Apple REIT Nine, Inc. - Form 8-K Summary
Business Context and Reporting Period
This Current Report (Form 8-K) was filed by Apple REIT Nine, Inc. on March 6, 2009. The filing reports the completion of an asset acquisition involving a hotel property in Round Rock, Texas.
Key Financial Metrics and Transaction Details
- Asset Acquired: Hampton Inn hotel in Round Rock, Texas (93 guest rooms).
- Purchase Price: $11,500,000.
- Assumed Debt: $4,175,225 outstanding principal balance.
- Loan Terms: Fixed annual interest rate of 5.945%; maturity date of May 1, 2016; 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 and Portfolio Status
This transaction represents the fifth closing under a series of purchase contracts executed on November 12, 2008, for the potential purchase of eight hotels. One contract from that series has been terminated. The filing states there can be no assurance that further closings will occur under the remaining contracts.
Guidance, Outlook, and Risks
The filing does not provide specific financial guidance, revenue projections, or management commentary regarding future performance. The primary risk disclosed is the uncertainty regarding the completion of the remaining hotel purchase contracts from the November 2008 agreement. Financial statements and pro forma information for the acquired hotel are to be filed by amendment within the required time period.
Investor Verification Checklist
- Verify the status of the remaining purchase contracts from the November 12, 2008 agreement.
- Review the upcoming amended filing for the acquired hotel's financial statements and pro forma information.
- Confirm the terms of the ongoing Unit offering used to fund the acquisition.