Business Context and Reporting Period
This Form 8-K was filed by Apple REIT Nine, Inc. on December 11, 2008, 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 – RHM, LLC, which owns an 84-room Residence Inn hotel in Hattiesburg, Mississippi.
- Purchase Price: $9,793,028.
- Funding Source: Proceeds from the company's ongoing offering of Units (consisting of one common share and one Series A preferred share).
- Revenue/Profit/Cash Flow: The filing text does not provide specific revenue, profit, cash flow, margin, debt, or liquidity figures for the reporting period.
Material Changes and Transaction Context
This acquisition represents the first closing under a series of purchase contracts executed on October 20, 2008, for the potential purchase of entities owning six hotels. The seller has no material relationship with the registrant other than through these contracts. The hotel opened for business on the same day as the closing.
Outlook, Risks, and Contingencies
- Future Closings: There is no assurance that further closings will occur under the remaining purchase contracts for the other five hotels.
- Management Commentary: The filing confirms the subsidiary became the sole member of the limited liability company owning the hotel.
Key Facts for Investor Verification
- Verify the status of the remaining five hotel purchase contracts referenced in the October 20, 2008 agreements.
- Confirm the impact of the $9.79 million acquisition on the company's overall leverage and liquidity ratios.
- Review the performance metrics of the newly acquired 84-room Residence Inn in Hattiesburg, Mississippi.
- Check the volume and pricing of the ongoing Unit offering used to fund this transaction.