Another Deadline Missed: Lodging REIT III Expects Significant Change in Results of Operations

Lodging Fund REIT III, Inc. said this week that it cannot file its second-quarter report on time, marking the second consecutive quarter the nontraded hotel real estate investment trust has missed a reporting deadline.

The company said in the notice that its first-quarter 2026 report also remains outstanding, along with its annual report for fiscal 2025, which was itself filed roughly six weeks late in May. The notice gave no explanation for the delay beyond saying that completing the report without unreasonable effort or expense wasn’t possible. The company also said it expects a significant change in its results of operations compared with the same quarter last year, but said it isn’t yet able to estimate the size or direction of that change because the underlying financial statements haven’t been finalized.

Late filings are not new for the REIT. Lodging Fund REIT III went nearly two years without filing a timely quarterly or annual report between late 2022 and mid-2024, a stretch that began shortly after the U.S. Securities and Exchange Commission sent a Wells notice to the company’s external adviser, Legendary Capital REIT III, LLC, and to the REIT’s then-chief executive officer, Corey Maple, over an investigation into expense reimbursement and accounting practices. The company did not resume filing on schedule until August 2024, when it caught up on a backlog of overdue quarterly reports in a single week.

Maple resigned as chief executive in May 2023, remaining chairman, and was succeeded by Norman H. Leslie. The SEC investigation concluded that September, when Maple and the affected advisers agreed to pay nearly $5 million in disgorgement, interest, and penalties over improperly billed overhead expenses at Lodging Fund REIT III and an affiliated fund.

The REIT resumed filing largely on schedule through 2025. It also stopped paying distributions to common stockholders in August 2025, a decision that AltsWire reported in May and that the company has described as a cash-conservation measure ahead of a potential sale of the fund.

Lodging Fund REIT III is based in Fargo, N.D., and is advised by Legendary Capital REIT III, LLC. The company holds 14 hotel properties concentrated in the Midwest, South, and Mountain West, operating under Marriott, Hilton, and IHG flags.

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