Home News Apple Hospitality REIT and Apple REIT Ten Shareholders Approve Merger

Apple Hospitality REIT and Apple REIT Ten Shareholders Approve Merger

Apple REIT Ten Inc., a publicly registered non-traded real estate investment trust, and Apple Hospitality REIT Inc. (NYSE: APLE) announced that their respective shareholders approved the $1.3 billion merger transaction proposals under which the companies will combine to create one of the largest select service lodging REITs in the industry. The merger is expected to close today.

As previously reported by The DI Wire, the proposed merger joins two select service hotel portfolios that will total 236 hotels with 30,298 guestrooms throughout 33 states. The combined company is expected to have an enterprise value of approximately $5.7 billion and a total equity market capitalization of approximately $4.3 billion.

At a special meeting held yesterday, Apple Hospitality shareholders approved the issuance of common shares to shareholders of Apple Ten. At another meeting, Apple Ten shareholders approved the merger. Approximately 93 percent of Apple Hospitality’s common shares and 83 percent of Apple Ten’s units present at the special meetings were voted in favor of the respective merger transaction proposals.

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) would be exchanged for $1.00 in cash and 0.522 Apple Hospitality common shares, and each Apple Ten Series B convertible preferred share would receive the same consideration on an as-converted basis. Following completion of the merger, the common shares of Apple Hospitality will continue to trade on the New York Stock Exchange under the ticker symbol “APLE.”

Shares of APLE closed at $19.62 on Wednesday.

Apple Hospitality REIT is a publicly traded REIT that owns a portfolio of 180 hotels, with more than 23,000 guestrooms in 32 states. The Apple Ten portfolio consists of 56 hotels, with more than 7,200 guestrooms in 17 states. The companies’ hotels are diversified across the Hilton and Marriott families of brands with locations in urban, high-end suburban and developing markets.

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