Page 27 - Apple REIT 9 2008 Annual Report

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation
This Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements involve known and unknown risks,
uncertainties, and other factors which may cause the actual results, performance, or achievements of the Company to be materially
different from future results, performance or achievements expressed or implied by such forward-looking statements. Such factors
include, but are not limited to, the ability of the Company to implement its acquisition strategy and operating strategy; the Company’s
ability to manage planned growth; changes in economic cycles, including the current economic recession throughout the United States,
and competition within the real estate industry. Although the Company believes that the assumptions underlying the forward-looking
statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore there can be no assurance
that such statements included in this Annual Report will prove to be accurate. In light of the significant uncertainties inherent in the
forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the
Company or any other person that the results or conditions described in such statements or the objectives and plans of the Company
will be achieved. In addition, the Company’s qualification as a real estate investment trust involves the application of highly technical
and complex provisions of the Internal Revenue Code. Readers should carefully review the Company’s financial statements and the
notes thereto, as well as the risk factors described in the Company’s filings with the Securities and Exchange Commission and Item
1A.
General
The Company is a Virginia corporation that intends to qualify as a Real Estate Investment Trust (“REIT”) for federal income
tax purposes. The Company, which owned 21 properties as of December 31, 2008 and has limited operating history, was formed to
invest in hotels, residential apartment communities and other income-producing real estate in selected metropolitan areas in the United
States. The Company was initially capitalized November 9, 2007, with its first investor closing on May 14, 2008. The Company’s first
hotel was acquired on July 31, 2008 with an additional 20 hotels purchased during the remainder of 2008.
Hotels Owned
The following table summarizes the location, brand, manager, gross purchase price, number of hotel rooms and date of purchase
for each of the hotels the Company owned as of December 31, 2008. All dollar amounts are in thousands.
Gross
Purchase Date
Location Brand Manager Price Rooms Acquired
Tucson, AZ ................................................ Hilton Garden Inn Western $ 18,375 125 7/31/2008
Santa Clarita, CA ........................................ Courtyard Dimension 22,700 140 9/24/2008
Charlotte, NC .............................................. Homewood Suites McKibbon 5,750 112 9/24/2008
Allen, TX .................................................... Hampton Inn & Suites Gateway 12,500 103 9/26/2008
Twinsburg, OH ........................................... Hilton Garden Inn Gateway 17,792 142 10/7/2008
Lewisville, TX ............................................ Hilton Garden Inn Gateway 28,000 165 10/16/2008
Duncanville, TX ......................................... Hilton Garden Inn Gateway 19,500 142 10/21/2008
Santa Clarita, CA ........................................ Hampton Inn Dimension 17,129 128 10/29/2008
Santa Clarita, CA ........................................ Residence Inn Dimension 16,600 90 10/29/2008
Santa Clarita, CA ........................................ Fairfield Inn Dimension 9,337 66 10/29/2008
Beaumont, TX ............................................ Residence Inn Western 16,900 133 10/29/2008
Pueblo, CO ................................................. Hampton Inn & Suites Dimension 8,025 81 10/31/2008
Allen, TX .................................................... Hilton Garden Inn Gateway 18,500 150 10/31/2008
Bristol, VA .................................................. Courtyard LBA 18,650 175 11/7/2008
Durham, NC ............................................... Homewood Suites McKibbon 19,050 122 12/4/2008
Hattiesburg, MS .......................................... Residence Inn LBA 9,793 84 12/11/2008
Jackson, TN ................................................ Courtyard Vista 15,200 94 12/16/2008
Jackson, TN ................................................ Hampton Inn & Suites Vista 12,600 83 12/30/2008
Pittsburgh, PA ............................................. Hampton Inn Vista 20,458 132 12/31/2008
Fort Lauderdale, FL .................................... Hampton Inn Vista 19,290 109 12/31/2008
Frisco, TX ................................................... Hilton Garden Inn Western 15,050 102 12/31/2008
Total $ 341,199 2,478