Page 17 - Apple REIT 9 2008 Annual Report

7
Deposits Gross Purchase
Location Brand Rooms Paid Price
Alexandria, VA ............................................................ SpringHill Suites - $ 200 $ 5,100 (a)
Hillsboro, OR .............................................................. Embassy Suites 165 100 32,500 (c)
Hillsboro, OR .............................................................. Hampton Inn & Suites 106 100 14,500 (c)
Clovis, CA ................................................................... Hampton Inn & Suites 86 55 11,150 (c)
Clovis, CA ................................................................... Homewood Suites 83 55 12,435 (c)
Panama City, FL .......................................................... Hampton Inn & Suites 95 200 11,600 (c)
Dothan, AL .................................................................. Hilton Garden Inn 104 5 11,601 (c)
Albany, GA .................................................................. Fairfield Inn & Suites 87 5 7,920 (c)
Panama City, FL .......................................................... TownePlace Suites 103 5 10,640 (c)
Johnson City, TN ......................................................... Courtyard 90 5 9,880 (c)
Troy, AL ....................................................................... Courtyard 90 5 8,696 (c)
Houston, TX ................................................................ Marriott 206 200 51,000 (c)
Austin, TX ................................................................... Homewood Suites 97 400 17,700
Austin, TX ................................................................... Hampton Inn 124 400 18,000
Round Rock, TX .......................................................... Hampton Inn 93 400 11,500
Portsmouth, NH ........................................................... Hampton Inn 126 200 15,800
Orlando, FL ................................................................. Fairfield Inn & Suites 200 500 (b) (c)
Orlando, FL ................................................................. SpringHill Suites 200 500 (b) (c)
Baton Rouge, LA ......................................................... SpringHill Suites 119 100 15,100 (c)
Rochester, MN ............................................................. Hampton Inn & Suites 124 100 14,136 (c)
2,298 $ 3,535 $ 334,058
(a) The Company has a contract to purchase land only. The Company plans to complete a feasibility study for the construction of a
SpringHill Suites hotel prior to purchasing the land.
(b) These two hotels are covered by the same purchase contract with a purchase price of $54.8 million.
(c) The hotels are currently under construction. The table shows the expected number of rooms upon hotel completion and the
expected franchise.
Four of the purchase contracts require the Company to assume loans that are secured by the hotels under contract. The following
table provides a summary of the loan information for each hotel. All dollar amounts are in thousands.
Approximate Interest Maturity
Location Brand Principal Rate Date
Austin, TX .................................................................. Homewood Suites $ 7,622 5.99 % 3/1/2016
Austin, TX .................................................................. Hampton Inn 7,820 5.95 % 3/1/2016
Round Rock, TX ......................................................... Hampton Inn 4,205 5.95 % 5/1/2016
Portsmouth, NH .......................................................... Hampton Inn 9,698 6.07 % 4/1/2016
$ 29,345
Related Parties
The Company has significant transactions with related parties. These transactions cannot be construed to be at arms length and the
results of the Company’s operations may be different than if conducted with non-related parties.
The Company has a contract with ASRG, to acquire and dispose of real estate assets for the Company. A fee of 2% of the gross
purchase price or gross sale price in addition to certain reimbursable expenses is paid to ASRG for these services. As of December 31,
2008, payments to ASRG for services under the terms of this contract have totaled approximately $6.8 million since inception, which
were capitalized as a part of the purchase price of the hotels.
The Company is party to an advisory agreement with A9A to provide management of the Company and its assets. An annual
fee ranging from 0.1% to 0.25% of total equity proceeds received by the Company, in addition to certain reimbursable expenses, are
payable for these services. A9A has entered into an agreement with Apple REIT Six, Inc. (“AR6”) to provide certain management
services to the Company. The Company will reimburse A9A for the cost of the services provided by AR6. A9A will in turn reimburse
AR6. Total advisory fees and reimbursable expenses incurred by the Company under the advisory agreement are included in general
and administrative expenses and totaled approximately $766,000 for the year ended December 31, 2008 and $15,000 for the period
November 9, 2007 (initial capitalization) through December 31, 2007.