Business Context and Reporting Period
This Form 8-K was filed by Apple REIT Nine, Inc. on June 18, 2009, 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: Sunbelt - CTY, LLC, which owns a newly constructed Courtyard by Marriott in Troy, Alabama.
- Property Specifications: 90 guest rooms; opened on June 18, 2009.
- Purchase Price: $8,696,456.
- Funding Source: Proceeds from the ongoing offering of Units (one common share and one Series A preferred share).
- Financial Performance: The filing does not provide revenue, profit, cash flow, margin, debt, or liquidity metrics for the company.
Material Changes and Related Agreements
This transaction represents the third closing under a series of purchase contracts executed on October 20, 2008, for the potential acquisition of six hotels. The seller has no material relationship with the registrant other than through these contracts. There is no assurance that the remaining closings under the October 2008 agreements will occur.
Guidance, Risks, and Management Commentary
- Outlook: Management notes that future closings under the existing purchase contracts are not guaranteed.
- Risks: The primary contingency is the uncertainty regarding the completion of the remaining hotel acquisitions outlined in the October 2008 agreements.
- Unusual Items: None reported beyond the standard acquisition activity.
Key Facts for Investor Verification
- Verify the status of the remaining three hotel acquisitions under the October 20, 2008 purchase contracts.
- Confirm the capitalization impact of the Unit offering used to fund the $8.7 million purchase.
- Review the October 16, 2008 Form 8-K for detailed terms of the original purchase agreements.
- Assess the operational performance of the newly opened 90-room Courtyard by Marriott in Troy, Alabama.