Lodging Fund Reit Iii 10-K 31 Mar 21 2020 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2020	Mar. 29, 2021	Jun. 30, 2020
Document and Entity Information [Abstract]
Document Type	10-K
Document Period End Date	Dec. 31, 2020
Entity Registrant Name	LODGING FUND REIT III, INC.
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 0
Entity Common Stock, Shares Outstanding		7,717,167
Entity Central Index Key	0001745032
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Assets
Investment in hotel properties, net of accumulated depreciation of $4,712,578 and $1,255,712	$ 100,744,186	$ 65,408,308
Cash and cash equivalents	7,960,159	10,898,556
Restricted cash	4,568,908	5,275,815
Accounts receivable, net	114,282	107,976
Franchise fees, net	955,238	721,690
Prepaid expenses and other assets	2,071,708	1,623,584
Total Assets	116,414,481	84,035,929
Liabilities and Equity
Debt, net	63,924,719	40,980,632
PPP Loan	763,100
Accounts payable	670,548	543,669
Accrued expenses	1,560,931	582,750
Distributions payable	1,327,912	342,515
Due to related parties	1,904,051	966,379
Other liabilities	653,292	434,974
Total liabilities	70,804,553	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; 7,611,653 and 6,005,743 shares issued and outstanding	76,116	60,057
Additional paid-in capital	74,610,627	58,961,101
Accumulated deficit	(31,855,995)	(18,396,163)
Total stockholders' equity	42,830,748	40,624,995
Total equity	45,609,928	40,185,010
Total Liabilities and Equity	116,414,481	84,035,929
Series B LP Units
Equity
Non-controlling interest	(1,005,785)	$ (439,985)
Series GO LP Units
Equity
Non-controlling interest	$ 3,784,965

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Accumulated depreciation	$ 4,712,578	$ 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	7,611,653	6,005,743
Common stock, shares outstanding	7,611,653	6,005,743

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Revenues
Revenues	$ 14,551,406	$ 8,575,470
Expenses
Property operations	5,745,009	3,364,836
General and administrative	4,725,777	4,553,432
Sales and marketing	1,140,689	997,080
Franchise fees	1,165,165	826,843
Management fees	1,707,943	818,315
Acquisition expense	387,769	470,786
Depreciation	3,461,309	1,211,902
Total expenses	18,333,661	12,243,194
Other Income (Expense)
Other income (expense), net	(314,976)	(53,749)
Interest expense	(3,194,317)	(1,366,533)
Total other income (expense)	(3,509,293)	(1,420,282)
Net Loss Before Income Taxes	(7,291,548)	(5,088,006)
Income tax benefit (expense)	1,236,185	186,572
Net Loss	(6,055,363)	(4,901,434)
Net Loss Attributable to Common Stockholders	$ (5,588,103)	$ (4,656,913)
Basic and Diluted Net Loss Per Share of Common Stock	$ (0.78)	$ (1.36)
Weighted-average Shares of Common Stock Outstanding, Basic and Diluted	7,153,035	3,432,099
Series B LP Units
Other Income (Expense)
Net loss attributable to non-controlling interest	$ (301,521)	$ (244,521)
Series GO LP Units
Other Income (Expense)
Net loss attributable to non-controlling interest	(165,739)
Room
Revenues
Revenues	14,333,261	8,460,842
Other
Revenues
Revenues	$ 218,145	$ 114,628

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	$ 47,866	47,078,824		47,126,690			47,126,690
Issuance of common stock (Shares)	4,786,614
Offering costs			(7,299,159)	(7,299,159)			(7,299,159)
Distributions declared			(2,398,663)	(2,398,663)	(126,247)		(2,524,910)
Distributions reinvested	$ 841	798,292		799,133			799,133
Distributions reinvested (in shares)	84,119
Redemptions							$ 0
Redemptions (Shares)							0
Net loss			(4,656,913)	(4,656,913)	(244,521)		$ (4,901,434)
Balance - Ending at Dec. 31, 2019	$ 60,057	58,961,101	(18,396,163)	40,624,995	(439,985)		40,185,010
Balance - Ending (Shares) at Dec. 31, 2019	6,005,743
Issuance of common stock	$ 13,666	13,359,113		13,372,779			13,372,779
Issuance of common stock (Shares)	1,366,589
Issuance of GO Units						$ 4,509,194	4,509,194
Offering costs			(2,851,801)	(2,851,801)		(558,490)	(3,410,291)
Distributions declared			(5,019,927)	(5,019,927)	(264,280)		(5,284,207)
Distributions reinvested	$ 3,035	2,880,318		2,883,353			2,883,353
Distributions reinvested (in shares)	303,511
Redemptions	$ (642)	(589,905)		(590,547)			$ (590,547)
Redemptions (Shares)	(64,190)						(64,190)
Net loss			(5,588,104)	(5,588,104)	(301,520)	(165,739)	$ (6,055,363)
Balance - Ending at Dec. 31, 2020	$ 76,116	$ 74,610,627	$ (31,855,995)	$ 42,830,748	$ (1,005,785)	$ 3,784,965	$ 45,609,928
Balance - Ending (Shares) at Dec. 31, 2020	7,611,653

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
Distributions declared (in dollars per share)	$ 0.70	$ 0.70

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash Flows from Operating Activities:
Net loss	$ (6,055,363)	$ (4,901,434)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation	3,461,309	1,211,902
Amortization	281,636	250,787
Paid-in-kind interest	226,988
Write-off of unamortized deferred financing costs		25,629
Loss on disposal of fixed assets	14,057
Deferred tax assets, net	(1,261,131)	(186,573)
Change in operating assets and liabilities:
Accounts receivable	(6,306)	(82,370)
Franchise fees	(300,000)	(700,000)
Due from related parties		1,285
Prepaid expenses and other assets	813,007	(651,843)
Accounts payable	159,447	410,036
Accrued expenses	993,763	460,124
Due to related parties	672,089	129,904
Other liabilities	198,818	364,750
Net cash used in operating activities	(801,686)	(3,667,803)
Cash Flows from Investing Activities:
Acquisitions of hotel properties	(27,190,749)	(40,686,810)
Improvements and additions to hotel properties	(1,622,058)	(308,188)
Net cash used in investing activities	(28,812,807)	(40,994,998)
Cash Flows from Financing Activities:
Proceeds from mortgage debt	13,790,742	24,578,427
Proceeds from lines of credit	6,200,000	500,000
Proceeds from PPP loans	763,100
Principal payments on mortgage debt	(641,724)	(5,419,455)
Principal payments on lines of credit	(6,200,000)	(500,000)
Payments of deferred financing costs	(650,072)	(1,027,619)
Proceeds from issuance of common stock	13,372,779	47,126,690
Proceeds from issuance of GO Units	4,509,194
Payments of offering costs	(3,457,138)	(7,456,709)
Payments for shares redeemed	(566,515)
Distributions paid	(1,151,177)	(1,496,566)
Net cash provided by financing activities	25,969,189	56,304,768
Net change in cash, cash equivalents, and restricted cash	(3,645,304)	11,641,967
Beginning Cash, Cash Equivalents, and Restricted Cash	16,174,371	4,532,404
Ending Cash, Cash Equivalents, and Restricted Cash	12,529,067	16,174,371
Supplemental Disclosure of Cash Flow Information:
Interest paid, net of amounts capitalized	2,315,376	1,021,163
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	17,699,541
Costs to acquire hotel properties included in due to related parties		109,926
Debt issuance costs included in due to related parties		109,459
Paid-in-kind interest	226,988
Offering costs included in accounts payable	(32,568)	(15,274)
Offering costs included in due to related parties	1,303	(151,133)
Offering costs included in accrued expenses	(15,582)	8,857
Distributions included in accrued expenses		174,338
Distributions included in due to related parties	264,280	54,873
Redemptions included in other liabilities	24,032
Reinvested distributions	2,883,353	799,133
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	12,529,067	16,174,371
Cash and cash equivalents, end of period	7,960,159	10,898,556
Restricted cash, end of period	4,568,908	5,275,815
Cash, cash equivalents, and restricted cash, end of period	$ 12,529,067	$ 16,174,371

ORGANIZATION

ORGANIZATION	12 Months Ended
	Dec. 31, 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. The Company has no foreign operations or assets and its operating structure includes only one operating and reportable segment. 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 December 31, 2020 and 2019. As of December 31, 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 654,868 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 December 31, 2020, the Company had issued and sold 7,675,843 shares of common stock, including 392,812 shares attributable to the DRIP, and received aggregate proceeds of $75.3 million. As of December 31, 2020, the Company had repurchased 64,190 shares, which represents an original investment of $641,898, including $16,898 of DRIP, for $590,547 under the Company’s Share Repurchase Plan. As of December 31, 2020, $24,032 of the redemption proceeds had not yet been paid and was included in other liabilities on the accompanying consolidated balance sheet . 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 December 31, 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 December 31, 2020, the Company had issued and sold 654,868 Series GO LP Units and received aggregate proceeds of $4.5 million.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation —The accompanying 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 annual financial information. The consolidated financial statements include the accounts of LF REIT III, the OP and its wholly-owned 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. 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 December 31, 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 December 31, 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. 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, including the impact of COVID-19, 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. Advertising Costs —The Company expenses advertising costs as incurred. These costs represent the expense for franchise advertising and reservation systems under the terms of the hotel management and franchise agreements and expenses that are directly attributable to advertising and promotion. Advertising expense was $557,881 and $311,172 for the year ended December 31, 2020 and 2019, respectively, and is included in sales and marketing in the consolidated statements of operations. Non-controlling Interest —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 primarily 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. 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. The carrying amount of the accounts receivables is reduced by a valuation allowance that reflects management’s best estimate of the amounts that will not be collected. Deferred Financing Costs —Deferred financing costs represent 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 private 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. Property Management Fees —Property management fees include expenses incurred for management services provided for the day-to-day operations of our hotel properties, which are generally charged at a rate of 4% of gross revenues. Property management fees also include 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. For the year ended December 31, 2020 and 2019, asset management fees were charged only on the value of investments in hotel properties. 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. 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. 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. The Company adopted ASU 2014‑09 as of January 1, 2019 and has applied it on a modified retrospective basis. Based on the Company’s completed assessment of this updated accounting guidance, it does not materially affect the amount or timing of revenue recognition for the Company and the Company did not recognize any cumulative-effect adjustment as a result of 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	12 Months Ended
	Dec. 31, 2020
INVESTMENT IN HOTEL PROPERTIES
INVESTMENT IN HOTEL PROPERTIES	3. INVESTMENT IN HOTEL PROPERTIES Investment in hotel properties as of December 31, 2020 and 2019 consisted of the following: December 31, December 31, 2020 2019 Land and land improvements $ 10,324,772 $ 7,738,495 Building and building improvements 85,213,846 53,238,276 Furniture, fixtures, and equipment 8,927,694 5,687,249 Construction in progress 990,452 — Investment in hotel properties, at cost 105,456,764 66,664,020 Less: accumulated depreciation (4,712,578) (1,255,712) Investment in hotel properties, net $ 100,744,186 $ 65,408,308 As of December 31, 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 year ended December 31, 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 each year since inception. 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 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 2018 Acquisitions Number Date of Guest Purchase Transaction % Hotel Property Type Location Purchased Rooms Price Costs Total Interest Holiday Inn Express Limited Service Cedar Rapids, IA November 30, 2018 83 $ 7,700,000 $ 158,333 $ 7,858,333 100 83 $ 7,700,000 $ 158,333 $ 7,858,333 Six of the hotel properties listed above is subject to a management agreement with NHS, LLC dba National Hospitality Services (“NHS”) with an initial term expiring on December 31 st of the fifth full calendar year following the effective date of the agreement, which will automatically renew for successive 5‑year periods unless terminated earlier in accordance with its terms. The Pineville Property is currently being managed on a day-to-day basis by Beacon IMG, Inc. (“Beacon”), an affiliate of the seller of the Pineville Property, pursuant to a sub-management agreement. The Southaven Property is subject to a management agreement with Vista Host Inc. (“Vista”) with an initial term expiring on February 21 st of the fifth full calendar year following the effective date of the agreement. The agreement will automatically renew for two (2) successive 5-year periods unless terminated earlier in accordance with its terms. The seller of the Pineville Property, an affiliate of Beacon, 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 Beacon sub-management agreement 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 December 31, 2020, no amounts were owed or paid to the seller of the Pineville Property, and no election to receive the additional consideration had been made. The aggregate purchase price for the hotel properties acquired during the years ended December 31, 2020 and 2019 were allocated as follows: December 31, 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.

PREPAID EXPENSES AND OTHER ASSE

PREPAID EXPENSES AND OTHER ASSETS	12 Months Ended
	Dec. 31, 2020
PREPAID EXPENSES AND OTHER ASSETS
PREPAID EXPENSES AND OTHER ASSETS	4. PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other assets consisted of the following: December 31, December 31, 2020 2019 Franchise fees (1) $ 175,000 $ 475,000 Acquisition costs 85,959 472,569 Deferred tax assets, net 1,466,940 205,808 Insurance 214,903 113,571 Other 128,906 356,636 $ 2,071,708 $ 1,623,584 (1) Prepaid franchise fees paid in relation to the Aurora acquisition. See Note 13 “Subsequent Events” for additional details.

ACCRUED EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2020
ACCRUED EXPENSES
ACCRUED EXPENSES	5. ACCRUED EXPENSES Accrued expenses consisted of the following: December 31, December 31, 2020 2019 Acquisition costs $ — 187,800 Property taxes 741,539 114,960 Interest 569,197 136,960 Other 250,195 143,030 $ 1,560,931 $ 582,750

DEBT

DEBT	12 Months Ended
	Dec. 31, 2020
DEBT
DEBT	6. DEBT Lines 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 December 31, 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 December 31, 2020, there was no outstanding balance on the line of credit. On January 19, 2021, the line of credit was amended to extend the maturity date to May 10, 2021. 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%. 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. The line of credit was not renewed on November 22, 2020 and the loan was closed. As of December 31, 2019, there was no outstanding balance on the line of credit and the interest rate was 5.75%. Mortgage Debt As of December 31, 2020, the Company had $64.4 million in outstanding mortgage debt secured by 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 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 December 31, 2020 and 2019, certain mortgage debt was guaranteed by the members of the Advisor. The Company was either in compliance with its debt covenants or received a waiver of testing of its debt covenants as of December 31, 2020 as noted below. The Company was in compliance with all debt covenants as of December 31, 2019. As of December 31, 2020, the Company was not in compliance with the required financial covenants under the terms of its promissory note secured by the Pineville Property and related loan documents (the “Pineville Loan”), which constitutes an event that puts the Company into a trigger period pursuant to the loan documents. At the onset of a trigger period, the Pineville Loan will enter into a cash management period. The Company has requested a waiver of the financial covenants as of December 31, 2020, but as of the date of this filing it had not been received. If the Company is unable to obtain a waiver, the loan will go into cash management, however the other terms of the Pineville Loan will not change, including the timing or amounts of payments, or the expiration date. The lender for the Company’s loan secured by the Lubbock Fairfield Property (the “Lubbock Fairfield Loan”) waived the required financial covenants under the terms of the Lubbock Fairfield Loan through December 31, 2020. The promissory note and related loan documents regarding the Lubbock Home2 Property did not have any required financial covenants as of December 31, 2020. Other than as described above for the Pineville Loan, the Company was either in compliance with its debt covenants or received a waiver of testing of its debt covenants as of December 31, 2020 as noted below. The Company was in compliance with all debt covenants as of 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 December 31, 2020, the borrower subsidiary entities had cash balances in the amount of $831,379, which is included in cash and cash equivalents on the accompanying consolidated balance sheets. The Company was in compliance with the required financial covenants under the terms of the Prattville Amendment through December 31, 2020. 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 December 31, 2020, the borrower subsidiary entities had cash balances in the amount of $1,498,889, which is included in cash and cash equivalents on the accompanying consolidated balance sheets. The Company did not have any required financial covenants under the terms of the Southaven loan in effect as of December 31, 2020. 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 December 31, 2020, the outstanding balance of the PPP Loans was $763,100. In February 2021, we applied for and received one hundred percent (100%) forgiveness of all six PPP Loans. The following table sets forth the hotel properties securing each loan, the interest rate, maturity date, and the outstanding balance as of December 31, 2020 and 2019 for each of the Company’s mortgage debt obligations. Interest Outstanding Outstanding Rate as of Balance as of Balance as of December 31, Maturity December 31, 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 8,973,775 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 9,647,085 9,620,000 Home2 Suites - Lubbock 4.69% 10/06/2026 7,792,602 8,000,430 Fairfield Inn & Suites - Lubbock 4.93% 04/06/2029 9,272,870 — Homewood Suites - Southaven (1) 3.70% 03/03/2025 13,586,110 — Total Mortgage Debt 64,448,165 41,671,387 Premium on assumed debt, net 854,928 389,285 Deferred financing costs, net (1,378,374) (1,080,040) Net Mortgage 63,924,719 40,980,632 $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 — Debt, net $ 64,687,819 $ 40,980,632 (1) Loan is interest-only for the first 12 months after origination. (2) Variable interest rate equal to U.S. Prime Rate plus 1.00%, with a minimum rate of 5.00%. This line of credit was closed in November 2020. (3) Variable interest rate equal to U.S. Prime Rate plus 0.50%. (4) Two PPP Loans totaling $286,100 had maturity dates on April 10, 2022, and four PPP Loans totaling $477,000 had maturity dates on April 17, 2022. All six PPP Loans were forgiven in February 2021. Future Minimum Payments As of December 31, 2020, the future minimum principal payments on the Company’s debt were as follows: 2021 $ 1,260,679 2022 1,981,401 2023 1,525,904 2024 24,027,534 2025 21,367,153 Thereafter 15,048,594 65,211,265 Premium on assumed debt, net 854,928 Deferred financing costs, net (1,378,374) $ 64,687,819

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2020
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	7. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments as of December 31, 2020 and 2019 consisted of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, lines of credit, 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 December 31, 2020 and 2019. 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 an estimate of current borrowing rates for debt instruments with similar terms and maturities, which are Level 3 inputs in the fair value hierarchy. As of December 31, 2020, the estimated fair value of the Company’s mortgage debt was $67.5 million, compared to the gross carrying value $64.4 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	12 Months Ended
	Dec. 31, 2020
INCOME TAXES
INCOME TAXES	8. INCOME TAXES 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. The Company did not pay any federal and state income taxes for the periods ended December 31, 2020 and 2019. The Company did not have any uncertain tax positions as of December 31, 2020 and 2019, respectively. For the year ended December 31, 2020 and 2019, all distributions paid were determined to be 100% returns of capital distributions. The Company’s TRS generated a net operating loss (“NOL”) for the year ended December 31, 2020 and 2019, which can be carried forward to offset future taxable income. As of June 30, 2020, the Company recorded a partial valuation allowance against its deferred tax assets of $1.1 million, primarily related to the uncertainty of effects of the ongoing COVID-19 pandemic on the hospitality and travel industries. During the three months ended September 30, 2020, the Company experienced some level of recovery, from the unprecedented lows in April and May 2020, at all of our hotel properties. As a result, the Company revised the partial valuation allowance against deferred tax assets to $600,901 as of September 30, 2020. Based on the Company’s actual results through December 31, 2020, and general industry projections that the hotel industry will return to 2019 levels of activity and RevPAR sometime during 2024 or 2025, the Company expects to fully utilize our NOL to offset future taxable income prior to expiration. As such, the Company has not recorded a valuation allowance against its deferred tax assets as of December 31, 2020. As of December 31, 2020 and 2019, the Company had recorded net deferred tax assets of $1,466,942 and $205,808, respectively, primarily attributable to its NOLs generated in the current year and prior periods, net of temporary differences primarily related to deprecation. The Company’s NOLs will expire in 2038‑2040 for state tax purposes and will not expire for federal tax purposes. As of December 31, 2020 and 2019, the Company had NOL carryforwards for federal income tax purposes of $2.6 million and $1.1 million, respectively, and NOL carryforwards for state income tax purposes of $500,450 and $268,502, respectively. As of December 31, 2020, the tax years 2018 through 2020 remain subject to 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. The components of the Company’s income tax benefit are as follows: For the Year Ended December 31, 2020 2019 Federal: Deferred $ 1,028,909 $ 143,746 State: Deferred 207,276 42,826 Income tax benefit $ 1,236,185 $ 186,572 The provision for income taxes is difference from the income tax expense that is determined by applying the applicable U.S. statutory federal income tax rate to pretax income as a result of the following differences: For the Year Ended December 31, 2020 % 2019 % Expected income tax benefit at U.S. Federal statutory rate $ 1,531,225 -21.0% $ 1,068,481 -21.0% Tax impact of REIT election (504,981) 6.9% (927,264) 18.2% Expected tax benefit at TRS 1,026,244 -14.1% 141,217 -2.8% State income tax benefit, net 185,925 -2.5% 42,826 -0.8% Temporary differences - deprecation 24,016 -0.3% 2,529 -0.1% Income tax benefit $ 1,236,185 -17.0% $ 186,572 -3.7% As of December 31, 2020 and 2019, the Company’s deferred tax assets and liabilities consisted of the following: December 31, 2020 2019 Deferred Tax Assets: Net operating loss carryforwards - Federal $ 2,590,484 $ 1,148,996 Net operating loss carryforwards - State 500,450 268,502 3,090,934 1,417,498 Deferred Tax Liabilities: Tax FF&E basis less than book basis - Federal (1,383,589) (990,986) Tax FF&E basis less than book basis - State (240,403) (220,704) (1,623,992) (1,211,690) Deferred tax assets, net $ 1,466,942 $ 205,808

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2020
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	9. RELATED PARTY TRANSACTIONS Legendary Capital REIT III, LLC —Substantially all of the Company’s business is managed by the Advisor and its affiliates, pursuant to the Advisory Agreement. The Advisor is owned by Corey R. Maple and Norman H. Leslie. 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, as described in more detail below. 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 will 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% of the guaranty amount, paid 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 Limited Partnership Unit (“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 receives 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 earned and payable to the Advisor and its affiliates, for the year ended December 31, 2020 and 2019, were as follows: Incurred For the Year Ended December 31, 2020 2019 Fees: Acquisition fees $ 501,949 $ 818,521 Financing fees 501,949 818,521 Asset management fees 831,813 305,398 Performance fees 143,466 68,534 $ 1,979,177 $ 2,010,974 Reimbursements: Offering costs $ 1,241,419 $ 2,174,471 General and administrative 2,495,118 2,699,813 Sales and marketing 185,601 386,694 Acquisition costs 95,597 989,346 Other (income) expense, net — 11,053 $ 4,017,735 $ 6,261,377 For the year ended December 31, 2020 and 2019, the Operating Partnership recognized distributions payable to the Advisor in the amount of $264,280 and $126,247, respectively, in connection with the Advisor’s ownership of Series B LP Units. For the year ended December 31, 2020 and 2019, the Company paid distributions in the amount of $31,535 and $37,634 respectively, to Corey Maple and Norman Leslie in connection with their ownership of 53,763 shares each, 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 were also guarantors of the Company’s $3.0 million line of credit, each in the amount of $1.2 million. That line of credit was closed in November 2020. For the year ended December 31, 2020, the Company accrued guarantee fees in the amount of $155,508 to each Mr. Maple and Mr. Leslie. The total amount accrued of $311,016 remained unpaid at December 31, 2020 and is included in Due to Related Party on the accompanying consolidated balance sheet. No guarantee fees were assessed for the year ended December 31, 2019, and no guarantee fees were outstanding and payable at December 31, 2019. As of December 31, 2020 and 2019, the Company had amounts due and payable to the Advisor and its affiliates of $1,720,605 and $918,863, respectively, which is included in due to related parties on the accompanying consolidated balance sheets. NHS, LLC dba National Hospitality Services —NHS is wholly-owned by Norman Leslie, a director and executive officer of the Company and a principal of the Advisor. NHS provides property management and hotel operations management services for the Company’s hotel properties, pursuant to individual management agreements. The agreements have an initial term expiring on December 31 st 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. NHS also earns a flat fee of $5,000 per hotel property for due diligence services, including analyzing, evaluating, and reporting on documentation and information received by sellers or contributors during the period of due diligence. Such fee is waived if, upon acquisition by us, NHS is selected as the management company for the hotel property. NHS is also reimbursed for actual out-of-pocket costs incurred in providing the due diligence services. Fees and reimbursements earned and payable to, NHS for the year ended December 31, 2020 and 2019, were as follows: Incurred Payable as of For the Year Ended December 31, December 31, December 31, 2020 2019 2020 2019 Fees: Management fees $ 458,163 $ 342,101 $ 36,509 $ 30,024 Administrative fees 70,623 52,605 5,648 4,617 Accounting fees 101,976 49,028 10,701 4,303 $ 630,762 $ 443,734 $ 52,858 $ 38,944 Reimbursements $ 271,787 $ 227,398 $ 5,530 $ 8,572 One Rep Construction, LLC (“One Rep”) —One Rep is a related party through common management and ownership, as Corey Maple, Norman Leslie, and David Ekman, each hold a 33.33% ownership interest in One Rep. One Rep is a construction management company which provided construction management services to the Company during 2020 and 2019 related to the renovation construction activities at certain hotel properties. 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. For the year ended December 31, 2020 and 2019, the Company incurred $176,669 and $44,308 of construction management fees payable to One Rep, respectively. As of December 31, 2020 and 2019, the amounts outstanding and due to One Rep were $34,988 and $26,665, respectively, which is included in due to related parties on the accompanying consolidated balance sheets.

FRANCHISE AGREEMENTS

FRANCHISE AGREEMENTS	12 Months Ended
	Dec. 31, 2020
FRANCHISE AGREEMENTS
FRANCHISE AGREEMENTS	10. FRANCHISE AGREEMENTS As of December 31, 2020 and 2019, 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 paid an initial fee of $50,000 to $175,000 at the time of entering into each franchise agreement which is being amortized over the term of each agreement.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2020
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	11. STOCKHOLDERS’ EQUITY The Company is authorized to issue 900,000,000 shares of common stock and 100,000,000 shares of preferred stock. Each share of common stock entitles the holder to one vote per share on all matters upon which stockholders are entitled to vote and to receive distributions as authorized by the Company’s board of directors. 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. 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. Distribution Net Cash Distributions Declared Per Distributions Paid (3)(4) Flows Provided By Period Declared (1) Share (1) (2) Cash Reinvested Total (Used In) Operations First Quarter 2020 $ 1,204,910 $ 0.175 $ 691,604 $ 418,286 $ 1,109,890 $ (1,141,973) Second Quarter 2020 1,313,186 0.175 — — — (349,329) Third Quarter 2020 1,368,309 0.175 213,784 1,410,688 1,624,472 892,326 Fourth Quarter 2020 1,397,802 0.175 245,789 1,054,379 1,300,168 (202,710) $ 5,284,207 $ 0.700 $ 1,151,177 $ 2,883,353 $ 4,034,530 $ (801,686) Distribution Net Cash Distributions Declared Per Distributions Paid (3) Flows Used in Period Declared (1) Share (1) (2) Cash Reinvested Total Operations First Quarter 2019 $ 280,080 $ 0.175 $ 98,912 $ 115,475 $ 214,387 $ (1,215,000) Second Quarter 2019 505,418 0.175 256,191 191,395 447,586 (316,321) Third Quarter 2019 745,048 0.175 422,533 266,527 689,060 (222,112) Fourth Quarter 2019 994,364 0.175 718,930 225,736 944,666 (1,914,370) $ 2,524,910 $ 0.700 $ 1,496,566 $ 799,133 $ 2,295,699 $ (3,667,803) (1) Distributions for the years ended December 31, 2020 and 2019, were based on daily record dates and were calculated based on stockholders of record each day during this period at a rate of $0.00191781 per share per day. Distributions for the periods from April 1, 2020 through June 30, 2020 were 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. Distributions for the periods from July 1, 2020 through September 30, 2020 were payable to each stockholder 30% in cash (or through the DRP 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. (2) Assumes each share was issued and outstanding each day that was a record date for distributions during the period presented. (3) During 2019 and through the first quarter of 2020, distributions were paid on a monthly basis. Beginning the second quarter of 2020, distributions, if any, will be declared and paid on a quarterly basis. In general, distributions for all record dates of a given quarter are paid on or about the tenth day of the first month following the end of a quarter. (4) Distributions for the period from March 1, 2020 through March 31, 2020 and April 1, through June 30, 2020 were paid in July 2020. Distributions for the period from July 1, 2020 through September 30, 2020 were paid in October 2020. 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. During the year ended December 31, 2020, the Company repurchased 64,190 shares, which represents an original investment of $641,898, including $16,898 of DRIP shares, for $590,547. As of December 31, 2020, $24,032 of the redemption proceeds had not yet been paid and was included in other liabilities on the accompanying consolidated balance sheets. During the year ended December 31, 2019, we did not repurchase any shares pursuant to our share repurchase plan because no shares were submitted for repurchase. As of December 31, 2020, the Company had $2,883,353 available for eligible repurchases in all of 2021. 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 December 31, 2020, the Company had not issued or sold any shares of Interval Common Stock. Non-Controlling Interests The Operating Partnership currently has 4 classes of Limited Partner Units which include the Common Limited Units, the Series B LP Units, the Series T LP Units and the GO Limited Units. The Series B LP Units are issued to the Advisor and entitle the Advisor to receive annual distributions and an incentive distribution based on the net proceeds received from the sale of the Projects. The Series T LP Units are expected to be issued to persons who contribute their property interests in certain Projects to the Partnership in exchange for Series T LP Units. The Series T LP Units will have allocations and distributions as determined by the General Partner in its sole discretion at the time of issuance of the Series T LP Units, and any Series T LP Units issued may have different allocations and distributions than other Series T LP Units. The Series T LP Units will be converted into Common Limited Units beginning 36 months after their issuance, and will automatically convert into Common Limited Units upon a Termination Event. 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 December 31, 2020, the Company had issued and sold 654,868 Series GO LP Units and received aggregate proceeds of $4.5 million. Non-Controlling Interest – Series B LP Units Distributions Under the Operating Partnership Agreement, the Advisor, as the Series B Limited Partner, will received from the Operating Partnership, distributions as follows: (a) for all years, an amount equal to 5.0% of the total of (i) the total distributions made to the Partners (other than the Series B Limited Partner) and (ii) the total distributions made to the Series B Limited Partner, after the Partners (other than the Series B Limited Partner) have received a 6.0% cumulative, but not compounded, return on their original capital contributions, and (b) for the year of liquidation or other cessation of the General Partner or the Partnership, an amount equal to 5.0% of the original capital contributions made by the Partners, after the Partners (other than the Series B Limited Partner) have received a return of their capital contributions plus a six percent (6%) cumulative, but not compounded return from all distributions. Series B LP Unit Offering As of December 31, 2020, the Operating Partnership has issued 1,000 Series B LP Units to the Advisor.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2020
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	12. 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 December 31, 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. In December 2020, the Company received notice that the SEC is conducting an inquiry into the Company’s reimbursement of certain expenses to the Advisor and the Company’s disclosure of the reimbursement policies and procedures. The Company has been and intends to continue cooperating with the inquiry. At this time, the Company is unable to estimate the cost of complying with the inquiry or its outcome. 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 December 31, 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 December 31, 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 “Aurora 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 Aurora Contribution Agreement, the Company has deposited $250,000 into escrow as earnest money pending the closing or termination of the Aurora Contribution Agreement, and is currently in the due diligence period, as described in the Aurora Contribution Agreement, continuing to evaluate the potential property contribution. Except in certain circumstances described in the Aurora Contribution Agreement, if the Operating Partnership fails to perform its obligations under the Aurora Contribution Agreement, it will forfeit the earnest money.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2020
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	13. SUBSEQUENT EVENTS Distributions Paid On January 10, 2021, the Company paid distributions of $1,175,623, declared for daily record dates for each day in the period from October 1, 2020 through December 31, 2020, which included $929,539 of distributions paid pursuant to the DRIP. Recent Property Acquisitions On February 4, 2021, the Operating Partnership acquired a Courtyard by Marriott hotel property in Aurora, Colorado (the “Aurora Property”) pursuant to an Amended and Restated Contribution Agreement (the “Aurora Amended Contribution Agreement”), dated as of the same date. The Aurora Amended Contribution Agreement, among other things, adjusted the contribution price of the Courtyard Aurora and the distributions to be received by the Contributor. The aggregate consideration under the Amended Contribution Agreement was $27.9 million plus closing costs, subject to adjustment as provided in the Amended Contribution Agreement. The consideration consists of a new loan entered into by subsidiaries of the Operating Partnership with Access Point Financial, LLC (the “Lender”) of $15.0 million secured by the Courtyard Aurora $11.0 million of which is guaranteed by the Company, the issuance by the Operating Partnership of approximately $11.0 million in Series T LP Units of the Operating Partnership, and the payment by the Operating Partnership of approximately $1.9 million in cash, which covered, among other things, capitalization of the Operating Partnership’s subsidiary, property taxes incurred before closing, and a partial prepayment of interest on the new loan. In connection with the acquisition, the Company entered into a Management Agreement with NHS to provide property management and hotel operations management services for the Aurora Property. The agreement has an initial term expiring on December 31, 2027, which automatically renews for a period of five years on each successive five-year period, unless terminated in accordance with its terms. The Company funded the acquisition of the Aurora Property with proceeds from the Company’s ongoing private offering, Series T units issued to the Contributor as described above, and a new loan secured by the Aurora Property. The Aurora Property is a newly constructed, 141-room select-service hotel that is expected to open in 2021. Properties Under Contract On January 8, 2021, the Operating Partnership entered into a Contribution Agreement (the “El Paso Contribution Agreement”), for the contribution of the 175-room Holiday Inn El Paso West Sunland Park hotel in El Paso, Texas (the “El Paso Property”) to the Operating Partnership. The aggregate consideration for the El Paso Property is $9,700,000 plus closing costs, subject to adjustment as provided in the El Paso Contribution Agreement. The majority of the consideration consists of the assumption or refinancing by the Operating Partnership of existing debt secured by the El Paso Property, and the remaining consideration consists of the issuance by the Operating Partnership of Series T LP Units of the Operating Partnership and the payment by the Operating Partnership of cash. As required by the El Paso Contribution Agreement, the Operating Partnership has deposited $100,000 into escrow as earnest money pending the closing or termination of the El Paso Contribution Agreement. Except in certain circumstances described in the El Paso Contribution Agreement, if the Operating Partnership fails to perform its obligations under the Contribution Agreement, it will forfeit the earnest money. On February 17, 2021, the Operating Partnership entered into a Contribution Agreement (the “Houston Contribution Agreement”), pursuant to which the Contributors agreed to contribute the 182-room Hilton Garden Inn Houston Bush Intercontinental Airport hotel in Houston, Texas (the “Houston Property”) to the Operating Partnership. The aggregate consideration for the Houston Property is $20,000,000 plus closing costs, subject to adjustment as provided in the Houston Contribution Agreement. The majority of the consideration consists of the assumption or refinancing by the Operating Partnership of existing debt secured by the Houston Property. The remaining consideration consists of the issuance by the Operating Partnership of Series T LP Units of the Operating Partnership and the payment by the Operating Partnership of cash. As required by the Houston Contribution Agreement, the Operating Partnership has deposited $50,000 into escrow as earnest money pending the closing or termination of the Houston Contribution Agreement. Except in certain circumstances described in the Houston Contribution Agreement, if the Operating Partnership fails to perform its obligations under the Houston Contribution Agreement, it will forfeit the earnest money. On March 8, 2021, the Operating Partnership entered into a Contribution Agreement (the “Corpus Christi Contribution Agreement”), for the contribution of the 88-room Fairfield Inn & Suites Corpus Christi Aransas Pass hotel in Aransas Pass, Texas (the “Corpus Christi Property”) to the Operating Partnership. The aggregate consideration for the Corpus Christi Property is $9,800,000 plus closing costs, subject to adjustment as provided in the Corpus Christi Contribution Agreement. The majority of the consideration consists of the assumption or refinancing by the Operating Partnership of existing debt secured by the Corpus Christi Property. The remaining consideration consists of the issuance by the Operating Partnership of Series T LP Units of the Operating Partnership and the payment by the Operating Partnership of cash. As required by the Corpus Christi Contribution Agreement, the Operating Partnership has deposited $50,000 into escrow as earnest money pending the closing or termination of the Corpus Christi Contribution Agreement. Except in certain circumstances described in the Corpus Christi Contribution Agreement, if the Operating Partnership fails to perform its obligations under the Corpus Christi Contribution Agreement, it will forfeit the earnest money. We are still conducting our diligence review with respect to each of these properties. These pending acquisitions are subject to our completion of satisfactory due diligence and other closing conditions. There can be no assurance we will complete any or all of these pending property contributions on the contemplated terms, or at all. Debt Agreements On January 19, 2021, the Company entered into an amendment to its $5.0 million revolving line of credit loan agreement dated as of February 10, 2020 with Western State Bank. The Amendment extends the maturity date of the Loan from February 10, 2021 to May 10, 2021. No other changes were made to the Loan as a result of the Amendment. PPP Loans In January 2021, the Company entered into six new unsecured promissory notes totaling $716,400, under the Second Draw Paycheck Protection Program (the “Second Draw PPP”) created by the Consolidated Appropriations Act, 2021 (the “CAA Act”), through Western State Bank. The term of each Second Draw PPP loan is five years. The interest rate on each Second Draw PPP loan is 1.0% per annum, which shall be deferred for the first sixteen months of the term of the loan. After the initial sixteen-month deferral period, each loan requires monthly payments of principal and interest until maturity with respect to any portion of such Second Draw PPP loan which is not forgiven as described below. The Company is permitted to prepay each Second Draw PPP loan at any time with no prepayment penalties. In February 2021, the Company, through its subsidiary LF3 Southaven TRS, LLC (“Southaven TRS”), entered into an unsecured promissory note under the PPP through Western State Bank. The amount of the PPP loan for Southaven TRS is $85,400. The term of each PPP loan is five years. The interest rate on the PPP loan is 1.0% per annum, which shall be deferred for the first sixteen months of the term of the loan. After the initial sixteen-month deferral period, the loan requires monthly payments of principal and interest until maturity with respect to any portion of the PPP loan which is not forgiven as described below. The Company is permitted to prepay the PPP loan at any time with no prepayment penalties. Under the terms of the CARES Act and the CAA Act, as applicable, PPP loan recipients and Second Draw PPP loan recipients can apply for, and be granted, forgiveness for all or a portion of such loans. 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, the maintenance of employee and compensation levels and certain other approved expenses. No assurance is provided that the Company will obtain forgiveness of any or all of the Second Draw PPP loans or the PPP loan for Southaven TRS in whole or in part. In February 2021, the Company received forgiveness on the full balance of the six PPP loans received during the year ended December 31, 2020, in the amount of $763,100. Status of the GO Unit Offering As of March 29, 2021, the Company’s GO Unit Offering remained open for new investment, and since the inception of the offering the Company had issued and sold 1,215,960 Series GO LP Units, resulting in the receipt of gross GO Unit Offering proceeds of $8.4 million. Status of the Offering As of March 29, 2021, the Company’s private offering remained open for new investment, and since the inception of the offering the Company had issued and sold 182,291 shares of common stock, including 113,877 shares issued pursuant to the DRIP, resulting in the receipt of gross offering proceeds of $1.7 million. ******

SCHEDULE III - Real Estate and

SCHEDULE III - Real Estate and Accumulated Depreciation	12 Months Ended
	Dec. 31, 2020
SCHEDULE III - Real Estate and Accumulated Depreciation
SCHEDULE III - Real Estate and Accumulated Depreciation	SCHEDULE III Real Estate and Accumulated Depreciation As of December 31, 2020 Costs Capitalized Subsequent to Initial Cost Acquisition Gross Amounts at End of Year Building, Building, Building, Land and Building Building Land and Building Date Number Land Improvements Improvements Land Improvements Accumulated Depreciable Description Acquired of Rooms Encumbrances Improvements and FF&E and FF&E Improvements and FF&E Total (1) Depreciation Lives Holiday Inn Express - Nov - 2018 83 $ 5,858,134 $ 1,536,966 $ 6,321,367 $ 852,476 $ 1,547,077 $ 7,173,843 $ 8,720,920 $ (600,894) 3 - 40 yrs. Hampton Inn & Suites - Mar - 2019 111 8,973,775 2,014,533 12,327,740 1,007,288 2,014,533 13,335,028 15,349,561 (827,193) 3 - 40 yrs. Hampton Inn - Jun - 2019 122 9,317,589 1,691,813 12,536,520 133,538 1,691,813 12,670,058 14,361,871 (796,756) 3 - 40 yrs. Home2 Suites - Jul - 2019 90 9,647,085 1,691,954 13,414,060 14,657 1,691,954 13,428,717 15,120,671 (701,028) 3 - 40 yrs. Home2 Suites - Dec - 2019 100 7,792,602 803,229 13,906,502 4,493 803,229 13,910,995 14,714,224 (565,996) 3 - 40 yrs. Fairfield Inn & Suites - Lubbock, TX Jan - 2020 101 9,272,870 982,934 15,261,162 896 982,934 15,262,058 16,244,992 (622,928) 3 - 40 yrs. Homewood Suites - Southaven, MS Feb - 2020 99 13,586,110 1,593,232 19,351,858 (565) 1,593,232 19,351,293 20,944,525 (597,783) 3 - 40 yrs. 706 $ 64,448,165 $ 10,314,661 $ 93,119,209 $ 2,012,783 $ 10,324,772 $ 95,131,992 $ 105,456,764 $ (4,712,578) (1) The aggregate cost for federal income tax purposes is approximately $104.5 million at December 31, 2020 (unaudited). Investment in Real Estate: 2020 2019 Balance at beginning of period $ 66,664,020 $ 7,859,555 Acquisitions 37,189,186 58,386,351 Improvements 1,603,558 418,114 Balance at end of period $ 105,456,764 $ 66,664,020 Accumulated Depreciation: 2020 2019 Balance at beginning of period $ (1,255,712) $ (43,810) Depreciation expense (3,461,309) (1,211,902) Asset write-offs 4,443 - Balance at end of period $ (4,712,578) $ (1,255,712)

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation —The accompanying 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 annual financial information. The consolidated financial statements include the accounts of LF REIT III, the OP and its wholly-owned 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. 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 December 31, 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 December 31, 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. 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, including the impact of COVID-19, 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.
Advertising Costs	Advertising Costs —The Company expenses advertising costs as incurred. These costs represent the expense for franchise advertising and reservation systems under the terms of the hotel management and franchise agreements and expenses that are directly attributable to advertising and promotion. Advertising expense was $557,881 and $311,172 for the year ended December 31, 2020 and 2019, respectively, and is included in sales and marketing in the consolidated statements of operations.
Non-controlling Interest	Non-controlling Interest —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 primarily 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.
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. The carrying amount of the accounts receivables is reduced by a valuation allowance that reflects management’s best estimate of the amounts that will not be collected.
Deferred Financing Costs	Deferred Financing Costs —Deferred financing costs represent 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 private 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.
Property Management Fees	Property Management Fees —Property management fees include expenses incurred for management services provided for the day-to-day operations of our hotel properties, which are generally charged at a rate of 4% of gross revenues. Property management fees also include 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. For the year ended December 31, 2020 and 2019, asset management fees were charged only on the value of investments in hotel properties.
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. 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.
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. The Company adopted ASU 2014‑09 as of January 1, 2019 and has applied it on a modified retrospective basis. Based on the Company’s completed assessment of this updated accounting guidance, it does not materially affect the amount or timing of revenue recognition for the Company and the Company did not recognize any cumulative-effect adjustment as a result of 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)	12 Months Ended
	Dec. 31, 2020
INVESTMENT IN HOTEL PROPERTIES
Schedule of investment in hotel properties	December 31, December 31, 2020 2019 Land and land improvements $ 10,324,772 $ 7,738,495 Building and building improvements 85,213,846 53,238,276 Furniture, fixtures, and equipment 8,927,694 5,687,249 Construction in progress 990,452 — Investment in hotel properties, at cost 105,456,764 66,664,020 Less: accumulated depreciation (4,712,578) (1,255,712) Investment in hotel properties, net $ 100,744,186 $ 65,408,308
Schedule of acquisitions of hotel properties	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 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 2018 Acquisitions Number Date of Guest Purchase Transaction % Hotel Property Type Location Purchased Rooms Price Costs Total Interest Holiday Inn Express Limited Service Cedar Rapids, IA November 30, 2018 83 $ 7,700,000 $ 158,333 $ 7,858,333 100 83 $ 7,700,000 $ 158,333 $ 7,858,333
Schedule of aggregate purchase price for the hotel properties	December 31, 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.

PREPAID EXPENSES AND OTHER AS_2

PREPAID EXPENSES AND OTHER ASSETS (Tables)	12 Months Ended
	Dec. 31, 2020
PREPAID EXPENSES AND OTHER ASSETS
Prepaid expenses and other assets	December 31, December 31, 2020 2019 Franchise fees (1) $ 175,000 $ 475,000 Acquisition costs 85,959 472,569 Deferred tax assets, net 1,466,940 205,808 Insurance 214,903 113,571 Other 128,906 356,636 $ 2,071,708 $ 1,623,584 (1) Prepaid franchise fees paid in relation to the Aurora acquisition. See Note 13 “Subsequent Events” for additional details.

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2020
ACCRUED EXPENSES
Accrued expenses	December 31, December 31, 2020 2019 Acquisition costs $ — 187,800 Property taxes 741,539 114,960 Interest 569,197 136,960 Other 250,195 143,030 $ 1,560,931 $ 582,750

DEBT - (Tables)

DEBT - (Tables)	12 Months Ended
	Dec. 31, 2020
DEBT
Schedule of debt outstanding	Interest Outstanding Outstanding Rate as of Balance as of Balance as of December 31, Maturity December 31, 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 8,973,775 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 9,647,085 9,620,000 Home2 Suites - Lubbock 4.69% 10/06/2026 7,792,602 8,000,430 Fairfield Inn & Suites - Lubbock 4.93% 04/06/2029 9,272,870 — Homewood Suites - Southaven (1) 3.70% 03/03/2025 13,586,110 — Total Mortgage Debt 64,448,165 41,671,387 Premium on assumed debt, net 854,928 389,285 Deferred financing costs, net (1,378,374) (1,080,040) Net Mortgage 63,924,719 40,980,632 $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 — Debt, net $ 64,687,819 $ 40,980,632 (1) Loan is interest-only for the first 12 months after origination. (2) Variable interest rate equal to U.S. Prime Rate plus 1.00%, with a minimum rate of 5.00%. This line of credit was closed in November 2020. (3) Variable interest rate equal to U.S. Prime Rate plus 0.50%. (4) Two PPP Loans totaling $286,100 had maturity dates on April 10, 2022, and four PPP Loans totaling $477,000 had maturity dates on April 17, 2022. All six PPP Loans were forgiven in February 2021.
Schedule of future minimum principal payments	2021 $ 1,260,679 2022 1,981,401 2023 1,525,904 2024 24,027,534 2025 21,367,153 Thereafter 15,048,594 65,211,265 Premium on assumed debt, net 854,928 Deferred financing costs, net (1,378,374) $ 64,687,819

INCOME TAXES - (Tables)

INCOME TAXES - (Tables)	12 Months Ended
	Dec. 31, 2020
INCOME TAXES
Schedule of the components of the Company's income tax benefit	For the Year Ended December 31, 2020 2019 Federal: Deferred $ 1,028,909 $ 143,746 State: Deferred 207,276 42,826 Income tax benefit $ 1,236,185 $ 186,572
Schedule of reconciliation of income taxes at U.S statutory federal income tax rate	For the Year Ended December 31, 2020 % 2019 % Expected income tax benefit at U.S. Federal statutory rate $ 1,531,225 -21.0% $ 1,068,481 -21.0% Tax impact of REIT election (504,981) 6.9% (927,264) 18.2% Expected tax benefit at TRS 1,026,244 -14.1% 141,217 -2.8% State income tax benefit, net 185,925 -2.5% 42,826 -0.8% Temporary differences - deprecation 24,016 -0.3% 2,529 -0.1% Income tax benefit $ 1,236,185 -17.0% $ 186,572 -3.7%
Schedule of the Company's deferred tax assets and liabilities	December 31, 2020 2019 Deferred Tax Assets: Net operating loss carryforwards - Federal $ 2,590,484 $ 1,148,996 Net operating loss carryforwards - State 500,450 268,502 3,090,934 1,417,498 Deferred Tax Liabilities: Tax FF&E basis less than book basis - Federal (1,383,589) (990,986) Tax FF&E basis less than book basis - State (240,403) (220,704) (1,623,992) (1,211,690) Deferred tax assets, net $ 1,466,942 $ 205,808

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	12 Months Ended
	Dec. 31, 2020
Advisor And Affiliates
Related Party Transactions
Schedule of fees and reimbursements incurred and payable	Incurred For the Year Ended December 31, 2020 2019 Fees: Acquisition fees $ 501,949 $ 818,521 Financing fees 501,949 818,521 Asset management fees 831,813 305,398 Performance fees 143,466 68,534 $ 1,979,177 $ 2,010,974 Reimbursements: Offering costs $ 1,241,419 $ 2,174,471 General and administrative 2,495,118 2,699,813 Sales and marketing 185,601 386,694 Acquisition costs 95,597 989,346 Other (income) expense, net — 11,053 $ 4,017,735 $ 6,261,377
NHS
Related Party Transactions
Schedule of fees and reimbursements incurred and payable	Incurred Payable as of For the Year Ended December 31, December 31, December 31, 2020 2019 2020 2019 Fees: Management fees $ 458,163 $ 342,101 $ 36,509 $ 30,024 Administrative fees 70,623 52,605 5,648 4,617 Accounting fees 101,976 49,028 10,701 4,303 $ 630,762 $ 443,734 $ 52,858 $ 38,944 Reimbursements $ 271,787 $ 227,398 $ 5,530 $ 8,572

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	12 Months Ended
	Dec. 31, 2020
STOCKHOLDERS' EQUITY
Schedule of dividend declared and paid	Distribution Net Cash Distributions Declared Per Distributions Paid (3)(4) Flows Provided By Period Declared (1) Share (1) (2) Cash Reinvested Total (Used In) Operations First Quarter 2020 $ 1,204,910 $ 0.175 $ 691,604 $ 418,286 $ 1,109,890 $ (1,141,973) Second Quarter 2020 1,313,186 0.175 — — — (349,329) Third Quarter 2020 1,368,309 0.175 213,784 1,410,688 1,624,472 892,326 Fourth Quarter 2020 1,397,802 0.175 245,789 1,054,379 1,300,168 (202,710) $ 5,284,207 $ 0.700 $ 1,151,177 $ 2,883,353 $ 4,034,530 $ (801,686) Distribution Net Cash Distributions Declared Per Distributions Paid (3) Flows Used in Period Declared (1) Share (1) (2) Cash Reinvested Total Operations First Quarter 2019 $ 280,080 $ 0.175 $ 98,912 $ 115,475 $ 214,387 $ (1,215,000) Second Quarter 2019 505,418 0.175 256,191 191,395 447,586 (316,321) Third Quarter 2019 745,048 0.175 422,533 266,527 689,060 (222,112) Fourth Quarter 2019 994,364 0.175 718,930 225,736 944,666 (1,914,370) $ 2,524,910 $ 0.700 $ 1,496,566 $ 799,133 $ 2,295,699 $ (3,667,803)

ORGANIZATION - (Details)

ORGANIZATION - (Details)	12 Months Ended
	Dec. 31, 2020USD ($)segmentitem$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares	Jun. 15, 2020USD ($)	Apr. 29, 2020USD ($)$ / sharesshares	Jun. 01, 2018USD ($)$ / shares
Organization
Number of reportable segments | segment	1
Number of voting classes of partnership units | item	3
Number of non voting classes of partnership units | item	3
Common stock, par value (in dollars per share) | $ / shares	$ 0.01	$ 0.01
Common stock, shares authorized | shares	900,000,000	900,000,000
Cumulative number of shares issued | shares	7,675,843
Cumulative number of shares issued pursuant to the DRIP | shares	392,812
Cumulative gross proceeds from issuance of stock	$ 75,300,000
Redemptions (Shares) | shares	64,190	0
Amount paid for repurchase of shares	$ 641,898
Proceeds from issuance of shares through DRIP	16,898
Redemptions	590,547	$ 0
Proceeds from issuance of GO Units	4,509,194
Other Liabilities
Organization
Accrued share repurchases	$ 24,032
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 | shares				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 | 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 | shares	654,868
Proceeds from issuance of GO Units	$ 4,500,000
Operating Partnership | Common LP Units
Organization
Number of outstanding partnership units | shares	0
Operating Partnership | Series B Limited Partnership Units
Organization
Number of outstanding partnership units | shares	1,000
Operating Partnership | Series GO LP Units
Organization
Number of outstanding partnership units | shares	654,868

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	12 Months Ended
	Dec. 31, 2020USD ($)segment	Dec. 31, 2019USD ($)
Basis of Presentation and Principles of Consolidation
Number of Reportable Segments | segment	1
Advertising Costs
Advertising Expense	$ 557,881	$ 311,172
Management Fees
Management fees (as a percent)	4.00%
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
Reclassifications
Deferred tax assets, net	$ 1,466,940	$ 205,808
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)	Dec. 31, 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	85,213,846	53,238,276
Furniture, fixtures, and equipment	8,927,694	5,687,249
Construction in progress	990,452
Investment in hotel properties, at cost	105,456,764	66,664,020
Less: accumulated depreciation	(4,712,578)	(1,255,712)
Investment in hotel properties, net	$ 100,744,186	$ 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	Nov. 30, 2018USD ($)room	Dec. 31, 2020USD ($)propertyroom	Dec. 31, 2019USD ($)propertyroom	Dec. 31, 2018USD ($)room
Acquisitions
Number of Rooms | room								200	423	83
Purchase Price								$ 35,650,000	$ 56,747,358	$ 7,700,000
Transaction Costs								941,521	1,222,867	158,333
Total								$ 36,591,521	$ 57,970,225	$ 7,858,333
Other disclosures
Number of properties subject to management agreement | property								6
Management agreement, automatic renewal term								5 years
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%
Other disclosures
Liquidated damage payable						$ 1,000,000
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%
Holiday Inn Express (the "Cedar Rapids Property")
Acquisitions
Number of Rooms | room							83
Purchase Price							$ 7,700,000
Transaction Costs							158,333
Total							$ 7,858,333
Interest (as a percent)							100.00%
Asset Acquisitions 2020
Other disclosures
Number of properties acquired | property								2
Asset Acquisitions 2019
Other disclosures
Number of properties acquired | property									4

INVESTMENT IN HOTEL PROPERTIE_4

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

PREPAID EXPENSES AND OTHER AS_3

PREPAID EXPENSES AND OTHER ASSETS (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
PREPAID EXPENSES AND OTHER ASSETS
Franchise fees	$ 175,000	$ 475,000
Acquisition costs	85,959	472,569
Deferred tax assets, net	1,466,940	205,808
Insurance	214,903	113,571
Other	128,906	356,636
Total	$ 2,071,708	$ 1,623,584

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
ACCRUED EXPENSES
Acquisition costs		$ 187,800
Property taxes	$ 741,539	114,960
Interest	569,197	136,960
Other	250,195	143,030
Accrued Liabilities	$ 1,560,931	$ 582,750

DEBT - Lines of Credit (Details

DEBT - Lines of Credit (Details) - Revolving line of credit - USD ($) $ in Thousands	Feb. 10, 2020	Aug. 22, 2018	Dec. 31, 2020	Dec. 31, 2019
Lender One
Debt
Revolving line of credit		$ 3,000	$ 3,000
Partnership units pledged		300,000
Variable interest rate (as a percent)			5.00%	5.75%
Outstanding amount				$ 0
Lender One | Corey Maple
Debt
Line of credit guarantee amount			$ 1,200
Lender One | Norman Leslie
Debt
Revolving line of credit			1,200
Line of credit guarantee amount			$ 1,200
Lender One | Minimum
Debt
Variable interest rate (as a percent)		5.00%
Lender One | U.S. Prime Rate
Debt
Basis spread (as a percent)		1.00%	1.00%
Lender Three
Debt
Revolving line of credit	$ 5,000		$ 5,000
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

Jan. 31, 2021USD ($)

Apr. 30, 2020USD ($)loan

Feb. 28, 2021USD ($)loan

Dec. 31, 2020USD ($)property

Jul. 31, 2020USD ($)

Feb. 21, 2020USD ($)

Dec. 31, 2019USD ($)

Jul. 11, 2019USD ($)

Jun. 19, 2019USD ($)

Mar. 05, 2019USD ($)

Debt

Outstanding balance

$ 65,211,265

Interest payable

$ 569,197

$ 136,960

Mortgage Debt

Debt

Number of properties as security for mortgage debt | property

7

Weighted-average interest rate (as a percent)

4.54%

Outstanding balance

$ 64,448,165

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

Interest rate (as a percent)

1.00%

Number of PPP loans cover period ended | loan

4

2

Prepayment penalties

$ 0

Number of unsecured promissory notes | loan

6

Outstanding balance

$ 763,100

$ 763,100

PPP Loans | Subsequent Event

Debt

Principal amount

$ 716,400

Interest rate (as a percent)

1.00%

Term of loan

5 years

Number of unsecured promissory notes

6

PPP Loans | Subsequent Event | Principal Forgiveness

Debt

Number of loans forgiven | loan

6

Outstanding balance

$ 763,100

Debt Instrument Loan Forgiveness, Percent, Coronavirus Aid, Relief, and Economic Security Act

100.00%

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

$ 831,379

Interest rate (as a percent)

4.13%

Outstanding balance

$ 9,647,085

$ 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

$ 1,498,889

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 ($)	Aug. 22, 2018USD ($)	Dec. 31, 2020USD ($)loan	Apr. 30, 2020USD ($)	Dec. 31, 2019USD ($)
Outstanding Debt:
Outstanding balance			$ 65,211,265
Premium on assumed debt, net			854,928
Deferred financing costs, net			(1,378,374)
Debt, net			64,687,819		$ 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%
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			$ 64,448,165		$ 41,671,387
Premium on assumed debt, net			854,928		389,285
Deferred financing costs, net			(1,378,374)		(1,080,040)
Debt, net			$ 63,924,719		40,980,632
PPP Loans
Outstanding Debt:
Interest rate (as a percent)				1.00%
Basis spread (as a percent)			1.00%
Outstanding balance			$ 763,100	$ 763,100
PPP Loans Maturing on April 10, 2022
Outstanding Debt:
Outstanding balance			$ 286,100
Number of Loans | loan			2
PPP Loans Maturing on April 17, 2022
Outstanding Debt:
Outstanding balance			$ 477,000
Number of Loans | loan			4
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			$ 8,973,775		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			$ 9,647,085		9,620,000
Home2 Suites (the “Lubbock Home2 Property”) | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)			4.69%
Outstanding balance			$ 7,792,602		$ 8,000,430
Fairfield Inn & Suites - Lubbock | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)			4.93%
Outstanding balance			$ 9,272,870
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 ($)	Dec. 31, 2020	Dec. 31, 2019
Future minimum payments
2021	$ 1,260,679
2022	1,981,401
2023	1,525,904
2024	24,027,534
2024	21,367,153
Thereafter	15,048,594
Total	65,211,265
Premium on assumed debt, net	854,928
Deferred financing costs, net	(1,378,374)
Debt, net	$ 64,687,819	$ 40,980,632

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Fair value of financial instruments
Debt	$ 65,211,265
Mortgage Debt
Fair value of financial instruments
Fair value	67,500,000	$ 42,700,000
Debt	$ 64,448,165	$ 41,671,387

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Sep. 30, 2020	Jun. 30, 2020
Operating Loss Carryforwards [Line Items]
U.S. federal statutory rate	21.00%	21.00%
Net deferred tax assets	$ 1,466,942	$ 205,808
Deferred tax asset valuation allowance			$ 600,901	$ 1,100,000
Percentage of distributions paid that were determined to be returns of capital distributions	100.00%	100.00%
Federal
Operating Loss Carryforwards [Line Items]
NOL carryforwards	$ 2,600,000	$ 1,100,000
State
Operating Loss Carryforwards [Line Items]
NOL carryforwards	$ 500,450	$ 268,502

INCOME TAXES - Components of In

INCOME TAXES - Components of Income Tax Benefit (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Federal:
Deferred	$ 1,028,909	$ 143,746
State:
Deferred	207,276	42,826
Income tax benefit	$ 1,236,185	$ 186,572

INCOME TAXES - Reconciliation (

INCOME TAXES - Reconciliation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Effective income tax reconciliation, amount
Expected income tax benefit at U.S. Federal statutory rate	$ 1,531,225	$ 1,068,481
Tax impact of REIT election	(504,981)	(927,264)
Expected tax benefit at TRS	1,026,244	141,217
State income tax benefit, net	185,925	42,826
Temporary differences - depreciation	24,016	2,529
Income tax benefit	$ 1,236,185	$ 186,572
Effective income tax reconciliation, percent
Expected income tax benefit at U.S. Federal statutory rate (as a percent)	(21.00%)	(21.00%)
Tax impact of REIT election (as a percent)	6.90%	18.20%
Expected tax benefit at TRS (as a percent)	(14.10%)	(2.80%)
State income tax benefit, net (as a percent)	(2.50%)	(0.80%)
Temporary differences - depreciation (as a percent)	(0.30%)	(0.10%)
Income tax benefit (as a percent)	(17.00%)	(3.70%)

INCOME TAXES - Deferred Taxes (

INCOME TAXES - Deferred Taxes (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Deferred Tax Assets
Net operating loss carryforwards - Federal	$ 2,590,484	$ 1,148,996
Net operating loss carryforwards - State	500,450	268,502
Total, deferred tax assets	3,090,934	1,417,498
Deferred Tax Liabilities
Tax FF&E basis less than book basis - Federal	(1,383,589)	(990,986)
Tax FF&E basis less than book basis - State	(240,403)	(220,704)
Total, deferred tax liabilities	(1,623,992)	(1,211,690)
Deferred tax assets, net	$ 1,466,942	$ 205,808

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narratives (Details)	3 Months Ended							12 Months Ended
	Dec. 31, 2020USD ($)shares	Sep. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Dec. 31, 2019USD ($)shares	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2020USD ($)$ / property$ / roomshares	Dec. 31, 2019USD ($)shares	Feb. 20, 2020shares	Feb. 10, 2020USD ($)	Aug. 22, 2018USD ($)
Related Party Transactions
Distributions Paid	$ 245,789	$ 213,784	$ 691,604	$ 718,930	$ 422,533	$ 256,191	$ 98,912	$ 1,151,177	$ 1,496,566
Accrued guarantee fees	311,016							311,016
Loan guarantee fees									0
Loan guarantee fees payable				0					0
Reimbursements payable	$ 1,904,051			966,379				$ 1,904,051	966,379
Advisor And Affiliates
Related Party Transactions
Guarantee fees (as a percent)	1.00%							1.00%
Reimbursements payable	$ 1			918,863				$ 1	918,863
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%
Flat fee per property | $ / property								5,000
One Rep Construction, LLC
Related Party Transactions
Reimbursements payable	$ 34,988			$ 26,665				$ 34,988	26,665
Construction management fee (as a percent)								6.00%
Corey Maple
Related Party Transactions
Distributions Paid								$ 31,535	$ 37,634
Number of shares held by shareholders | shares	53,763			53,763				53,763	53,763
Accrued guarantee fees	$ 155,508							$ 155,508
Corey Maple | One Rep Construction, LLC
Related Party Transactions
Ownership interest by related party (as a percent)	33.33%							33.33%
Norman Leslie
Related Party Transactions
Distributions Paid								$ 31,535	$ 37,634
Number of shares held by shareholders | shares	53,763			53,763				53,763	53,763
Accrued guarantee fees				$ 155,508					$ 155,508
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%
Legendary Capital REIT III, LLC
Related Party Transactions
Distributions payable	$ 264,280			$ 126,247				$ 264,280	$ 126,247
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
Loan amount	3,000,000							3,000,000
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
Revolving line of credit	1,200,000							1,200,000
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%
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%

RELATED PARTY TRANSACTIONS - Le

RELATED PARTY TRANSACTIONS - Legendary Capital (Details) - Advisor And Affiliates - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions
Fees incurred	$ 1,979,177	$ 2,010,974
Reimbursements incurred	4,017,735	6,261,377
Acquisition Fees
Related Party Transactions
Fees incurred	501,949	818,521
Financing Fees
Related Party Transactions
Fees incurred	501,949	818,521
Asset Management Fees
Related Party Transactions
Fees incurred	831,813	305,398
Performance Fees
Related Party Transactions
Fees incurred	143,466	68,534
Offering Costs
Related Party Transactions
Reimbursements incurred	1,241,419	2,174,471
General and Administrative
Related Party Transactions
Reimbursements incurred	2,495,118	2,699,813
Sales and Marketing
Related Party Transactions
Reimbursements incurred	185,601	386,694
Acquisition Costs
Related Party Transactions
Reimbursements incurred	$ 95,597	989,346
Other (income) expense, net
Related Party Transactions
Reimbursements incurred		$ 11,053

RELATED PARTY TRANSACTIONS - NH

RELATED PARTY TRANSACTIONS - NHS (Details) - NHS - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Related Party Transactions
Fees incurred	$ 630,762	$ 443,734
Fees payable	52,858	38,944
Reimbursements incurred	271,787	227,398
Reimbursements payable	5,530	8,572
Management Fees
Related Party Transactions
Fees incurred	458,163	342,101
Fees payable	36,509	30,024
Administrative Fees
Related Party Transactions
Fees incurred	70,623	52,605
Fees payable	5,648	4,617
Accounting Fees
Related Party Transactions
Fees incurred	101,976	49,028
Fees payable	$ 10,701	$ 4,303

RELATED PARTY TRANSACTIONS - On

RELATED PARTY TRANSACTIONS - One Rep Construction, LLC (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
One Rep Construction, LLC | Construction Management fees
Related Party Transactions
Fees payable	$ 176,669	$ 44,308

FRANCHISE AGREEMENTS - (Details

FRANCHISE AGREEMENTS - (Details)	12 Months Ended
	Dec. 31, 2020USD ($)property	Dec. 31, 2019USD ($)
Franchise Agreements
Number of hotel properties owned | property	7
Maximum
Franchise Agreements
Initial term of franchise agreement	18 years	18 years
Royalty fee (as a percent)	6.00%	6.00%
Program fee (as a percent)	4.00%	4.00%
Initial franchise fee	$ 175,000	$ 175,000
Minimum
Franchise Agreements
Initial term of franchise agreement	10 years	10 years
Royalty fee (as a percent)	5.00%	5.00%
Program fee (as a percent)	3.00%	3.00%
Initial franchise fee	$ 50,000	$ 50,000

STOCKHOLDERS' EQUITY - Common S

STOCKHOLDERS' EQUITY - Common Stock (Details)	12 Months Ended
	Dec. 31, 2020Vote$ / sharesshares	Jun. 30, 2020$ / shares	Dec. 31, 2019$ / sharesshares	Jun. 01, 2018USD ($)$ / shares
Stockholders' Equity
Common stock, shares authorized | shares	900,000,000		900,000,000
Preferred stock, shares authorized | shares	100,000,000		100,000,000
Common stock voting rights | Vote	1
Common stock, par value (in dollars per share)	$ 0.01		$ 0.01
Common stock, offering price	$ 10	$ 10	$ 10
Percentage of current share net asset value	95.00%
Private offering
Stockholders' Equity
Common stock, par value (in dollars per share)				$ 0.01
Common stock, offering price				$ 10
Maximum offering | $				$ 100,000,000

STOCKHOLDERS' EQUITY - Distribu

STOCKHOLDERS' EQUITY - Distributions (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019
STOCKHOLDERS' EQUITY
Distributions Declared	$ 1,397,802	$ 1,368,309	$ 1,313,186	$ 1,204,910	$ 994,364	$ 745,048	$ 505,418	$ 280,080	$ 5,284,207	$ 2,524,910
Distribution Declared Per Share	$ 0.175	$ 0.175	$ 0.175	$ 0.175	$ 0.175	$ 0.175	$ 0.175	$ 0.175	$ 0.700	$ 0.700
Distributions Paid	$ 245,789	$ 213,784		$ 691,604	$ 718,930	$ 422,533	$ 256,191	$ 98,912	$ 1,151,177	$ 1,496,566
Dividend paid under Dividend Reinvestment Plan	1,054,379	1,410,688		418,286	225,736	266,527	191,395	115,475	2,883,353	799,133
Aggregate distributions paid	1,300,168	1,624,472		1,109,890	944,666	689,060	447,586	214,387	4,034,530	2,295,699
Net Cash Flows Provided By (Used In) Operations	$ (202,710)	$ 892,326	$ (349,329)	$ (1,141,973)	$ (1,914,370)	$ (222,112)	$ (316,321)	$ (1,215,000)	$ (801,686)	$ (3,667,803)
Common stock dividends per share declared on daily rate basis									$ 0.00191781	$ 0.00191781
Share price (in dollars per share)	$ 10		$ 10		$ 10				$ 10	$ 10
Percentage of distribution in cash or through DRIP		30.00%
Percentage of distribution in shares of common stock issued through DRIP		70.00%

STOCKHOLDERS' EQUITY - Share Re

STOCKHOLDERS' EQUITY - Share Repurchase Program (Details) - USD ($)	Apr. 29, 2020	Dec. 31, 2020	Dec. 31, 2019
Stockholders' Equity
Redemptions (Shares)		64,190	0
Amount paid for repurchase of shares		$ 641,898
Proceeds from issuance of shares through DRIP		16,898
Redemptions		590,547	$ 0
Share repurchase plan, amount available for eligible repurchases		2,883,353
Other Liabilities
Stockholders' Equity
Accrued Share Repurchases		$ 24,032
Repurchase Plan
Stockholders' Equity
Notice period	10 days

STOCKHOLDERS' EQUITY - Interval

STOCKHOLDERS' EQUITY - Interval Common Stock (Details)	Apr. 29, 2020	Dec. 31, 2020$ / shares	Jun. 30, 2020$ / shares	May 14, 2020$ / sharesshares	Dec. 31, 2019$ / shares	Jun. 01, 2018$ / shares
Stockholders' Equity
Common stock, offering price		$ 10	$ 10		$ 10
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
Dividend rate (as a percent)	86.00%
Share price, dividend reinvestment plan (in dollars per share)				9.50
Private offering
Stockholders' Equity
Common stock, offering price						$ 10
Private offering | Interval Common Stock
Stockholders' Equity
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

STOCKHOLDERS' EQUITY - Noncontr

STOCKHOLDERS' EQUITY - Noncontrolling Interests (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Jun. 15, 2020	Jun. 01, 2018
Stockholders' Equity
Proceeds from issuance of GO Units	$ 4,509,194
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
Series B LP Units
Stockholders' Equity
Distributions (as a percent)	5.00%
Cumulative return (as a percent)	6.00%
Percentage of original contributions (as percent)	5.00%
Operating Partnership | Series GO LP Units
Stockholders' Equity
Number of outstanding partnership units	654,868
Operating Partnership | Series B Limited Partnership Units
Stockholders' Equity
Number of outstanding partnership units	1,000
Private offering
Stockholders' Equity
Maximum offering			$ 100,000,000
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	654,868
Proceeds from issuance of GO Units	$ 4,500,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	Mar. 19, 2019USD ($)	Sep. 30, 2020USD ($)	Nov. 30, 2019USD ($)property	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
COMMITMENTS AND CONTINGENCIES
Liquidated damage payable				$ 1,000,000
Purchase Price				35,650,000	$ 56,747,358	$ 7,700,000
Hampton Inn & Suites(the "Pineville Property")
COMMITMENTS AND CONTINGENCIES
Liquidated damage payable	$ 1,000,000
Real estate acquisition, additional consideration				$ 0
Purchase Price	$ 13,897,358
Aurora Hotel Properties
COMMITMENTS AND CONTINGENCIES
Escrow Deposit		$ 250,000
Purchase Price		33,100,000
Assumed mortgage debt		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 | Pennsylvania 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)

Mar. 29, 2021USD ($)shares

Mar. 08, 2021USD ($)room

Feb. 17, 2021USD ($)room

Feb. 04, 2021USD ($)room

Jan. 10, 2021USD ($)

Jan. 08, 2021USD ($)room

Oct. 02, 2020loan

Sep. 25, 2020loan

Feb. 28, 2021USD ($)loan

Jan. 31, 2021USD ($)

Sep. 30, 2020USD ($)

Apr. 30, 2020USD ($)loan

Dec. 31, 2020USD ($)shares

Sep. 30, 2020USD ($)

Mar. 31, 2020USD ($)

Dec. 31, 2019USD ($)

Sep. 30, 2019USD ($)

Jun. 30, 2019USD ($)

Mar. 31, 2019USD ($)

Dec. 31, 2020USD ($)roomshares

Dec. 31, 2019USD ($)room

Dec. 31, 2018USD ($)room

Jan. 19, 2021USD ($)

Feb. 10, 2020USD ($)

Subsequent Events

Distributions Paid

$ 245,789

$ 213,784

$ 691,604

$ 718,930

$ 422,533

$ 256,191

$ 98,912

$ 1,151,177

$ 1,496,566

Aggregate consideration

$ 35,650,000

$ 56,747,358

$ 7,700,000

Number of Rooms | room

200

423

83

Outstanding balance

$ 65,211,265

$ 65,211,265

Gross GO Unit Offering proceeds

$ 4,509,194

Cumulative number of shares issued since inception of the Offering | shares

7,675,843

7,675,843

Cumulative number of shares issued pursuant to the DRIP | shares

392,812

392,812

Cumulative gross proceeds from issuance of stock since inception of the Offering

$ 75,300,000

$ 75,300,000

PPP Loans

Subsequent Events

Number of unsecured promissory notes | loan

6

Interest rate (as a percent)

1.00%

Number of loans cover period ended | loan

4

2

Outstanding balance

$ 763,100

763,100

763,100

Revolving line of credit | Lender Three

Subsequent Events

Line of credit

$ 5,000,000

$ 5,000,000

$ 5,000,000

Aurora Hotel Properties

Subsequent Events

Aggregate consideration

$ 33,100,000

Escrow Deposit

250,000

$ 250,000

Aurora Hotel Properties | Series T LP Units

Subsequent Events

Units issued as consideration

12,200,000

Cash consideration

$ 1,500,000

Private offering | Series GO LP Units

Subsequent Events

Units issued and sold | shares

654,868

Gross GO Unit Offering proceeds

$ 4,500,000

Subsequent Event

Subsequent Events

Distributions Paid

$ 1,175,623

Distributions paid pursuant to the DRIP

$ 929,539

Subsequent Event | PPP Loans

Subsequent Events

Number of unsecured promissory notes

6

Loan amount

$ 716,400

Term of loan

5 years

Interest rate (as a percent)

1.00%

Interest deferral period

16 months

Subsequent Event | Principal Forgiveness | PPP Loans

Subsequent Events

Number of loans forgiven | loan

6

Outstanding balance

$ 763,100

Subsequent Event | Revolving line of credit | Lender Three | Extended Maturity

Subsequent Events

Line of credit

$ 5,000,000

Subsequent Event | Southaven TRS | PPP Loans

Subsequent Events

Loan amount

$ 85,400

Term of loan

5 years

Interest rate (as a percent)

1.00%

Interest deferral period

16 months

Subsequent Event | El Paso Property | El Paso Contribution Agreement

Subsequent Events

Aggregate consideration

$ 9,700,000

Number of Rooms | room

175

Escrow Deposit

$ 100,000

Subsequent Event | Aurora Hotel Properties

Subsequent Events

Aggregate consideration

$ 27,900,000

Debt incurred

15,000,000

Amount of debt guaranteed by the Company

11,000,000

Cash consideration

$ 1,900,000

Term of contractual agreement

5 years

Successive renewal term

5 years

Number of Rooms | room

141

Subsequent Event | Aurora Hotel Properties | Series T LP Units

Subsequent Events

Units issued as consideration

$ 11,000,000

Subsequent Event | Houston Property | Houston Contribution Agreement

Subsequent Events

Aggregate consideration

$ 20,000,000

Number of Rooms | room

182

Escrow Deposit

$ 50,000

Subsequent Event | Corpus Christi Property | Corpus Christi Contribution Agreement

Subsequent Events

Aggregate consideration

$ 9,800,000

Number of Rooms | room

88

Escrow Deposit

$ 50,000

Subsequent Event | Private offering | Common Stock

Subsequent Events

Cumulative number of shares issued since inception of the Offering | shares

182,291

Cumulative number of shares issued pursuant to the DRIP | shares

113,877

Cumulative gross proceeds from issuance of stock since inception of the Offering

$ 1,700,000

Subsequent Event | GO Unit Offering | Series GO LP Units

Subsequent Events

Units issued and sold | shares

1,215,960

Gross GO Unit Offering proceeds

$ 8,400,000

SCHEDULE III - Real Estate an_2

SCHEDULE III - Real Estate and Accumulated Depreciation - Changes in Real Estate and Accumulated Depreciation (Details)	12 Months Ended
	Dec. 31, 2020USD ($)room	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Real Estate and Accumulated Depreciation.
Number of Rooms | room	706
Encumbrances	$ 64,448,165
Initial Cost
Land and Land Improvements	10,314,661
Building, Building Improvements and FF&E	93,119,209
Costs Capitalized Subsequent to Acquisition
Building, Building Improvements and FF&E	2,012,783
Gross Amount at End of Year
Land and Land Improvements	10,324,772
Building, Building Improvements and FF&E	95,131,992
Total	105,456,764	$ 66,664,020	$ 7,859,555
Accumulated Depreciation	(4,712,578)	$ (1,255,712)	$ (43,810)
Aggregate cost for federal income tax purposes	$ 104,500,000
Holiday Inn Express (the "Cedar Rapids Property")
Real Estate and Accumulated Depreciation.
Number of Rooms | room	83
Encumbrances	$ 5,858,134
Initial Cost
Land and Land Improvements	1,536,966
Building, Building Improvements and FF&E	6,321,367
Costs Capitalized Subsequent to Acquisition
Building, Building Improvements and FF&E	852,476
Gross Amount at End of Year
Land and Land Improvements	1,547,077
Building, Building Improvements and FF&E	7,173,843
Total	8,720,920
Accumulated Depreciation	$ (600,894)
Hampton Inn & Suites(the "Pineville Property")
Real Estate and Accumulated Depreciation.
Number of Rooms | room	111
Encumbrances	$ 8,973,775
Initial Cost
Land and Land Improvements	2,014,533
Building, Building Improvements and FF&E	12,327,740
Costs Capitalized Subsequent to Acquisition
Building, Building Improvements and FF&E	1,007,288
Gross Amount at End of Year
Land and Land Improvements	2,014,533
Building, Building Improvements and FF&E	13,335,028
Total	15,349,561
Accumulated Depreciation	$ (827,193)
Hampton Inn (the "Eagan Property")
Real Estate and Accumulated Depreciation.
Number of Rooms | room	122
Encumbrances	$ 9,317,589
Initial Cost
Land and Land Improvements	1,691,813
Building, Building Improvements and FF&E	12,536,520
Costs Capitalized Subsequent to Acquisition
Building, Building Improvements and FF&E	133,538
Gross Amount at End of Year
Land and Land Improvements	1,691,813
Building, Building Improvements and FF&E	12,670,058
Total	14,361,871
Accumulated Depreciation	$ (796,756)
Home2 Suites (the "Prattville Property")
Real Estate and Accumulated Depreciation.
Number of Rooms | room	90
Encumbrances	$ 9,647,085
Initial Cost
Land and Land Improvements	1,691,954
Building, Building Improvements and FF&E	13,414,060
Costs Capitalized Subsequent to Acquisition
Building, Building Improvements and FF&E	14,657
Gross Amount at End of Year
Land and Land Improvements	1,691,954
Building, Building Improvements and FF&E	13,428,717
Total	15,120,671
Accumulated Depreciation	$ (701,028)
Home2 Suites (the “Lubbock Home2 Property”)
Real Estate and Accumulated Depreciation.
Number of Rooms | room	100
Encumbrances	$ 7,792,602
Initial Cost
Land and Land Improvements	803,229
Building, Building Improvements and FF&E	13,906,502
Costs Capitalized Subsequent to Acquisition
Building, Building Improvements and FF&E	4,493
Gross Amount at End of Year
Land and Land Improvements	803,229
Building, Building Improvements and FF&E	13,910,995
Total	14,714,224
Accumulated Depreciation	$ (565,996)
Fairfield Inn & Suites (the “Lubbock Home2 Property”)
Real Estate and Accumulated Depreciation.
Number of Rooms | room	101
Encumbrances	$ 9,272,870
Initial Cost
Land and Land Improvements	982,934
Building, Building Improvements and FF&E	15,261,162
Costs Capitalized Subsequent to Acquisition
Building, Building Improvements and FF&E	896
Gross Amount at End of Year
Land and Land Improvements	982,934
Building, Building Improvements and FF&E	15,262,058
Total	16,244,992
Accumulated Depreciation	$ (622,928)
Homewood Suites (the "Southaven Property")
Real Estate and Accumulated Depreciation.
Number of Rooms | room	99
Encumbrances	$ 13,586,110
Initial Cost
Land and Land Improvements	1,593,232
Building, Building Improvements and FF&E	19,351,858
Costs Capitalized Subsequent to Acquisition
Building, Building Improvements and FF&E	(565)
Gross Amount at End of Year
Land and Land Improvements	1,593,232
Building, Building Improvements and FF&E	19,351,293
Total	20,944,525
Accumulated Depreciation	$ (597,783)
Minimum | Holiday Inn Express (the "Cedar Rapids Property")
Gross Amount at End of Year
Depreciable Lives	3 years
Minimum | Hampton Inn & Suites(the "Pineville Property")
Gross Amount at End of Year
Depreciable Lives	3 years
Minimum | Hampton Inn (the "Eagan Property")
Gross Amount at End of Year
Depreciable Lives	3 years
Minimum | Home2 Suites (the "Prattville Property")
Gross Amount at End of Year
Depreciable Lives	3 years
Minimum | Home2 Suites (the “Lubbock Home2 Property”)
Gross Amount at End of Year
Depreciable Lives	3 years
Minimum | Fairfield Inn & Suites (the “Lubbock Home2 Property”)
Gross Amount at End of Year
Depreciable Lives	3 years
Minimum | Homewood Suites (the "Southaven Property")
Gross Amount at End of Year
Depreciable Lives	3 years
Maximum | Holiday Inn Express (the "Cedar Rapids Property")
Gross Amount at End of Year
Depreciable Lives	40 years
Maximum | Hampton Inn & Suites(the "Pineville Property")
Gross Amount at End of Year
Depreciable Lives	40 years
Maximum | Hampton Inn (the "Eagan Property")
Gross Amount at End of Year
Depreciable Lives	40 years
Maximum | Home2 Suites (the "Prattville Property")
Gross Amount at End of Year
Depreciable Lives	40 years
Maximum | Home2 Suites (the “Lubbock Home2 Property”)
Gross Amount at End of Year
Depreciable Lives	40 years
Maximum | Fairfield Inn & Suites (the “Lubbock Home2 Property”)
Gross Amount at End of Year
Depreciable Lives	40 years
Maximum | Homewood Suites (the "Southaven Property")
Gross Amount at End of Year
Depreciable Lives	40 years

SCHEDULE III- Real Estate and A

SCHEDULE III- Real Estate and Accumulated Depreciation - Investment in Real Estate and Accumulated Depreciation (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Investment in Real Estate:
Balance at beginning of period	$ 66,664,020	$ 7,859,555
Acquisitions	37,189,186	58,386,351
Improvements	1,603,558	418,114
Balance at end of period	105,456,764	66,664,020
Accumulated Depreciation:
Balance at beginning of period	(1,255,712)	(43,810)
Depreciation expense	(3,461,309)	(1,211,902)
Asset write-offs	4,443
Balance at end of period	$ (4,712,578)	$ (1,255,712)