Lodging Fund Reit Iii 10-Q 12 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 12, 2021
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	000-56082
Entity Registrant Name	LODGING FUND REIT III, INC.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	83-0556111
Entity Address, Address Line One	1635 43rd Street South, Suite 205
Entity Address, City or Town	Fargo
Entity Address, State or Province	ND
Entity Address, Postal Zip Code	58103
City Area Code	701
Local Phone Number	630-6500
Title of 12(b) Security	None
No Trading Symbol Flag	true
Security Exchange Name	NONE
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 Common Stock, Shares Outstanding		8,260,729
Entity Central Index Key	0001745032
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Assets
Investment in hotel properties, net of accumulated depreciation of $8,158,401 and $4,712,578	$ 153,297,259	$ 100,744,186
Cash and cash equivalents	7,631,257	7,960,159
Restricted cash	6,253,235	4,568,908
Accounts receivable, net	547,836	114,282
Franchise fees, net	1,333,218	955,238
Prepaid expenses and other assets	2,958,755	2,071,708
Total Assets	172,021,560	116,414,481
Liabilities and Equity
Debt, net	99,976,070	63,924,719
PPP Loans		763,100
Accounts payable	1,167,319	670,548
Accrued expenses	2,397,651	1,560,931
Distributions payable	478,116	1,327,912
Due to related parties	2,931,946	1,904,051
Other liabilities	1,467,405	653,292
Total liabilities	108,418,507	70,804,553
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; 8,196,055 and 7,611,653 shares issued and outstanding	81,959	76,116
Additional paid-in capital	80,185,411	74,610,627
Accumulated deficit	(40,242,986)	(31,855,995)
Total stockholders' equity	40,024,384	42,830,748
Total equity	63,603,053	45,609,928
Total Liabilities and Equity	172,021,560	116,414,481
Series B LP Units
Equity
Non-controlling interest	(1,402,868)	(1,005,785)
Series GO LP Units
Equity
Non-controlling interest	9,228,780	$ 3,784,965
Series T LP Units
Equity
Non-controlling interest	$ 15,752,757

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
CONSOLIDATED BALANCE SHEETS
Accumulated depreciation	$ 8,158,401	$ 4,712,578
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	8,196,055	7,611,653
Common stock, shares outstanding	8,196,055	7,611,653

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues
Total revenue	$ 8,622,291	$ 4,293,086	$ 18,745,964	$ 10,786,146
Expenses
Property operations	3,781,862	1,466,175	8,085,917	4,159,882
General and administrative	1,705,948	972,407	4,744,160	3,474,099
Sales and marketing	596,558	278,931	1,424,319	876,533
Franchise fees	640,113	339,187	1,440,183	869,944
Management fees	796,245	422,290	1,793,400	1,163,523
Acquisition expense	13,317	44,154	61,760	382,148
Depreciation	1,294,304	884,597	3,449,095	2,575,731
Total expenses	8,828,347	4,407,741	20,998,834	13,501,860
Other Income (Expense)
Other income (expense), net	(21,320)	(49,116)	(212,125)	267,928
PPP loan forgiveness	119,500		1,684,400
Interest expense	(1,300,298)	(803,501)	(3,252,242)	(2,366,750)
Total other income (expense)	(1,202,118)	(852,617)	(1,779,967)	(2,098,822)
Net Loss Before Income Taxes	(1,408,174)	(967,272)	(4,032,837)	(4,814,536)
Income tax benefit (expense)	105,743	559,176	472,089	815,222
Net Loss	(1,302,431)	(408,096)	(3,560,748)	(3,999,314)
Net Loss Attributable to Common Stockholders	$ (1,069,629)	$ (375,293)	$ (2,974,744)	$ (3,787,245)
Basic and Diluted Net Loss Per Share of Common Stock	$ (0.13)	$ (0.05)	$ (0.37)	$ (0.54)
Weighted-average Shares of Common Stock Outstanding, Basic and Diluted	8,138,726	7,384,189	7,945,203	7,013,281
Series B LP Units
Other Income (Expense)
Net loss attributable to non-controlling interest	$ (64,879)	$ (20,388)	$ (177,319)	$ (199,654)
Series GO LP Units
Other Income (Expense)
Net loss attributable to non-controlling interest	(167,923)	(12,415)	(408,685)	(12,415)
Room
Revenues
Total revenue	8,308,091	4,235,255	18,203,125	10,623,696
Other
Revenues
Total revenue	$ 314,200	$ 57,831	$ 542,839	$ 162,450

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	Non-controlling InterestSeries T LP Units	Total
Balance - Beginning at Dec. 31, 2019	$ 60,057	$ 58,961,101	$ (18,396,163)	$ 40,624,995	$ (439,985)			$ 40,185,010
Balance - Beginning (Shares) at Dec. 31, 2019	6,005,743
Issuance of common stock	$ 9,569	9,371,964		9,381,533				9,381,533
Issuance of common stock (Shares)	956,897
Offering costs			(1,520,647)	(1,520,647)				(1,520,647)
Distributions declared			(1,144,602)	(1,144,602)	(60,308)			(1,204,910)
Distributions reinvested	$ 440	417,846		418,286				418,286
Distributions reinvested (in shares)	44,030
Redemptions	$ (100)	(91,900)		(92,000)				(92,000)
Redemptions (in shares)	(10,000)
Net loss			(1,314,880)	(1,314,880)	(69,156)			(1,384,036)
Balance - Ending at Mar. 31, 2020	$ 69,966	68,659,011	(22,376,292)	46,352,685	(569,449)			45,783,236
Balance - Ending (Shares) at Mar. 31, 2020	6,996,670
Balance - Beginning at Dec. 31, 2019	$ 60,057	58,961,101	(18,396,163)	40,624,995	(439,985)			40,185,010
Balance - Beginning (Shares) at Dec. 31, 2019	6,005,743
Net loss								(3,999,314)
Balance - Ending at Sep. 30, 2020	$ 74,482	73,062,764	(28,468,708)	44,668,538	(834,030)	$ 1,498,218		45,332,726
Balance - Ending (Shares) at Sep. 30, 2020	7,448,276
Balance - Beginning at Dec. 31, 2019	$ 60,057	58,961,101	(18,396,163)	40,624,995	(439,985)			40,185,010
Balance - Beginning (Shares) at Dec. 31, 2019	6,005,743
Redemptions								$ (590,547)
Redemptions (in shares)								(64,190)
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
Balance - Beginning at Mar. 31, 2020	$ 69,966	68,659,011	(22,376,292)	46,352,685	(569,449)			45,783,236
Balance - Beginning (Shares) at Mar. 31, 2020	6,996,670
Issuance of common stock	$ 1,978	1,931,108		1,933,086				1,933,086
Issuance of common stock (Shares)	197,824
Offering costs			(602,779)	(602,779)				(602,779)
Distributions declared			(1,247,245)	(1,247,245)	(65,941)			(1,313,186)
Net loss			(2,097,071)	(2,097,071)	(110,111)			(2,207,182)
Balance - Ending at Jun. 30, 2020	$ 71,944	70,590,119	(26,323,387)	44,338,676	(745,501)			43,593,175
Balance - Ending (Shares) at Jun. 30, 2020	7,194,494
Issuance of common stock	$ 1,569	1,537,441		1,539,010				1,539,010
Issuance of common stock (Shares)	156,866
Issuance of GO Units						1,700,005		1,700,005
Offering costs			(469,860)	(469,860)		(189,372)		(659,232)
Distributions declared			(1,300,168)	(1,300,168)	(68,141)			(1,368,309)
Distributions reinvested	$ 1,485	1,409,203		1,410,688				1,410,688
Distributions reinvested (in shares)	148,494
Redemptions	$ (516)	(473,999)		(474,515)				(474,515)
Redemptions (in shares)	(51,578)
Net loss			(375,293)	(375,293)	(20,388)	(12,415)		(408,096)
Balance - Ending at Sep. 30, 2020	$ 74,482	73,062,764	(28,468,708)	44,668,538	(834,030)	1,498,218		45,332,726
Balance - Ending (Shares) at Sep. 30, 2020	7,448,276
Balance - Beginning 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 - Beginning (Shares) at Dec. 31, 2020	7,611,653
Issuance of common stock	$ 824	793,756		794,580				794,580
Issuance of common stock (Shares)	82,414
Issuance of GO Units						4,201,300		4,201,300
Issuance of T Units							$ 6,747,577	6,747,577
Offering costs			(287,745)	(287,745)		(534,354)		(822,099)
Distributions declared			(1,358,705)	(1,358,705)	(71,511)			(1,430,216)
Distributions reinvested	$ 1,139	1,080,689		1,081,828				1,081,828
Distributions reinvested (in shares)	113,877
Net loss			(1,423,627)	(1,423,627)	(82,978)	(159,936)		(1,666,541)
Balance - Ending at Mar. 31, 2021	$ 78,079	76,485,072	(34,926,072)	41,637,079	(1,160,274)	7,291,975	6,747,577	54,516,357
Balance - Ending (Shares) at Mar. 31, 2021	7,807,944
Balance - Beginning 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 - Beginning (Shares) at Dec. 31, 2020	7,611,653
Redemptions								$ (557,318)
Redemptions (in shares)								(57,705)
Net loss								$ (3,560,748)
Balance - Ending at Sep. 30, 2021	$ 81,959	80,185,411	(40,242,986)	40,024,384	(1,402,868)	9,228,780	15,752,757	63,603,053
Balance - Ending (Shares) at Sep. 30, 2021	8,196,056
Balance - Beginning at Mar. 31, 2021	$ 78,079	76,485,072	(34,926,072)	41,637,079	(1,160,274)	7,291,975	6,747,577	54,516,357
Balance - Beginning (Shares) at Mar. 31, 2021	7,807,944
Issuance of common stock	$ 807	782,663		783,470				783,470
Issuance of common stock (Shares)	80,737
Issuance of GO Units						1,329,000		1,329,000
Issuance of T Units							2,041,058	2,041,058
Offering costs			(410,200)	(410,200)		(157,470)		(567,670)
Distributions declared			(1,391,786)	(1,391,786)	(73,252)			(1,465,038)
Distributions reinvested	$ 1,165	1,105,915		1,107,080				1,107,080
Distributions reinvested (in shares)	116,535
Redemptions	$ (420)	(399,871)		(400,291)				(400,291)
Redemptions (in shares)	(41,996)
Net loss			(481,488)	(481,488)	(29,462)	(80,826)		(591,776)
Balance - Ending at Jun. 30, 2021	$ 79,631	77,973,779	(37,209,546)	40,843,864	(1,262,988)	8,382,679	8,788,635	56,752,190
Balance - Ending (Shares) at Jun. 30, 2021	7,963,220
Issuance of common stock	$ 1,197	1,146,050		1,147,247				1,147,247
Issuance of common stock (Shares)	119,730
Issuance of GO Units						1,200,000		1,200,000
Issuance of T Units							6,964,122	6,964,122
Offering costs			(538,789)	(538,789)		(185,976)		(724,765)
Distributions declared			(1,425,022)	(1,425,022)	(75,001)			(1,500,023)
Distributions reinvested	$ 1,288	1,222,453		1,223,741				1,223,741
Distributions reinvested (in shares)	128,815
Redemptions	$ (157)	(156,871)		(157,028)				(157,028)
Redemptions (in shares)	(15,709)
Net loss			(1,069,629)	(1,069,629)	(64,879)	(167,923)		(1,302,431)
Balance - Ending at Sep. 30, 2021	$ 81,959	$ 80,185,411	$ (40,242,986)	$ 40,024,384	$ (1,402,868)	$ 9,228,780	$ 15,752,757	$ 63,603,053
Balance - Ending (Shares) at Sep. 30, 2021	8,196,056

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Distributions declared (in dollars per share)	$ 0.175	$ 0.175	$ 0.175	$ 0.175	$ 0.175	$ 0.175

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash Flows from Operating Activities:
Net loss	$ (3,560,748)	$ (3,999,314)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation	3,449,095	2,575,731
Amortization	318,417	206,405
Gain on PPP loan forgiveness	(1,684,400)
Loss on disposal of fixed assets	7,678	3,276
Deferred tax assets, net	(500,619)	(817,184)
Change in operating assets and liabilities:
Accounts receivable	(433,554)	(332,966)
Franchise fees	(437,500)	(300,000)
Prepaid expenses and other assets	(386,428)	936,013
Accounts payable	477,355	314,034
Accrued expenses	844,720	1,156,987
Due to related parties	768,987	(303,082)
Other liabilities	820,977	(38,876)
Net cash used in operating activities	(316,020)	(598,976)
Cash Flows from Investing Activities:
Acquisitions of hotel properties	(2,167,243)	(27,190,749)
Improvements and additions to hotel properties	(2,189,846)	(1,052,889)
Net cash used in investing activities	(4,357,089)	(28,243,638)
Cash Flows from Financing Activities:
Proceeds from mortgage debt	13,947,218	13,790,742
Proceeds from lines of credit	1,600,000	6,200,000
Proceeds from PPP loans	921,300	763,100
Principal payments on mortgage debt	(13,739,827)	(451,419)
Principal payments on lines of credit	(1,000,000)	(6,200,000)
Payments of deferred financing costs	(921,801)	(650,072)
Proceeds from issuance of common stock	2,725,297	12,853,629
Proceeds from issuance of GO Units	6,730,300	1,700,005
Payments of offering costs	(2,063,974)	(2,617,351)
Payments for shares redeemed	(557,319)	(92,000)
Distributions paid	(1,612,660)	(905,388)
Net cash provided by financing activities	6,028,534	24,391,246
Net change in cash, cash equivalents, and restricted cash	1,355,425	(4,451,368)
Beginning Cash, Cash Equivalents, and Restricted Cash	12,529,067	16,174,371
Ending Cash, Cash Equivalents, and Restricted Cash	13,884,492	11,723,003
Supplemental Disclosure of Cash Flow Information:
Interest paid, net of amounts capitalized	3,130,003	1,489,472
Income taxes paid		1,963
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Paid-in-kind interest		226,988
Offering costs included in accounts payable	19,416	266,781
Offering costs included in due to related parties	39,144	(89,892)
Offering costs included in accrued expenses	(8,000)	(11,582)
Distributions included in due to related parties	219,764	194,390
Reinvested distributions	3,412,649	1,828,974
Reconciliation of Cash, Cash Equivalents, and Restricted Cash:
Cash and cash equivalents, beginning of period	7,960,159	10,898,556
Restricted cash, beginning of period	4,568,908	5,275,815
Cash, cash equivalents, and restricted cash, beginning of period	13,884,492	11,723,003
Cash and cash equivalents, end of period	7,631,257	7,440,804
Restricted cash, end of period	6,253,235	4,282,199
Cash, cash equivalents, and restricted cash, end of period	13,884,492	11,723,003
Courtyard by Marriott (the "Aurora Property")
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Issuance of T Units	6,742,757
Debt issued for acquisition	15,000,000
Holiday Inn (the "EI Paso Property")
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Issuance of T Units	2,100,000
Debt issued for acquisition	7,900,000
Hilton Garden Inn (the "Houston Property")
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Issuance of T Units	6,910,000
Debt issued for acquisition	$ 13,000,000
Fairfield Inn & Suites (the "Lubbock Property")
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Debt assumed in connection with hotel property acquisition		$ 9,998,437

ORGANIZATION

ORGANIZATION	9 Months Ended
	Sep. 30, 2021
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 September 30, 2021 and December 31, 2020. As of September 30, 2021 and December 31, 2020, there were no outstanding Common LP Units or Interval Units, and there were 1,000 outstanding Series B LP Units, all of which were owned by the Advisor. As of September 30, 2021 and December 31, 2020, there were 1,905,369 and 0 Series T LP Units outstanding, respectively. As of September 30, 2021 and December 31, 2020, there were 1,623,867 and 654,868 Series GO LP Units outstanding, respectively. On June 1, 2018, the Company commenced a private offering of shares of common stock, $0.01 par value per share, with a maximum offering of $100,000,000 (the “Offering”) to accredited investors only, pursuant to a confidential private placement memorandum exempt from registration under the Securities Act of 1933, as amended. In addition to sales of common shares for cash, the Company has adopted a dividend reinvestment plan (“DRIP”), which permits stockholders to reinvest their distributions back into the Company. As of September 30, 2021, the Company had issued and sold 8,317,950 shares of common stock, including 752,038 shares attributable to the DRIP, and received aggregate proceeds of $80.3 million. For the year ended December 31, 2020, the Company had repurchased 64,190 shares, which represents an original investment of $641,898, including $16,898 of DRIP shares, for $590,547 under the Company’s Share Repurchase Plan. During the nine months ended September 30, 2021, the Company repurchased 57,705 shares, which represents an original investment of $532,200, including $35,661 of DRIP shares, for $557,318 under the Company’s Share Repurchase Plan. As of September 30, 2021, $159,033 of the redemption proceeds had not yet been paid and was included in other liabilities on the accompanying consolidated balance sheet. See Note 11. On April 29, 2020, the Company classified and designated 7,000,000 shares of authorized but unissued common stock, $0.01 par value per share, as shares of “Interval Common Stock,” to be part of the Offering. The offering of the Interval Common Stock is a maximum offering of $30,000,000, which may be increased to $60,000,000 in the sole discretion of the Company’s board of directors, (the “Interval Share Offering”) to accredited investors only, pursuant to a confidential private placement memorandum exempt from registration under the Securities Act of 1933, as amended. As of September 30, 2021, the Company had not issued or sold any shares of Interval Common Stock. ​ On June 15, 2020, the Operating Partnership commenced a private offering of limited partnership units in the OP, designated as Series GO LP Units, with a maximum offering of $20,000,000, which may be increased to $30,000,000 in the sole discretion of LF REIT III as the General Partner of the OP, (the “GO Unit Offering”) to accredited investors only, pursuant to a confidential private placement memorandum exempt from registration under the Securities Act of 1933, as amended. As of September 30, 2021, the Company had issued and sold 1,623,867 Series GO LP Units and received aggregate proceeds of $11.2 million.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation 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 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. In 2020, the World Health Organization designated COVID-19 as a pandemic, and numerous countries, including the United States, declared national emergencies with respect to COVID-19. The impact of the outbreak on the U.S. and world economies continues to evolve, and since the outbreak, 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 adversely impacted and continue to adversely impact many industries, with the travel and hospitality industries being particularly adversely affected. Although the Company’s hotel properties remained open through the onset of the pandemic, and despite an improvement in the third quarter of 2021, the Company’s occupancy levels have been lower than historical levels. The outbreak could have a continued adverse impact on economic and market conditions and could trigger a continued slowdown in leisure and business travel, which is adversely impacting the travel and hospitality industries. The fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions. The Company believes the estimates and assumptions underlying the Company’s consolidated financial statements are reasonable and supportable based on the information available as of September 30, 2021, however uncertainty over the ultimate impact COVID-19, including the continued emergence of new strains of COVID-19, such as the Delta variant, will have on the global economy generally, and the Company’s business in particular, makes any estimates and assumptions as of September 30, 2021 inherently less certain than they would be absent the current and potential impacts of COVID-19. ​ Revenue Recognition Investment in Hotel Properties 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 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 Non-controlling Interests Cash and Cash Equivalents 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 Accounts Receivable— Deferred Financing Costs Offering Costs Property Operations Expenses Property Management Fees Franchise Fees Acquisition Costs 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 Income Taxes 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 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 Level 1 Level 2 Level 3 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 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 fiscal year ending December 31, 2022, and for interim periods beginning on January 1, 2022. We do not anticipate any significant impacts on our consolidated financial statements as a result of this adoption. ​

INVESTMENT IN HOTEL PROPERTIES

INVESTMENT IN HOTEL PROPERTIES	9 Months Ended
	Sep. 30, 2021
INVESTMENT IN HOTEL PROPERTIES
INVESTMENT IN HOTEL PROPERTIES	3. INVESTMENT IN HOTEL PROPERTIES Investment in hotel properties as of September 30, 2021 and December 31, 2020 consisted of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2021 ​ 2020 Land and land improvements ​ $ 19,646,518 ​ $ 10,324,772 Building and building improvements ​ 128,246,536 ​ 85,213,846 Furniture, fixtures, and equipment ​ 13,498,597 ​ 8,927,694 Construction in progress ​ ​ 64,009 ​ ​ 990,452 Investment in hotel properties, at cost ​ ​ 161,455,660 ​ 105,456,764 Less: accumulated depreciation ​ (8,158,401) ​ (4,712,578) Investment in hotel properties, net ​ $ 153,297,259 ​ $ 100,744,186 ​ As of September 30, 2021, the Company owned ten hotel properties with an aggregate of 1,204 rooms located in seven states. ​ Acquisitions of Hotel Properties The Company acquired three properties during the nine months ended September 30, 2021 and two properties during the year ended December 31, 2020. Each of the Company’s hotel acquisitions to date have been determined to be asset acquisitions. The table below outlines the details of the properties acquired during the nine months ended September 30, 2021. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 Acquisitions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ of Guest ​ Purchase ​ Transaction ​ ​ ​ ​ % Hotel ​ Property Type ​ Location ​ Acquired ​ Rooms ​ Price ​ Costs ​ Total ​ Interest Courtyard by Marriott Select Service Aurora, CO ​ February 4, 2021 ​ 141 ​ $ 23,610,000 (1) $ 458,129 ​ $ 24,068,129 ​ 100 % Holiday Inn ​ Select Service ​ El Paso, TX ​ May 12, 2021 ​ 175 ​ ​ 10,300,000 (2) ​ 361,019 ​ ​ 10,661,019 ​ 100 % Hilton Garden Inn ​ Select Service ​ Houston, TX ​ August 3, 2021 ​ 182 ​ ​ 19,910,000 (3) ​ 918,353 ​ ​ 20,828,353 ​ 100 % ​ ​ ​ ​ ​ ​ ​ 498 ​ $ 53,820,000 ​ $ 1,737,501 ​ $ 55,557,501 ​ ​ ​ (1) Includes the issuance of 1,103,758 Series T LP Units of the Operating Partnership (2) Includes the issuance of 150,000 Series T LP Units of the Operating Partnership (3) Includes the issuance of 651,611 Series T LP Units of the Operating Partnership ​ The table below outlines the details of the properties acquired during the year ended December 31, 2020. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 Acquisitions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ of Guest ​ Purchase ​ Transaction ​ ​ ​ ​ % Hotel ​ Property Type ​ Location ​ Acquired ​ Rooms ​ Price ​ Costs ​ Total ​ Interest Fairfield Inn & Suites Limited Service Lubbock, TX ​ January 8, 2020 ​ 101 ​ $ 15,150,000 ​ $ 496,431 ​ $ 15,646,431 ​ 100 % Homewood Suites Extended Stay ​ Southaven, MS ​ February 21, 2020 99 ​ 20,500,000 ​ 445,090 ​ 20,945,090 100 % ​ ​ ​ ​ ​ ​ ​ 200 ​ $ 35,650,000 ​ $ 941,521 ​ $ 36,591,521 ​ ​ ​ ​ As of September 30, 2021, each of the Company’s hotel properties, except the Southaven Property and the Houston Property, was subject to a property management agreement with NHS, LLC dba National Hospitality Services (“NHS”) with an initial term expiring on December 31st 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 Southaven Property is currently being managed on a day-to-day basis by Vista Host, Inc. pursuant to a property management agreement with an initial term expiring on February 21, 2025, which will automatically renew for two successive 5-year periods unless terminated earlier in accordance with its terms. The Houston Property is currently being managed on a day-to-day basis by Aimbridge, pursuant to a property management agreement with Interstate Management Company, LLC (“Aimbridge”), with an initial term expiring on August 3, 2024, which will automatically renew for additional successive terms of 1 year each unless terminated earlier in accordance with its terms. The El Paso Property was being managed on a day-to-day basis by Elevation Hotel Management, LLC pursuant to a property management agreement which required payment of a management fee equal to 3.0% of total revenues plus an accounting fee of $1,800 per month for accounting services until August 15, 2021. Beginning August 16, 2021, the El Paso Property was subject to a property management agreement with NHS, the terms of which are consistent with those described above for other NHS property management agreements. The seller of the Pineville Property, an affiliate of Beacon IMG, Inc (“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. As of September 30, 2021, 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 Aurora Property was acquired on February 4, 2021 for contractual consideration comprising of $15.0 million in debt, $1.9 million in cash paid at closing and the issuance of 1,103,758 Series T LP Units of the Operating Partnership. The Series T LP Units will convert into Common LP Units of the Operating Partnership beginning 36 months, or at the option of the contributor, up to 48 months, after February 4, 2021, at which point the value will be calculated pursuant to the terms of a Contribution Agreement, dated as of September 1, 2020, as amended on February 4, 2021 (the “Contribution Agreement”). The number of Common LP Units to be issued to the contributor based on such conversion may be higher or lower than the initial valuation of the Series T Units. Accordingly, the aggregate purchase price used for the acquisition accounting noted in the tables above and below of $23.6 million, was determined to be the value assigned by a third-party appraisal, as the appraisal value was more reliably measurable. On May 12, 2021, the Operating Partnership acquired the Holiday Inn El Paso West Sunland Park hotel property located in El Paso, Texas (the “El Paso Property”) for contractual consideration comprising $7.9 million in debt, $300,000 in cash paid at closing and the issuance of 150,000 Series T LP Units of the Operating Partnership. The Series T LP Units will convert into Common LP Units of the Operating Partnership beginning 36 months, or in the event the Operating Partnership is then in the process of transacting a sale of the Operating Partnership’s assets or another significant capital event necessitating a conversion is then in process, up to 48 months, after May 12, 2021, at which point the value will be calculated pursuant to the terms of an Amended and Restated Contribution Agreement, dated May 12, 2021 (the “El Paso Contribution Agreement”). The number of Common LP Units to be issued to the contributor based on such conversion may be higher or lower than the initial valuation of the Series T LP Units. Accordingly, the aggregate purchase price used for the acquisition accounting noted in the tables above and below of $10.3 million, was determined to be the value assigned by a third-party appraisal, as the appraisal value was more reliably measurable. On August 3, 2021, the Operating Partnership acquired the Hilton Garden Inn Houston Bush Intercontinental Airport hotel property located in Houston, Texas (the “Houston Property”) for contractual consideration comprising $13.0 million in debt, $719,000 in cash paid at closing and the issuance of 651,611.162 Series T LP Units of the Operating Partnership. The Series T LP Units will convert into Common LP Units of the Operating Partnership beginning 36 months, or in the event the Operating Partnership is then in the process of transacting a sale of the Operating Partnership’s assets or another significant capital event necessitating a conversion is then in process, up to 48 months, after August 3, 2021, at which point the value will be calculated pursuant to the terms of the Second Amended and Restated Contribution Agreement, dated August 3, 2021 (the “Houston Contribution Agreement”). The number of Common LP Units to be issued to the contributor based on such conversion may be higher or lower than the initial valuation of the Series T LP Units. Accordingly, the aggregate purchase price used for the acquisition accounting noted in the tables above and below of $19.9 million, was determined to be the value assigned by a third-party appraisal, as the appraisal value was more reliably measurable. In connection with the contribution of the Houston Property to the Operating Partnership, and pursuant to the Loan Agreement, dated as of August 3, 2021 (the “Original Loan Agreement”), the LF3 Houston, LLC and TRS Subsidiary (collectively, the “Borrower”) entered into a new $13.0 million loan with Legendary A-1 Bonds, LLC, (the “Original Lender”), which was secured by the Houston Property (the “Original HGI Houston Loan”). The Original Lender is an affiliate of Legendary Capital REIT III, LLC, the external advisor to the Company (the “Advisor”) which is owned by Norman Leslie and Corey Maple, each a director and executive officer of the Company and principal of the Advisor. The Original HGI Houston Loan was evidenced by a promissory note and had a fixed interest rate of 7.0% per annum. On September 2, 2021, the proceeds of the New HGI Houston Loan described below were used to refinance the Original HGI Houston Loan, and all outstanding obligations under the Original HGI Houston Loan were repaid in full without any fee or penalty and all commitments and guaranties in connection therewith have been terminated or released. On September 2, 2021, pursuant to the Business Loan Agreement, dated as of September 2, 2021 (the “New Loan Agreement”), the Borrower entered into a new approximately $13.9 million loan with Choice Financial Group (the “New Lender”), which is secured by the Houston Property (the “New HGI Houston Loan”). The New Lender is not affiliated with the Company or the Advisor. The New HGI Houston Loan is evidenced by a promissory note and has a fixed interest rate of 3.85% per annum. The New HGI Houston Loan matures five years after the effective date. The HGI Houston Loan requires monthly payments of interest-only for the first 24 months of the loan, monthly payments of principal and interest for the next 35 months, with the outstanding principal and interest due at maturity. The Borrower has the right to prepay all or a portion of the New HGI Houston Loan at any time without penalty. ​ The New Loan Agreement requires the maintenance of covenants concerning an annual debt service coverage ratio and the maintenance of a replacement reserve account after the first 12 months of the loan. The New Loan Agreement contains customary events of default, including payment defaults. If an event of default occurs under the New Loan Agreement, the New Lender may accelerate the repayment of amounts outstanding under the New Loan Agreement and exercise other remedies subject, in certain instances, to the expiration of applicable cure periods. ​ Pursuant to the New Loan Agreement, the Operating Partnership entered into a Guaranty (the “OP Guaranty ”) ​ The aggregate purchase price for the hotel properties acquired during the nine months ended September 30, 2021 and the year ended December 31, 2020 were allocated as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2021 ​ 2020 Land and land improvements ​ $ 9,316,027 ​ $ 2,576,166 Building and building improvements ​ 42,134,565 ​ 31,605,174 Furniture, fixtures, and equipment ​ 4,106,909 ​ 3,007,846 Total assets acquired ​ 55,557,501 ​ 37,189,186 ​ ​ ​ ​ ​ ​ ​ Premium on assumed debt ​ — ​ (597,665) Total liabilities assumed ​ ​ — ​ ​ (597,665) Total purchase price (1) ​ ​ 55,557,501 ​ ​ 36,591,521 ​ ​ ​ ​ ​ ​ ​ Assumed mortgage debt ​ ​ — ​ ​ 9,400,772 ​ ​ ​ ​ ​ ​ ​ Net purchase price ​ $ 55,557,501 ​ $ 27,190,749 ​ ​ (1) Total purchase price includes purchase price plus all transaction costs.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2021
DEBT
DEBT	4. 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. On January 19, 2021, the line of credit was amended to extend the maturity date to May 10, 2021. The line of credit had 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 March 31, 2021. On May 6, 2021, the line of credit was amended to extend the maturity date to May 10, 2022. On that date, the interest rate was also amended to incorporate an interest rate floor equal to 4.00%. 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, the Company’s Chief Executive Officer. As of September 30, 2021, there was a $600,000 balance outstanding on the line of credit. On August 22, 2018, the Company entered into a $3.0 million revolving line of credit, collateralized by 300,000 partnership units of Lodging Fund REIT III OP, LP. The line of credit had 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 required monthly payments of interest only, with all principal due at maturity. The line of credit included a partial guarantee by each of Corey Maple and Norman Leslie, as the members of the Advisor, each in the amount Mortgage Debt ​ As of September 30, 2021, the Company had $100.6 million in outstanding mortgage debt secured by ten properties, with maturity dates ranging from May 2023 to April 2029. Nine of the loans have fixed interest rates ranging from 3.70% to 5.33%, and a weighted-average interest rate of 4.47%. One of the loans is a variable interest loan at a rate of LIBOR plus 6.0% per annum, provided that LIBOR shall not be less than 1.0%, resulting in an effective rate of 7% as of September 30, 2021. The loans generally require monthly payments of principal and interest on an amortized basis, with certain loans allowing for an interest-only period up to 12 months following origination, and generally require a balloon payment due at maturity. As of September 30, 2021 and December 31, 2020, certain mortgage debt was guaranteed by the members of the Advisor. Except as described below, the Company was either in compliance with all debt covenants or received a waiver of testing of its debt covenants as of September 30, 2021 and December 31, 2020. See Note 3, Investment in Hotel Properties, for a description of the loans entered into during the three months ended September 30, 2021. ​ As of September 30, 2021, 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. The Company has requested and received a waiver of the financial covenants for the 18-month period ending December 31, 2021. As of September 30, 2021, the Company was not in compliance with the required financial covenants under the terms of its promissory note secured by the Lubbock Fairfield Property (the “Lubbock Fairfield 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 Lubbock Fairfield Loan will enter into a cash management period. The Company has requested a waiver of the financial covenants as of September 30, 2021, but as of the date of this filing it had not been received. If the Company is unable to obtain a waiver, the loan may go into cash management, however the other terms of the Lubbock Fairfield Loan will not change, including the timing or amounts of payments, or the expiration date. Other than as described above for the Lubbock Fairfield Loan, the Company was either in compliance with its debt covenants or received a waiver of testing of its debt covenants as of September 30, 2021 as noted below. 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 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 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 September 30, 2021. ​ 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. The Company was in compliance with the required financial covenants under the terms of the Southaven Amendment as of September 30, 2021. ​ 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 was 2 years, which could be extended to 5 years at the Company’s election. The interest rate on each PPP loan was 1.0% per annum, which shall be deferred for a period of time. After the initial deferral period, each loan required 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. ​ 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 the 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. ​ In April 2021, the Company, through Southaven TRS, entered into an unsecured promissory note under the Second Draw PPP created by the CAA Act, through Western State Bank (the “Southaven TRS Second Draw PPP”). The term of the Southaven Second Draw PPP loan is five years. The amount of the Southaven TRS Second Draw PPP loan is $119,500. The interest rate on the Southaven TRS 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, the loan requires monthly payments of principal and interest until maturity with respect to any portion of the loan which is not forgiven as described below. The Company is permitted to prepay the Southaven TRS Second Draw 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. In June 2021, the Company received forgiveness on the full balance of the Second Draw PPP and Southaven TRS PPP loans. In August 2021, the Company received forgiveness on the full balance of the Southaven TRS Second Draw PPP loan. ​ The following table sets forth the hotel properties securing the Company’s hotel mortgage debt, lines of credit and PPP loans as of September 30, 2021 and December 31, 2020. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ Outstanding ​ Outstanding ​ ​ Rate as of ​ ​ ​ Balance as of ​ Balance as of ​ ​ September 30, ​ Maturity ​ September 30, ​ December 31, ​ ​ 2021 ​ Date ​ 2021 ​ 2020 Holiday Inn Express - Cedar Rapids (1) ​ 5.33% 09/01/2024 ​ $ 5,858,134 ​ $ 5,858,134 Hampton Inn & Suites - Pineville ​ 5.13% 06/06/2024 ​ 8,831,400 ​ 8,973,775 Hampton Inn - Eagan ​ 4.60% 01/01/2025 ​ 9,317,589 ​ 9,317,589 Home2 Suites - Prattville (1) ​ 4.13% 08/01/2024 ​ 9,481,730 ​ 9,647,085 Home2 Suites - Lubbock ​ 4.69% ​ 10/06/2026 ​ ​ 7,629,568 ​ ​ 7,792,602 Fairfield Inn & Suites - Lubbock ​ 4.93% ​ 04/06/2029 ​ ​ 9,163,645 ​ ​ 9,272,870 Homewood Suites - Southaven (1) ​ 3.70% ​ 03/03/2025 ​ ​ 13,426,272 ​ ​ 13,586,110 Courtyard by Marriott - Aurora ​ 7.00% ​ 02/05/2024 ​ ​ 15,000,000 ​ ​ — Holiday Inn - El Paso ​ 5.00% ​ 05/15/2023 ​ ​ 7,900,000 ​ ​ — Hilton Garden Inn - Houston ​ 3.85% ​ 09/02/2026 ​ ​ 13,947,218 ​ ​ — Total Mortgage Debt ​ ​ ​ ​ ​ 100,555,556 ​ 64,448,165 Premium on assumed debt, net ​ ​ ​ ​ ​ 755,911 ​ 854,928 Deferred financing costs, net ​ ​ ​ ​ ​ ​ (1,935,397) ​ ​ (1,378,374) Net Mortgage ​ ​ ​ ​ ​ ​ 99,376,070 ​ ​ 63,924,719 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $3.0 million line of credit (2) ​ - ​ 11/22/2020 ​ ​ — ​ ​ — $5.0 million line of credit ​ 4.00% (3) ​ 5/10/2022 ​ ​ 600,000 ​ ​ — Total Lines of Credit ​ ​ ​ ​ ​ ​ 600,000 ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PPP Loan (4) ​ - ​ 4/8/2026 ​ ​ — ​ ​ 763,100 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt, net ​ ​ ​ ​ ​ $ 99,976,070 ​ $ 64,687,819 (1) Per the original loan terms, the loan was interest-only for the first 12 months after origination, then monthly principal and interest payments, with a balloon payment at maturity. (2) Variable interest rate equal to U.S. Prime Rate plus 1.00%, with a minimum rate of 5.00% . The line of credit was not renewed. (3) Variable interest rate equal to U.S. Prime Rate plus 0.50% . (4) The Company received forgiveness on the full balance of all PPP loans during the nine months ended September 30, 2021. ​ Future Minimum Payments As of September 30, 2021, the future minimum principal payments on the Company’s debt were as follows: ​ ​ ​ ​ ​ 2021 $ 330,715 2022 ​ 2,019,244 2023 ​ 9,522,307 2024 ​ 39,414,692 2025 ​ 21,754,830 Thereafter ​ 28,113,768 ​ ​ ​ 101,155,556 ​ ​ ​ ​ Premium on assumed debt, net ​ 755,911 Deferred financing costs, net ​ (1,935,397) ​ ​ ​ ​ ​ ​ $ 99,976,070 ​

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2021
FAIR VALUE OF FINANCIAL INSTRUMENTS
FAIR VALUE OF FINANCIAL INSTRUMENTS	5. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company’s financial instruments as of September 30, 2021 and December 31, 2020 consisted of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, lines of credit, PPP loans, and mortgage debt. With the exception of the Company’s mortgage debt, the carrying amounts of the financial instruments presented in the consolidated financial statements approximate their fair value as of September 30, 2021. The fair value of the Company’s mortgage debt was estimated by discounting each loan’s future cash flows over the remaining term of the mortgage using current borrowing rates for debt instruments with similar terms and maturities, which are Level 3 inputs in the fair value hierarchy. As of September 30, 2021, the estimated fair value of the Company’s mortgage debt was $103.1 million, compared to the gross carrying value $100.6 million. 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.

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2021
INCOME TAXES
INCOME TAXES	6. 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 September 30, 2021 and 2020. The Company did not have any uncertain tax positions as of September 30, 2021 or December 31, 2020. The Company’s TRS generated a net operating loss (“NOL”) for the nine months ended September 30, 2021 and the year ended December 31, 2020, 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 hospitality and travel industries. During the remainder of 2020 , the Company experienced some level of recovery, from the unprecedented lows in April and May 2020, at all of the Company’s hotel properties. As a result, the Company revised the partial valuation allowance against deferred tax assets to $600,901 as of September 30, 2020 and $0 as of December 31, 2020. The CARES Act contains numerous income tax provisions, such as temporarily relaxing limitations on the deductibility of interest expense, accelerating depreciable lives of certain qualified building improvements, and allowing for NOL’s arising in tax years beginning after December 31, 2017 and before January 1, 2021 to be carried back to each of the preceding 5-year periods. In addition, for tax years beginning prior to 2021, the CARES Act removed the 80% absorption limitation previously enacted under the Tax Cuts and Jobs Act of 2017. The income tax aspects of the CARES Act are not expected to have a material impact on the Company’s financial statements.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2021
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS	7. RELATED PARTY TRANSACTIONS Legendary Capital REIT III, LLC 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 nine months ended September 30, 2021 and 2020, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Incurred ​ ​ ​ For the Nine Months Ended September 30, ​ ​ ​ 2021 ​ 2020 Fees: ​ ​ ​ ​ Acquisition fees ​ $ 753,480 ​ $ 501,949 ​ Financing fees ​ 753,480 ​ 501,949 ​ Asset management fees ​ 848,237 ​ 617,397 ​ Performance fees ​ ​ — ​ — ​ ​ ​ $ 2,355,197 ​ $ 1,621,295 ​ ​ ​ ​ ​ ​ ​ ​ ​ Reimbursements: ​ ​ ​ ​ Offering costs ​ $ 1,006,775 ​ $ 953,275 ​ General and administrative ​ 2,095,545 ​ 1,831,638 ​ Sales and marketing ​ 146,164 ​ 145,489 ​ Acquisition costs ​ ​ 81,651 ​ ​ 93,038 ​ Other (income) expense, net ​ ​ — ​ ​ (503,180) ​ ​ ​ $ 3,330,135 ​ $ 2,520,260 ​ ​ For three and nine months ended September 30, 2021, the Operating Partnership recorded distributions payable to the Advisor in the amount of $75,001 and $219,764, respectively, in connection with the Advisor’s ownership of Series B LP Units. For the three and nine months ended September 30, 2020, the Operating Partnership recorded distributions payable to the Advisor in the amount of $68,141 and $194,390, respectively. As of September 30, 2021 and December 31, 2020, the Company had distributions payable to the Advisor in the amount of $547,661 and $327,897, respectively. For the nine months ended September 30, 2021 and 2020, the Company paid distributions in the amount of $29,812 and $28,399, respectively, to Corey Maple and Norman Leslie in connection with their ownership of 57,319 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. Mr. Maple, our Chief Executive Officer and Chairman of the Board, 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, $13.5 million and $7.9 million, respectively, is a guarantor of 50% of the loan secured by the Houston Property, which had an original loan amount of $13.9 million, 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. Mr. Leslie, our President, Chief Investment Officer and Director, 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 nine months ended September 30, 2021, the Company accrued guarantee fees in the amount of $119,901 to each In August 2021 in connection with the contribution of the Houston Property, Legendary A-1 Bonds, LLC, which is an affiliate of the Advisor which is owned by Mr. Leslie and Mr. Maple, each a director and executive officer of the Company and principal of the Advisor, made a $13.0 million loan to a subsidiary of the Company secured by the Houston Property. The loan was repaid in full on September 2, 2021. As of September 30, 2021 and December 31, 2020, the Company had amounts due and payable to the Advisor and its affiliates of $2,533,209 and $1,720,605, respectively, which is included in due to related parties on the accompanying consolidated balance sheets. NHS, LLC dba National Hospitality Services (“NHS”) 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 incurred and payable to NHS for the nine months ended September 30, 2021 and 2020, and amounts outstanding and payable as of September 30, 2021 and December 31, 2020, were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Incurred ​ Payable as of ​ ​ For the Nine Months Ended September 30, ​ September 30, ​ December 31, ​ ​ 2021 ​ 2020 ​ 2021 ​ 2020 Fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ Management fees ​ $ 489,107 ​ $ 347,689 ​ $ 63,620 ​ $ 36,509 Administrative fees ​ 91,922 ​ 54,092 ​ 10,717 ​ 5,648 Accounting fees ​ 78,418 ​ 76,472 ​ 10,472 ​ 10,701 ​ ​ $ 659,447 ​ $ 478,253 ​ $ 84,809 ​ $ 52,858 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reimbursements ​ $ 341,150 ​ $ 213,995 ​ $ 28,859 ​ $ 5,530 ​ 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 a member of the Company's Board of Directors , 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 2021 and 2020 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 nine months ended September 30, 2021 and the year ended December 31, 2020, the Company incurred $48,909 and $176,669 of construction management fees payable to One Rep, respectively. As of September 30, 2021 and December 31, 2020, the amounts outstanding and due to One Rep were $6,171 and $34,988 , respectively, which is included in due to related parties on the accompanying consolidated balance sheets.

FRANCHISE AGREEMENTS

FRANCHISE AGREEMENTS	9 Months Ended
	Sep. 30, 2021
FRANCHISE AGREEMENTS
FRANCHISE AGREEMENTS	8. FRANCHISE AGREEMENTS As of September 30, 2021, 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 4% 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	9 Months Ended
	Sep. 30, 2021
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	9. STOCKHOLDERS’ EQUITY The Company is authorized to issue 900,000,000 shares of common stock and 100,000,000 shares of preferred stock. Each share of common stock entitles the holder to one vote per share for on all matters upon which stockholders are entitled to vote and to receive distributions as authorized by the Company’s board of directors. The Interval Common Stock described below do not have voting rights. The rights of the holders of shares of preferred stock may be defined at such time any series of preferred shares are issued. On April 29, 2020, the Company filed with the Maryland State Department of Assessments and Taxation articles supplementary (the “Articles Supplementary”) to the Company’s charter, to classify and designate 7,000,000 shares of authorized but unissued common stock, $0.01 par value per share, of the Company, as non-voting shares of Interval Common Stock and to set the terms of the Interval Common Stock. ​ Common Stock ​ Initial Offering On June 1, 2018, the Company commenced a private offering of shares of common stock, $0.01 par value per share, at a price of $10.00 per share, with a maximum offering of $100,000,000, to accredited investors only pursuant to a confidential private placement memorandum exempt from registration under the Securities Act of 1933, as amended. Dividend Reinvestment Plan The Company has adopted a dividend reinvestment plan (“DRIP”), which permits stockholders to reinvest their distributions back into the Company, purchasing shares of common stock at 95% of the then-current share net asset value (“NAV”). Distributions Distributions for the three months ended 30, 2021 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, October 1, 2020 through December 31, 2020, and January 1, 2021 through March 31, 2021 were payable to each stockholder as 30% in cash (or through the DRIP if then currently enrolled in the DRIP) and 70% in shares of common stock issued through the DRIP, or at the election of the stockholder, in shares of common stock valued at $10.00 per share. Distributions for the period from April 1, 2021 through June 30, 2021 were payable to each stockholder as 60% in cash (or through the DRIP if then currently enrolled in the DRIP) and 40% 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 period from July 1, 2021 through September 30, 2021 were payable to each stockholder as 100% in cash on a monthly basis. Going forward, the Company expects the board of directors of the Company to authorize and declare distributions, if at all, based on daily record dates and to pay these distributions on a monthly basis. 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 nine months ended September 30, 2021, the Company repurchased 57,705 shares, which represents an original investment of $532,200, including $35,661 of DRIP, for $557,318. As of September 30, 2021, $159,033 of the redemption proceeds had not yet been paid and was included in other liabilities on the accompanying consolidated balance sheet. See Note 11. As of September 30, 2021, the Company had $3,138,161 available for eligible repurchases under the Company’s Share Repurchase Plan. Interval Common Stock ​ Distributions Holders of shares of Interval Common Stock will be entitled to receive, when and as authorized by the board of directors of the Company and declared by the Company, distributions at a rate equal to 86% of the distribution rate for the Company’s common stock as authorized by the board of directors and declared by the Company. Distributions on the Interval Shares may be paid in cash, capital stock of the Company or a combination of cash and capital stock of the Company as determined by the board of directors, and will be paid at such times as distributions are paid to the holders of common stock. Repurchase Plan The board of directors has adopted a repurchase plan for the Interval Common Stock (the “Repurchase Plan”). The Repurchase Plan is generally available to holders of Interval Common Stock who have held their shares of Interval Common Stock (“Interval Shares”) for at least 1 year. The Repurchase Plan provides that so long as the Repurchase Reserve (defined below) exists, the Company will repurchase up to the lesser of (i) 5% of the aggregate value of the Interval Shares (“Interval Shares Value”) on the last day of the same calendar quarter of the preceding year and (ii) 5% of the Interval Shares Value on the last day of the preceding calendar quarter. After the Repurchase Reserve has been exhausted, the Company will limit repurchases of Interval Shares to repurchases that can be made with the net proceeds from the dividend reinvestment plan for the Interval Shares received in the prior calendar year up to the lesser of (i) 1.25% per calendar quarter and (ii) 5% per calendar year of the Interval Shares Value. The limitations described in this paragraph are referred to as the “Repurchase Limitations.” The Company will establish a reserve (the “Repurchase Reserve”) of liquid assets in an amount equal to 20% of the aggregate gross proceeds from the Company’s private offering of Interval Shares, which will be comprised of cash and cash-like instruments, government securities, publicly traded REIT shares and other publicly traded securities (the “Reserve Assets”), but which is expected to primarily include publicly traded REIT shares. The Repurchase Reserve will be used solely to repurchase the Interval Shares. The board of directors may, but has no obligation to, increase the amount of the Repurchase Reserve at any time. The Company will have no obligation to restore any amounts resulting from a decline in value of the Reserve Assets. After the Repurchase Reserve has been exhausted, subject to the Repurchase Limitations, the Company will use only the net proceeds from the dividend reinvestment plan received in the prior calendar year to repurchase the Interval Shares. Subject to the Repurchase Limitations, on the applicable repurchase date, the Company will repurchase the Interval Shares timely submitted for repurchase for a price equal to the NAV per share of the Company’s common stock on such repurchase date as determined by the board of directors. The board of directors may, upon 10 days’ written notice to the holders of Interval Shares, amend, suspend or terminate the Repurchase Plan at any time, and such amendment, suspension or termination may be implemented immediately. Notwithstanding the foregoing, the Repurchase Plan may not be terminated prior to the date the Repurchase Reserve is exhausted. Interval Share Offering The Company is offering up to 3,000,000 shares of Interval Common Stock in the Company’s ongoing private offering, which amount may be increased to up to 6,000,000 Interval Shares in the sole discretion of the board of directors. Except as otherwise provided in the offering memorandum, the initial purchase price for the Interval Shares is $10.00 per Interval Share, with Interval Shares purchased in the Company’s dividend reinvestment plan at an initial price of $9.50 per Interval Share. As of September 30, 2021, 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 LP 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 (as defined below). Non-Controlling Interest – Series T LP Units 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 LP Units beginning 36 months after their issuance, and will automatically convert into Common LP Units upon a Termination Event. As of September 30, 2021, the Company had issued 1,905,369 Series T LP Units. Non-Controlling Interest – Series GO LP Units Distributions The holders of Series GO LP Units will not receive any distributions from the Operating Partnership until after they have held their Series GO LP Units for a period of 18 months. Thereafter, the Series GO Limited Partners will receive the same distributions payable to the holders of the Common LP Units and GP Units (together with the Series GO LP Units and Interval Units, the “Participating Partnership Units”), other than with respect to proceeds received upon the sale or exchange of a property which are not reinvested in additional properties. Upon the sale of all or substantially all of the GP Units held by LF REIT III or any sale, exchange or merger of LF REIT III or the Operating Partnership (each, a “Termination Event”), or with respect to proceeds received upon the sale or exchange of a property which are not reinvested in additional properties, distributions will be made between the Series GO LP Units and the other Participating Partnership Units as follows: (i) first, to the Participating Partnership Units in proportion to their Partnership Units until the GP Units (the Common LP Units and the Interval Units) have received 70% of their original capital contributions (determined on a grossed-up basis) reduced by any prior distributions received in connection with the sale of a property in which the sale proceeds are not reinvested in additional properties; (ii) second, to the Participating Partnership Units in proportion to their Partnership Units until each Participating Partnership Unit has received a Participating Amount ($1.00 for any period after December 31, 2020, $2.00 for any period after December 31, 2021 and $3.00 for any period after December 31, 2022, determined as a singular determination and not a cumulative determination); (iii) third, to the Participating Partnership Units (other than the Series GO LP Units) in proportion to their Partnership Units until the GP Units have received any remaining unreturned original capital contributions; (iv) fourth, to the Series GO Limited Partners in proportion to their Series GO LP Units until the amount distributed to the Series GO Limited Partners per Series GO LP Unit is equal to the amount distributed to the Participating Partnership Units per Participating Partnership Unit (other than the Series GO Limited Partners) pursuant to (iii); and (v) thereafter, to the Participating Partnership Units in proportion to their Participating Partnership Units. GO Unit Offering On June 15, 2020, the Operating Partnership commenced a private offering of limited partnership units in the OP, designated as Series GO LP Units, with a maximum offering of $20,000,000, which may be increased to $30,000,000 in the sole discretion of LF REIT III as the General Partner of the OP, to accredited investors only, pursuant to a confidential private placement memorandum exempt from registration under the Securities Act of 1933, as amended. As of September 30, 2021, the Company had issued and sold 1,623,867 Series GO LP Units and received aggregate proceeds of $11.2 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 September 30, 2021, the Operating Partnership has issued 1,000 Series B LP Units to the Advisor.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2021
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	10. COMMITMENTS AND CONTINGENCIES Impact of COVID-19 Legal Matters The SEC is conducting an investigation related to the Company’s reimbursement of and financial accounting for certain expenses incurred by the Advisor, as well as the adequacy of its disclosures related to those policies and practices. The Company is cooperating with the SEC and has produced documents and other information requested by the SEC. The Advisor has retained independent counsel and is also cooperating with the SEC inquiry. The Company remains committed to maintaining the highest standards for compliance with securities regulations and will continue to work with the SEC to address and resolve any questions or concerns that the SEC may raise. At this time, the Company is unable to estimate the cost of complying with the inquiry or its outcome. Property Acquisitions In November 2019, the Company entered into a purchase agreement, to acquire 3 hotel properties in Pennsylvania, from a third-party group of sellers (collectively, the “PA Sellers”), for $46.9 million plus closing costs, subject to adjustment as provided in the purchase agreement. The Company has deposited a total of $1.5 million into escrow as earnest money (the “Earnest Money”) pending the closing or termination of the purchase agreement. In July 2020, the Company and the PA Sellers exchanged written notices of default with one another in accordance with the terms of the purchase agreement. The notice from each party was based on allegations that the other party failed to perform its obligations under the purchase agreement. On October 27, 2020, the PA Sellers filed a lawsuit against Lodging Fund REIT III OP, LP in the Supreme Court of Pennsylvania alleging breach of the purchase agreement. The PA Sellers seek the full amount of the Earnest Money and recovery of fees and expenses incurred in bringing the lawsuit. The lawsuit is in an early stage and the likelihood of any material loss in connection with the case cannot be determined at this time. As a result, no amount was recorded related to this matter as of September 30, 2021, the Earnest Money remained in escrow and is included in restricted cash on the accompanying consolidated balance sheets. ​ Properties under Contract ​ On August 24, 2021, the Operating Partnership entered into a Contribution Agreement (the “HGI El Paso Contribution Agreement”), pursuant to which the contributor agreed to contribute the 153-room Hilton Garden Inn El Paso University hotel in El Paso, Texas (the “HGI El Paso Property”) to the Operating Partnership. The aggregate contractual consideration for the HGI El Paso Property is $17,600,000 plus closing costs, subject to adjustment as provided in the HGI 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 HGI El Paso Property. The remaining consideration consists of the issuance by the Operating Partnership of Series T LP Units of the Operating Partnership. Pursuant to the HGI El Paso Contribution Agreement, the Operating Partnership is responsible for up to $100,000 of certain closing costs to be agreed upon by the parties. As required by the HGI El Paso Contribution Agreement, the Operating Partnership has deposited $50,000 into escrow as earnest money pending the closing or termination of the HGI El Paso Contribution Agreement. Except in certain circumstances described in the HGI El Paso Contribution Agreement, if the Operating Partnership fails to perform its obligations under the HGI El Paso Contribution Agreement, it will forfeit the earnest money. ​ On September 14, 2021, the Operating Partnership entered into a Contribution Agreement, pursuant to which the contributor agreed to contribute the 90-room Hampton Inn & Suites Fargo Medical Center hotel in Fargo, North Dakota (the “Fargo Property”) to the Operating Partnership, which was subsequently amended on October 8, 2021 (as amended, the “Fargo Contribution Agreement”). The aggregate contractual consideration for the Fargo Property is $11,400,000 plus closing costs, subject to adjustment as provided in the Fargo Contribution Agreement. The majority of the consideration consists of the assumption or refinancing by the Operating Partnership of existing debt secured by the Fargo Property. The remaining consideration consists primarily of the issuance by the Operating Partnership of Series T LP Units of the Operating Partnership. As required by the Fargo Contribution Agreement, the Operating Partnership deposited $50,000 into escrow as earnest money pending the closing or termination of the Fargo Contribution Agreement. Except in certain circumstances described in the Fargo Contribution Agreement, if the Operating Partnership fails to perform its obligations under the Fargo Contribution Agreement, it will forfeit the earnest money. ​ On September 20, 2021, the Operating Partnership entered into a Contribution Agreement (the “Northbrook Contribution Agreement”), pursuant to which the contributor agreed to contribute the 161-room Sheraton Hotel Chicago Northbrook hotel in Northbrook, Illinois (the “Northbrook Property”) to the Operating Partnership. The aggregate contractual consideration for the Northbrook Property is $11,305,000 plus closing costs, subject to adjustment as provided in the Northbrook Contribution Agreement. The majority of the consideration consists primarily of the issuance by the Operating Partnership of Series T LP Units and Common LP Units of the Operating Partnership. The remainder of the consideration consists of new financing by the Operating Partnership of debt secured by the Northbrook Property with a lender which is an affiliate of the Contributor. As required by the Northbrook Contribution Agreement, the Operating Partnership deposited $100,000 into escrow as earnest money pending the closing or termination of the Northbrook Contribution Agreement. Except in certain circumstances described in the Northbrook Contribution Agreement, if the Operating Partnership fails to perform its obligations under the Contribution Agreement, it will forfeit the earnest money. ​ See Note 11 for a description of the contribution agreement entered into subsequent to September 30, 2021. ​ The Company is still conducting its diligence review with respect to each of these properties. These pending acquisitions are subject to the Company’s completion of satisfactory due diligence and other closing conditions. There can be no assurance the Company will complete any or all of these pending property contributions on the contemplated terms, or at all. ​

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2021
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	11. SUBSEQUENT EVENTS Distributions Declared or Paid On October 8, 2021, the Company paid distributions totaling $0.5 million, consisting of $0.3 million in cash distributions and $0.2 million of distributions paid in shares of common stock issued through the DRIP, for daily record dates in the period from September 1, 2021 through September 30, 2021. ​ On October 29, 2021, the Company declared cash distributions totaling $298,355 and DRIP distributions totaling $182,604, at a daily rate of $0.00191781 per share of Common Stock in the Company, equivalent to an annualized rate of seven percent (7.00%) per share based on the Company’s current share net asset value of $10.00, for daily record dates October 1 through October 31, 2021 to holders of record on each calendar day of such period. The distribution declared for October 2021 was paid on November 10, 2021. Property Under Contract ​ On October 20, 2021, the Operating Partnership entered into a Contribution Agreement (the “Courtyard El Paso Contribution Agreement”), pursuant to which the Contributor agreed to contribute the 90-room Courtyard El Paso Airport hotel in El Paso, Texas (the “Courtyard El Paso Property”) to the Operating Partnership. The aggregate contractual consideration for the Courtyard El Paso Property is $15,120,000 plus closing costs, subject to adjustment as provided in the Courtyard 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 Courtyard El Paso Property. The remaining consideration consists of the issuance by the Operating Partnership of Common LP Units of the Operating Partnership and cash at closing. As required by the Courtyard El Paso Contribution Agreement, the Operating Partnership will deposit $50,000 into escrow as earnest money pending the closing or termination of the Courtyard El Paso Contribution Agreement. Except in certain circumstances described in the Courtyard El Paso Contribution Agreement, if the Operating Partnership fails to perform its obligations under the Courtyard El Paso Contribution Agreement, it will forfeit the earnest money. The Company is still conducting its diligence review with respect to this property. This pending acquisition is subject to the Company’s completion of satisfactory due diligence and other closing conditions. There can be no assurance the Company will complete this pending property contribution on the contemplated terms, or at all. ​ M3 Outage M3 provides cloud-based accounting software that the Company and its hotel managers utilize to provide property-level accounting services. On October 19, 2021, M3 detected an unauthorized intruder in its systems which caused M3 to shut down its systems and take them entirely offline. After 13 days, M3 represented that it had restored and recovered the Company’s data, during which time the Company had no access to its property-level accounting software or data. As of November 12, 2021, the Company was continuing to receive restored access to additional data. The intrusion and outage did not impact the Company’s systems. The Company experienced a temporary inability to perform necessary business functions, including the ability to enter accounting transactions and issue payments. At this time, the Company is unable to estimate the cost or further impact of the M3 intrusion and outage. ​ Share Repurchases On October 21, 2021, the Company paid the outstanding redemption proceeds related to the September 2021 redemption of 15,927 shares of common stock for $159,033, per the terms of the Share Repurchase Plan. ​ Status of the GO Unit Offering As of November 12, 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 1,918,966 Series GO LP Units, resulting in the receipt of gross GO Unit Offering proceeds of $13.3 million. ​ Status of the Offering As of November 12, 2021, the Company’s private offering of common stock remained open for new investment, and since the inception of the offering the Company had issued and sold 8,382,624 shares of common stock, including 771,010 shares issued pursuant to the DRIP, resulting in the receipt of gross offering proceeds of $80.9 million. ​ ​

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation 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
Revenue Recognition	Revenue Recognition
Investment in Hotel Properties	Investment in Hotel Properties 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 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
Non-controlling Interest	Non-controlling Interests
Cash and Cash Equivalents	Cash and Cash Equivalents 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
Accounts Receivable	Accounts Receivable—
Deferred Financing Costs	Deferred Financing Costs
Offering Costs	Offering Costs
Property Operations Expenses	Property Operations Expenses
Property Management Fees	Property Management Fees
Franchise Fees	Franchise Fees
Acquisition Costs	Acquisition Costs 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
Income Taxes	Income Taxes 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 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 Level 1 Level 2 Level 3 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 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 fiscal year ending December 31, 2022, and for interim periods beginning on January 1, 2022. We do not anticipate any significant impacts on our consolidated financial statements as a result of this adoption.

INVESTMENT IN HOTEL PROPERTIES

INVESTMENT IN HOTEL PROPERTIES (Tables)	9 Months Ended
	Sep. 30, 2021
INVESTMENT IN HOTEL PROPERTIES
Schedule of investment in hotel properties	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ ​ 2021 ​ 2020 Land and land improvements ​ $ 19,646,518 ​ $ 10,324,772 Building and building improvements ​ 128,246,536 ​ 85,213,846 Furniture, fixtures, and equipment ​ 13,498,597 ​ 8,927,694 Construction in progress ​ ​ 64,009 ​ ​ 990,452 Investment in hotel properties, at cost ​ ​ 161,455,660 ​ 105,456,764 Less: accumulated depreciation ​ (8,158,401) ​ (4,712,578) Investment in hotel properties, net ​ $ 153,297,259 ​ $ 100,744,186
Schedule of acquisitions of hotel properties	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2021 Acquisitions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ of Guest ​ Purchase ​ Transaction ​ ​ ​ ​ % Hotel ​ Property Type ​ Location ​ Acquired ​ Rooms ​ Price ​ Costs ​ Total ​ Interest Courtyard by Marriott Select Service Aurora, CO ​ February 4, 2021 ​ 141 ​ $ 23,610,000 (1) $ 458,129 ​ $ 24,068,129 ​ 100 % Holiday Inn ​ Select Service ​ El Paso, TX ​ May 12, 2021 ​ 175 ​ ​ 10,300,000 (2) ​ 361,019 ​ ​ 10,661,019 ​ 100 % Hilton Garden Inn ​ Select Service ​ Houston, TX ​ August 3, 2021 ​ 182 ​ ​ 19,910,000 (3) ​ 918,353 ​ ​ 20,828,353 ​ 100 % ​ ​ ​ ​ ​ ​ ​ 498 ​ $ 53,820,000 ​ $ 1,737,501 ​ $ 55,557,501 ​ ​ ​ (1) Includes the issuance of 1,103,758 Series T LP Units of the Operating Partnership (2) Includes the issuance of 150,000 Series T LP Units of the Operating Partnership (3) Includes the issuance of 651,611 Series T LP Units of the Operating Partnership ​ The table below outlines the details of the properties acquired during the year ended December 31, 2020. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 2020 Acquisitions ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Number ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Date ​ of Guest ​ Purchase ​ Transaction ​ ​ ​ ​ % Hotel ​ Property Type ​ Location ​ Acquired ​ Rooms ​ Price ​ Costs ​ Total ​ Interest Fairfield Inn & Suites Limited Service Lubbock, TX ​ January 8, 2020 ​ 101 ​ $ 15,150,000 ​ $ 496,431 ​ $ 15,646,431 ​ 100 % Homewood Suites Extended Stay ​ Southaven, MS ​ February 21, 2020 99 ​ 20,500,000 ​ 445,090 ​ 20,945,090 100 % ​ ​ ​ ​ ​ ​ ​ 200 ​ $ 35,650,000 ​ $ 941,521 ​ $ 36,591,521 ​ ​ ​
Schedule of aggregate purchase price for the hotel properties	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2021 ​ 2020 Land and land improvements ​ $ 9,316,027 ​ $ 2,576,166 Building and building improvements ​ 42,134,565 ​ 31,605,174 Furniture, fixtures, and equipment ​ 4,106,909 ​ 3,007,846 Total assets acquired ​ 55,557,501 ​ 37,189,186 ​ ​ ​ ​ ​ ​ ​ Premium on assumed debt ​ — ​ (597,665) Total liabilities assumed ​ ​ — ​ ​ (597,665) Total purchase price (1) ​ ​ 55,557,501 ​ ​ 36,591,521 ​ ​ ​ ​ ​ ​ ​ Assumed mortgage debt ​ ​ — ​ ​ 9,400,772 ​ ​ ​ ​ ​ ​ ​ Net purchase price ​ $ 55,557,501 ​ $ 27,190,749 ​ ​ (1) Total purchase price includes purchase price plus all transaction costs.

DEBT - (Tables)

DEBT - (Tables)	9 Months Ended
	Sep. 30, 2021
DEBT
Schedule of debt outstanding	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Interest ​ ​ ​ Outstanding ​ Outstanding ​ ​ Rate as of ​ ​ ​ Balance as of ​ Balance as of ​ ​ September 30, ​ Maturity ​ September 30, ​ December 31, ​ ​ 2021 ​ Date ​ 2021 ​ 2020 Holiday Inn Express - Cedar Rapids (1) ​ 5.33% 09/01/2024 ​ $ 5,858,134 ​ $ 5,858,134 Hampton Inn & Suites - Pineville ​ 5.13% 06/06/2024 ​ 8,831,400 ​ 8,973,775 Hampton Inn - Eagan ​ 4.60% 01/01/2025 ​ 9,317,589 ​ 9,317,589 Home2 Suites - Prattville (1) ​ 4.13% 08/01/2024 ​ 9,481,730 ​ 9,647,085 Home2 Suites - Lubbock ​ 4.69% ​ 10/06/2026 ​ ​ 7,629,568 ​ ​ 7,792,602 Fairfield Inn & Suites - Lubbock ​ 4.93% ​ 04/06/2029 ​ ​ 9,163,645 ​ ​ 9,272,870 Homewood Suites - Southaven (1) ​ 3.70% ​ 03/03/2025 ​ ​ 13,426,272 ​ ​ 13,586,110 Courtyard by Marriott - Aurora ​ 7.00% ​ 02/05/2024 ​ ​ 15,000,000 ​ ​ — Holiday Inn - El Paso ​ 5.00% ​ 05/15/2023 ​ ​ 7,900,000 ​ ​ — Hilton Garden Inn - Houston ​ 3.85% ​ 09/02/2026 ​ ​ 13,947,218 ​ ​ — Total Mortgage Debt ​ ​ ​ ​ ​ 100,555,556 ​ 64,448,165 Premium on assumed debt, net ​ ​ ​ ​ ​ 755,911 ​ 854,928 Deferred financing costs, net ​ ​ ​ ​ ​ ​ (1,935,397) ​ ​ (1,378,374) Net Mortgage ​ ​ ​ ​ ​ ​ 99,376,070 ​ ​ 63,924,719 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ $3.0 million line of credit (2) ​ - ​ 11/22/2020 ​ ​ — ​ ​ — $5.0 million line of credit ​ 4.00% (3) ​ 5/10/2022 ​ ​ 600,000 ​ ​ — Total Lines of Credit ​ ​ ​ ​ ​ ​ 600,000 ​ ​ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ PPP Loan (4) ​ - ​ 4/8/2026 ​ ​ — ​ ​ 763,100 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Debt, net ​ ​ ​ ​ ​ $ 99,976,070 ​ $ 64,687,819 (1) Per the original loan terms, the loan was interest-only for the first 12 months after origination, then monthly principal and interest payments, with a balloon payment at maturity. (2) Variable interest rate equal to U.S. Prime Rate plus 1.00%, with a minimum rate of 5.00% . The line of credit was not renewed. (3) Variable interest rate equal to U.S. Prime Rate plus 0.50% . (4) The Company received forgiveness on the full balance of all PPP loans during the nine months ended September 30, 2021. ​
Schedule of future minimum principal payments	​ ​ ​ ​ ​ 2021 $ 330,715 2022 ​ 2,019,244 2023 ​ 9,522,307 2024 ​ 39,414,692 2025 ​ 21,754,830 Thereafter ​ 28,113,768 ​ ​ ​ 101,155,556 ​ ​ ​ ​ Premium on assumed debt, net ​ 755,911 Deferred financing costs, net ​ (1,935,397) ​ ​ ​ ​ ​ ​ $ 99,976,070

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2021
Legendary Capital REIT III, LLC
Related Party Transactions
Schedule of fees and reimbursements incurred and payable	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Incurred ​ ​ ​ For the Nine Months Ended September 30, ​ ​ ​ 2021 ​ 2020 Fees: ​ ​ ​ ​ Acquisition fees ​ $ 753,480 ​ $ 501,949 ​ Financing fees ​ 753,480 ​ 501,949 ​ Asset management fees ​ 848,237 ​ 617,397 ​ Performance fees ​ ​ — ​ — ​ ​ ​ $ 2,355,197 ​ $ 1,621,295 ​ ​ ​ ​ ​ ​ ​ ​ ​ Reimbursements: ​ ​ ​ ​ Offering costs ​ $ 1,006,775 ​ $ 953,275 ​ General and administrative ​ 2,095,545 ​ 1,831,638 ​ Sales and marketing ​ 146,164 ​ 145,489 ​ Acquisition costs ​ ​ 81,651 ​ ​ 93,038 ​ Other (income) expense, net ​ ​ — ​ ​ (503,180) ​ ​ ​ $ 3,330,135 ​ $ 2,520,260 ​
NHS
Related Party Transactions
Schedule of fees and reimbursements incurred and payable	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Incurred ​ Payable as of ​ ​ For the Nine Months Ended September 30, ​ September 30, ​ December 31, ​ ​ 2021 ​ 2020 ​ 2021 ​ 2020 Fees: ​ ​ ​ ​ ​ ​ ​ ​ ​ Management fees ​ $ 489,107 ​ $ 347,689 ​ $ 63,620 ​ $ 36,509 Administrative fees ​ 91,922 ​ 54,092 ​ 10,717 ​ 5,648 Accounting fees ​ 78,418 ​ 76,472 ​ 10,472 ​ 10,701 ​ ​ $ 659,447 ​ $ 478,253 ​ $ 84,809 ​ $ 52,858 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Reimbursements ​ $ 341,150 ​ $ 213,995 ​ $ 28,859 ​ $ 5,530

ORGANIZATION - (Details)

ORGANIZATION - (Details)	3 Months Ended				9 Months Ended	12 Months Ended
	Sep. 30, 2021USD ($)item$ / sharesshares	Jun. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Mar. 31, 2020USD ($)	Sep. 30, 2021USD ($)segmentitem$ / sharesshares	Dec. 31, 2020USD ($)$ / 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				3
Number of non voting classes of partnership units | item	3				3
Common stock, par value (in dollars per share) | $ / shares	$ 0.01				$ 0.01	$ 0.01
Stock repurchased, original investment					$ 532,200	$ 641,898
Value of stock repurchased	$ 157,028	$ 400,291	$ 474,515	$ 92,000	$ 557,318	$ 590,547
Number of shares repurchased | shares					57,705	64,190
Share redemption proceeds, not yet paid, included in other liabilities	$ 159,033				$ 159,033
Percentage of acquisition fee	1.40%				1.40%
DRIP
Organization
Value of stock repurchased					$ 35,661	$ 16,898
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
Private offering
Organization
Common stock, par value (in dollars per share) | $ / shares									$ 0.01
Maximum offering									$ 100,000,000
Cumulative number of shares issued | shares	8,317,950				8,317,950
Cumulative number of shares issued pursuant to the DRIP | shares	752,038				752,038
Cumulative gross proceeds from issuance of stock	$ 80,300,000				$ 80,300,000
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
Cumulative number of units issued since inception of the Offering | shares	1,623,867				1,623,867
Cumulative gross proceeds from issuance of units since inception of the Offering	$ 11,200,000				$ 11,200,000
Operating Partnership | Common LP Units
Organization
Number of outstanding partnership units | shares	0				0	0
Operating Partnership | Series B Limited Partnership Units
Organization
Number of outstanding partnership units | shares	1,000				1,000	1,000
Operating Partnership | Series T LP Units
Organization
Number of outstanding partnership units | shares	1,905,369				1,905,369	0
Operating Partnership | Series GO LP Units
Organization
Number of outstanding partnership units | shares	1,623,867				1,623,867	654,868

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Advertising Costs
Advertising Expense	$ 757,112	$ 414,586
Management Fees
Management fees (as a percent)	4.00%
Asset management fees (as a percent)	0.75%
Income Taxes
Non eligibility term for REIT non compliance	4 years
Restricted Cash
Restricted Cash
Amount deposited in escrow as earnest money	$ 1,700,000		$ 1,900,000
Land improvements
Investment in Hotel Properties
Estimated useful lives	15 years
Building improvements
Investment in Hotel Properties
Estimated useful lives	15 years
Buildings
Investment in Hotel Properties
Estimated useful lives	40 years
Furniture, fixtures, and equipment | Minimum
Investment in Hotel Properties
Estimated useful lives	3 years
Furniture, fixtures, and equipment | Maximum
Investment in Hotel Properties
Estimated useful lives	7 years

INVESTMENT IN HOTEL PROPERTIE_2

INVESTMENT IN HOTEL PROPERTIES - Summary (Details)	Sep. 30, 2021USD ($)stateroomproperty	Dec. 31, 2020USD ($)
Investment in hotel properties consisted of the following:
Land and land improvements	$ 19,646,518	$ 10,324,772
Building and building improvements	128,246,536	85,213,846
Furniture, fixtures, and equipment	13,498,597	8,927,694
Construction in progress	64,009	990,452
Investment in hotel properties, at cost	161,455,660	105,456,764
Less: accumulated depreciation	(8,158,401)	(4,712,578)
Investment in hotel properties, net	$ 153,297,259	$ 100,744,186
Other disclosures
Number of hotel properties owned | property	10
Aggregate number of rooms in hotel properties | room	1,204
Number of states where hotel properties are owned | state	7

INVESTMENT IN HOTEL PROPERTIE_3

INVESTMENT IN HOTEL PROPERTIES - Acquisitions (Details)	Sep. 02, 2021USD ($)M	Aug. 15, 2021USD ($)	Aug. 03, 2021USD ($)room	May 12, 2021USD ($)room	Feb. 04, 2021USD ($)room	Feb. 21, 2020USD ($)room	Jan. 08, 2020USD ($)room	Sep. 30, 2021USD ($)roomproperty	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)roomproperty
Acquisitions
Number of guest rooms | room								498		200
Purchase Price								$ 53,820,000		$ 35,650,000
Transaction costs								1,737,501		941,521
Total								55,557,501		36,591,521
Other disclosures
Total Cost								$ 153,297,259		$ 100,744,186
Management agreement, automatic renewal term								5 years
Cash paid								$ 2,167,243	$ 27,190,749
Mortgage Debt | Minimum
Other disclosures
Fixed interest rate (as a percent)								3.70%
Mortgage Debt | Maximum
Other disclosures
Fixed interest rate (as a percent)								5.33%
Fairfield Inn & Suites (the "Lubbock Property")
Acquisitions
Number of guest 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 guest rooms | room						99
Purchase Price						$ 20,500,000
Transaction costs						445,090
Total						$ 20,945,090
Interest (as a percent)						100.00%
Other disclosures
Loan amount								$ 7,900,000
Homewood Suites (the "Southaven Property") | Mortgage Debt
Other disclosures
Loan amount						$ 13,500,000
Interest rate (as a percent)								3.70%
Hampton Inn & Suites(the "Pineville Property")
Other disclosures
Amount paid to seller								$ 0
Additional consideration had been made								0
Loan amount								$ 9,300,000
Hampton Inn & Suites(the "Pineville Property") | Mortgage Debt
Other disclosures
Interest rate (as a percent)								5.13%
Courtyard by Marriott (the "Aurora Property")
Acquisitions
Number of guest rooms | room					141
Purchase Price					$ 23,610,000
Transaction costs					458,129
Total					$ 24,068,129
Interest (as a percent)					100.00%
Courtyard by Marriott (the "Aurora Property") | Series T LP Units
Other disclosures
Units issued as consideration					$ 1,103,758
Asset Acquisitions 2021
Other disclosures
Number of hotel properties acquired | property								3
Asset Acquisitions 2020
Other disclosures
Number of hotel properties acquired | property										2
Aurora Hotel Properties
Other disclosures
Total Cost					23,600,000
Aurora Hotel Properties | Series T LP Units
Other disclosures
Units issued as consideration					1,103,758
Contractual consideration					15,000,000
Cash paid					$ 1,900,000
Aurora Hotel Properties | Series T LP Units | Minimum
Other disclosures
Time period for conversion of units					36 months
Aurora Hotel Properties | Series T LP Units | Maximum
Other disclosures
Time period for conversion of units					48 months
Holiday Inn (the "EI Paso Property")
Acquisitions
Purchase Price				$ 10,300,000
Other disclosures
Management fee expressed as a percentage of revenue		3.00%
Monthly accounting fee per the management agreement		$ 1,800
Contractual consideration				7,900,000
Cash paid				300,000
Holiday Inn (the "EI Paso Property") | Mortgage Debt
Other disclosures
Interest rate (as a percent)								5.00%
Holiday Inn (the "EI Paso Property") | Series T LP Units
Other disclosures
Units issued as consideration				$ 150,000
Holiday Inn (the "EI Paso Property") | Series T LP Units | Maximum
Other disclosures
Time period for conversion of units				48 months
Hilton Garden Inn (the "Houston Property")
Acquisitions
Number of guest rooms | room			182	175
Purchase Price			$ 19,910,000	$ 10,300,000
Transaction costs			918,353	361,019
Total			$ 20,828,353	$ 10,661,019
Interest (as a percent)			100.00%	100.00%
Other disclosures
Contractual consideration			$ 13,000,000
Cash paid			$ 719,000
Hilton Garden Inn (the "Houston Property") | Minimum
Other disclosures
Time period for conversion of units			36 months
Hilton Garden Inn (the "Houston Property") | Maximum
Other disclosures
Time period for conversion of units			48 months
Hilton Garden Inn (the "Houston Property") | Original HGI Houston Loan
Other disclosures
Loan amount			$ 13,000,000
Fixed interest rate (as a percent)			7.00%
Hilton Garden Inn (the "Houston Property") | New HGI Houston Loan
Other disclosures
Loan amount	$ 13,900,000
Fixed interest rate (as a percent)	3.85%
Term of loan	5 years
Interest-only payment period	24 months
Principal and interest payment period	35 months
Number of consecutive months of principal and interest payments that meet a specified debt service coverage ratio, for release of the loan guarantee by related party | M	6
Debt service coverage ratio that must be maintained for a specified number of months for release of the loan guarantee by related party	1.2
Hilton Garden Inn (the "Houston Property") | New HGI Houston Loan | Corey Maple
Other disclosures
Related party loan guarantee percentage	50
Hilton Garden Inn (the "Houston Property") | Series T LP Units
Other disclosures
Units issued as consideration			$ 651,611.162	$ 150,000
Hilton Garden Inn (the "Houston Property") | Series T LP Units | Minimum
Other disclosures
Time period for conversion of units				36 months

INVESTMENT IN HOTEL PROPERTIE_4

INVESTMENT IN HOTEL PROPERTIES - Purchase Price Allocation (Details) - Nonrecurring - USD ($)	Sep. 30, 2021	Dec. 31, 2020
2021 Acquisitions
INVESTMENT IN HOTEL PROPERTIES
Land and land improvements	$ 9,316,027
Building and building improvements	42,134,565
Furniture, fixtures, and equipment	4,106,909
Total assets acquired	55,557,501
Total purchase price	55,557,501
Net purchase price	$ 55,557,501
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

DEBT - Lines of Credit (Details

DEBT - Lines of Credit (Details) - Revolving line of credit - USD ($)	9 Months Ended
	Sep. 30, 2021	Mar. 31, 2021	Feb. 10, 2020	Aug. 22, 2018
Debt
Outstanding amount	$ 600,000
Lender One
Debt
Revolving line of credit	3,000,000			$ 3,000,000
Partnership units pledged				300,000
Lender One | Corey Maple
Debt
Line of credit guarantee amount	1,200,000
Lender One | Norman Leslie
Debt
Line of credit guarantee amount	$ 1,200,000
Lender One | Minimum
Debt
Variable interest rate (as a percent)	5.00%			5.00%
Lender One | U.S. Prime Rate
Debt
Basis spread (as a percent)	1.00%
Variable interest rate (as a percent)				1.00%
Lender Three
Debt
Revolving line of credit	$ 5,000,000		$ 5,000,000
Partnership units pledged			100,000
Variable interest rate (as a percent)	4.00%	3.75%
Outstanding amount	$ 600,000
Interest rate (as a percent)	4.00%
Lender Three | U.S. Prime Rate
Debt
Basis spread (as a percent)	0.50%

DEBT - Mortgage Debt and Loans

DEBT - Mortgage Debt and Loans (Details)

Oct. 02, 2020loan

Sep. 25, 2020loan

Apr. 30, 2021USD ($)

Feb. 28, 2021USD ($)loan

Jan. 31, 2021USD ($)loan

Apr. 30, 2020USD ($)loan

Sep. 30, 2021USD ($)loanproperty

Dec. 31, 2020USD ($)

Jul. 31, 2020USD ($)

Feb. 21, 2020USD ($)

Jul. 11, 2019USD ($)

Jun. 19, 2019USD ($)

Mar. 05, 2019USD ($)

Debt

Outstanding balance

$ 101,155,556

Mortgage Debt

Debt

Outstanding balance

$ 100,555,556

$ 64,448,165

Number of properties as security for mortgage debt | property

10

Weighted-average interest rate (as a percent)

4.47%

Number of variable interest rate loans | loan

1

Number of fixed interest rate loans | loan

9

Effective interest rate

7.00%

Mortgage Debt | Minimum

Debt

Fixed interest rate (as a percent)

3.70%

Mortgage Debt | Maximum

Debt

Fixed interest rate (as a percent)

5.33%

Mortgage Debt | LIBOR

Debt

Basis spread (as a percent)

6.00%

Mortgage Debt | LIBOR | Minimum

Debt

Basis spread (as a percent)

1.00%

PPP Loans

Debt

Outstanding balance

$ 716,400

$ 763,100

763,100

Term of loan

5 years

Interest rate (as a percent)

1.00%

1.00%

Interest deferral period

16 months

Number of PPP loans cover period ended | loan

4

2

Prepayment penalties

$ 0

$ 0

Number of unsecured promissory notes | loan

6

Percentage of loan forgiven

100.00%

Number of loans forgiven | loan

6

6

PPP Loans | Minimum

Debt

Term of loan

2 years

PPP Loans | Maximum

Debt

Term of loan

5 years

Southaven TRS | PPP Loans

Debt

Principal amount

$ 85,400

Term of loan

5 years

Interest rate (as a percent)

1.00%

Interest deferral period

16 months

Prepayment penalties

$ 0

Southaven TRS | Second Draw PPP Loan

Debt

Principal amount

$ 119,500

Term of loan

5 years

Interest rate (as a percent)

1.00%

Interest deferral period

16 months

Holiday Inn Express (the "Cedar Rapids Property") | Mortgage Debt

Debt

Outstanding balance

$ 5,858,134

5,858,134

Principal amount

$ 5,900,000

Interest rate (as a percent)

5.33%

Hampton Inn (the "Eagan Property") | Mortgage Debt

Debt

Outstanding balance

$ 9,317,589

9,317,589

Principal amount

$ 9,400,000

Interest rate (as a percent)

4.60%

Home2 Suites (the "Prattville Property")

Debt

Principal amount

$ 9,600,000

Home2 Suites (the "Prattville Property") | Mortgage Debt

Debt

Outstanding balance

$ 9,481,730

9,647,085

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%

Homewood Suites (the "Southaven Property")

Debt

Principal amount

$ 7,900,000

Homewood Suites (the "Southaven Property") | Mortgage Debt

Debt

Outstanding balance

$ 13,426,272

13,586,110

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%

DEBT - Summary of Debt (Details

DEBT - Summary of Debt (Details)	9 Months Ended
	Sep. 30, 2021USD ($)	Mar. 31, 2021	Feb. 28, 2021loan	Jan. 31, 2021USD ($)loan	Dec. 31, 2020USD ($)	Apr. 30, 2020USD ($)	Feb. 10, 2020USD ($)	Aug. 22, 2018USD ($)
Outstanding Debt:
Outstanding balance	$ 101,155,556
Premium on assumed debt, net	755,911				$ 854,928
Deferred financing costs, net	(1,935,397)				(1,378,374)
Debt, net	99,976,070				64,687,819
Revolving line of credit
Outstanding Debt:
Outstanding balance, Line of credit	600,000
Lender One | Revolving line of credit
Outstanding Debt:
Line of credit	$ 3,000,000							$ 3,000,000
Lender One | Revolving line of credit | Minimum
Outstanding Debt:
Interest rate (as a percent)	5.00%							5.00%
Lender One | Revolving line of credit | U.S. Prime Rate
Outstanding Debt:
Interest rate (as a percent)								1.00%
Basis spread (as a percent)	1.00%
Lender Three | Revolving line of credit
Outstanding Debt:
Line of credit	$ 5,000,000						$ 5,000,000
Interest rate (as a percent)	4.00%	3.75%
Outstanding balance, Line of credit	$ 600,000
Lender Three | Revolving line of credit | U.S. Prime Rate
Outstanding Debt:
Basis spread (as a percent)	0.50%
Mortgage Debt
Outstanding Debt:
Outstanding balance	$ 100,555,556				64,448,165
Debt, net	$ 99,376,070				63,924,719
PPP Loans
Outstanding Debt:
Interest rate (as a percent)				1.00%		1.00%
Outstanding balance				$ 716,400	763,100	$ 763,100
Number of loans forgiven | loan			6	6
Holiday Inn Express (the "Cedar Rapids Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)	5.33%
Outstanding balance	$ 5,858,134				5,858,134
Hampton Inn & Suites(the "Pineville Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)	5.13%
Outstanding balance	$ 8,831,400				8,973,775
Hampton Inn (the "Eagan Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)	4.60%
Outstanding balance	$ 9,317,589				9,317,589
Home2 Suites (the "Prattville Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)	4.13%
Outstanding balance	$ 9,481,730				9,647,085
Home2 Suites (the "Lubbock Home2 Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)	4.69%
Outstanding balance	$ 7,629,568				7,792,602
Fairfield Inn & Suites - Lubbock | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)	4.93%
Outstanding balance	$ 9,163,645				9,272,870
Homewood Suites (the "Southaven Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)	3.70%
Outstanding balance	$ 13,426,272				$ 13,586,110
Courtyard by Marriott - Aurora | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)	7.00%
Outstanding balance	$ 15,000,000
Holiday Inn (the "EI Paso Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)	5.00%
Outstanding balance	$ 7,900,000
Hilton Garden Inn (the "Houston Property") | Mortgage Debt
Outstanding Debt:
Interest rate (as a percent)	3.85%
Outstanding balance	$ 13,947,218

DEBT - Future Minimum Payments

DEBT - Future Minimum Payments (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Future minimum payments
2021	$ 330,715
2022	2,019,244
2023	9,522,307
2024	39,414,692
2025	21,754,830
Thereafter	28,113,768
Total	101,155,556
Premium on assumed debt, net	755,911	$ 854,928
Deferred financing costs, net	(1,935,397)	(1,378,374)
Debt, net	$ 99,976,070	$ 64,687,819

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Fair value of financial instruments
Debt	$ 101,155,556
Mortgage Debt
Fair value of financial instruments
Fair value	103,100,000	$ 67,500,000
Debt	$ 100,555,556	$ 64,448,165

INCOME TAXES - Narrative (Detai

INCOME TAXES - Narrative (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Jun. 30, 2020
INCOME TAXES
Income taxes paid	$ 0	$ 0
Uncertain tax positions	0		$ 0
Net deferred tax assets	$ 2,000,000		1,500,000
Deferred tax asset valuation allowance		$ 600,901	$ 0	$ 1,100,000

RELATED PARTY TRANSACTIONS - Na

RELATED PARTY TRANSACTIONS - Narratives (Details)	Sep. 02, 2021USD ($)	Sep. 30, 2021USD ($)shares	Sep. 30, 2020USD ($)shares	Sep. 30, 2021USD ($)$ / room$ / propertyshares	Sep. 30, 2020USD ($)shares	Dec. 31, 2020USD ($)	Aug. 03, 2021USD ($)	Feb. 20, 2020shares	Feb. 10, 2020USD ($)	Aug. 22, 2018USD ($)
Related Party Transactions
Distributions Paid				$ 1,612,660	$ 905,388
Accrued guarantee fees		$ 551,380		551,380
Guarantee fees				230,929
Reimbursements payable		$ 2,931,946		$ 2,931,946		$ 1,904,051
Advisor And Affiliates
Related Party Transactions
Guarantee fees (as a percent)		1.00%		1.00%
Reimbursements payable		$ 2,533,209		$ 2,533,209		1,720,605
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
Corey Maple
Related Party Transactions
Accrued guarantee fees		$ 119,901		$ 119,901
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
Accrued guarantee fees		$ 119,901		$ 119,901
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%
One Rep Construction, LLC
Related Party Transactions
Reimbursements payable		$ 6,171		$ 6,171		34,988
Construction management fee (as a percent)				6.00%
Home2 Suites (the "Prattville Property")
Related Party Transactions
Loan amount		9,600,000		$ 9,600,000
Hotel Property, Alabama
Related Party Transactions
Loan amount		13,500,000		13,500,000
Homewood Suites (the "Southaven Property")
Related Party Transactions
Loan amount		7,900,000		7,900,000
Hampton Inn & Suites(the "Pineville Property")
Related Party Transactions
Loan amount		9,300,000		9,300,000
Hilton Garden Inn (the "Houston Property") | Original HGI Houston Loan
Related Party Transactions
Loan amount							$ 13,000,000
Hilton Garden Inn (the "Houston Property") | New HGI Houston Loan
Related Party Transactions
Loan amount	$ 13,900,000
Hilton Garden Inn (the "Houston Property") | Corey Maple | New HGI Houston Loan
Related Party Transactions
Related party loan guarantee percentage	50
Revolving line of credit | Lender One
Related Party Transactions
Revolving line of credit		3,000,000		3,000,000						$ 3,000,000
Revolving line of credit | Lender One | Corey Maple
Related Party Transactions
Line of credit guarantee amount		1,200,000		1,200,000
Revolving line of credit | Lender One | Norman Leslie
Related Party Transactions
Line of credit guarantee amount		1,200,000		1,200,000
Revolving line of credit | Lender Three
Related Party Transactions
Revolving line of credit		5,000,000		$ 5,000,000					$ 5,000,000
Revolving line of credit | Lender Three | Corey Maple
Related Party Transactions
Partnership units held as collateral | shares								100,000
Advisory Agreement | Legendary Capital REIT III, LLC
Related Party Transactions
Term of advisory agreement				10 years
Acquisition fee (as a percent)				1.40%
Financing fee (as a percent)				1.40%
Asset management fee (as a percent)				0.75%
Refinancing fee (as a percent)				0.75%
Real estate commissions, maximum (as a percent)				5.00%
Annual guarantee fee (as a percent)				1.00%
Annual subordinated performance fee (as a percent)				20.00%
Cumulative return (as a percent)				6.00%
Distributions (as a percent)				5.00%
Distributions as a percent of the limited partners' capital contributions in event of liquidation, termination, merger or other cessation (as a percent)				5.00%
Distributions as a percent of net proceeds from sale of properties in event of liquidation, termination, merger or other cessation (as a percent)				20.00%
Reimbursement after termination of the Offering (as a percent)				15.00%
Distributions payable		$ 75,001	$ 68,141	$ 219,764	194,390
Advisory Agreement | Legendary Capital REIT III, LLC | Maximum
Related Party Transactions
Disposal fee (as a percent)				4.00%
Real estate commissions (as a percent)				3.00%
Advisory Agreement | Legendary Capital REIT III, LLC | Minimum
Related Party Transactions
Disposal fee (as a percent)				0.00%
Advisory Agreement | Legendary Capital REIT III, LLC | Advisor And Affiliates
Related Party Transactions
Distributions payable				$ 547,661		$ 327,897
Advisory Agreement | Legendary Capital REIT III, LLC | Corey Maple
Related Party Transactions
Distributions Paid				$ 29,812	$ 29,812
Number of shares held by shareholders | shares		57,319	57,319	57,319	57,319
Advisory Agreement | Legendary Capital REIT III, LLC | Norman Leslie
Related Party Transactions
Distributions Paid				$ 28,399	$ 28,399
Number of shares held by shareholders | shares		57,319	57,319	57,319	57,319

RELATED PARTY TRANSACTIONS - Le

RELATED PARTY TRANSACTIONS - Legendary Capital (Details) - Advisor And Affiliates - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Related Party Transactions
Fees incurred	$ 2,355,197	$ 1,621,295
Reimbursements incurred	3,330,135	2,520,260
Acquisition Fees
Related Party Transactions
Fees incurred	753,480	501,949
Financing Fees
Related Party Transactions
Fees incurred	753,480	501,949
Asset Management Fees
Related Party Transactions
Fees incurred	848,237	617,397
Offering Costs
Related Party Transactions
Reimbursements incurred	1,006,775	953,275
General and Administrative
Related Party Transactions
Reimbursements incurred	2,095,545	1,831,638
Sales and Marketing
Related Party Transactions
Reimbursements incurred	146,164	145,489
Acquisition Costs
Related Party Transactions
Reimbursements incurred	$ 81,651	93,038
Other (income) expense, net
Related Party Transactions
Reimbursements incurred		$ (503,180)

RELATED PARTY TRANSACTIONS - NH

RELATED PARTY TRANSACTIONS - NHS (Details) - NHS - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Related Party Transactions
Fees incurred	$ 659,447	$ 478,253
Fees payable	84,809		$ 52,858
Reimbursements incurred	341,150	213,995
Reimbursements payable	28,859		5,530
Management Fees
Related Party Transactions
Fees incurred	489,107	347,689
Fees payable	63,620		36,509
Administrative Fees
Related Party Transactions
Fees incurred	91,922	54,092
Fees payable	10,717		5,648
Accounting Fees
Related Party Transactions
Fees incurred	78,418	$ 76,472
Fees payable	$ 10,472		$ 10,701

RELATED PARTY TRANSACTIONS - On

RELATED PARTY TRANSACTIONS - One Rep Construction, LLC (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
One Rep Construction, LLC | Construction Management fees
Related Party Transactions
Fees payable	$ 48,909	$ 176,669

FRANCHISE AGREEMENTS - (Details

FRANCHISE AGREEMENTS - (Details)	9 Months Ended
	Sep. 30, 2021USD ($)
Maximum
Franchise Agreements
Initial term of franchise agreement	18 years
Royalty fee (as a percent)	6.00%
Program fee (as a percent)	4.00%
Initial franchise fee	$ 175,000
Minimum
Franchise Agreements
Initial term of franchise agreement	10 years
Royalty fee (as a percent)	4.00%
Program fee (as a percent)	3.00%
Initial franchise fee	$ 50,000

STOCKHOLDERS' EQUITY - Common S

STOCKHOLDERS' EQUITY - Common Stock (Details)	9 Months Ended
	Sep. 30, 2021Vote$ / sharesshares	Jun. 30, 2021$ / shares	Mar. 31, 2021$ / shares	Dec. 31, 2020$ / sharesshares	Sep. 30, 2020$ / shares	Jun. 30, 2020$ / shares	Apr. 29, 2020USD ($)$ / 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	$ 10	$ 10
Percentage of current share net asset value	95.00%
Interval Common Stock
Stockholders' Equity
Common stock, par value (in dollars per share)							$ 0.01
Number of shares of common stock designated as non-voting shares of Interval Common Stock | shares							7,000,000
Private offering
Stockholders' Equity
Common stock, par value (in dollars per share)								$ 0.01
Common stock, offering price								$ 10
Maximum offering | $								$ 100,000,000
Private offering | Interval Common Stock
Stockholders' Equity
Common stock, par value (in dollars per share)							$ 0.01
Common stock, offering price	$ 10
Maximum offering | $							$ 30,000,000
Number of shares of common stock designated as non-voting shares of Interval Common Stock | shares							7,000,000

STOCKHOLDERS' EQUITY - Distribu

STOCKHOLDERS' EQUITY - Distributions (Details) - $ / shares	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020
STOCKHOLDERS' EQUITY
Common stock dividends per share declared on daily rate basis	$ 0.00191781
Share price (in dollars per share)		$ 10	$ 10	$ 10	$ 10	$ 10
Percentage of distribution in cash or through DRIP	100.00%	60.00%	30.00%	30.00%	30.00%
Percentage of distribution in shares of common stock issued through DRIP		40.00%	70.00%	70.00%	70.00%

STOCKHOLDERS' EQUITY - Share Re

STOCKHOLDERS' EQUITY - Share Repurchase Program (Details) - USD ($)	3 Months Ended				9 Months Ended	12 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Dec. 31, 2020
Stockholders' Equity
Number of shares repurchased					57,705	64,190
Stock repurchased, original investment					$ 532,200	$ 641,898
Value of stock repurchased	$ 157,028	$ 400,291	$ 474,515	$ 92,000	557,318	590,547
Accrued Share Repurchases						24,032
Share redemption proceeds, not yet paid, included in other liabilities	159,033				159,033
Share repurchase plan, amount available for eligible repurchases	$ 3,138,161				3,138,161
DRIP
Stockholders' Equity
Value of stock repurchased					$ 35,661	$ 16,898

STOCKHOLDERS' EQUITY - Interval

STOCKHOLDERS' EQUITY - Interval Common Stock (Details) - $ / shares	9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Jun. 01, 2018
Stockholders' Equity
Common stock, offering price		$ 10	$ 10	$ 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	3,000,000
Maximum number of shares authorized per the offering at the sole direction of the Board of Directors	6,000,000
Common stock, offering price	$ 10

STOCKHOLDERS' EQUITY - Noncontr

STOCKHOLDERS' EQUITY - Noncontrolling Interests (Details) - USD ($)	9 Months Ended
	Sep. 30, 2021	Jun. 15, 2020	Jun. 01, 2018
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 B LP Units
Stockholders' Equity
Number of issued partnership units	1,000
Operating Partnership | Series T LP Units
Stockholders' Equity
Number of issued partnership units	1,905,369
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
Cumulative number of units issued since inception of the Offering	1,623,867
Cumulative gross proceeds from issuance of units since inception of the Offering	$ 11,200,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details)	Sep. 20, 2021USD ($)room	Sep. 14, 2021USD ($)room	Aug. 24, 2021USD ($)room	Nov. 30, 2019USD ($)property	Sep. 30, 2021USD ($)room	Dec. 31, 2020USD ($)room
COMMITMENTS AND CONTINGENCIES
Number of guest rooms | room					498	200
Purchase Price					$ 53,820,000	$ 35,650,000
Legal matter					0
Hampton Inn & Suites(the "Pineville Property")
COMMITMENTS AND CONTINGENCIES
Real estate acquisition, additional consideration					$ 0
Commitment to Purchase Hotel Properties | Pennsylvania Hotel Properties
COMMITMENTS AND CONTINGENCIES
Escrow Deposit				$ 1,500,000
Number of real estate properties to be acquired | property				3
Contractual purchase price				$ 46,900,000
HGI El Paso Contribution Agreement | HGI El Paso Property
COMMITMENTS AND CONTINGENCIES
Number of guest rooms | room			153
Threshold closing cost payable			$ 100,000
Escrow Deposit			50,000
Contractual purchase price			$ 17,600,000
Fargo Contribution Agreement | Fargo Property
COMMITMENTS AND CONTINGENCIES
Number of guest rooms | room		90
Escrow Deposit		$ 50,000
Contractual purchase price		$ 11,400,000
Northbrook Contribution Agreement | Northbrook Property
COMMITMENTS AND CONTINGENCIES
Number of guest rooms | room	161
Escrow Deposit	$ 100,000
Contractual purchase price	$ 11,305,000

SUBSEQUENT EVENTS - (Details)

SUBSEQUENT EVENTS - (Details)	Oct. 29, 2021USD ($)$ / shares	Oct. 21, 2021USD ($)shares	Oct. 20, 2021USD ($)room	Oct. 08, 2021USD ($)	Sep. 30, 2021USD ($)$ / sharesshares	Jun. 30, 2021USD ($)$ / shares	Mar. 31, 2021USD ($)$ / shares	Sep. 30, 2020USD ($)$ / shares	Jun. 30, 2020USD ($)$ / shares	Mar. 31, 2020USD ($)	Sep. 30, 2021USD ($)roomshares	Dec. 31, 2020room$ / sharesshares	Nov. 12, 2021USD ($)shares	Jun. 01, 2018$ / shares
Subsequent Events
Cash distributions					$ 1,500,023	$ 1,465,038	$ 1,430,216	$ 1,368,309	$ 1,313,186	$ 1,204,910
Common stock dividends per share declared on daily rate basis | $ / shares					$ 0.00191781
Share price (in dollars per share) | $ / shares						$ 10	$ 10	$ 10	$ 10			$ 10
Number of shares repurchased | shares											57,705	64,190
Number of guest rooms | room											498	200
Private offering
Subsequent Events
Share price (in dollars per share) | $ / shares														$ 10
Cumulative number of shares issued since inception of the Offering | shares					8,317,950						8,317,950
Cumulative number of shares issued pursuant to the DRIP | shares					752,038						752,038
Cumulative gross proceeds from issuance of stock since inception of the Offering					$ 80,300,000						$ 80,300,000
Private offering | Series GO LP Units
Subsequent Events
Cumulative number of units issued since inception of the Offering | shares					1,623,867						1,623,867
Cumulative gross proceeds from issuance of units since inception of the Offering					$ 11,200,000						$ 11,200,000
Subsequent Event
Subsequent Events
Aggregate distributions				$ 500,000
Cash distributions	$ 298,355			300,000
Distributions pursuant to DRIP	$ 182,604			$ 200,000
Common stock dividends per share declared on daily rate basis | $ / shares	$ 0.00191781
Common stock dividend rate (as a percent)	7.00%
Share price (in dollars per share) | $ / shares	$ 10
Number of shares repurchased | shares		15,927
Amount paid for repurchase of shares		$ 159,033
Subsequent Event | Private offering | Common Stock
Subsequent Events
Cumulative number of shares issued since inception of the Offering | shares													8,382,624
Cumulative number of shares issued pursuant to the DRIP | shares													771,010
Cumulative gross proceeds from issuance of stock since inception of the Offering													$ 80,900,000
Subsequent Event | GO Unit Offering | Series GO LP Units
Subsequent Events
Cumulative number of units issued since inception of the Offering | shares													1,918,966
Cumulative gross proceeds from issuance of units since inception of the Offering													$ 13,300,000
Subsequent Event | Courtyard El Paso Contribution Agreement | Courtyard El Paso Property
Subsequent Events
Number of guest rooms | room			90
Contractual purchase price			$ 15,120,000
Escrow Deposit			$ 50,000