Business Context and Reporting Period
This Form 8-K was filed by Apple REIT Nine, Inc. on June 1, 2009, reporting the completion of an asset acquisition. The registrant is a Virginia corporation operating in the hospitality sector.
Key Financial Metrics and Transaction Details
- Asset Acquired: Sunbelt – GDA, LLC, which owns a newly constructed Hilton Garden Inn in Dothan, Alabama.
- Property Specifications: 104 guest rooms; opened May 21, 2009.
- Purchase Price: $11,600,836.
- Funding Source: Proceeds from the ongoing offering of Units (one common share and one Series A preferred share).
- Revenue, Profit, and Cash Flow: The filing text does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the company or the acquired asset.
Material Changes and Related Agreements
This transaction represents the second 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 further closings under the remaining contracts will occur.
Outlook, Risks, and Management Commentary
Management notes that while two closings have occurred under the October 2008 agreements, future closings are not guaranteed. The filing does not contain specific forward-looking guidance, risk factors beyond the uncertainty of future closings, or discussion of unusual items.
Key Facts for Investor Verification
- Verify the total number of hotels remaining under the October 2008 purchase contracts and the status of those agreements.
- Confirm the capitalization impact of the Unit offering used to fund the $11.6 million purchase.
- Review the October 16, 2008 Form 8-K for full details on the original six-hotel purchase agreement.
- Assess the operational performance of the newly acquired Dothan, Alabama property post-opening.