Investment in Unconsolidated Entity

3 Months Ended

Mar. 31, 2022

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 investment in OpenKey, which is controlled and consolidated by Ashford Inc., for an initial 8.2% ownership interest. All investments were recommended by our Related Party Transactions Committee and unanimously approved by the independent members of our board of directors. As of March 31, 2022, the Company has made investments in OpenKey totaling $2.6 million.

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 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 three months ended March 31, 2022 and 2021.

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


	March 31, 2022			December 31, 2021
Carrying value of the investment in OpenKey (in thousands)	$	1,617		$	1,689
Ownership interest in OpenKey	7.8		%	7.8		%

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


	Three Months Ended March 31,
Line Item		2022		2021
Equity in earnings (loss) of unconsolidated entity		$	(72)	$	(64)