A spokeswoman for Apple tells GlobeSt.com that the possibility of an acquisition has been part of its long-term plan. "We state within our prospectus that within five to seven years we would either sell, list or merge [with another company] to provide shareholders with liquidity."
Apple is a public company but it is not publicly traded.
Over the last two years, a number of high profile REITs have been acquired by private equity, a trend most recently illustrated by Blackstone Group's proposal to take Equity Office Properties private in a $36-billion transaction.
ING Clarion is no stranger to this strategy; in June 2005, it acquired Boca Raton, FL-based Gables Residential Trust for $2.8 billion.
The Apple spokeswoman says ING Clarion's strategy has not yet been finalized. "That is something to be determined as the deal is negotiated."
Leaving aside the question of taking Apple private, Vikram Antin, an associate in Marcus & Millichap REIBC's National Hospitality Group, tells GlobeSt.com that the acquisition would be very complementary to ING Clarion's existing hotel operations. "It maps well. ING Clarion manages 116 Courtyard by Marriott properties across 29 states. Apple Hospitality's 64-asset portfolio includes the Residence Inn by Marriott and Homewood Suites by Hilton in 25 states." Also, he adds, upscale extended stay has proven to be a very profitable hospitality sub segment in recent months.
Apple was formed in January 2001 by Glade Knight, president, CEO and chairman. In 2001 and 2002, it raised $300 million of equity capital gross proceeds through a best-efforts offering of shares, according to its website. In January 2003 it merged with Apple Suites Inc.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
