Investment in Unconsolidated Entities

9 Months Ended

Sep. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated EntitiesOpenKey, 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. As of September 30, 2022, the Company has made investments in OpenKey totaling approximately $5.5 million.

As of September 30, 2022, the Company held an investment in 815 Commerce MM of approximately $8.5 million, which is developing the Le Meridien Fort Worth. 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.

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


	September 30, 2022			December 31, 2021
Carrying value of the investment in OpenKey (in thousands)	$	2,320		$	2,771
Ownership interest in OpenKey	15.1		%	16.7		%
Carrying value of the investment in 815 Commerce MM (in thousands)	$	8,482		$	8,482
Ownership interest in 815 Commerce MM	32.5		%	32.5		%

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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
OpenKey	$	(147)	$	(145)	$	(451)	$	(423)

We review our investments in unconsolidated entities 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 impairment charges were recorded during the three and nine months ended September 30, 2022 and 2021.