Apple Hospitality Five was incorporated and capitalized in September 2002 and formally began hotel operations in January 2003. In 2003, the company raised $397 million of equity capital gross proceeds through a public offering of shares managed by David Lerner Associates Inc., a Syosset, NY-based investment firm. In March 2004, the offering was closed at $500 million gross proceeds. The company was formed by Glade M. Knight, president, CEO and chairman of the board. Knight also heads Apple REIT Six, and Apple REIT Seven.
Subject to customary closing conditions, the merger is expected to close in the fourth quarter of 2007. McGuireWoods LLP is acting as legal advisor to the company and Wachovia Securities is acting as its financial advisor.
The pending deal follows a $877-million acquisition of Apple Hospitality Two--a portfolio of 63 upscale extended-stay hotels across 24 states--by ING Clarion Partners on behalf of three institutional partners. The 3,717-key Apple Hospitality Five portfolio contains 28 hotels in the upscale, extended-stay and select-service categories across 15 states.
In April, Inland entered into a definite agreement to acquire Winston Hotels for $850 million. Jim Norman, co-chair of the firm's global hospitality and resorts team notes that the acquisition, assuming it goes through, will add to Inland's growing portfolio of hospitality assets. "Inland is overwhelmingly retail with some multifamily, warehouse and office. Clearly they are building out a retail component," he tells GlobeSt.com.
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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.
