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Summary of Fair Value of Financial Instruments | 9 Months Ended
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Sep. 30, 2022
Investments, All Other Investments [Abstract] |
Summary of Fair Value of Financial Instruments | Summary of Fair Value of Financial Instruments Determining estimated fair values of our financial instruments such as notes receivable and indebtedness requires considerable judgment to interpret market data. Market assumptions and/or estimation methodologies used may have a material effect on estimated fair value amounts. Accordingly, estimates presented are not necessarily indicative of amounts at which these instruments could be purchased, sold, or settled. Carrying amounts and estimated fair values of financial instruments, for periods indicated, were as follows (in thousands):
| September 30, 2022 |  | December 31, 2021
| Carrying Value |  | Estimated Fair Value |  | Carrying Value |  | Estimated Fair Value
Financial assets measured at fair value: |  |  |  |  |  |  |
Derivative assets | $ | 20,187 |  |  | $ | 20,187 |  |  | $ | 501 |  |  | $ | 501 |
Financial liabilities measured at fair value: |  |  |  |  |  |  |
Embedded debt derivative | $ | 23,278 |  |  | $ | 23,278 |  |  | $ | 27,906 |  |  | $ | 27,906 |
Financial assets not measured at fair value: |  |  |  |  |  |  |
Cash and cash equivalents | $ | 505,533 |  |  | $ | 505,533 |  |  | $ | 592,110 |  |  | $ | 592,110 |
Restricted cash | 132,055 |  |  | 132,055 |  |  | 99,534 |  |  | 99,534 |
Accounts receivable, net | 58,601 |  |  | 58,601 |  |  | 37,720 |  |  | 37,720 |
Notes receivable, net | 4,975 |  |  | 4,726 to 5,224 |  | 8,723 |  |  | 8,287 to 9,159
Due from Ashford Inc., net | 1,761 |  |  | 1,761 |  |  | 25 |  |  | 25 |
Due from related parties, net | 6,597 |  |  | 6,597 |  |  | 7,473 |  |  | 7,473 |
Due from third-party hotel managers | 27,361 |  |  | 27,361 |  |  | 26,896 |  |  | 26,896 |
Financial liabilities not measured at fair value: |  |  |  |  |  |  |
Indebtedness | $ | 3,813,305 |  |  | $3,481,207 to $3,847,648 |  | $ | 3,851,845 |  |  | $3,407,210 to $3,765,858
Accounts payable and accrued expenses | 135,967 |  |  | 135,967 |  |  | 117,650 |  |  | 117,650 |
Accrued interest payable | 10,577 |  |  | 10,577 |  |  | 15,432 |  |  | 15,432 |
Dividends and distributions payable | 3,103 |  |  | 3,103 |  |  | 3,104 |  |  | 3,104 |
Due to related parties, net | — |  |  | — |  |  | 728 |  |  | 728 |
Due to third-party hotel managers | 727 |  |  | 727 |  |  | 1,204 |  |  | 1,204 |
Cash, cash equivalents and restricted cash. These financial assets bear interest at market rates and have original maturities of less than 90 days. The carrying value approximates fair value due to their short-term nature. This is considered a Level 1 valuation technique. Accounts receivable, net, accounts payable and accrued expenses, accrued interest payable, dividends and distributions payable, due to/from related parties, net, due to/from Ashford Inc., net and due to/from third-party hotel managers. The carrying values of these financial instruments approximate their fair values due to their short-term nature. This is considered a Level 1 valuation technique. Notes receivable, net. The carrying amount of notes receivable, net approximates its fair value. We estimate the fair value of the notes receivable, net to be approximately 95.0% and 105.0% of the carrying value of $5.0 million at September 30, 2022 and approximately 95.0% to 105.0% of the carrying value of $8.7 million as of December 31, 2021. Derivative assets and embedded debt derivative. See notes 9 and 10 for a complete description of the methodology and assumptions utilized in determining fair values. Indebtedness. Fair value of indebtedness is determined using future cash flows discounted at current replacement rates for these instruments. Cash flows are determined using a forward interest rate yield curve. Current replacement rates are determined by using the U.S. Treasury yield curve or the index to which these financial instruments are tied and adjusted for credit spreads. Credit spreads take into consideration general market conditions, maturity, and collateral. We estimated the fair value of total indebtedness to be approximately 91.3% to 100.9% of the carrying value of $3.8 billion at September 30, 2022 and approximately 88.5% to 97.8% of the carrying value of $3.9 billion at December 31, 2021. These fair value estimates are considered a Level 2 valuation technique.

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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- References No definition available. + Details
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