Business Context and Reporting Period
This Form 8-K is filed by Apple REIT Nine, Inc. (the "Company") for the reporting period ending April 30, 2010. The filing reports the completion of asset acquisitions under Item 2.01, specifically the purchase of four hotels through indirect wholly-owned subsidiaries.
Key Financial Metrics and Transaction Details
The Company acquired four hotels on April 30, 2010, with a total aggregate purchase price of $91,270,000. The acquisitions were funded through the Company's ongoing offering of Units (consisting of one common share and one Series A preferred share). The filing does not provide consolidated revenue, profit, cash flow, or margin data for the Company as a whole, nor does it detail specific debt or liquidity metrics beyond the funding source for these transactions.
| Hotel Location | Franchise | Rooms | Purchase Price |
|---|---|---|---|
| Boise, Idaho | Hampton Inn & Suites | 186 | $22,370,000 |
| Rogers, Arkansas | Homewood Suites | 126 | $10,900,000 |
| St. Louis, Missouri | Hampton Inn & Suites | 126 | $16,000,000 |
| Anchorage, Alaska | Embassy Suites | 169 | $42,000,000 |
| Total | - | 607 | $91,270,000 |
Material Changes and Prior Period Comparison
The filing does not provide comparative financial data against a prior period. The material change reported is the expansion of the Company's portfolio by 607 rooms and the deployment of $91,270,000 in capital. Three of the acquired hotels were part of a portfolio of seven hotels under purchase contracts executed on March 16, 2010; the remaining four hotels from that portfolio have not yet closed.
Outlook, Risks, and Management Commentary
- Future Closings: There is no assurance that further closings will occur under the remaining purchase contracts for the four hotels not yet acquired from the March 16, 2010 agreement.
- Financial Statements: Financial statements for the acquired businesses and pro forma financial information will be filed as necessary by amendment within the required time period; they are not included in this report.
- Related Parties: The sellers have no material relationship with the Company other than through the purchase contracts.
Key Facts for Investor Verification
- Verify the total capital deployed ($91,270,000) and the specific funding mechanism (Unit offering).
- Confirm the status of the four remaining hotels from the March 16, 2010 portfolio purchase agreement.
- Monitor upcoming filings for the required financial statements and pro forma information regarding the acquired assets.
- Note that the filing text does not provide current consolidated revenue, earnings, or liquidity ratios for the Company.