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Investment in Unconsolidated Entity | 9 Months Ended
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Sep. 30, 2019
Equity Method Investments and Joint Ventures [Abstract] |
Investment in Unconsolidated Entity | Investment in Unconsolidated Entity Ashford Inc. As of September 30, 2019 and December 31, 2018, we held approximately 195,000 shares of Ashford Inc. common stock. The closing price per share of Ashford Inc. common stock on the NYSE American LLC was $24.24 and $51.90 as of September 30, 2019 and December 31, 2018, respectively. This represented an approximate 7.5% and 8.1% ownership interest in the outstanding common stock of Ashford Inc. for September 30, 2019 and December 31, 2018, respectively. See notes 11, 12 and 19. We have elected to use the fair value option, under the applicable accounting guidance, to account for our investment in Ashford Inc. as the fair value is readily available since Ashford Inc. common stock is traded on a national exchange. The fair value of our investment in Ashford Inc. is included in “investment in Ashford Inc., at fair value” on our condensed consolidated balance sheets, and changes in market value are included in “unrealized gain (loss) on investment in Ashford Inc.” on our condensed consolidated statements of operations. The following tables summarize the condensed consolidated balance sheets as of September 30, 2019 and December 31, 2018, and the condensed consolidated statements of operations for the three and nine months ended September 30, 2019 and 2018, of Ashford Inc. (in thousands): Ashford Inc. Condensed Consolidated Balance Sheets (unaudited)
| September 30, 2019 |  | December 31, 2018
Total assets | $ | 421,837 |  |  | $ | 379,005 |
Total liabilities | 148,779 |  |  | 108,726 |
Series B Convertible Preferred Stock | 202,185 |  |  | 200,847 |
Redeemable noncontrolling interests | 3,641 |  |  | 3,531 |
Total stockholders’ equity of Ashford Inc. | 66,467 |  |  | 65,443 |
Noncontrolling interests in consolidated entities | 765 |  |  | 458 |
Total equity | 67,232 |  |  | 65,901 |
Total liabilities and equity | $ | 421,837 |  |  | $ | 379,005 |
Our investment in Ashford Inc., at fair value | $ | 4,724 |  |  | $ | 10,114 |
Ashford Inc. Condensed Consolidated Statements of Operations (unaudited)
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Total revenue |  | $ | 56,889 |  |  | $ | 41,565 |  |  | $ | 183,675 |  |  | $ | 144,544 |
Total operating expenses |  | (63,690 | ) |  | (53,069 | ) |  | (186,991 | ) |  | (150,214 | )
Operating income (loss) |  | (6,801 | ) |  | (11,504 | ) |  | (3,316 | ) |  | (5,670 | )
Equity in earnings (loss) of unconsolidated entities |  | 464 |  |  | — |  |  | (109 | ) |  | — |
Interest expense and loan amortization cost |  | (531 | ) |  | (419 | ) |  | (1,412 | ) |  | (770 | )
Other income (expense) |  | (20 | ) |  | 25 |  |  | (86 | ) |  | (50 | )
Income tax (expense) benefit |  | 297 |  |  | 13,904 |  |  | (1,429 | ) |  | 11,593 |
Net income (loss) |  | (6,591 | ) |  | 2,006 |  |  | (6,352 | ) |  | 5,103 |
(Income) loss from consolidated entities attributable to noncontrolling interests |  | 101 |  |  | 413 |  |  | 395 |  |  | 704 |
Net (income) loss attributable to redeemable noncontrolling interests |  | 334 |  |  | 968 |  |  | 623 |  |  | 817 |
Net income (loss) attributable to Ashford Inc. |  | $ | (6,156 | ) |  | $ | 3,387 |  |  | $ | (5,334 | ) |  | $ | 6,624 |
Preferred dividends |  | (2,909 | ) |  | (1,675 | ) |  | (8,492 | ) |  | (1,675 | )
Amortization of preferred stock discount |  | (363 | ) |  | (303 | ) |  | (1,338 | ) |  | (303 | )
Net income attributable to common stockholders |  | $ | (9,428 | ) |  | $ | 1,409 |  |  | $ | (15,164 | ) |  | $ | 4,646 |
Our unrealized gain (loss) on investment in Ashford Inc. |  | $ | (1,471 | ) |  | $ | 2,158 |  |  | $ | (5,390 | ) |  | $ | (3,338 | )
OpenKey On March 28, 2018, the Company made a $2.0 million investment in OpenKey, which is controlled and consolidated by Ashford Inc., for an 8.2% ownership interest, which investment was recommended by our Related Party Transactions Committee and unanimously approved by the independent members of our board of directors. In 2019, we made additional investments of $332,000 which was recommended by our Related Party Transactions Committee and unanimously approved by the independent members of our board of directors. As of September 30, 2019, the Company has made investments in OpenKey totaling $2.3 million. OpenKey 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 “investment in unconsolidated entity” in our condensed 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 OpenKey:
| September 30, 2019 |  | December 31, 2018
Carrying value of the investment in OpenKey (in thousands) | $ | 1,949 |  |  | $ | 1,766 |
Ownership interest in OpenKey | 8.6 | % |  | 8.2 | %
The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
Line Item |  | 2019 |  | 2018 |  | 2019 |  | 2018
Equity in earnings (loss) of unconsolidated entity |  | $ | (48 | ) |  | $ | (81 | ) |  | $ | (149 | ) |  | $ | (146 | )

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section S99 -Paragraph 4 -Subparagraph (SX 210.3A-04) -URI http://asc.fasb.org/extlink&oid=116822174&loc=d3e355119-122828 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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