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Derivative Instruments
 12 Months Ended
Dec. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
Interest Rate Derivatives—We are exposed to risks arising from our business operations, economic conditions and financial markets. To manage these risks, we primarily use interest rate derivatives to hedge our debt and our cash flows, which include interest rate caps. All derivatives are recorded at fair value. Payments from counterparties on in-the-money interest rate caps are recognized as realized gains on our consolidated statements of operations.
The following table summarizes the interest rate derivatives we entered into over the applicable periods:
Year Ended December 31,
Interest rate caps:(1)
202420232022
Notional amount (in thousands)$935,280 $537,780 $776,500 
Strike rate low end of range3.50 %3.50 %3.50 %
Strike rate high end of range8.00 %5.25 %4.50 %
Effective date range
January 2024 - December 2024
January 2023 - December 2023
February 2022 - December 2022
Termination date rangeJanuary 2025 - August 2026
January 2024 - January 2026
May 2023 - January 2025
Total cost of interest rate caps (in thousands)$1,592 $5,051 $3,030 
_______________
(1)    No instruments were designated as cash flow hedges.
Interest rate derivatives consisted of the following:
Interest rate caps: (1)
December 31, 2024December 31, 2023
Notional amount (in thousands)$1,185,880 $778,280 
Strike rate low end of range3.50 %2.00 %
Strike rate high end of range8.00 %5.25 %
Termination date range
January 2025 - August 2026
June 2024- January 2025
Aggregate principal balance on corresponding mortgage loans (in thousands)$1,074,693 $777,693 
_______________
(1)No instruments were designated as cash flow hedges.
Warrants—On August 5, 2021, as part of the consideration paid to acquire the Cameo Beverly Hills (formerly known as the Mr. C Beverly Hills Hotel) and five adjacent luxury residences, the Company issued 500,000 warrants for the purchase of Braemar common stock with a $6.00 strike price on or after August 5, 2021 until August 5, 2024. The warrants expired worthless on August 5, 2024.