Page 44 - Apple REIT 9 2008 Annual Report

34
Note 2
Investments in Real Estate
As of December 31, 2008, the Company owned 21 hotels, all of which were purchased during 2008. The hotels are located in 11
states with an aggregate of 2,478 rooms, and consist of the following: six Hilton Garden Inn hotels, two Homewood Suites hotels, six
Hampton Inn hotels, three Courtyard hotels, three Residence Inn hotels and one Fairfield Inn hotel.
Investment in real estate at December 31, 2008, consisted of the following (in thousands):
Land ......................................................... $ 38,549
Building and Improvements ..................... 289,672
Furniture, Fixtures and Equipment .......... 20,479
348,700
Less Accumulated Depreciation .............. (2,277)
Investment in real estate, net .................... $ 346,423
The following table summarizes the location, brand, manager, gross purchase price, number of hotel rooms and date of purchase
by the Company for each hotel. All dollar amounts are in thousands.
Gross
Purchase Date of
Location Brand Manager Price Rooms 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 (see Note 3).
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 ASRG (see Note 7) and to pay approximately $3.0
million of transaction costs, including title, legal and other related costs. These costs have been capitalized to Investment in real estate,
net in the Company’s consolidated balance sheet as of December 31, 2008.