Page 38 - Apple REIT 9 2008 Annual Report

28

Apple REIT Nine, Inc.

Consolidated Statements of Operations

(in thousands, except per share data)

For the period

November 9, 2007

(initial capitalization)

YearEnded

through

December 31,

2008

2007

Revenues:

Room revenue.................................................................................................................... $

9,501

$

-

Other revenue.....................................................................................................................

2,023

-

Total revenue.............................................................................................................................

11,524

-

Expenses:

Operating expense..............................................................................................................

3,381

-

Hotel administrative expense.............................................................................................

883

-

Sales and marketing...........................................................................................................

1,066

-

Utilities...............................................................................................................................

546

-

Repair and maintenance.....................................................................................................

637

-

Franchise fees.....................................................................................................................

468

-

Management fees. ..............................................................................................................

441

-

Taxes, insurance and other.................................................................................................

731

-

General and administrative. ...............................................................................................

1,288

15

Depreciation expense.........................................................................................................

2,277

-

Total expenses. ..........................................................................................................................

11,718

15

Operating loss.....................................................................................................................

(194)

(15)

Interest income...................................................................................................................

2,721

-

Interest expense..................................................................................................................

(375)

(2)

Net income (loss)....................................................................................................................... $

2,152

$

(17)

Basic and diluted net income (loss) per common share............................................................ $

0.14

$ (1,684.60)

Weighted average common shares outstanding –

basic and diluted.................................................................................................................

15,852

-

Distributions declared and paid per common share.................................................................. $

0.51

$

-

See accompanying notes to consolidated financial statements.

The Company was initially capitalized on November 9, 2007 and commenced operations on July 31, 2008.