Investment in Unconsolidated Entity

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entities

OpenKey, 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 entities” 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. In 2021, the Company made additional investments of $500,000 in OpenKey. As of December 31, 2021, the Company has made investments in OpenKey totaling approximately $5.5 million.

In November of 2021, the Company made an initial investment of $8.5 million in 815 Commerce MM, which is developing the Le Meridien Fort Worth.

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


	December 31, 2021			December 31, 2020
Carrying value of the investment in OpenKey (in thousands)	$	2,771		$	2,811
Ownership interest in OpenKey	16.7		%	17.5		%
Carrying value of the investment in 815 Commerce MM (in thousands)	$	8,482		$	—
Ownership interest in 815 Commerce MM	32.5		%	—		%

The following table summarizes our equity in earnings (loss) of unconsolidated entities (in thousands):


	Year Ended December 31,
		2021		2020		2019
OpenKey		$	(540)	$	(448)	$	(411)
815 Commerce MM		(18)		—		—

We review our investments in OpenKey and 815 Commerce MM for impairment 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 years ended December 31, 2021, 2020 and 2019.