Business Context and Reporting Period
This Form 8-K was filed by Apple REIT Nine, Inc. on November 7, 2008, reporting the completion of an asset acquisition. The registrant is a Virginia corporation focused on hotel real estate investments.
Key Financial Metrics and Transaction Details
- Asset Acquired: Courtyard by Marriott in Bristol, Virginia (175 guest rooms).
- Purchase Price: $18,650,000.
- Assumed Debt: $9,767,131 outstanding principal balance.
- Loan Terms: Fixed annual interest rate of 6.59%, maturing in August 2016, with monthly principal and interest payments.
- Funding Source: The net purchase price (purchase price less assumed loan) was funded through the company's ongoing offering of Units (one common share and one Series A preferred share).
Material Changes
The filing reports a material change in the company's asset portfolio through the addition of the Bristol, Virginia hotel. The seller has no material relationship with the registrant other than the purchase contract. No revenue, profit, or cash flow metrics for the company as a whole are provided in this specific filing.
Guidance, Outlook, and Risks
The filing does not contain forward-looking guidance, management commentary on future outlook, or specific risk factors beyond the standard disclosure that financial statements for the acquired business will be filed as necessary by amendment. The transaction is noted as a shell company transaction: Not Applicable.
Investor Verification Checklist
- Verify the pro forma financial information for the acquired hotel once filed as an amendment.
- Review the purchase contract details referenced in the Form 8-K dated August 7, 2008.
- Confirm the impact of the assumed $9.77 million debt on the company's overall leverage ratios.
- Monitor the performance of the ongoing Unit offering used to fund the net acquisition cost.