Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2020

The following table summarizes the revenues related to Braemar (in thousands):



	Three Months Ended March 31,
	2020		2019
REVENUE BY TYPE
Advisory services revenue:
Base advisory fee	$	2,620	$	2,577
Incentive advisory fee ⁽¹⁾	170		170
Other advisory revenue ⁽²⁾	129		128
Total advisory services revenue	2,919		2,875

Hotel management:
Base management fees ⁽³⁾	355		—

Project management revenue⁽⁴⁾	743		2,371
Audio visual revenue ⁽⁵⁾	—		—

Other revenue
Debt placement fees ⁽⁶⁾	—		275
Claims management services ⁽⁷⁾	38		30
Lease revenue ⁽⁸⁾	—		84
Other services ⁽⁹⁾	422		269
Total other revenue	460		658

Cost reimbursement revenue	6,870		2,314

Total revenues	$	11,347	$	8,218

REVENUE BY SEGMENT ⁽¹⁰⁾
REIT advisory	$	5,346	$	4,927
Remington	4,217		—
Premier	1,093		2,747
OpenKey	60		20
Corporate and other	631		524
Total revenue	$	11,347	$	8,218

COST OF REVENUES
Cost of audio visual revenues ⁽⁵⁾	$	447	$	86

SUPPLEMENTAL REVENUE INFORMATION
Audio visual revenues from guests at REIT properties ⁽⁵⁾	$	1,005	$	183

________

⁽¹⁾

Incentive advisory fee for the three months ended March 31, 2020, includes the pro-rata portion of the third year installment of the 2018 incentive advisory fee, which will be paid in January 2021, and for the three months ended March 31, 2019, includes the pro-rata portion of the second year installment of the 2018 incentive advisory fee, which was paid in January 2020. Incentive fee payments are subject to meeting the December 31 FCCR Condition each year, as defined in the Braemar advisory agreement. Braemar’s annual total stockholder return did not meet the relevant incentive fee thresholds during the 2019 and 2017 measurement periods. See note 3.


⁽²⁾	In connection with our Fourth Amended and Restated Braemar Advisory Agreement, a $5.0 million cash payment was made by Braemar upon approval by Braemar’s stockholders, which is recognized over the 10-year initial term.

⁽³⁾

Hotel management revenue is reported within our Remington segment. Base management fees are recognized when services have been rendered. Remington receives base management fees of 3% of gross hotel revenues for managing the hotel employees and daily operations of the hotels, subject to a specified floor (which is subject to increase annually based on increases in the consumer price index).See note 3 for discussion of the hotel management revenue recognition policy.

⁽⁴⁾

Project management revenue primarily consists of revenue generated within our Premier segment by providing design, development, architectural, and project management services for which Premier receives fees. Project management revenue also includes revenue from reimbursable costs related to accounting, overhead and project manager services provided to projects owned by affiliates of Ashford Trust, Braemar and other owners. See note 3 for discussion of the project management revenue recognition policy.

⁽⁵⁾

JSAV primarily contracts directly with customers to whom it provides audio visual services. JSAV recognizes the gross revenue collected from their customers by the hosting hotel or venue. Commissions retained by the hotel or venue, including Braemar, are recognized in “cost of revenues for audio visual” in our condensed consolidated statements of operations.See note 3 for discussion of the audio visual revenue recognition policy.


⁽⁶⁾	Debt placement fees are earned by Lismore for providing debt placement, modification, forbearance and refinancing services.


⁽⁷⁾	Claims management services include revenues earned from providing insurance claim assessment and administration services.

⁽⁸⁾

In connection with our legacy key money transaction with Braemar which commenced prior to 2019, we lease FF&E to Braemar rent-free. Consistent with our accounting treatment prior to adopting ASU 2016-02, other revenue for the three months ended March 31, 2019, includes a portion of the base advisory fee for leases commencing prior to our adoption, which is equal to the estimated fair value of the lease payments that would have been made.


⁽⁹⁾	Other services revenue is primarily associated with other hotel products and services, such as mobile key applications, marine vessel transportation and hypoallergenic premium rooms, provided to Braemar by our consolidated subsidiaries, OpenKey, RED and Pure Wellness.


⁽¹⁰⁾	See note 16 for discussion of segment reporting.

The following table summarizes the revenues and expenses related to Ashford Trust (in thousands):



	Three Months Ended March 31,
	2020		2019
REVENUE BY TYPE
Advisory services revenue:
Base advisory fee	$	8,917	$	8,045

Hotel management:
Base management fees ⁽¹⁾	5,693		—

Project management revenue ⁽²⁾	3,082		4,016
Audio visual revenue ⁽³⁾	—		—

Other revenue
Debt placement fees ⁽⁴⁾	128		1,079
Claims management services ⁽⁵⁾	19		11
Lease revenue ⁽⁶⁾	—		946
Other services ⁽⁷⁾	450		467
Total other revenue	597		2,503

Cost reimbursement revenue	$	68,073	$	7,610

Total revenues	$	86,362	$	22,174

REVENUE BY SEGMENT ⁽⁸⁾
REIT advisory	$	15,608	$	15,689
Remington	65,535		—
Premier	3,942		4,939
OpenKey	99		28
Corporate and other	1,178		1,518
Total revenues	$	86,362	$	22,174

COST OF REVENUES
Cost of audio visual revenues⁽³⁾	$	2,011	$	1,684

SUPPLEMENTAL REVENUE INFORMATION
Audio visual revenues from guests at REIT properties ⁽³⁾	$	4,597	$	3,823

________

⁽¹⁾

⁽²⁾

⁽³⁾

JSAV primarily contracts directly with customers to whom it provides audio visual services. JSAV recognizes the gross revenue collected from their customers by the hosting hotel or venue. Commissions retained by the hotel or venue, including Ashford Trust, are recognized in “cost of revenues for audio visual” in our condensed consolidated statements of operations.See note 3 for discussion of the audio visual revenue recognition policy.


⁽⁴⁾	Debt placement fees are earned by Lismore for providing debt placement, modification, forbearance and refinancing services.^.


⁽⁵⁾	Claims management services include revenues earned from providing insurance claim assessment and administration services.

⁽⁶⁾

In connection with our ERFP Agreements and legacy key money transaction with Ashford Trust, we lease FF&E to Ashford Trust rent-free. Our ERFP leases entered into in 2018 commenced on December 31, 2018. Consistent with our accounting treatment prior to adopting ASU 2016-02, other revenue for the three months ended March 31, 2019, includes a portion of the base advisory fee for leases commencing prior to our adoption, which is equal to the estimated fair value of the lease payments that would have been made.


⁽⁷⁾	Other services revenue is primarily associated with other hotel products and services, such as mobile key applications and hypoallergenic premium rooms, provided to Ashford Trust by our consolidated subsidiaries, OpenKey and Pure Wellness.


⁽⁸⁾	See note 16 for discussion of segment reporting.