Investment in Unconsolidated Entity

12 Months Ended

Dec. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

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. In 2018, the Company made an initial $2.0 million investment in OpenKey, which is controlled and consolidated by Ashford Inc., for an initial 8.2% ownership interest. An additional investment of $26,000 was made during the year ended December 31, 2020. All investments were recommended by our Related Party Transactions Committee and unanimously approved by the independent members of our board of directors. As of December 31, 2020, the Company has made investments in OpenKey totaling $2.4 million.

Our investment is recorded as “investment in unconsolidated entity” 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. We review our investment in OpenKey for impairment in 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 entity. No such impairment was recorded for the years ended December 31, 2020, 2019 and 2018.

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


	December 31, 2020			December 31, 2019
Carrying value of the investment in OpenKey (in thousands)	$	1,708		$	1,899
Ownership interest in OpenKey	8.2		%	8.6		%

The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):


	Year Ended December 31,
Line Item		2020		2019		2018
Equity in earnings (loss) of unconsolidated entity		$	(217)	$	(199)	$	(234)