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):


	March 31, 2026				December 31, 2025
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets measured at fair value:

Derivative assets	$	1,212	$	1,212	$	410	$	410




Financial assets not measured at fair value (1):
Cash and cash equivalents	$	79,809	$	79,809	$	66,816	$	66,816
Restricted cash	141,203		141,203		149,580		149,580
Accounts receivable, net	44,662		44,662		32,879		32,879
Notes receivable, net	12,486		12,486		12,187		12,187


Due from third-party hotel managers	24,535		24,535		25,667		25,667

Financial liabilities not measured at fair value (1):
Indebtedness	$	2,369,044	$	2,369,377	$	2,587,185	$	2,587,088
Indebtedness associated with hotels in receivership	252,000		209,538		272,800		229,172
Accounts payable and accrued expenses	144,447		144,447		125,817		125,817
Accrued interest payable	32,183		32,183		14,347		14,347
Accrued interest associated with hotels in receivership	83,979		83,979		82,338		82,338
Dividends and distributions payable	4,247		4,247		4,247		4,247
Due to Ashford Inc., net	65,914		65,914		40,708		40,708

Due to related parties, net	12,667		12,667		1,958		1,958
Due to third-party hotel managers	1,306		1,306		882		882

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 $2.4 billion at March 31, 2026 and approximately 100.0% of the carrying value of $2.6 billion at December 31, 2025. We estimated the fair value of indebtedness associated with hotels in receivership to be approximately 83.2% of the carrying value of $252.0 million at March 31, 2026 and approximately 84.0% of the carrying value of $272.8 million at December 31, 2025. These fair value estimates are considered a Level 2 valuation technique.