Company: BHR-PD
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001574085-25-000024
Chunk: 232

Company: Braemar Hotels & Resorts Inc.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 232
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 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, 2023Carrying value of the investment in OpenKey (in thousands)$— $1,416 Ownership interest in OpenKey7.9 %7.9 %The following table summarizes our equity in earnings (loss) in OpenKey (in thousands):Year Ended December 31,Line Item202420232022Equity in earnings (loss) of unconsolidated entity$(297)$(273)$(328)

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BRAEMAR HOTELS & RESORTS INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

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, 2023Investment 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 Item202420232022Equity 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