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Investment in Unconsolidated Entity
3 Months Ended
Mar. 31, 2017
Equity Method Investments and Joint Ventures [Abstract]  
Investment in Unconsolidated Entity
Investment in Unconsolidated Entity
Ashford Inc.
As of March 31, 2017 and December 31, 2016, we held approximately 195,000 shares of Ashford Inc. common stock. The closing price per share was $59.00 and $43.14 as of March 31, 2017 and December 31, 2016, respectively. This represented an approximate 9.7% ownership interest in Ashford Inc. for both March 31, 2017 and December 31, 2016. See notes 10 and 11.
As we exercise significant influence over Ashford Inc., this investment would typically be accounted for under the equity method of accounting, under ASC 323-10 - Investments - Equity Method and Joint Ventures. However, we have elected to record our investment in Ashford Inc. using the fair value option under ASC 825-10 - Fair Value Option - Financial Assets and Financial Liabilities as the fair value is readily available since Ashford Inc. common stock is traded on a national exchange. The fair value of our investment in Ashford Inc. is included in “investment in Ashford Inc., at fair value” on our condensed consolidated balance sheets, and changes in market value are included in “unrealized gain (loss) on investment in Ashford Inc.” on our condensed consolidated statements of operations.
The following tables summarize the condensed balance sheets as of March 31, 2017 and December 31, 2016, and the condensed statements of operations for the three months ended March 31, 2017 and 2016, of Ashford Inc. (in thousands):
Ashford Inc.
Condensed Consolidated Balance Sheets
(unaudited)
 
 
March 31, 2017
 
December 31, 2016
Total assets
 
$
91,154

 
$
129,797

Total liabilities
 
51,278

 
38,168

Redeemable noncontrolling interests
 
1,671

 
1,480

Total stockholders’ equity of Ashford Inc.
 
37,877

 
37,377

Noncontrolling interests in consolidated entities
 
328

 
52,772

Total equity
 
38,205

 
90,149

Total liabilities and equity
 
$
91,154

 
$
129,797

Our investment in Ashford Inc., at fair value
 
$
11,498

 
$
8,407


Ashford Inc.
Condensed Consolidated Statements of Operations
(unaudited)
 
 
 
Three Months Ended March 31,
 
 
 
2017
 
2016
Total revenue
 
 
$
13,013

 
$
13,409

Total operating expenses
 
 
(15,149
)
 
(13,921
)
Operating income (loss)
 
 
(2,136
)
 
(512
)
Realized and unrealized gain (loss) on investment in unconsolidated entity
 
 

 
(1,460
)
Realized and unrealized gain (loss) on investments
 
 
(75
)
 
(5,684
)
Other
 
 
118

 
(102
)
Income tax (expense) benefit
 
 
(630
)
 
(640
)
Net income (loss)
 
 
(2,723
)
 
(8,398
)
(Income) loss from consolidated entities attributable to noncontrolling interests
 
 
(25
)
 
6,548

Net (income) loss attributable to redeemable noncontrolling interests
 
 
363

 
118

Net gain (loss) attributable to Ashford Inc.
 
 
$
(2,385
)
 
$
(1,732
)
Our unrealized gain (loss) on investment in Ashford Inc.
 
 
$
3,091

 
$
(1,493
)