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Investment in Unconsolidated Entity
 12 Months Ended
Dec. 31, 2024
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 December 31, 2024, the Company has made equity investments in OpenKey totaling $2.9 million. All investments were recommended by our Related Party Transactions Committee and unanimously approved by the independent members of our board of directors. Our investment is recorded as “investment in unconsolidated entity” in our consolidated balance sheets and is accounted for under the equity method of accounting as we have significant influence over the entity under the applicable accounting guidance.
The following table summarizes our carrying value and ownership interest in OpenKey:
December 31, 2024December 31, 2023
Carrying value of the investment in OpenKey (in thousands)$— $1,416 
Ownership interest in OpenKey7.9 %7.9 %
The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):
Year Ended December 31,
Line Item202420232022
Equity in earnings (loss) of unconsolidated entity$(297)$(273)$(328)
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. 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 February 27, 2024, the Company approved additional funding, together with Ashford Inc., up to $1.0 million in aggregate to OpenKey, allocated pro rata among them. As of December 31, 2024, funding of $79,000 has been made pursuant to the 2024 funding agreement. As of December 31, 2024, the Company has funded a total amount of approximately $317,000.
The following table summarizes our note receivable from OpenKey (in thousands):
Line ItemDecember 31, 2024December 31, 2023
Investment in unconsolidated entity$145 $258 
The following table summarizes the interest income associated with the loan to OpenKey (in thousands):
Year Ended December 31,
Line Item202420232022
Equity in earnings (loss) of unconsolidated entity$40 $20 $— 
We review our investment in OpenKey, which includes our note receivable, 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.
As of December 31, 2024, we determined that the estimated fair value of the investment in OpenKey was less than our carrying amount. During the year ended December 31, 2024, we recorded an impairment charge of $1.1 million associated with the equity investment in OpenKey and an impairment charge of $232,000 associated with the note receivable from OpenKey. The impairment charges are included in “equity in earnings (loss) of unconsolidated entity” in our consolidated statements of operations. There were no impairment charges recorded for the years ended December 31, 2023 and 2022.