Business Context and Reporting Period
This Form 8-K was filed by Apple REIT Nine, Inc. on November 2, 2010, reporting the completion of a significant asset acquisition. The transaction involved the purchase of a portfolio of 16 hotels through an indirect wholly-owned subsidiary.
Key Financial Metrics
The total purchase price for the 16 hotels was $291,250,000. The acquired portfolio consists of 2,240 rooms across various locations including Indiana, Arizona, Illinois, Texas, Michigan, Utah, and Florida. The acquisition was funded through the company's ongoing offering of Units, each comprising one common share and one Series A preferred share.
| Location | Franchise | Rooms | Purchase Price |
|---|---|---|---|
| Indianapolis, IN | SpringHill Suites | 130 | $12,800,000 |
| Mishawaka, IN | Residence Inn | 106 | $13,700,000 |
| Phoenix, AZ | Courtyard | 164 | $16,000,000 |
| Phoenix, AZ | Residence Inn | 129 | $14,000,000 |
| Lake Forest/Mettawa, IL | Residence Inn | 130 | $23,500,000 |
| Lake Forest/Mettawa, IL | Hilton Garden Inn | 170 | $30,500,000 |
| Austin, TX | Hilton Garden Inn | 117 | $16,000,000 |
| Novi, MI | Hilton Garden Inn | 148 | $16,200,000 |
| Warrenville, IL | Hilton Garden Inn | 135 | $22,000,000 |
| Schaumburg, IL | Hilton Garden Inn | 166 | $20,500,000 |
| Salt Lake City, UT | SpringHill Suites | 143 | $17,500,000 |
| Austin, TX | Fairfield Inn & Suites | 150 | $17,750,000 |
| Austin, TX | Courtyard | 145 | $20,000,000 |
| Chandler, AZ | Courtyard | 150 | $17,000,000 |
| Chandler, AZ | Fairfield Inn & Suites | 110 | $12,000,000 |
| Tampa, FL | Embassy Suites | 147 | $21,800,000 |
| Total | 2,240 | $291,250,000 |
Material Changes
The filing reports the closing of contracts executed on September 10, 2010. The sellers have no material relationship with the registrant other than through the purchase contracts. This transaction significantly expands the company's hotel portfolio by 2,240 rooms.
Guidance, Outlook, and Risks
Financial statements for the acquired businesses and pro forma financial information are not included in this filing; they will be filed as necessary by amendment within the required time period. The filing does not provide specific forward-looking guidance, risk factors, or management commentary beyond the transaction details.
Investor Verification Checklist
- Verify the future filing of financial statements for the acquired hotels as promised in Item 9.01(a).
- Review the upcoming pro forma financial information to assess the impact on consolidated earnings.
- Confirm the details of the Unit offering used to fund the $291.25 million purchase.
- Check the September 10, 2010 Form 8-K referenced in the text for original contract terms.