Company Overview Summary

Company Name

Lodging Fund REIT III, Inc.

Business Purpose

• Primarily acquires and manages a diversified portfolio of hotel properties across the United States.
• Focuses on mid-market, branded hotel properties in "America's Heartland" (geographic area from North Dakota to Texas and Appalachian Mountains to Rocky Mountains).

Structure and Operations

• Formed on April 9, 2018, as a Maryland corporation.
• Operates through the Operating Partnership (Lodging Fund REIT III OP, LP), of which it is the sole general partner.
• Managed by Legendary Capital REIT III, LLC (the "Advisor"), which performs acquisition, financing, disposition, and asset management services.
• No direct employees; services provided by the Sponsor (Legendary Capital, LLC) employees.

Hotel Portfolio

• As of December 31, 2024:
  • Number of hotel properties owned: 17 hotel properties
  • Additional interest: Equity and profits interest in the parent entity holding a leasehold interest in 1 hotel property (El Paso University Property)
  • Total properties consolidated: 18 hotels
  • Total rooms: 2,150 rooms
  • Locations: 10 states, including Iowa, Minnesota, Alabama, Texas, Mississippi, Colorado, Illinois, North Dakota, North Carolina, Kansas
  • Types of properties: Primarily limited-service, select-service, full-service, and extended-stay hotels
  • Ownership interest: 100% ownership interests in most properties, with some equity interests (e.g., 24.9% in El Paso University Property)

Capital Raising

• Conducts a private offering (the "Offering") since June 1, 2018:
  • Maximum target: Initially up to $150 million, extended to May 31, 2026
  • Shares issued as of December 31, 2024: 10,298,999 shares
  • Proceeds raised: $100.7 million gross, approximately $84.9 million net after costs
• Other offerings:
  • Series GO LP Units: 3,124,503 units sold, $21.5 million gross
  • Series GO II LP Units: 507,335 units sold, $3.8 million gross
  • Series P Preferred Units: 35 units sold, $0.4 million gross
  • Common LP Units: 612,100 units issued
• No public market exists for shares; offered privately to accredited investors.

Management and Operations

• Hotels managed via third-party property managers:
  • Until February 2025, managed by National Hospitality Services (NHS)
  • As of February 10, 2025, switched to Hotel Equities Group, LLC and other third-party managers
• Leases hotel properties to wholly-owned subsidiaries (TRS Lessees), which operate the hotels under franchise agreements.

Revenue & Income

• 2024 total revenue: Not specifically provided
• 2024 net loss: $29.9 million
• 2024 net cash used in operations: $1.5 million
• Distributions paid (2024): $3.4 million (cash and stock distributions)
• Distributions paid (2023): $7.0 million
• No public market for shares, no liquidity event or guaranteed liquidation date.

Key Strategic Initiatives

• Target acquisition of hotels with strong brands (Marriott, Hilton, IHG, Hyatt)
• Focus on diversification by geography, brand, and asset type
• Exit strategy: plans to sell portfolio when market conditions favor, potentially as early as 2025
• Has authorized management to pursue a sale or merger

Other Key Details

• No direct employees; services provided by affiliated personnel
• Focused on hotel assets, with no diversification into other real estate types
• Distributes at least 90% of REIT taxable income annually
• Continues to raise capital via private placements, with no intention of listing shares publicly

Note: Financial specifics such as current revenue figures are not provided; the company's primary financials relate to the net loss of $29.9 million in 2024, capital raised (~$84.9 million net), and total distributions of $3.4 million in 2024.