XML 28 R17.htm IDEA: XBRL DOCUMENT
v3.23.2

Summary of Fair Value of Financial Instruments | 6 Months Ended
--- | ---
Jun. 30, 2023
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 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, 2023 |  | December 31, 2022
|  | Carrying Value |  | Estimated Fair Value |  | Carrying Value |  | Estimated Fair Value
Financial assets measured at fair value: |  |  |  |  |  |  |  |
Derivative assets |  | $ | 6,308 |  |  | $ | 6,308 |  |  | $ | 6,482 |  |  | $ | 6,482 |
Financial liabilities measured at fair value: |  |  |  |  |  |  |  |
Derivative liabilities |  | $ | 165 |  |  | $ | 165 |  |  | $ | 284 |  |  | $ | 284 |
Financial assets not measured at fair value: |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 128,025 |  |  | $ | 128,025 |  |  | $ | 261,541 |  |  | $ | 261,541 |
Restricted cash |  | 63,439 |  |  | 63,439 |  |  | 54,155 |  |  | 54,155 |
Accounts receivable, net |  | 32,864 |  |  | 32,864 |  |  | 51,448 |  |  | 51,448 |
Due from related parties, net |  | 333 |  |  | 333 |  |  | 938 |  |  | 938 |
Due from third-party hotel managers |  | 15,430 |  |  | 15,430 |  |  | 26,625 |  |  | 26,625 |
Financial liabilities not measured at fair value: |  |  |  |  |  |  |  |
Indebtedness |  | $ | 1,138,528 |  |  | $1,050,061 to $1,160,595 |  | $ | 1,337,250 |  |  | $1,229,671 to $1,359,110
Accounts payable and accrued expenses |  | 135,096 |  |  | 135,096 |  |  | 133,978 |  |  | 133,978 |
Dividends and distributions payable |  | 8,917 |  |  | 8,917 |  |  | 8,184 |  |  | 8,184 |
Due to Ashford Inc. |  | 4,558 |  |  | 4,558 |  |  | 10,005 |  |  | 10,005 |
Due to third-party hotel managers |  | 1,579 |  |  | 1,579 |  |  | 2,096 |  |  | 2,096 |
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 related parties, net, accounts payable and accrued expenses, dividends and distributions payable, due to Ashford Inc. 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. Derivative assets and derivative liabilities. See notes 7 and 8 for a complete description of the methodology and assumptions utilized in determining fair values. Indebtedness, net. 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 92.2% to 101.9% of the carrying value of $1.1 billion at June 30, 2023, and approximately 92.0% to 101.6% of the carrying value of $1.3 billion at December 31, 2022. These fair value estimates are 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: | dtr-types: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