Three REITs set merger to create $3.5B portfolio

Apple REITs follow through on plan floated in June.
JUN 27, 2013
Three Apple REITs — Apple REIT Seven Inc., Apple REIT Eight Inc. and Apple REIT Nine Inc. — are merging in a transaction that will create a company with a portfolio of roughly $3.5 billion. The boards of each of the real estate investment trusts unanimously approved the move, in which Apple Seven and Apple Eight will combine with Apple Nine in two merger transactions. The merger is subject to the approval of shareholders. “Due to the increased size and scale of the combined company, we believe that it will be better positioned to pursue enhanced avenues of liquidity for our shareholders through the exploration of certain strategic alternatives such as possibly listing the combined company on an exchange, a sale of the combined company or a merger with a third-party company and to have access to more-attractive financing,” Glade M. Knight, chairman and chief executive of all three companies, said in a statement. The consolidation was foreshadowed in June when, in regulatory filings, the three REITs individually said they were considering consolidation. Apple REIT Seven owns 51 hotels purchased since 2006 for a total of $901 million; Apple REIT Eight, which began raising money in 2007, also has 51 hotels, bought for $950 million; and Apple REIT Nine has 89 hotels purchased for $1.5 billion since it was offered in 2008.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.