Summary of Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2025

Investments, All Other Investments [Abstract]

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):


	June 30, 2025				December 31, 2024
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets measured at fair value:

Derivative assets	$	2,445	$	2,445	$	2,594	$	2,594

Financial liabilities measured at fair value:
Embedded debt derivative	$	—	$	—	$	29,099	$	29,099

Financial assets not measured at fair value:
Cash and cash equivalents (1)	$	101,275	$	101,275	$	112,922	$	112,922
Restricted cash (1)	154,580		154,580		107,553		107,553
Accounts receivable, net (1)	48,042		48,042		36,231		36,231
Notes receivable, net	11,382		11,382		10,565		10,565


Due from third-party hotel managers	21,813		21,813		21,604		21,604

Financial liabilities not measured at fair value:
Indebtedness (1)	$	2,700,426	$	2,701,198	$	2,705,981	$	2,695,013
Indebtedness associated with hotels in receivership	301,040		248,323		314,640		257,546
Accounts payable and accrued expenses (1)	131,634		131,634		138,895		138,895
Accrued interest payable (1)	20,080		20,080		10,576		10,576
Accrued interest associated with hotels in receivership	69,435		69,435		52,031		52,031
Dividends and distributions payable	4,166		4,166		3,952		3,952
Due to Ashford Inc., net (1)	9,003		9,003		25,653		25,653

Due to related parties, net (1)	2,793		2,793		2,850		2,850
Due to third-party hotel managers	1,401		1,401		1,145		1,145

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(1) Includes balances associated with assets held for sale and liabilities associated with assets held for sale as of June 30, 2025 and December 31, 2024.

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, accrued interest associated with hotels in receivership, 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. This is considered a Level 2 valuation technique.

Derivative assets and embedded debt derivative. See notes 7 and 9 for a complete description of the methodology and assumptions utilized in determining fair values.

Indebtedness and indebtedness associated with hotels in receivership. Fair value of indebtedness is determined using the loan terms, collateral value and financial data such as loan-to-value ratios, debt service coverage ratios, and interest rates for comparable loans. We estimated the fair value of total indebtedness to be approximately 100.0% of the carrying value of $2.7 billion at June 30, 2025 and approximately 99.6% of the carrying value of $2.7 billion at December 31, 2024. We estimated the fair value of indebtedness associated with hotels in receivership to be approximately 82.5% of the carrying value of $301.0 million at June 30, 2025 and approximately 81.9% of the carrying value of $314.6 million at December 31, 2024. These fair value estimates are considered a Level 2 valuation technique.