Investment in Unconsolidated Entity

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated EntityOpenKey, which is controlled and consolidated by Ashford Inc., is a hospitality-focused mobile key platform that provides a universal smart phone app and related hardware and software for keyless entry into hotel guest rooms. Our investment is recorded as a component of “investment in unconsolidated entity” in our consolidated balance sheets and is accounted for under the equity method of accounting as we have been deemed to have significant influence over the entity under the applicable accounting guidance. On July 12, 2021, the Company made an additional investment of $250,000 in OpenKey. As of September 30, 2021, the Company has made investments in OpenKey totaling $5.3 million.We review our investment in OpenKey for impairment in each reporting period pursuant to the applicable authoritative accounting guidance. An investment is impaired when its estimated fair value is less than the carrying amount of the investment. Any impairment is recorded in equity in earnings (loss) of unconsolidated entities. No such impairment was recorded for the three and nine months ended September 30, 2021 and 2020, respectively.

The following table summarizes our carrying value and ownership interest in OpenKey:


	September 30, 2021			December 31, 2020
Carrying value of the investment in OpenKey (in thousands)	$	2,638		$	2,811
Ownership interest in OpenKey	16.7		%	17.5		%

The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
Line Item	2021		2020		2021		2020
Equity in earnings (loss) of unconsolidated entities	$	(145)	$	(121)	$	(423)	$	(279)