Determining estimated fair values of our financial instruments, such as notes receivable and indebtedness, requires considerable judgment to interpret market data. Market assumptions and/or estimation methodologies used may have a material effect on estimated fair value amounts. Accordingly, estimates presented are not necessarily indicative of amounts at which these instruments could be purchased, sold or settled. Carrying amounts and estimated fair values of financial instruments, for periods indicated, were as follows (in thousands):


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

Derivative assets	$	410	$	410	$	2,594	$	2,594

Financial liabilities measured at fair value:
Embedded debt derivative	$	—	$	—	$	29,099	$	29,099

Financial assets not measured at fair value (1):
Cash and cash equivalents	$	66,816	$	66,816	$	112,922	$	112,922
Restricted cash	149,580		149,580		107,553		107,553
Accounts receivable, net	32,879		32,879		36,231		36,231
Notes receivable, net	12,187		12,187		10,565		10,565


Due from third-party hotel managers	25,667		25,667		21,604		21,604

Financial liabilities not measured at fair value (1):
Indebtedness	$	2,587,185	$	2,587,088	$	2,705,981	$	2,695,013
Indebtedness associated with hotels in receivership	272,800		229,172		314,640		257,546
Accounts payable and accrued expenses	125,817		125,817		138,895		138,895
Accrued interest payable	14,347		14,347		10,576		10,576
Accrued interest associated with hotels in receivership	82,338		82,338		52,031		52,031
Dividends and distributions payable	4,247		4,247		3,952		3,952
Due to Ashford Inc., net	40,708		40,708		25,653		25,653

Due to related parties, net	1,958		1,958		2,850		2,850
Due to third-party hotel managers	882		882		1,145		1,145

Cash, cash equivalents and restricted cash. These financial assets bear interest at market rates and have original maturities of less than 90 days. The carrying value approximates fair value due to their short-term nature. This is considered a Level 1 valuation technique.

Accounts receivable, net, accounts payable and accrued expenses, accrued interest payable, accrued interest associated with hotels in receivership, dividends and distributions payable, due to/from related parties, net, due to/from Ashford Inc., net and due to/from third-party hotel managers. The carrying values of these financial instruments approximate their fair values due to their short-term nature. This is considered a Level 1 valuation technique.

Indebtedness and indebtedness associated with hotels in receivership. 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 total indebtedness to be approximately 100.0% of the carrying value of $2.6 billion at December 31, 2025 and approximately 99.6% of the carrying value of $2.7 billion at December 31, 2024. We estimated the fair value of indebtedness associated with hotels in receivership to be approximately 84.0% of the carrying value of $272.8 million at December 31, 2025 and approximately 81.9% of the carrying value of $314.6 million at December 31, 2024. These fair value estimates are considered a Level 2 valuation technique.