Equity Investments in Real Estate (Tables)

12 Months Ended

Dec. 31, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The following tables present combined summarized financial information of our equity method investments in real estate. Amounts provided are the total amounts attributable to the ventures and do not represent our proportionate share (in thousands):

	2019								2018								2017
	Total		Ritz-Carlton Bacara, Santa Barbara Venture			Ritz-Carlton Key Biscayne Venture			Total		Ritz-Carlton Bacara, Santa Barbara Venture			Ritz-Carlton Key Biscayne Venture			Total		Ritz-Carlton Bacara, Santa Barbara Venture (a)			Ritz-Carlton Key Biscayne Venture
Balance Sheet – As of December 31,
Real estate, net	$	636,372	$	358,723		$	277,649		$	643,145	$	362,386		$	280,759		$	646,943	$	367,035		$	279,908
Other assets	64,130		20,049			44,081			66,027		20,093			45,934			78,059		28,294			49,765
Total assets	700,502		378,772			321,730			709,172		382,479			326,693			725,002		395,329			329,673
Debt	413,538		228,434			185,104			415,973		227,535			188,438			416,335		226,636			189,699
Other liabilities	50,973		30,350			20,623			42,099		23,092			19,007			34,567		16,382			18,185
Total liabilities	464,511		258,784			205,727			458,072		250,627			207,445			450,902		243,018			207,884
Members’ equity	235,991		119,988			116,003			251,100		131,852			119,248			274,100		152,311			121,789
Percentage of ownership in equity investee			60		%	19.3		%			60		%	19.3		%			60		%	19.3		%
Pro-rata equity carrying value	94,382		71,993			22,389			102,126		79,111			23,015			114,892		91,387			23,505
Basis differential adjustment	7,602		5,844			1,758			7,757		5,999			1,758			8,026		6,197			1,829
HLBV adjustment	11,185		—			11,185			11,573		—			11,573			11,820		—			11,820
Carrying value	$	113,169	$	77,837		$	35,332		$	121,456	$	85,110		$	36,346		$	134,738	$	97,584		$	37,154

	2019									2018									2017
	Total			Ritz-Carlton Bacara, Santa Barbara Venture			Ritz-Carlton Key Biscayne Venture			Total			Ritz-Carlton Bacara, Santa Barbara Venture			Ritz-Carlton Key Biscayne Venture			Total			Ritz-Carlton Bacara, Santa Barbara Venture (a)			Ritz-Carlton Key Biscayne Venture
Income Statement – For the year ended December 31,
Hotel revenues	$	174,282		$	83,247		$	91,035		$	179,199		$	81,670		$	97,529		$	99,800		$	15,269		$	84,531
Hotel operating expenses	158,535			78,474			80,061			164,601			79,955			84,646			95,423			18,906			76,517
Other operating expenses	67			8			59			179			86			93			59			52			7
Other income and (expenses) (b)	(21,818		)	(14,203		)	(7,615		)	(20,384		)	(13,494		)	(6,890		)	(14,395		)	(3,161		)	(11,234		)
(Provision for) benefit from income taxes	(410		)	(166		)	(244		)	(141		)	—			(141		)	1,121			(208		)	1,329
Net (loss) income	(6,548		)	(9,604		)	3,056			(6,106		)	(11,865		)	5,759			(8,956		)	(7,058		)	(1,898		)
Percentage of ownership in equity investee				60		%	19.3		%				60		%	19.3		%				60		%	19.3		%
Pro-rata equity in (losses) earnings of equity method investments in real estate	(5,172		)	(5,762		)	590			(6,008		)	(7,119		)	1,111			(4,601		)	(4,235		)	(366		)
Basis differential adjustment	(227		)	(156		)	(71		)	(266		)	(195		)	(71		)	(71		)	—			(71		)
HLBV adjustment	190			—			190			455			—			455			3,190			—			3,190
Equity in (losses) earnings of equity method investments in real estate	$	(5,209	)	$	(5,918	)	$	709		$	(5,819	)	$	(7,314	)	$	1,495		$	(1,482	)	$	(4,235	)	$	2,753

___________

(a) We purchased our 60% interest in this venture on September 28, 2017.

(b) Other income and (expenses) for the years ended December 31, 2019 and 2018 for the Ritz-Carlton Bacara, Santa Barbara Venture is primarily comprised of interest expense related to its outstanding mortgage loans.

The following table sets forth our ownership interests in our equity investments in real estate and their respective carrying values. The carrying values of these ventures are affected by the timing and nature of distributions (dollars in thousands):

Unconsolidated Hotels	State	Number of Rooms	% Owned		Hotel Type	Carrying Value at December 31,
						2019		2018
Ritz-Carlton Bacara, Santa Barbara Venture (a) (b)	CA	358	60	%	Resort	$	77,837	$	85,110
Ritz-Carlton Key Biscayne Venture (c) (d)	FL	443	19.3	%	Resort	35,332		36,346
		801				$	113,169	$	121,456

___________

(a) This investment represents a tenancy-in-common interest; the remaining 40% interest is owned by CWI 1.

(b) We received $1.3 million of net cash distributions from this investment during the year ended December 31, 2019, which included our share of key money received from Marriott during the third quarter of 2019.

(c) CWI 1 acquired a 47.4% interest in the venture on the same date. The remaining 33.3% interest is retained by the original owner. The number of rooms presented includes 141 condo-hotel units that participate in the resort rental program. This investment is considered a VIE (Note 2). We do not consolidate this entity because we are not the primary beneficiary and the nature of our involvement in the activities of the entity allows us to exercise significant influence but does not give us power over decisions that significantly affect the economic performance of the entity.

(d) We received cash distributions of $1.7 million from this investment during the year ended December 31, 2019.

The following table sets forth our share of equity in (losses) earnings from our Unconsolidated Hotels, which is based on the HLBV model, as well as amortization adjustments related to basis differentials from acquisitions of investments (in thousands):

	Years Ended December 31,
	2019			2018			2017
Ritz-Carlton Bacara, Santa Barbara Venture	$	(5,918	)	$	(7,314	)	$	(4,235	)
Ritz-Carlton Key Biscayne Venture	709			1,495			2,753
Total equity in losses of equity method investments in real estate, net	$	(5,209	)	$	(5,819	)	$	(1,482	)