Business Context and Reporting Period
This Form 8-K is filed by Apple REIT Nine, Inc. (the "Company") on January 14, 2010, reporting the completion of asset acquisitions under Item 2.01. The Company is a real estate investment trust focused on acquiring and owning hotel properties.
Key Financial Metrics and Transaction Details
The filing details the acquisition of two newly constructed hotels funded through the Company's ongoing offering of Units (consisting of one common share and one Series A preferred share). No consolidated revenue, profit, or cash flow metrics for the Company are provided in this specific filing.
| Property | Location | Brand | Rooms | Acquisition Date | Purchase Price |
|---|---|---|---|---|---|
| Sunbelt – RAG, LLC | Albany, Georgia | Fairfield Inn & Suites by Marriott | 87 | January 14, 2010 | $7,919,790 |
| Sunbelt – RPC, LLC | Panama City, Florida | TownePlace Suites by Marriott | 103 | January 19, 2010 | $10,640,346 |
Total Acquisition Cost: $18,560,136
Material Changes
The Company expanded its portfolio by acquiring two new hotel properties. These transactions represent the final closings under a series of purchase contracts executed on October 20, 2008, which covered the potential purchase of six hotels. The sellers have no material relationship with the Company other than through these purchase contracts.
Outlook, Risks, and Management Commentary
Management notes that the acquired hotels were newly constructed and opened on their respective closing dates. The funding for these acquisitions was sourced from the ongoing offering of Units. The filing incorporates by reference a prior Form 8-K dated October 16, 2008, for additional details regarding the original purchase contracts. No specific forward-looking guidance or risk factors beyond standard transactional disclosures are included in this text.
Key Facts for Investor Verification
- Verify the total capital raised via the Unit offering to confirm sufficient liquidity for the $18.56 million acquisition cost.
- Review the October 16, 2008 Form 8-K to understand the terms of the original contracts for the six-hotel portfolio.
- Confirm the operational status and initial occupancy rates of the two newly opened properties (Fairfield Inn in Albany, GA and TownePlace Suites in Panama City, FL).
- Assess the impact of these acquisitions on the Company's overall leverage and debt-to-equity ratios, as specific debt figures are not provided in this filing.