Richmond, Va.-based Apple Hospitality REIT announced today that its common shares have been listed and have begun trading on the New York Stock Exchange.
In connection with its listing on the NYSE, Apple Hospitality has commenced a modified “Dutch auction” tender offer to purchase up to $200 million in value of its common shares. In accordance with the terms of the offer, Apple Hospitality will select the lowest price of not greater than $21 nor less than $19 per share, net to the seller in cash less any applicable withholding taxes and without interest, that will enable Apple Hospitality to purchase the maximum number of common shares having an aggregate purchase price of up to $200 million. Apple Hospitality intends to fund the offer with funds available under its unsecured revolving credit facility. The offer will expire at midnight (EDT) on June 22, 2015, unless the offer is extended or withdrawn. Merrill Lynch, Pierce, Fenner & Smith Incorporated will be the dealer manager for the proposed tender offer.
In addition, Apple Hospitality’s board of directors has authorized a share buyback program of up to $500 million of its common shares following the completion of the tender offer. If and when the share buyback program is commenced, the timing of share repurchases and the number of common shares to be repurchased under the program will depend upon prevailing market conditions, regulatory requirements, and other factors.
For the first quarter of 2015, Apple Hospitality reported net income of $43.9 million, or 12 cents per share. This compares to a net loss of $94.5 million during the same period last year. Key first quarter highlights include completing the sale of 18 non-strategic hotels for $206.4 million and recognizing a gain on sale of approximately $16 million.
Apple Hospitality owns a portfolio of 173 upscale, select-service hotels in the United States across the Hilton and Marriott families of brands. In 2014, the company merged Apple REIT Seven and Apple REIT Eight into Apple Hospitality (formerly Apple REIT Nine).