Investment in Unconsolidated Entities

3 Months Ended

Mar. 31, 2021

Investment in Unconsolidated Entities [Abstract]

Investment in Unconsolidated Joint Ventures

As of March 31, 2021 and December 31, 2020, the Company owned 50% interests in joint ventures that owned two hotel properties. During the year ended December 31, 2020, one of the unconsolidated joint ventures determined the property ground lease will terminate on October 31, 2021 and the property will revert to the ground lessor at that time.

The Company accounts for the investments in these unconsolidated joint ventures under the equity method of accounting. The Company makes adjustments to the equity in (loss) income from unconsolidated joint ventures related to the difference between the Company's basis in the investment in the unconsolidated joint ventures as compared to the historical basis of the assets and liabilities of the joint ventures. As of March 31, 2021 and December 31, 2020, the unconsolidated entities' debt consisted entirely of non-recourse mortgage debt.

The following table summarizes the components of the Company's investments in unconsolidated joint ventures (in thousands):



	March 31, 2021		December 31, 2020
Equity basis of the joint venture investments	$	(6,664)	$	(6,687)
Cost of the joint venture investments in excess of the joint venture book value	13,329		13,485
Investment in unconsolidated joint ventures	$	6,665	$	6,798

The following table summarizes the components of the Company's equity in (loss) income from unconsolidated joint ventures (in thousands):


	For the three months ended March 31,
		2021		2020
Unconsolidated joint ventures net (loss) income attributable to the Company		$	(142)	$	829
Depreciation of cost in excess of book value		(156)		(280)

Equity in (loss) income from unconsolidated joint ventures		$	(298)	$	549