Business Context and Reporting Period
This Form 8-K is filed by Apple REIT Nine, Inc. (a subsidiary of Apple Hospitality REIT, Inc.) for the reporting period of July 1, 2009. The filing reports the completion of an asset acquisition on the same date the acquired properties opened for business.
Key Financial Metrics and Transaction Details
The Company acquired two newly constructed hotels in Orlando, Florida, for a total purchase price of $54,800,000. The transaction added 400 rooms to the portfolio. The purchase was funded through the Company's ongoing offering of Units (consisting of one common share and one Series A preferred share).
| Hotel Location | Franchise | Number of Rooms | Purchase Price |
|---|---|---|---|
| Orlando, Florida | Fairfield Inn & Suites | 200 | $25,800,000 |
| Orlando, Florida | SpringHill Suites | 200 | $29,000,000 |
| TOTAL | - | 400 | $54,800,000 |
The filing does not provide specific revenue, profit, cash flow, margin, debt, or liquidity metrics for the Company or the acquired assets at this time.
Material Changes
The primary material change is the expansion of the Company's asset base through the acquisition of two new hotels. The seller has no material relationship with the Company other than through the purchase contract.
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 references a prior Form 8-K dated November 14, 2008, for additional details regarding the purchase contract. No specific guidance, outlook, or risk factors are detailed in this specific report beyond the standard disclosure of the transaction.
Key Facts for Investor Verification
- Verify the total acquisition cost of $54,800,000 for the two Orlando properties.
- Confirm the funding source was the ongoing offering of Units (common and Series A preferred shares).
- Monitor future filings for the required financial statements and pro forma information for the acquired hotels.
- Review the referenced Form 8-K from November 14, 2008, for the original purchase contract terms.