April 20, 2014 7:21 AM ET

Real Estate Investment Trusts (REITs)

Company Overview of Apple Hospitality REIT, Inc.

Company Overview

Apple REIT Nine, Inc., together with its subsidiaries, focuses on investing in hotels, residential apartment communities, and other real estate in selected metropolitan areas in the United States. The company owns investments in hotel properties. As of December 31, 2008, it owned 21 hotels consisting of 6 Hilton Garden Inn hotels, 2 Homewood Suites hotels, 6 Hampton Inn hotels, 3 Courtyard hotels, 3 Residence Inn hotels, and 1 Fairfield Inn hotel. The company is based in Richmond, Virginia.

814 East Main Street

Richmond, VA 23219

United States

Founded in 2007

Phone:

804-344-8121

Fax:

804-344-8129

Key Executives for Apple Hospitality REIT, Inc.

Founder
Age: 69
Chief Financial Officer
Age: 48
Chief Operating Officer and Senior Vice President of Acquisitions
Age: 40
President of Capital Markets
Age: 50
Senior Vice President of Operations
Age: 40
Compensation as of Fiscal Year 2013.

Apple Hospitality REIT, Inc. Key Developments

Apple Hospitality REIT, Inc. Enters into Credit Agreement with Bank of America, N.A

On March 3, 2014, Apple Hospitality REIT, Inc. entered into a credit agreement with Bank of America, N.A., as administrative agent and a lender, and the other lenders party thereto, which provides for a term loan of $100 million with a maturity date of March 3, 2019 and a revolving credit facility of $245 million with an initial maturity date of March 3, 2018. Subject to certain conditions including covenant compliance and additional fees, the revolving credit facility maturity may be extended until March 3, 2019 and the amount of the total credit facility may be increased from $345 million to $700 million. The credit facility will be utilized for acquisitions, hotel renovations and development, working capital and other general corporate funding purposes, including the payment of distributions. Under the terms of the credit agreement, the company may make voluntary prepayments in whole or in part, at any time. The interest rate, subject to certain exceptions, is equal to the LIBOR (London Inter-Bank Offered Rate) plus a margin ranging from 1.55% to 2.35%, depending upon the company's leverage ratio, as calculated under the terms of the credit agreement. The company also required to pay an unused facility fee of 0.2% or 0.3% on the unused portion of the revolving credit facility, based on the amount of borrowings outstanding during a quarter. On the day of closing, the company borrowed $150 million under the credit facility, of which approximately $139 million was used to extinguish the company's existing credit facilities (which included the Apple REIT Seven, Inc. and Apple REIT Eight, Inc. credit facilities assumed as a result of the company's merger with those two companies effective March 1, 2014), $3 million was used to pay loan origination costs and $8 million was used for working capital purposes. The credit facility contains mandatory prepayment requirements, customary affirmative covenants and negative covenants and events of default. The financial covenants include, among others, a minimum tangible net worth, maximum debt limits, maximum distributions, minimum interest and fixed charge coverage ratios and restrictions on investments.

Apple Hospitality REIT Files Form 15

Apple Hospitality REIT, Inc. has announced that it has filed a Form 15 with the Securities and Exchange Commission to voluntarily deregister its common stock, no par value under the Securities Exchange Act of 1934, as amended.

Apple REIT Nine, Inc. Announces Board Appointments

In accordance with the Merger Agreement, the existing members of the Apple REIT Nine Inc.'s board of directors increased the size of the board from five to seven members and elected Glenn W. Bunting, Jr. and Kent W. Colton to fill the additional positions effective March 1, 2014. Mr. Bunting and Dr. Colton will serve as directors until the company’s 2014 Annual Meeting of Shareholders. Mr. Bunting will serve on the board’s Executive Committee and as Chair of the Compensation Committee, and Dr. Colton will serve on the board’s Audit Committee and newly established Governance Committee. Glenn W. Bunting, Jr. Mr. Bunting has served as President of GB Corporation since January 2011. Kent W. Colton. Dr. Colton currently serves as Senior Fellow of the Joint Center for Housing Studies at Harvard University and served as Senior Scholar from 1999 until 2010.

Similar Private Companies By Industry

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Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
November 12, 2013
Homewood Suites Charlotte Airport Hotel
Merger/Acquisition
August 8, 2013
Apple REIT Seven Inc.
Merger/Acquisition
August 8, 2013
Apple REIT Eight Inc.
 

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