Summary of Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2025

Investments, All Other Investments [Abstract]

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, 2025				December 31, 2024
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets measured at fair value:


Investment in securities	$	17,134	$	17,134	$	41,535	$	41,535
Derivative assets	313		313		356		356


Financial assets not measured at fair value:
Cash and cash equivalents	$	80,226	$	80,226	$	135,465	$	135,465
Restricted cash	55,463		55,463		49,592		49,592
Accounts receivable, net	32,673		32,673		31,754		31,754

Note receivable	8,590		8,590		8,283		8,283



Due from third-party hotel managers	24,232		24,232		22,873		22,873
Financial liabilities not measured at fair value:
Indebtedness	$	1,225,507	$	1,226,123	$	1,222,003	$	1,207,420
Accounts payable and accrued expenses	131,142		131,142		143,566		143,566
Dividends and distributions payable	8,627		8,627		9,255		9,255

Due to Ashford Inc., net	2,767		2,767		4,267		4,267
Due to related parties, net	636		636		1,055		1,055
Due to third-party hotel managers	1,919		1,919		1,476		1,476

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 to/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.

Investment in securities. See note 8 for a complete description of the methodology and assumptions utilized in determining fair values.

Note receivable. The carrying amount of note receivable approximates its fair value. This is considered a Level 2 valuation technique.

Derivative assets. See note 8 for a complete description of the methodology and assumptions utilized in determining fair values.

Indebtedness, net. Fair value of indebtedness is determined using the loan terms, collateral value and financial data such as loan-to-value ratios, debt service coverage ratios, and interest rates for comparable loans. We estimated the fair value of the total indebtedness to be approximately 100.1% of the carrying value of $1.2 billion as of June 30, 2025, and approximately 98.8% of the carrying value of $1.2 billion as of December 31, 2024. These fair value estimates are considered a Level 2 valuation technique.