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Investment in Unconsolidated Entity | 6 Months Ended
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Jun. 30, 2023
Equity Method Investments and Joint Ventures [Abstract] |
Investment in Unconsolidated Entity | Investment in Unconsolidated Entity OpenKey, Inc. (“OpenKey”), which is controlled and consolidated by Ashford Inc., 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. As of June 30, 2023, the Company has made equity investments in OpenKey totaling $2.9 million. All investments were recommended by our Related Party Transactions Committee and unanimously approved by the independent members of our board of directors. 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 and six months ended June 30, 2023 and 2022. The following table summarizes our carrying value and ownership interest in OpenKey:
| June 30, 2023 |  | December 31, 2022
Carrying value of the investment in OpenKey (in thousands) | $ | 1,535 |  |  | $ | 1,689 |
Ownership interest in OpenKey | 7.9 | % |  | 7.9 | %
The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
Line Item |  | 2023 |  | 2022 |  | 2023 |  | 2022 |  |
Equity in earnings (loss) of unconsolidated entity |  | $ | (80) |  |  | $ | (74) |  |  | $ | (154) |  |  | $ | (146) |  |  |
On February 2, 2023, the Company entered into a loan funding agreement with Ashford Inc. and OpenKey. Per the agreement, Ashford Inc. and the Company will provide OpenKey with a maximum loan amount of $5.0 million to be allocated on a pro-rata basis based on current ownership interests and funded quarterly, over the course of 2023. The loan bears interest at an annual rate of 15%. Additionally, repayment of the loan principal and all accrued interest is due upon certain events. On June 9, 2023, the Company funded approximately $59,000. As of June 30, 2023, the Company has funded approximately $158,000. The following table summarizes our note receivable from OpenKey (in thousands):
Line Item |  | June 30, 2023 |  | December 31, 2022
Investment in unconsolidated entity |  | $ | 164 |  |  | $ | — |
The following table summarizes the interest income associated with the loan to OpenKey (in thousands):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
Line Item |  | 2023 |  |  |  | 2023 |  |  |  |
Equity in earnings (loss) of unconsolidated entity |  | $ | 5 |  |  |  |  | $ | 6 |  |  |  |  |

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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 -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 323 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481543/323-740-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org//323/tableOfContent + Details
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