RICHMOND, Va.--(BUSINESS WIRE)--Apple Hospitality REIT, Inc. (NYSE: APLE) announced today the completion of its previously announced merger with Apple REIT Ten, Inc. The combination with Apple Ten’s highly complementary portfolio of 56 hotels creates one of the largest upscale, select service lodging REITs in the industry valued at approximately $5.7 billion. On August 31, 2016, the shareholders of Apple Hospitality approved the issuance of common shares to shareholders of Apple Ten pursuant to the definitive merger agreement dated April 13, 2016, as amended, and the Apple Ten shareholders approved the merger agreement, the related plan of merger, the merger and the other transactions contemplated thereby at their respective special meetings.
As a result of the merger, each outstanding unit of Apple Ten (consisting of one common share of Apple Ten and one Series A preferred share of Apple Ten) was exchanged for combined consideration of $1.00 in cash and 0.522 Apple Hospitality common shares, and each Apple Ten Series B convertible preferred share received the same consideration on an as-converted basis. Apple Hospitality issued approximately 48.7 million of its common shares and paid approximately $93.4 million as consideration in the merger. Apple Hospitality also assumed or repaid all of Apple Ten’s outstanding debt at closing, approximately $257 million.
The common shares of Apple Hospitality will continue to trade under the ticker symbol “APLE” on the New York Stock Exchange.
Justin G. Knight, Apple Hospitality’s President and Chief Executive Officer, said, “We are excited to have significantly grown our platform of leading Hilton and Marriott branded select service hotels, while preserving our conservative capital structure. The merger further strengthens our presence in key markets and expands our geographic footprint to include locations in 96 MSAs throughout 33 states. This acquisition highlights our team’s disciplined approach to growth and focus on shareholder value and we welcome Apple Ten shareholders to Apple Hospitality.”
2016 Outlook
To reflect the acquisition of Apple Ten, the Company is updating its operational and financial outlook for 2016. This outlook, which is based on management’s current view of both operating and economic fundamentals of the Company’s existing portfolio of hotels, does not take into account any unanticipated developments in its business or changes in its operating environment, nor does it take into account any unannounced hotel acquisitions or dispositions.
About Apple Hospitality REIT, Inc.
Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real estate investment trust (REIT) that owns one of the largest portfolios of upscale, select service hotels in the United States. Apple Hospitality’s hotels are diversified across the Hilton® and Marriott® families of brands with locations in urban, high-end suburban and developing markets. At September 1, 2016 and after giving effect to the merger transaction with Apple Ten, Apple Hospitality’s portfolio consists of 236 hotels, with over 30,000 guestrooms in 33 states. Additional information about Apple Hospitality can be found online at www.applehospitalityreit.com.
