B Limited Partnership Units
Organization
Number of outstanding partnership units	1,000
Operating Partnership | Series GO LP Units
Organization
Number of outstanding partnership units	246,621

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions	9 Months Ended
	Sep. 30, 2020USD ($)segment	Dec. 31, 2019USD ($)
Basis of Presentation and Principles of Consolidation
Number of Reportable Segments | segment	1
Restricted Cash
Amount deposited in escrow as earnest money | $	$ 1.8	$ 2.6
Management Fees
Asset management fees (as a percent)	0.75%
Acquisition Costs
Acquisition fee (as a percent)	1.40%
Income Taxes
Non eligibility term for REIT non compliance	4 years
Minimum
Management Fees
Management fees (as a percent)	3
Maximum
Management Fees
Management fees (as a percent)	4
Land improvements
Investment in Hotel Properties
Estimated useful lives	15 years
Building improvements
Investment in Hotel Properties
Estimated useful lives	15 years
Buildings
Investment in Hotel Properties
Estimated useful lives	40 years
Furniture, fixtures, and equipment | Minimum
Investment in Hotel Properties
Estimated useful lives	3 years
Furniture, fixtures, and equipment | Maximum
Investment in Hotel Properties
Estimated useful lives	7 years

INVESTMENT IN HOTEL PROPERTIE_2

INVESTMENT IN HOTEL PROPERTIES - Summary (Details)	Sep. 30, 2020USD ($)statepropertyroom	Dec. 31, 2019USD ($)
Investment in hotel properties consisted of the following:
Land and land improvements	$ 10,324,772	$ 7,738,495
Building and building improvements	85,200,699	53,238,276
Furniture, fixtures, and equipment	8,929,990	5,687,249
Construction in progress	446,334
Investment in hotel properties, at cost	104,901,795	66,664,020
Less: accumulated depreciation	(3,830,419)	(1,255,712)
Investment in hotel properties, net	$ 101,071,376	$ 65,408,308
Other disclosures
Number of hotel properties owned | property	7
Aggregate number of rooms in hotel properties | room	706
Number of states where hotel properties are owned | state	6

INVESTMENT IN HOTEL PROPERTIE_3

INVESTMENT IN HOTEL PROPERTIES - Acquisitions (Details)	Feb. 21, 2020USD ($)room	Jan. 08, 2020USD ($)room	Dec. 30, 2019USD ($)room	Jul. 11, 2019USD ($)room	Jun. 19, 2019USD ($)room	Mar. 19, 2019USD ($)room	Sep. 30, 2020USD ($)propertyroom	Dec. 31, 2019USD ($)propertyroom
Acquisitions
Number of Rooms | room							200	423
Purchase Price							$ 35,650,000	$ 56,747,358
Transaction Costs							941,521	1,222,867
Total							36,591,521	$ 57,970,225
Other disclosures
Liquidated damage payable							$ 1,000,000
Fairfield Inn & Suites (the "Lubbock Property")
Acquisitions
Number of Rooms | room		101
Purchase Price		$ 15,150,000
Transaction Costs		496,431
Total		$ 15,646,431
Interest (as a percent)		100.00%
Homewood Suites (the "Southaven Property")
Acquisitions
Number of Rooms | room	99
Purchase Price	$ 20,500,000
Transaction Costs	445,090
Total	$ 20,945,090
Interest (as a percent)	100.00%
Hampton Inn & Suites(the "Pineville Property")
Acquisitions
Number of Rooms | room						111
Purchase Price						$ 13,897,358
Transaction Costs						303,744
Total						$ 14,201,102
Interest (as a percent)						100.00%
Hampton Inn (the "Eagan Property")
Acquisitions
Number of Rooms | room					122
Purchase Price					$ 13,950,000
Transaction Costs					278,333
Total					$ 14,228,333
Interest (as a percent)					100.00%
Home2 Suites (the "Prattville Property")
Acquisitions
Number of Rooms | room				90
Purchase Price				$ 14,750,000
Transaction Costs				356,014
Total				$ 15,106,014
Interest (as a percent)				100.00%
Home2 Suites (the “Lubbock Home2 Property”)
Acquisitions
Number of Rooms | room			100
Purchase Price			$ 14,150,000
Transaction Costs			284,776
Total			$ 14,434,776
Interest (as a percent)			100.00%
Asset Acquisitions 2020
Other disclosures
Number of hotel properties acquired | property							2
Asset Acquisitions 2019
Other disclosures
Number of hotel properties acquired | property								4

INVESTMENT IN HOTEL PROPERTIE_4

INVESTMENT IN HOTEL PROPERTIES - Purchase Price Allocation (Details) - Nonrecurring - USD ($)	Sep. 30, 2020	Dec. 31, 2019
INVESTMENT IN HOTEL PROPERTIES
Land and land improvements	$ 2,576,166	$ 6,201,529
Building and building improvements	31,605,174	47,412,115
Furniture, fixtures, and equipment	3,007,846	4,772,707
Total assets acquired	37,189,186	58,386,351
Premium on assumed debt	(597,665)	(416,126)
Total liabilities assumed	(597,665)	(416,126)
Total purchase price	36,591,521	57,970,225
Assumed mortgage debt	9,400,772	17,283,415
Net purchase price	$ 27,190,749	$ 40,686,810

DEBT - Lines of Credit (Details

DEBT - Lines of Credit (Details) - Revolving line of credit - USD ($) $ in Millions	Feb. 10, 2020	Nov. 15, 2018	Aug. 22, 2018	Sep. 30, 2020	Dec. 31, 2018	Dec. 31, 2019
Lender One
Debt
Revolving line of credit			$ 3	$ 3
Partnership units pledged			300,000
Variable interest rate (as a percent)				5.00%		5.75%
Outstanding amount				$ 0		$ 0
Lender One | Corey Maple
Debt
Line of credit guarantee amount				1.2
Lender One | Norman Leslie
Debt
Line of credit guarantee amount				$ 1.2
Lender One | Minimum
Debt
Variable interest rate (as a percent)			5.00%	5.00%
Lender One | U.S. Prime Rate
Debt
Basis spread (as a percent)			1.00%	1.00%
Lender Two
Debt
Revolving line of credit		$ 25
Amount drew from line of credit					$ 5.2
Lender Two | 30‑day LIBOR
Debt
Basis spread (as a percent)		3.25%
Lender Three
Debt
Revolving line of credit	$ 5			$ 5
Partnership units pledged	100,000
Variable interest rate (as a percent)				3.75%
Outstanding amount				$ 0
Lender Three | U.S. Prime Rate
Debt
Basis spread (as a percent)	0.50%			0.50%

DEBT - Mortgage Debt and Loans

DEBT - Mortgage Debt and Loans (Details)	Oct. 02, 2020loan	Sep. 25, 2020loan	Apr. 30, 2020USD ($)loan	Sep. 30, 2020USD ($)property	Jul. 31, 2020USD ($)	Feb. 21, 2020USD ($)	Dec. 31, 2019USD ($)	Jul. 11, 2019USD ($)	Jun. 19, 2019USD ($)	Mar. 05, 2019USD ($)
Debt
Outstanding balance				$ 65,401,570
Mortgage Debt
Debt
Number of properties as security for mortgage debt | property				7
Weighted-average interest rate (as a percent)				4.54%
Outstanding balance				$ 64,638,470			$ 41,671,387
Mortgage Debt | Minimum
Debt
Fixed interest rate (as a percent)				3.70%
Mortgage Debt | Maximum
Debt
Fixed interest rate (as a percent)				5.33%
PPP Loans
Debt
Principal amount			$ 763,100
Interest rate (as a percent)			1.00%	1.00%
Number of PPP loans | loan	4	2
Prepayment penalties			$ 0
Number of unsecured promissory notes | loan			6
Outstanding balance				$ 763,100
PPP Loans | Minimum
Debt
Term of loan			2 years
PPP Loans | Maximum
Debt
Term of loan			5 years
Holiday Inn Express (the "Cedar Rapids Property") | Mortgage Debt
Debt
Principal amount										$ 5,900,000
Interest rate (as a percent)				5.33%
Outstanding balance				$ 5,858,134			5,527,392
Hampton Inn (the "Eagan Property") | Mortgage Debt
Debt
Principal amount									$ 9,400,000
Interest rate (as a percent)				4.60%
Outstanding balance				$ 9,317,589			9,369,276
Home2 Suites (the "Prattville Property")
Debt
Principal amount				9,600,000
Home2 Suites (the "Prattville Property") | Mortgage Debt
Debt
Principal amount								$ 9,600,000
Accrued interest paid-in-kind					$ 100,878
Minimum cash balance required during forbearance period				155,000
Cash balance held by borrower subsidiary entities				$ 698,930
Interest rate (as a percent)				4.13%
Outstanding balance				$ 9,701,422			$ 9,620,000
Homewood Suites (the "Southaven Property")
Debt
Principal amount				13,500,000
Homewood Suites (the "Southaven Property") | Mortgage Debt
Debt
Principal amount						$ 13,500,000
Accrued interest paid-in-kind					$ 126,110
Minimum cash balance required during forbearance period				225,000
Cash balance held by borrower subsidiary entities				$ 1,055,980
Interest rate (as a percent)				3.70%
Outstanding balance				$ 13,586,110

DEBT - Summary of Debt (Details

DEBT - Summary of Debt (Details)	Feb. 10, 2020USD ($)	Aug. 22, 2018USD ($)	Sep. 30, 2020USD ($)loan	Apr. 30, 2020	Dec. 31, 2019USD ($)
Outstanding Debt:
Outstanding balance			$ 65,401,570
Premium on assumed debt, net			887,933		$ 389,285
Deferred financing costs, net			(1,468,880)		(1,080,040)
Debt, net			64,820,623		$ 40,980,632
Lender One | Revolving line of credit
Outstanding Debt:
Line of credit		$ 3,000,000	$ 3,000,000
Interest rate (as a percent)			5.00%		5.75%
Lender One | Revolving line of credit | Minimum
Outstanding Debt:
Interest rate (as a percent)		5.00%	5.00%
Lender One | Revolving line of credit | U.S. Prime Rate
Outstanding Debt:
Basis spread (as a percent)		1.00%	1.00%
Lender Three | Revolving line of credit
Outstanding Debt:
Line of credit	$ 5,000,000		$ 5,000,000
Interest rate (as a percent)			3.75%
Lender Three | Revolving line of credit | U.S. Prime Rate
Outstanding Debt:
Basis spread (as a percent)	0.50%		0.50%
Mortgage Debt
Outstanding Debt:
Outstanding balance			$ 64,638,470		$ 41,671,387
PPP Loans
Outstanding Debt:
Interest rate (as a percent)			1.00%	1.00%
Outstanding balance			$ 763,100
PPP Loans Maturing on April 10, 2022
Outstanding Debt:
Outstanding balance			$ 286,100
Number of Loans | loan			4
PPP Loans Maturing on April 17, 2022
Outstanding Debt:
Outstanding balance			$ 477,000
Number of Loans | loan			2
Holiday Inn Express (the "Cedar Rapids Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)			5.33%
Outstanding balance			$ 5,858,134		5,527,392
Hampton Inn & Suites(the "Pineville Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)			5.13%
Outstanding balance			$ 9,020,427		9,154,289
Hampton Inn (the "Eagan Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)			4.60%
Outstanding balance			$ 9,317,589		9,369,276
Home2 Suites (the "Prattville Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)			4.13%
Outstanding balance			$ 9,701,422		9,620,000
Home2 Suites (the “Lubbock Home2 Property”) | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)			4.69%
Outstanding balance			$ 7,845,997		$ 8,000,430
Fairfield Inn & Suites - Lubbock | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)			4.93%
Outstanding balance			$ 9,308,790
Homewood Suites (the "Southaven Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)			3.70%
Outstanding balance			$ 13,586,110

DEBT - Future Minimum Payments

DEBT - Future Minimum Payments (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Future minimum payments
2020 (October 1, 2020 to December 31, 2020)	$ 349,354
2021	1,848,609
2022	1,656,836
2023	1,554,615
2024	23,835,059
Thereafter	36,157,097
Total	65,401,570
Premium on assumed debt, net	887,933	$ 389,285
Deferred financing costs, net	(1,468,880)	(1,080,040)
Debt, net	$ 64,820,623	$ 40,980,632

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Sep. 30, 2020	Dec. 31, 2019
Fair value of financial instruments
Gross carrying value	$ 65,401,570
Mortgage Debt
Fair value of financial instruments
Fair value	67,500,000	$ 42,700,000
Gross carrying value	$ 64,638,470	$ 41,671,387

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
INCOME TAXES
U.S. federal statutory rate	21.00%
Income taxes paid	$ 1,963,000	$ 0
Net deferred tax assets	600,901		$ 205,808
Deferred tax asset valuation allowance	$ 1,000,000

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narratives (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)shares	Sep. 30, 2019USD ($)	Sep. 30, 2020USD ($)$ / roomshares	Sep. 30, 2019USD ($)	Feb. 20, 2020shares	Feb. 10, 2020USD ($)	Dec. 31, 2019USD ($)	Aug. 22, 2018USD ($)
Related Party Transactions
Loan guarantee fees	$ 80,665		$ 230,362	$ 0
Loan guarantee fees payable	230,362		230,362				$ 0
Reimbursements payable	$ 767,795		$ 767,795				966,379
Advisor And Affiliates
Related Party Transactions
Guarantee fees (as a percent)	1.00%		1.00%
NHS
Related Party Transactions
Renewal term of advisory agreement			5 years
Monthly base management fee (as a percent)			4.00%
Accounting fee per room | $ / room			14
Administrative fee (as a percent)			0.60%
One Rep Construction, LLC
Related Party Transactions
Construction management fee (as a percent)			6.00%
Corey Maple | Legendary Capital REIT III, LLC
Related Party Transactions
Ownership interest by related party (as a percent)	50.00%		50.00%
Corey Maple | One Rep Construction, LLC
Related Party Transactions
Ownership interest by related party (as a percent)	33.33%		33.33%
Norman Leslie | Legendary Capital REIT III, LLC
Related Party Transactions
Ownership interest by related party (as a percent)	50.00%		50.00%
Norman Leslie | One Rep Construction, LLC
Related Party Transactions
Ownership interest by related party (as a percent)	33.33%		33.33%
David Ekman | One Rep Construction, LLC
Related Party Transactions
Ownership interest by related party (as a percent)	33.33%		33.33%
Home2 Suites (the "Prattville Property")
Related Party Transactions
Loan amount	$ 9,600,000		$ 9,600,000
Homewood Suites (the "Southaven Property")
Related Party Transactions
Loan amount	13,500,000		13,500,000
Hampton Inn & Suites(the "Pineville Property")
Related Party Transactions
Loan amount	9,300,000		9,300,000
Revolving line of credit | Lender One
Related Party Transactions
Revolving line of credit	3,000,000		3,000,000					$ 3,000,000
Revolving line of credit | Lender One | Corey Maple
Related Party Transactions
Line of credit guarantee amount	1,200,000		1,200,000
Revolving line of credit | Lender One | Norman Leslie
Related Party Transactions
Line of credit guarantee amount	1,200,000		1,200,000
Revolving line of credit | Lender Three
Related Party Transactions
Revolving line of credit	5,000,000		$ 5,000,000			$ 5,000,000
Revolving line of credit | Lender Three | Corey Maple
Related Party Transactions
Partnership units held as collateral | shares					100,000
Advisory Agreement | Legendary Capital REIT III, LLC
Related Party Transactions
Term of advisory agreement			10 years
Acquisition fee (as a percent)			1.40%
Financing fee (as a percent)			1.40%
Asset management fee (as a percent)			0.75%
Refinancing fee (as a percent)			0.75%
Real estate commissions, maximum (as a percent)			5.00%
Annual guarantee fee (as a percent)			1.00%
Annual subordinated performance fee (as a percent)			20.00%
Cumulative return (as a percent)			6.00%
Distributions (as a percent)			5.00%
Distributions as a percent of the limited partners' capital contributions in event of liquidation, termination, merger or other cessation (as a percent)			5.00%
Distributions as a percent of net proceeds from sale of properties in event of liquidation, termination, merger or other cessation (as a percent)			20.00%
Reimbursement after termination of the Offering (as a percent)			15.00%
Distributions	68,141	$ 37,252	$ 194,390	76,528
Advisory Agreement | Legendary Capital REIT III, LLC | Maximum
Related Party Transactions
Disposal fee (as a percent)			4.00%
Real estate commissions (as a percent)			3.00%
Advisory Agreement | Legendary Capital REIT III, LLC | Minimum
Related Party Transactions
Disposal fee (as a percent)			0.00%
Advisory Agreement | Legendary Capital REIT III, LLC | Advisor And Affiliates
Related Party Transactions
Distributions payable	258,007		$ 258,007				$ 63,617
Advisory Agreement | Legendary Capital REIT III, LLC | Corey Maple
Related Party Transactions
Distributions	$ 9,582	9,409	$ 28,399	28,226
Number of shares held by shareholders | shares	54,754		54,754
Advisory Agreement | Legendary Capital REIT III, LLC | Norman Leslie
Related Party Transactions
Distributions	$ 9,582	$ 9,409	$ 28,399	$ 28,226
Number of shares held by shareholders | shares	54,754		54,754

RELATED PARTY TRANSACTIONS - Le

RELATED PARTY TRANSACTIONS - Legendary Capital (Details) - Advisor And Affiliates - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Related Party Transactions
Fees incurred	$ 213,097	$ 523,092	$ 1,621,295	$ 1,398,562
Fees payable	71,194		71,194		$ 576,727
Reimbursements incurred	638,676	1,439,143	2,520,260	4,657,907
Reimbursements payable	129,171		129,171		278,518
Acquisition Fees
Related Party Transactions
Fees incurred		208,551	501,949	605,118
Fees payable					213,402
Financing Fees
Related Party Transactions
Fees incurred		208,551	501,949	605,118
Fees payable					213,402
Asset Management Fees
Related Party Transactions
Fees incurred	213,097	105,990	617,397	188,326
Fees payable	71,194		71,194		81,389
Performance Fees
Related Party Transactions
Fees payable					68,534
Offering Costs
Related Party Transactions
Reimbursements incurred	165,583	481,225	953,275	1,511,304
Reimbursements payable	25,882		25,882		122,833
General and Administrative
Related Party Transactions
Reimbursements incurred	455,337	800,239	1,831,638	1,930,527
Reimbursements payable	81,374		81,374		120,386
Sales and Marketing
Related Party Transactions
Reimbursements incurred	37,203	112,583	145,489	281,907
Reimbursements payable	5,840		5,840		3,333
Acquisition Costs
Related Party Transactions
Reimbursements incurred	23,914	43,157	93,038	922,609
Reimbursements payable	10,596		10,596		$ 31,966
Other (income) expense, net
Related Party Transactions
Reimbursements incurred	(43,361)	$ 1,939	(503,180)	$ 11,560
Reimbursements payable	$ 5,479		$ 5,479

RELATED PARTY TRANSACTIONS - NH

RELATED PARTY TRANSACTIONS - NHS (Details) - NHS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Related Party Transactions
Fees incurred	$ 176,385	$ 185,516	$ 478,253	$ 309,764
Fees payable	68,145		68,145		$ 38,944
Reimbursements incurred	77,496	90,823	213,995	137,436
Reimbursements payable	12,009		12,009		8,572
Management Fees
Related Party Transactions
Fees incurred	130,649	136,971	347,689	230,647
Fees payable	50,739		50,739		30,024
Administrative Fees
Related Party Transactions
Fees incurred	20,242	31,493	54,092	47,169
Fees payable	7,631		7,631		4,617
Accounting Fees
Related Party Transactions
Fees incurred	25,494	$ 17,052	76,472	$ 31,948
Fees payable	$ 9,775		$ 9,775		$ 4,303

RELATED PARTY TRANSACTIONS - On

RELATED PARTY TRANSACTIONS - One Rep Construction, LLC (Details) - One Rep Construction, LLC - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Related Party Transactions
Reimbursements incurred	$ 49,884	$ 2,162	$ 79,409	$ 2,162
Reimbursements payable	8,627		8,627		$ 18,500
Construction Management fees
Related Party Transactions
Fees incurred	13,268		40,544
Fees payable	$ 1,847		$ 1,847

MANAGEMENT AND FRANCHISE AGRE_2

MANAGEMENT AND FRANCHISE AGREEMENTS - (Details)	9 Months Ended
	Sep. 30, 2020USD ($)itemproperty
Management And Franchise Agreements
Number of hotel properties owned | property	7
Homewood Suites (the "Southaven Property")
Management And Franchise Agreements
Number of times auto renewal period | item	2
Management agreement renewal term	5 years
Gross revenue (percentage)	3.00%
NHS
Management And Franchise Agreements
Number of hotel properties owned | property	6
Maximum
Management And Franchise Agreements
Initial term of franchise agreement	18 years
Royalty fee (as a percent)	6.00%
Program fee (as a percent)	4.00%
Initial franchise fee | $	$ 175,000
Minimum
Management And Franchise Agreements
Initial term of franchise agreement	10 years
Royalty fee (as a percent)	5.00%
Program fee (as a percent)	3.00%
Initial franchise fee | $	$ 50,000

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details)	Jul. 31, 2020USD ($)shares	Jul. 24, 2020USD ($)	Apr. 29, 2020USD ($)$ / sharesshares	Sep. 30, 2020USD ($)$ / sharesshares	Jun. 30, 2020$ / shares	Mar. 31, 2020$ / shares	Sep. 30, 2020USD ($)Vote$ / sharesshares	Sep. 30, 2019USD ($)$ / shares	Jun. 15, 2020USD ($)	May 14, 2020$ / sharesshares	Dec. 31, 2019$ / sharesshares	Jun. 01, 2018USD ($)$ / shares
Stockholders' Equity
Common stock, shares authorized | shares				900,000,000			900,000,000				900,000,000
Preferred stock, shares authorized | shares				100,000,000			100,000,000				100,000,000
Common stock voting rights | Vote							1
Common stock, par value (in dollars per share)				$ 0.01			$ 0.01				$ 0.01
Percentage of current share net asset value							95.00%
Common stock dividends per share declared on daily rate basis				$ 0.00191781	$ 0.00191781	$ 0.00191781		$ 0.00191781
Share repurchase plan, amount available for eligible repurchases | $				$ 232,618			$ 232,618
Common stock, offering price				$ 10	$ 10		$ 10
Distributions paid | $		$ 400,000					$ 905,388	$ 777,636
Dividend paid under Dividend Reinvestment Plan | $		$ 200,000
Value of shares issued through Dividend Reinvestment Plan | $	$ 1,200,000
Shares issued through Dividend Reinvestment Plan | shares	131,267
Percentage of distribution in cash or through DRIP				30.00%
Percentage of distribution in shares of common stock issued through DRIP				70.00%
Accrued share repurchases | $				$ 474,515			474,515
Proceeds from issuance of GO Units | $							$ 1,700,005
Series GO LP Units
Stockholders' Equity
Non-voting partnership units, holding period required before distributions will be paid							18 months
Specified percentage of original GP unit capital contributions							70.00%
Participating amount, any period after December 31, 2020							$ 1
Participating amount, any period after December 31, 2021							2
Participating amount, any period after December 31, 2022							$ 3
Units issued and sold | shares							246,621
Repurchase Plan
Stockholders' Equity
Minimum period of time holders of Interval Common Stock shares must be required to have held the Interval Common Stock shares to participate in the Repurchase Plan			1 year
Limit of repurchases of Interval Common Shares after Repurchase Reserve has been exhausted, percentage per calendar quarter			1.25%
Limit of repurchases of Interval Common Shares after Repurchase Reserve has been exhausted, percentage per calendar year of the Interval Shares Value			5.00%
Repurchase Reserve expressed as a percentage of the aggregate gross proceeds from the Company's private offering of Interval Shares			20.00%
Notice period			10 days
Repurchase Plan | Last day of same calendar quarter preceding year
Stockholders' Equity
Percentage of Aggregate Value of Interval Shares to be repurchased, threshold			5.00%
Repurchase Plan | Last day of preceding calendar quarter
Stockholders' Equity
Percentage of Aggregate Value of Interval Shares to be repurchased, threshold			5.00%
Interval Common Stock
Stockholders' Equity
Number of shares of common stock designated as non-voting shares of Interval Common Stock | shares			7,000,000
Common stock, par value (in dollars per share)			$ 0.01
Dividend rate (as a percent)			86.00%
Share price, dividend reinvestment plan (in dollars per share)										9.50
Private offering
Stockholders' Equity
Common stock, par value (in dollars per share)												$ 0.01
Maximum offering | $												$ 100,000,000
Common stock, offering price												$ 10
Private offering | Series GO LP Units
Stockholders' Equity
Maximum offering | $									$ 20,000,000
Maximum offering per the sole discretion of the General Partner | $									$ 30,000,000
Units issued and sold | shares							246,621
Proceeds from issuance of GO Units | $							$ 1,700,000
Private offering | Interval Common Stock
Stockholders' Equity
Number of shares of common stock designated as non-voting shares of Interval Common Stock | shares			7,000,000
Common stock, par value (in dollars per share)			$ 0.01
Maximum offering | $			$ 30,000,000
Maximum number of shares authorized per the offering | shares										3,000,000
Maximum number of shares authorized per the offering at the sole direction of the Board of Directors | shares										6,000,000
Common stock, offering price										$ 10

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	Mar. 19, 2019USD ($)	Sep. 30, 2020USD ($)	Nov. 30, 2019USD ($)property	Sep. 30, 2020USD ($)	Dec. 31, 2019USD ($)
COMMITMENTS AND CONTINGENCIES
Liquidated damage payable		$ 1,000,000		$ 1,000,000
Purchase Price				35,650,000	$ 56,747,358
Hampton Inn & Suites(the "Pineville Property")
COMMITMENTS AND CONTINGENCIES
Real estate acquisition, additional consideration				0
Purchase Price	$ 13,897,358
Aurora Hotel Properties
COMMITMENTS AND CONTINGENCIES
Escrow Deposit		250,000		250,000
Purchase Price		33,100,000
Assumed mortgage debt		19,500,000		$ 19,500,000
Aurora Hotel Properties | Series T LP Units
COMMITMENTS AND CONTINGENCIES
Units issued as consideration		12,200,000
Cash consideration		$ 1,500,000
Commitment to Purchase Hotel Properties
COMMITMENTS AND CONTINGENCIES
Number of real estate properties to be acquired | property			3
Contractual purchase price			$ 46,900,000
Escrow Deposit			$ 1,500,000

SUBSEQUENT EVENTS - (Details)

SUBSEQUENT EVENTS - (Details) - USD ($)	Nov. 12, 2020	Oct. 21, 2020	Oct. 13, 2020	Jul. 31, 2020	Jul. 24, 2020	Sep. 30, 2020	Sep. 30, 2019
Subsequent Events
Distributions paid					$ 400,000	$ 905,388	$ 777,636
Cash distribution					$ 200,000
Distributions paid in shares				$ 1,200,000
Gross GO Unit Offering proceeds						$ 1,700,005
Cumulative number of shares issued since inception of the Offering						7,509,854
Cumulative number of shares issued pursuant to the DRIP						281,857
Cumulative gross proceeds from issuance of stock since inception of the Offering						$ 73,700,000
Series GO LP Units
Subsequent Events
Units issued and sold						246,621
Private offering | Series GO LP Units
Subsequent Events
Units issued and sold						246,621
Gross GO Unit Offering proceeds						$ 1,700,000
Subsequent Event
Subsequent Events
Distributions paid			$ 1,300,000
Cash distribution			200,000
Distributions paid in shares			$ 1,100,000
Number of shares repurchased		51,578
Amount paid for repurchase of shares		$ 474,515
Subsequent Event | Private offering | Common Stock
Subsequent Events
Cumulative number of shares issued since inception of the Offering	7,659,235
Cumulative number of shares issued pursuant to the DRIP	392,812
Cumulative gross proceeds from issuance of stock since inception of the Offering	$ 75,100,000
Subsequent Event | GO Unit Offering | Series GO LP Units
Subsequent Events
Units issued and sold	492,702
Gross GO Unit Offering proceeds	$ 3,400,000