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):


	June 30, 2026				December 31, 2025
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Financial assets measured at fair value:

Derivative assets	$	1,256	$	1,256	$	410	$	410




Financial assets not measured at fair value (1):
Cash and cash equivalents	$	74,955	$	74,955	$	66,816	$	66,816
Restricted cash	136,985		136,985		149,580		149,580
Accounts receivable, net	41,109		41,109		32,879		32,879
Notes receivable, net	12,880		12,880		12,187		12,187

Due from related parties, net	178		178		—		—
Due from third-party hotel managers	24,240		24,240		25,667		25,667

Financial liabilities not measured at fair value (1):
Indebtedness	$	1,987,282	$	1,987,680	$	2,565,214	$	2,565,117
Debt associated with hotels in receivership	273,971		231,509		294,771		251,143
Accounts payable and accrued expenses	119,120		119,120		125,817		125,817
Accrued interest payable	31,508		31,508		12,530		12,530
Accrued interest associated with hotels in receivership	94,327		94,327		84,155		84,155
Dividends and distributions payable	4,247		4,247		4,247		4,247
Due to Ashford Inc., net	53,360		53,360		40,708		40,708

Due to related parties, net	—		—		1,958		1,958
Due to third-party hotel managers	1,157		1,157		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 debt 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 $2.0 billion at June 30, 2026 and approximately 100.0% of the carrying value of $2.6 billion at December 31, 2025. We estimated the fair value of debt associated with hotels in receivership to be approximately 84.5% of the carrying value of $274.0 million at June 30, 2026 and approximately 85.2% of the carrying value of $294.8 million at December 31, 2025. These fair value estimates are considered a Level 2 valuation technique.