Apple Hospitality to Acquire Apple REIT 10 for $1.3B

April 19, 2016

Merger Expected to Close During Third Quarter

Apple Hospitality REIT Inc. (NYSE:APLE) has agreed to acquire Apple REIT Ten Inc. for $1.3 billion in a merger creating one of the largest select-service hospitality REITs with a combined 234 hotels and 30,017 rooms across 33 states.

Apple Hospitality REIT, with an enterprise value of $5.7 billion will keep its name in the transaction comprised of $94 million in cash, with about 49.1 million Apple Hospitality common shares issued to Apple Ten shareholders, and the larger REIT assuming about $239 million in debt.

Apple Ten REIT will have a 45-day window to solicit alternative proposals from third parties, however, the termination fee is $5 million if the company, a non-traded REIT managed by the same team managing the publicly traded Apple Hospitality REIT, withdraws from the transaction. After the 45 days ending on May 28, the breakup charge rises to an even steeper $25 million.

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Gil Armour, CFP
February 3, 2016

I have been using Blue Vault Partners for the past five years.  I have found them to be a valuable, unbiased resource when it comes to evaluating and comparing non-traded REITs.  The reports help me analyze which sponsors are doing a responsible job of managing their offerings.  This allows me to limit my REIT recommendations to only the most competitive products, and then track those REITs throughout their life cycle.