Business Context and Reporting Period
This Form 8-K is filed by Apple REIT Nine, Inc. (a subsidiary of Apple Hospitality REIT, Inc.) on January 29, 2009. The report addresses the termination of a material definitive agreement regarding the acquisition of a hotel property.
Key Financial Metrics and Transaction Details
- Transaction Type: Termination of a hotel purchase contract.
- Property Location: Portsmouth, New Hampshire.
- Original Purchase Price: $15,800,000.
- Debt to be Assumed: $9,698,039.
- Property Size: 126 guest rooms.
- Deposit Recovered: $200,000 (initial deposit repaid to the subsidiary).
Material Changes Versus Prior Period
The filing reports a reversal of a previously announced acquisition. The purchase contract was originally entered into and reported in a Form 8-K dated November 12, 2008. The termination of this specific agreement represents a material change to the company's planned capital deployment and asset portfolio for the period.
Outlook, Management Commentary, and Risks
Management confirmed that while the Portsmouth, New Hampshire contract was terminated, the purchase contracts for seven other hotels reported in the November 12, 2008 filing remain effective. The seller had no material relationship with the company other than the purchase contract. No specific guidance or forward-looking financial projections were provided in this filing.
Key Facts for Investor Verification
- Verify the status of the seven remaining hotel purchase contracts referenced in the November 12, 2008 Form 8-K.
- Confirm the receipt of the $200,000 deposit refund by the subsidiary.
- Review the November 12, 2008 Form 8-K for details on the original acquisition terms and the other pending hotel purchases.
- Note that this filing does not provide updated revenue, profit, or liquidity metrics for the parent company, Apple Hospitality REIT, Inc.