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Related Party Transactions
 6 Months Ended
Jun. 30, 2016
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
Ashford LLC, a subsidiary of Ashford Inc., acts as our advisor, and as a result, we pay advisory fees to Ashford LLC. We are required to pay Ashford LLC a quarterly base fee that is a percentage of our total market capitalization on a declining sliding scale, subject to a minimum quarterly base fee, as payment for managing our day-to-day operations in accordance with our investment guidelines. We are also required to pay Ashford LLC an incentive fee that is based on our total return performance as compared to our peer group as well as to reimburse Ashford LLC for certain reimbursable overhead and internal audit, insurance claims advisory and asset management services, as specified in the advisory agreement. We also record equity-based compensation expense for equity grants of common stock and LTIP units awarded to our officers and employees of Ashford LLC in connection with providing advisory services equal to the fair value of the award in proportion to the requisite service period satisfied during the period.
The following table summarizes the advisory services fees incurred (in thousands):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2016
 
2015
 
2016
 
2015
Advisory services fee
 
 
 
 
 
 
 
 
Base advisory fee
 
$
2,206

 
$
2,164

 
$
4,231

 
$
4,369

Reimbursable expenses (1)
 
645

 
436

 
1,297

 
982

Equity-based compensation (2) 
 
2,699

 
442

 
2,086

 
911

Incentive fee
 
285

 
—

 
285

 
—

 
 
$
5,835

 
$
3,042

 
$
7,899

 
$
6,262

________
(1) 
Reimbursable expenses include overhead, internal audit, insurance claims advisory and asset management services.
(2)  
Equity-based compensation is associated with equity grants of Ashford Prime’s common stock and LTIP units awarded to officers and employees of Ashford LLC.
At June 30, 2016 and December 31, 2015, the balance in due to Ashford Trust OP, net, which is associated with reimbursable expenses, was $15,000 and $528,000, respectively. At June 30, 2016 and December 31, 2015, the balance in due to Ashford Inc., which is associated with the advisory services fee, was $5.9 million and $6.4 million, respectively.