Page 16 - Apple REIT 9 2008 Annual Report

6
Gross
Purchase Date
Location Brand Manager Price Rooms of Purchase
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
The purchase price for the hotels, net of debt assumed, was funded primarily by the Company’s ongoing best-efforts offering of
Units. The Company assumed approximately $34.5 million of debt secured by three of its hotel properties. In addition, the Company
assumed a non-mortgage note payable of $3.8 million in connection with the Lewisville, Texas Hilton Garden Inn hotel. The following
table summarizes the interest rate, maturity date and principal amount assumed associated with each note payable. All dollar amounts
are in thousands.
Principal
Location Brand Interest Rate Maturity Date Assumed
Lewisville, TX ........................................... Hilton Garden Inn 0.00 % 12/31/2016 $ 3,750
Duncanville, TX ........................................ Hilton Garden Inn 5.88 % 5/11/2017 13,966
Allen, TX ................................................... Hilton Garden Inn 5.37 % 10/11/2015 10,787
Bristol, VA ................................................. Courtyard 6.59 % 8/1/2016 9,767
$ 38,270
The Company leases all of its hotels to its wholly-owned taxable REIT subsidiary (or a subsidiary thereof) under master hotel
lease agreements. The Company also used the proceeds of its ongoing best-efforts offering to pay approximately $6.8 million,
representing 2% of the gross purchase price for these hotels, as a brokerage commission to Apple Suites Realty Group, Inc. (“ASRG”),
100% owned by Glade M. Knight, the Company’s Chairman and Chief Executive Officer.
No goodwill was recorded in connection with any of the acquisitions.
In addition, as of December 31, 2008, the Company had outstanding contracts for the purchase of 19 additional hotels. Of these 19
hotels, 15 are under construction and should be completed over the next 12 to 18 months. The other four hotels are expected to close
in the next three months. The Company also has one purchase contract for land that is subject to a feasibility study for the construction
of a SpringHill Suites hotel. Although the Company is working towards acquiring these hotels, there are many conditions to closing
that have not yet been satisfied and there can be no assurance that closings will occur under the outstanding purchase contracts. The
following table summarizes the location, brand, number of rooms, refundable contract deposits paid, and gross purchase price for each
of the contracts. All dollar amounts are in thousands.