Inland American Gets Apple Hospitality Five

RICHMOND, VA-Apple Hospitality Five Inc. has entered into a definitive merger agreement to be acquired by Inland American Real Estate Trust Inc. for cash. The price of the deal was not disclosed. According to a statement by the company, each issued and outstanding common share and preferred share of Apple Hospitality Five will be converted into the right to receive $14.05.

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.