XML 30 R18.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Summary of Fair Value of Financial Instruments | 6 Months Ended
--- | ---
Jun. 30, 2017
Investments, All Other Investments [Abstract] |
Summary of Fair Value of Financial Instruments | Summary of Fair Value of Financial Instruments Determining the estimated fair values of certain financial instruments such as notes receivable and indebtedness requires considerable judgment to interpret market data. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. Accordingly, the estimates presented are not necessarily indicative of the amounts at which these instruments could be purchased, sold or settled. The carrying amounts and estimated fair values of financial instruments were as follows (in thousands):
|  | June 30, 2017 |  | December 31, 2016
|  | Carrying Value |  | Estimated Fair Value |  | Carrying Value |  | Estimated Fair Value
Financial assets and liabilities measured at fair value: |  |  |  |  |  |  |  |
Investment in Ashford Inc. |  | $ | 9,935 |  |  | $ | 9,935 |  |  | $ | 8,407 |  |  | $ | 8,407 |
Derivative assets |  | 218 |  |  | 218 |  |  | 1,149 |  |  | 1,149 |
Financial assets not measured at fair value: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 129,675 |  |  | $ | 129,675 |  |  | $ | 126,790 |  |  | $ | 126,790 |
Restricted cash |  | 34,793 |  |  | 34,793 |  |  | 37,855 |  |  | 37,855 |
Accounts receivable, net |  | 18,607 |  |  | 18,607 |  |  | 18,194 |  |  | 18,194 |
Note receivable |  | 8,098 |  |  | 8,348 to 9,227 |  |  | 8,098 |  |  | 8,511 to 9,407 |
Due from Ashford Trust OP, net |  | — |  |  | — |  |  | 488 |  |  | 488 |
Due from AQUA U.S. Fund |  | — |  |  | — |  |  | 2,289 |  |  | 2,289 |
Due from related party, net |  | 321 |  |  | 321 |  |  | 377 |  |  | 377 |
Due from third-party hotel managers |  | 8,227 |  |  | 8,227 |  |  | 7,555 |  |  | 7,555 |
Financial liabilities not measured at fair value: |  |  |  |  |  |  |  |
Indebtedness |  | $ | 915,006 |  |  | $863,208 to $954,071 |  |  | $ | 766,964 |  |  | $ 726,774 to $ 803,276 |
Accounts payable and accrued expenses |  | 54,604 |  |  | 54,604 |  |  | 44,791 |  |  | 44,791 |
Dividends and distributions payable |  | 8,356 |  |  | 8,356 |  |  | 5,038 |  |  | 5,038 |
Due to Ashford Trust OP, net |  | 1 |  |  | 1 |  |  | — |  |  | — |
Due to Ashford Inc. |  | 3,889 |  |  | 3,889 |  |  | 5,085 |  |  | 5,085 |
Due to affiliate |  | — |  |  | — |  |  | 2,500 |  |  | 2,500 |
Due to third-party hotel managers |  | 2,583 |  |  | 2,583 |  |  | 973 |  |  | 973 |
Cash, cash equivalents and restricted cash. These financial assets have maturities of less than 90 days and most bear interest at market rates. The carrying value approximates fair value due to their short-term nature. This is considered a Level 1 valuation technique. Accounts receivable, net, due from AQUA U.S. Fund, due from related party, net, accounts payable and accrued expenses, dividends and distributions payable, due to/from Ashford Trust OP, net, due to Ashford Inc., due to affiliate and due to/from third-party hotel managers. The carrying values of these financial instruments approximate their fair values due to the short-term nature of these financial instruments. This is considered a Level 1 valuation technique. Note receivable. Fair value of the note receivable was determined by using similar loans with similar collateral. Since there is very little to no trading activity, we relied on our internal analysis of what we believe a willing buyer would pay for this note at June 30, 2017 and December 31, 2016. We estimated the fair value of the note receivable to be approximately 3.1% to 13.9% higher than the carrying value of $8.1 million at June 30, 2017 and approximately 5.1% to 16.2% higher than the carrying value of $8.1 million at December 31, 2016. This is considered a Level 2 valuation technique. Investment in Ashford Inc. Fair value of the investment in Ashford Inc. is based on the quoted closing price on the balance sheet date. This is considered a Level 1 valuation technique. Derivative assets. Fair value of the interest rate derivatives is determined using the net present value of the expected cash flows of each derivative based on the market-based interest rate curve and adjusted for credit spreads of us and the counterparties. Fair value of interest rate floors is calculated using a third-party discounted cash flow model based on future cash flows that are expected to be received over the remaining life of the floor. The fair values of options on futures contracts are valued at their last reported settlement price as of the measurement date. See notes 2, 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. The 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 the credit spreads. Credit spreads take into consideration general market conditions, maturity and collateral. We estimated the fair value of the total indebtedness to be approximately 94.3% to 104.3% of the carrying value of $915.0 million at June 30, 2017 and approximately 94.8% to 104.7% of the carrying value of $767.0 million at December 31, 2016. This is considered a Level 2 valuation technique.

X
- 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
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsAllOtherInvestmentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration