Business Context and Reporting Period
This Form 8-K was filed by Apple REIT Nine, Inc. on December 4, 2008. The report details the completion of an asset acquisition by the Company, a real estate investment trust focused on hotel properties.
Key Financial Metrics and Transaction Details
- Asset Acquired: A 122-room Homewood Suites hotel located in Durham, North Carolina.
- Purchase Price: $19,050,000.
- Funding Source: Proceeds from the Company's ongoing offering of Units (consisting of one common share and one Series A preferred share).
- Related Party Status: The seller has no material relationship with the Company other than through the purchase contract.
Material Changes
The primary material change reported is the expansion of the Company's portfolio through the acquisition of the Durham, North Carolina property. No other material changes to financial position or operations are disclosed in this specific filing.
Guidance, Outlook, and Risks
The filing does not provide 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 within the required time period. Pro forma financial information is also noted to be filed later.
Investor Verification Checklist
- Verify the final purchase price of $19,050,000 and confirm no subsequent adjustments.
- Review the upcoming amended filings for the acquired hotel's historical financial statements.
- Monitor the Company's ongoing Unit offering to confirm the capital raised supports this and future acquisitions.
- Check the referenced Form 8-K dated October 10, 2008, for additional details on the purchase contract.