Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 01, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Apple REIT Nine, Inc. | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 182,784,131 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001418121 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investment in real estate, net of accumulated depreciation of $186,792 and $145,927, respectively | $1,443,024 | $1,463,894 |
Cash and cash equivalents | 0 | 9,027 |
Restricted cash-furniture, fixtures and other escrows | 10,360 | 9,922 |
Note receivable, net | 17,675 | 22,375 |
Due from third party managers, net | 15,855 | 10,751 |
Other assets, net | 9,802 | 10,048 |
Total Assets | 1,496,716 | 1,526,017 |
Liabilities | ' | ' |
Credit facility | 22,000 | 0 |
Notes payable | 163,635 | 166,783 |
Accounts payable and accrued expenses | 18,087 | 13,101 |
Total Liabilities | 203,722 | 179,884 |
Shareholders' Equity | ' | ' |
Preferred stock, value issued | 0 | 0 |
Common stock, no par value, authorized 400,000,000 shares; issued and outstanding 182,784,131 and 182,619,400 shares, respectively | 1,807,236 | 1,805,335 |
Distributions greater than net income | -514,290 | -459,250 |
Total Shareholders' Equity | 1,292,994 | 1,346,133 |
Total Liabilities and Shareholders' Equity | 1,496,716 | 1,526,017 |
Series A Preferred Stock [Member] | ' | ' |
Shareholders' Equity | ' | ' |
Preferred stock, value issued | 0 | 0 |
Series B Convertible Preferred Stock [Member] | ' | ' |
Shareholders' Equity | ' | ' |
Preferred stock, value issued | $48 | $48 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Investment in real estate accumulated depreciation (in Dollars) | $186,792 | $145,927 |
Preferred stock, shares authorized (in Shares) | 30,000,000 | 30,000,000 |
Preferred stock, shares issued (in Shares) | 0 | 0 |
Preferred stock, shares outstanding (in Shares) | 0 | 0 |
Common stock, shares authorized (in Shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in Shares) | 182,784,131 | 182,619,400 |
Common stock, shares outstanding (in Shares) | 182,784,131 | 182,619,400 |
Series A Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized (in Shares) | 400,000,000 | 400,000,000 |
Preferred stock, shares issued (in Shares) | 182,784,131 | 182,619,400 |
Preferred stock, shares outstanding (in Shares) | 182,784,131 | 182,619,400 |
Series B Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized (in Shares) | 480,000 | 480,000 |
Preferred stock, shares issued (in Shares) | 480,000 | 480,000 |
Preferred stock, shares outstanding (in Shares) | 480,000 | 480,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Room revenue | $91,936 | $85,900 | $271,324 | $253,500 |
Other revenue | 8,301 | 7,753 | 25,888 | 25,354 |
Total revenue | 100,237 | 93,653 | 297,212 | 278,854 |
Expenses: | ' | ' | ' | ' |
Operating expense | 25,800 | 24,162 | 75,318 | 70,813 |
Hotel administrative expense | 7,218 | 6,616 | 21,287 | 20,197 |
Sales and marketing | 8,369 | 7,947 | 24,968 | 23,529 |
Utilities | 4,213 | 4,074 | 11,153 | 10,778 |
Repair and maintenance | 3,807 | 3,364 | 11,136 | 9,882 |
Franchise fees | 4,185 | 3,642 | 12,248 | 11,037 |
Management fees | 3,567 | 3,267 | 10,329 | 9,513 |
Property taxes, insurance and other | 4,843 | 5,168 | 15,632 | 15,122 |
General and administrative | 1,778 | 2,149 | 5,815 | 6,443 |
Acquisition related costs | 0 | 3 | 74 | 464 |
Merger transaction costs | 1,908 | 0 | 1,970 | 637 |
Depreciation expense | 13,732 | 13,329 | 40,865 | 39,338 |
Total expenses | 79,420 | 73,721 | 230,795 | 217,753 |
Operating income | 20,817 | 19,932 | 66,417 | 61,101 |
Interest expense, net | -2,287 | -1,709 | -6,701 | -4,664 |
Income before income taxes | 18,530 | 18,223 | 59,716 | 56,437 |
Income tax expense | -365 | -296 | -1,110 | -885 |
Income from continuing operations | 18,165 | 17,927 | 58,606 | 55,552 |
Income from discontinued operations | 0 | 0 | 0 | 6,792 |
Net income | $18,165 | $17,927 | $58,606 | $62,344 |
Basic and diluted net income per common share | ' | ' | ' | ' |
From continuing operations (in Dollars per share) | $0.10 | $0.10 | $0.32 | $0.30 |
From discontinued operations (in Dollars per share) | $0 | $0 | $0 | $0.04 |
Total basic and diluted net income per common share (in Dollars per share) | $0.10 | $0.10 | $0.32 | $0.34 |
Weighted average common shares outstanding - basic and diluted (in Shares) | 182,784 | 182,130 | 182,560 | 182,200 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $58,606 | $62,344 |
Adjustments to reconcile net income to cash provided by operating activities: | ' | ' |
Depreciation | 40,865 | 39,338 |
Amortization of deferred financing costs, fair value adjustments and other non-cash expenses, net | 264 | 264 |
Straight-line rental income | 0 | -1,975 |
Changes in operating assets and liabilities: | ' | ' |
Increase in due from third party managers, net | -5,104 | -5,516 |
Increase in other assets, net | -523 | -1,203 |
Increase in accounts payable and accrued expenses | 3,914 | 678 |
Net cash provided by operating activities | 98,022 | 93,930 |
Cash flows from investing activities: | ' | ' |
Cash paid for acquisitions, net | -7,225 | -18,015 |
Net proceeds (costs) from sale of assets | -353 | 135,410 |
Capital improvements and development costs | -11,370 | -13,520 |
Increase in capital improvement reserves | -207 | -372 |
Payments received on note receivable | 4,725 | 2,940 |
Net cash provided by (used in) investing activities | -14,430 | 106,443 |
Cash flows from financing activities: | ' | ' |
Net proceeds related to issuance of Units | 21,778 | 38,239 |
Redemptions of Units | -19,992 | -41,988 |
Special distribution paid to common shareholders | 0 | -136,113 |
Monthly distributions paid to common shareholders | -113,646 | -117,164 |
Net proceeds from credit facility | 22,000 | 0 |
Proceeds from notes payable | 0 | 77,690 |
Payments of notes payable | -2,759 | -31,899 |
Deferred financing costs | 0 | -358 |
Net cash used in financing activities | -92,619 | -211,593 |
Decrease in cash and cash equivalents | -9,027 | -11,220 |
Cash and cash equivalents, beginning of period | 9,027 | 30,733 |
Cash and cash equivalents, end of period | 0 | 19,513 |
Non-cash transactions: | ' | ' |
Note receivable issued from sale of assets | $0 | $60,000 |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | ' |
1. Organization and Summary of Significant Accounting Policies | |
Organization | |
Apple REIT Nine, Inc., together with its wholly owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company was formed to invest in income-producing real estate in the United States. Initial capitalization occurred on November 9, 2007 and operations began on July 31, 2008 when the Company acquired its first hotel. The Company concluded its best-efforts offering of Units (each Unit consists of one common share and one Series A preferred share) in December 2010. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has an interest in a variable interest entity through its note receivable, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of the entity and does not share in any of the benefits, and therefore does not consolidate the entity. As of September 30, 2013, the Company owned 89 hotels located in 27 states with an aggregate of 11,371 rooms. | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its 2012 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2013. | |
Use of Estimates | |
The preparation of the financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Reclassifications | |
Certain amounts in the 2012 consolidated financial statements have been reclassified to conform with the 2013 presentation with no effect on previously reported net income or shareholders’ equity. | |
Restricted Cash | |
Restricted cash includes reserves for debt service, real estate taxes, and insurance, and reserves for furniture, fixtures, and equipment replacements of up to 5% of property revenue for certain hotels, as required by certain management or mortgage debt agreement restrictions and provisions. | |
Earnings Per Common Share | |
Basic earnings per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted earnings per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for the three and nine months ended September 30, 2013 or 2012. As a result, basic and dilutive outstanding shares were the same. Series B convertible preferred shares are not included in earnings per common share calculations until such time that such shares are eligible to be converted to common shares. | |
Merger_Agreement
Merger Agreement | 9 Months Ended | |
Sep. 30, 2013 | ||
Disclosure Text Block Supplement [Abstract] | ' | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ' | |
2. Merger Agreement | ||
On August 7, 2013, Apple REIT Seven, Inc. (“Apple Seven”), Apple REIT Eight, Inc. (“Apple Eight”), Apple REIT Nine, Inc. (“Apple Nine”), Apple Seven Acquisition Sub, Inc. (“Seven Acquisition Sub”) a wholly owned subsidiary of Apple Nine, and Apple Eight Acquisition Sub, Inc. (“Eight Acquisition Sub”) a wholly owned subsidiary of Apple Nine, entered into an Agreement and Plan of Merger, as amended (the “Merger Agreement”). The Merger Agreement provides for the merger of Apple Seven and Apple Eight with and into Seven Acquisition Sub and Eight Acquisition Sub, respectively, which were formed solely for engaging in the mergers and have not conducted any prior activities. Upon completion of the mergers, the separate corporate existence of Apple Seven and Apple Eight will cease and Seven Acquisition Sub and Eight Acquisition Sub will be the surviving corporations. Pursuant to the terms of the Merger Agreement, upon completion of the mergers, the current Apple Nine common shares totaling 182,784,131 will remain outstanding and: | ||
· | Each issued and outstanding unit of Apple Seven (consisting of one Apple Seven common share together with one Apple Seven Series A preferred share) will be converted into one (the “Apple Seven exchange ratio”) common share of Apple Nine, or a total of approximately 90,613,633 common shares (assuming no dissenting shares), and each issued and outstanding Series B convertible preferred share of Apple Seven will be converted into a number of Apple Nine’s common shares equal to 24.17104 multiplied by the Apple Seven exchange ratio, or a total of 5,801,050 common shares; and | |
· | Each issued and outstanding unit of Apple Eight (consisting of one Apple Eight common share together with one Apple Eight Series A preferred share) will be converted into 0.85 (the “Apple Eight exchange ratio”) common share of Apple Nine, or a total of approximately 78,319,004 common shares (assuming no dissenting shares), and each issued and outstanding Series B convertible preferred share of Apple Eight will be converted into a number of Apple Nine’s common shares equal to 24.17104 multiplied by the Apple Eight exchange ratio, or a total of 4,930,892 common shares. | |
As contemplated in the Merger Agreement, in connection with completion of the mergers, Apple Nine will become self-advised and the existing advisory agreements between Apple Nine and Apple Nine Advisors, Inc. and Apple Suites Realty Group, Inc. will be terminated. The termination of the advisory agreements will result in the conversion of each issued and outstanding Series B convertible preferred share of Apple Nine into the right to receive 24.17104 common shares of Apple Nine, or a total of 11,602,099 common shares. As a result of the conversion, all of Apple Nine’s Series A preferred shares will terminate. In addition, upon termination of the advisory agreements, Apple Nine will record an expense related to the conversion of Apple Nine’s Series B convertible preferred shares into common shares. Although the final estimate of fair value may vary significantly from these estimates, Apple Nine’s preliminary estimate of the fair value of $9.00 to $11.00 per common share would result in an expense ranging from approximately $104 million to $128 million. | ||
The Merger Agreement contains various closing conditions, including shareholder approval by Apple Seven, Apple Eight and Apple Nine. As a result, there is no assurance that the mergers will occur. Under the Merger Agreement, Apple Seven, Apple Eight and Apple Nine may terminate the Merger Agreement under certain circumstances; however, each of the companies may be required to pay a fee of $1.7 million, plus reasonable third party expenses to each of the other companies upon such termination. All costs related to the proposed mergers are being expensed in the period they are incurred and are included in the merger transaction costs in the Company’s consolidated statements of operations. In connection with these activities, the Company incurred approximately $2.0 million in expenses for the nine months ended September 30, 2013. | ||
Disposition_and_Discontinued_O
Disposition and Discontinued Operations | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | ' | ||||||||
3. Disposition and Discontinued Operations | |||||||||
On April 27, 2012, the Company completed the sale of its 406 acres of land and land improvements located on 110 sites in the Ft. Worth, Texas area (the “110 parcels”) and the assignment of the lease for a total sale price of $198.4 million. The 110 parcels were acquired in April 2009 for a total purchase price of $147.3 million and were leased to a subsidiary of Chesapeake Energy Corporation (“Chesapeake”) under a long term lease for the production of natural gas. At closing, the Company received approximately $138.4 million in cash proceeds and issued a note receivable totaling $60.0 million to the purchaser (the “note”). The note, which approximated fair market value, is secured by a junior lien on the land and land improvements owned by the purchaser. The stated interest rate on the note is 10.5%. The note requires interest only payments for the first three years of the note. After the first three years, interest is accrued and payments will only be received once the purchaser extinguishes its senior loan with a third party. Once the senior loan is repaid, the Company will receive all payments from the existing lease until fully repaid or the note reaches maturity which is April 2049. Although the purchaser is not affiliated with the Company, a partner of the purchaser is also a member of the Board of Directors of Apple REIT Ten, Inc. In conjunction with the sale, the Company incurred a brokerage commission to Apple Suites Realty Group, Inc. (“ASRG”) totaling approximately $4.0 million, representing 2% of the gross sales price. Of this amount, approximately $2.8 million was paid to ASRG during the second quarter of 2012 and the remaining $1.2 million will be paid upon repayment of the $60.0 million note. The $4.0 million commission has been recorded as a reduction to the deferred gain on sale as described below. | |||||||||
The total gain on sale was approximately $33.3 million (total sale price of $198.4 million less carrying value totaling $160.5 million, ASRG fee totaling $4.0 million, closing costs totaling $0.3 million and related franchise taxes totaling $0.3 million). In accordance with the Accounting Standards Codification on real estate sales, the sales transaction is being accounted for under the cost recovery method, therefore the gain on sale and interest earned on the note will be deferred until cash payments by the purchaser, including principal and interest on the note due to the Company and the payment of the $138.4 million at closing exceed the Company’s cost basis of the 110 parcels sold. The note receivable is included in the Company’s consolidated balance sheets, net of the total deferred gain. As of September 30, 2013, the note receivable, net was $17.7 million, including $60.0 million note receivable offset by $33.3 million deferred gain and $9.0 million deferred interest earned. As of December 31, 2012, the note receivable, net was $22.4 million, including $60.0 million note receivable offset by $33.4 million deferred gain and $4.3 million deferred interest earned. The 110 parcels was a separate reportable segment and the results of operations for these properties have been classified in the consolidated statements of operations in the line item income from discontinued operations. | |||||||||
The following table sets forth the components of income from discontinued operations for the three and nine months ended September 30, 2012 (in thousands): | |||||||||
Three Months | Nine Months | ||||||||
Ended | Ended | ||||||||
30-Sep-12 | 30-Sep-12 | ||||||||
Rental revenue | $ | 0 | $ | 6,826 | |||||
Operating expenses | 0 | 34 | |||||||
Depreciation expense | 0 | 0 | |||||||
Income from discontinued operations | $ | 0 | $ | 6,792 | |||||
Prior to the sale, the lease was classified as an operating lease and rental income was recognized on a straight-line basis over the initial term of the lease. Rental revenue includes approximately $2.0 million of adjustments to record rent on the straight-line basis for the nine months ended September 30, 2012. | |||||||||
Credit_Facility
Credit Facility | 9 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
4. Credit Facility | |
In November 2012, the Company entered into a $50 million credit facility with a commercial bank that is utilized for working capital, hotel renovations and development, and other general corporate funding purposes, including the payment of redemptions and distributions. The credit facility may be increased to $100 million, subject to certain conditions. Under the terms of the credit agreement, the Company may make voluntary prepayments in whole or in part at any time. The credit facility matures in November 2014; however, the Company has the right, upon satisfaction of certain conditions, including covenant compliance and payment of an extension fee, to extend the maturity date to November 2015. Interest payments are due monthly and the interest rate, subject to certain exceptions, is equal to the one-month LIBOR (the London Inter-Bank Offered Rate for a one-month term) plus a margin ranging from 2.25% to 2.75%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement. The Company is also required to pay an unused facility fee of 0.30% or 0.40% on the unused portion of the revolving credit facility, based on the amount of borrowings outstanding during the quarter. As of September 30, 2013, the credit facility had an outstanding principal balance of $22.0 million and an annual interest rate of approximately 2.43%. As of December 31, 2012, there were no borrowings outstanding under the credit facility. | |
The credit agreement requires the Company to maintain a specific pool of Unencumbered Borrowing Base Properties (must be a minimum of ten properties and must satisfy conditions as defined in the credit agreement). The obligations of the lender to make any advances under the credit facility are subject to certain conditions, including that the outstanding borrowings do not exceed the Borrowing Base Availability, as defined in the credit agreement. The credit facility contains customary affirmative covenants, negative covenants and events of defaults. It also contains quarterly financial covenants, which include, among others, a minimum tangible net worth, maximum debt limits, and minimum debt service and fixed charge coverage ratios. The Company was in compliance with each of these covenants at September 30, 2013. | |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value Disclosures [Text Block] | ' |
5. Fair Value of Financial Instruments | |
The Company estimates the fair value of its debt and note receivable by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity of an instrument with similar credit terms and credit characteristics which are Level 3 inputs. Market rates take into consideration general market conditions and maturity. As of September 30, 2013, the carrying value and estimated fair value of the Company’s debt was approximately $185.6 million and $190.1 million. As of December 31, 2012, the carrying value and estimated fair value of the Company’s debt was approximately $166.8 million and $173.3 million. As of September 30, 2013 and December 31, 2012, the carrying value of the $60 million note receivable as discussed in note 3 approximates fair market value. The carrying value of the Company’s other financial instruments approximates fair value due to the short-term nature of these financial instruments. | |
Related_Parties
Related Parties | 9 Months Ended | |
Sep. 30, 2013 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions Disclosure [Text Block] | ' | |
6. Related Parties | ||
The Company has, and is expected to continue to engage in, significant transactions with related parties. These transactions cannot be construed to be at arm’s length and the results of the Company’s operations may be different if these transactions were conducted with non-related parties. The Company’s independent members of the Board of Directors oversee and annually review the Company’s related party relationships (which include the relationships discussed in this section) and are required to approve any significant modifications to the contracts, as well as any new significant related party transactions. There were no changes to the contracts discussed in this section and no new significant related party transactions during the nine months ended September 30, 2013 (other than the transactions related to the completion of Apple REIT Six, Inc.’s merger with a third party and the Merger Agreement and related transactions discussed below). The Board of Directors is not required to approve each individual transaction that falls under the related party relationships. However, under the direction of the Board of Directors, at least one member of the Company’s senior management team approves each related party transaction. | ||
The term the “Apple REIT Entities” means Apple REIT Six, Inc. (“Apple Six”), Apple REIT Seven, Inc. (“Apple Seven”), Apple REIT Eight, Inc. (“Apple Eight”), Apple REIT Nine, Inc. (“Apple Nine”) and Apple REIT Ten, Inc. (“Apple Ten”). The term the “Advisors” means Apple Six Advisors, Inc., Apple Seven Advisors, Inc., Apple Eight Advisors, Inc., Apple Nine Advisors, Inc. (“A9A”), Apple Ten Advisors, Inc., Apple Suites Realty Group, Inc. (“ASRG”) and Apple Six Realty Group, Inc. The Advisors are wholly owned by Glade M. Knight, Chairman and Chief Executive Officer of the Company. Mr. Knight is also Chairman and Chief Executive Officer of Apple Seven, Apple Eight and Apple Ten. Members of the Company’s Board of Directors are also on the Board of Directors of Apple Seven and Apple Eight. | ||
On May 14, 2013, Apple Six merged with and into an entity that is not affiliated with the Apple REIT Entities or the Advisors. Pursuant to the terms and conditions of the merger agreement, dated as of November 29, 2012, upon completion of the merger, the separate corporate existence of Apple Six ceased (the “A6 Merger”). Prior to the A6 Merger, Glade M. Knight was Chairman and Chief Executive Office of Apple Six and members of the Company’s Board of Directors were also on the Board of Directors of Apple Six. | ||
ASRG Agreement | ||
The Company has a contract with ASRG, to acquire and dispose of real estate assets for the Company. A fee of 2% of the gross purchase price or gross sale price in addition to certain reimbursable expenses is paid to ASRG for these services. As of September 30, 2013, payments to ASRG for fees under the terms of this contract related to the acquisition of assets have totaled approximately $33.6 million since inception. Of this amount, the Company incurred approximately $0.1 million and $0.4 million during the nine months ended September 30, 2013 and 2012. During the second quarter of 2013, the Company paid fees to ASRG for the purchase of two land parcels located at the Residence Inn hotels in Manassas, Virginia and San Bernardino, California, both which had previously been leased from a third party. In addition, the Company incurred a brokerage commission to ASRG totaling approximately $4.0 million related to the sale of the Company’s 110 parcels in April 2012, which has been recorded as a reduction to the deferred gain on sale. Of this amount, approximately $2.8 million was paid to ASRG during the second quarter of 2012 and the remaining $1.2 million will be paid upon repayment of the $60 million note. | ||
A9A Agreement | ||
The Company is party to an advisory agreement with A9A, pursuant to which A9A provides management services to the Company. A9A provides these management services through Apple Fund Management, LLC (“AFM”), which immediately after the A6 Merger became a wholly-owned subsidiary of A9A. This transaction between A9A and Apple Six was made with no cash consideration exchanged between the entities. Prior to May 14, 2013, AFM was a wholly-owned subsidiary of Apple Six. An annual advisory fee ranging from 0.1% to 0.25% of total equity proceeds received by the Company, in addition to certain reimbursable expenses as described below, are payable to A9A for these management services. Total advisory fees incurred by the Company under the advisory agreement are included in general and administrative expenses and totaled approximately $2.1 million and $2.2 million for the nine months ended September 30, 2013 and 2012. | ||
Apple REIT Entities and Advisors Cost Sharing Structure | ||
In addition to the fees payable to ASRG or A9A, the Company reimbursed to ASRG or A9A, or paid directly to AFM on behalf of ASRG or A9A, approximately $1.6 million for both the nine months ended September 30, 2013 and 2012. The expenses reimbursed were approximately $0 and $0.1 million, respectively, for costs reimbursed under the contract with ASRG and approximately $1.6 million and $1.5 million, respectively, for costs reimbursed under the contract with A9A. The costs are included in general and administrative expenses and are for the Company’s allocated share of the staffing and related costs provided by AFM at the direction of A9A. | ||
AFM is an affiliate of each of the Advisors. Each of the Advisors provides management services through the use of AFM to, respectively, Apple Six (prior to the A6 Merger), Apple Seven, Apple Eight, Apple Nine and Apple Ten. In connection with the A6 Merger, effective May 14, 2013, the entire membership interest of Apple Six in AFM was transferred and assigned to A9A, which then became the sole member of AFM. As part of the assignment, A9A and the other Advisors agreed to indemnify the buyer of Apple Six for liabilities related to AFM. The assignment of AFM’s interest to A9A had no impact on the Company’s advisory agreement with A9A or the process of allocating costs from AFM to the Apple REIT Entities or Advisors as described below, except Apple Six and its advisors, Apple Six Advisors, Inc. and Apple Six Realty Group, Inc. (collectively “A6 Advisors”), no longer participate in the cost sharing arrangement, thereby increasing the remaining companies’ share of the allocated costs. | ||
Also, in connection with the A6 Merger, on May 13, 2013, the Company acquired from Apple Six the Apple REIT Entities’ and Advisors’ headquarters in Richmond, Virginia (“Headquarters”) and assumed the Fort Worth, Texas office lease agreement for approximately $4.5 million, which approximated fair value at the time of acquisition based on third party market comparisons. As part of the purchase, the Company agreed to release Apple Six from any liabilities related to the Headquarters or office lease. As described below, any costs associated with the Headquarters and office lease, including office rent, utilities, office supplies, etc. (“Office Related Costs”) will continue to be allocated to the Apple REIT Entities and Advisors, excluding Apple Six and A6 Advisors. | ||
Prior to the A6 Merger, amounts reimbursed to AFM included both compensation for personnel and Office Related Costs used by the companies. As discussed above, as a result of the A6 Merger, beginning on May 14, 2013, Office Related Costs are now allocated from the Company to the other Apple REIT Entities and Advisors, excluding Apple Six and A6 Advisors. Each of these companies has agreed to reimburse the Company for its share of these costs. From the period May 14, 2013 through September 30, 2013, the Company received reimbursement of its costs totaling approximately $0.4 million from the participating entities. The Company’s net allocated Office Related Costs were approximately $0.1 million and is included in general and administrative costs in the Company’s consolidated statements of operations. | ||
All of the Office Related Costs and costs of AFM are allocated among the Apple REIT Entities and the Advisors, excluding Apple Six and A6 Advisors after the A6 Merger. The allocation of costs is reviewed at least annually by the Compensation Committees of the Apple REIT Entities. In making the allocation, management of each of the entities and their Compensation Committee consider all relevant facts related to each company’s level of business activity and the extent to which each company requires the services of particular personnel of AFM. Such payments are based on the actual costs of the services and are not based on formal record keeping regarding the time these personnel devote to the Company, but are based on a good faith estimate by the employee and/or his or her supervisor of the time devoted by the employee to the Company. Although there is a potential conflict on time allocation of employees due to the fact that a senior manager, officer or staff member will provide services to more than one company, the Company believes that the executives and staff compensation sharing arrangement described above allows the companies to share costs yet attract and retain superior executives and staff. The cost sharing structure also allows each entity to maintain a much more cost effective structure than having separate staffing arrangements. Since the employees of AFM perform services for the Apple REIT Entities and Advisors at the direction of the Advisors, individuals, including executive officers, receive their compensation at the direction of the Advisors and may receive consideration directly from the Advisors. | ||
As part of the cost sharing arrangements, the day-to-day transactions may result in amounts due to or from the Apple REIT Entities and Advisors (excluding Apple Six and A6 Advisors after the A6 Merger). To efficiently manage cash disbursements, an individual Apple REIT Entity or Advisor (excluding Apple Six and A6 Advisors after the A6 Merger) may make payments for any or all of the related companies. The amounts due to or from the related Apple REIT Entity or Advisor (excluding Apple Six and A6 Advisors after the A6 Merger) are reimbursed or collected and are not significant in amount. | ||
The Company has incurred legal fees associated with the Legal Proceedings and Related Matters discussed herein. The Company also incurs other professional fees such as accounting, auditing and reporting. These fees are included in general and administrative expense in the Company’s consolidated statements of operations. To be cost effective, these services received by the Company are shared as applicable across the other Apple REIT Entities. The professionals cannot always specifically identify their fees for one company; therefore management allocates these costs across the companies that benefit from the services. The total costs for the Legal Proceedings and Related Matters discussed herein for all of the Apple REIT Entities (excluding Apple Six after the A6 Merger) was approximately $2.2 million for the nine months ended September 30, 2013, of which approximately $0.5 million was allocated to the Company. Total costs for the nine months ended September 30, 2012 for all of the Apple REIT Entities was approximately $5.7 million, of which approximately $1.3 million was allocated to the Company. | ||
Apple Air Holding, LLC (“Apple Air”) Membership Interest | ||
Included in other assets, net on the Company’s consolidated balance sheet is a 24% equity investment in Apple Air. The other current members of Apple Air are Apple Seven, Apple Eight and Apple Ten. In connection with the A6 Merger, on May 13, 2013, Apple Ten acquired its membership interest in Apple Air from Apple Six. Through its equity investment, the Company has access to Apple Air’s aircraft for acquisition, asset management and renovation purposes. The Company’s equity investment was approximately $1.7 million and $1.9 million as of September 30, 2013 and December 31, 2012. The Company has recorded its share of income and losses of the entity under the equity method of accounting and adjusted its investment in Apple Air accordingly. For the nine months ended September 30, 2013 and 2012, the Company recorded a loss of approximately $181,000 and $145,000 respectively, as its share of the net loss of Apple Air, which primarily relates to the depreciation of the aircraft, and is included in general and administrative expense in the Company’s consolidated statements of operations. | ||
Merger Agreement and Related Transactions | ||
Concurrently with the execution of the Merger Agreement (as discussed in note 2), on August 7, 2013, the following agreements were entered into by the Company: | ||
· | Apple Seven, Apple Eight and Apple Nine entered into a termination agreement, as amended (the “Termination Agreement”) with Apple Seven Advisors, Inc., Apple Eight Advisors, Inc., A9A and ASRG, effective immediately before the completion of the mergers. Pursuant to the Termination Agreement, the existing advisory agreements and property acquisition/disposition agreements with respect to Apple Seven, Apple Eight and Apple Nine will be terminated. The Termination Agreement does not provide for any separate payments to be made in connection with the termination of the existing advisory agreements and property acquisition/disposition agreements. As a result, if the mergers are completed, Apple Seven, Apple Eight and Apple Nine will no longer pay the various fees currently paid to its respective advisors. | |
· | Apple Nine entered into a subcontract agreement, as amended (the “Subcontract Agreement”) with Apple Ten Advisors, Inc. (“A10A”). Pursuant to the Subcontract Agreement, A10A will subcontract its obligations under the advisory agreement between A10A and Apple Ten to Apple Nine. The Subcontract Agreement provides that, from and after the completion of the mergers, Apple Nine will provide to Apple Ten the advisory services contemplated under the A10A advisory agreement and will receive the fees and expenses payable under the A10A advisory agreement from Apple Ten. | |
· | Apple Nine entered into an assignment and transfer agreement, as amended (the “Transfer Agreement”) with A9A and AFM. Pursuant to the Transfer Agreement, Apple Nine will acquire all of the membership interests in AFM from A9A effective immediately following the completion of the mergers. The Transfer Agreement provides that Apple Nine will assume all of the obligations of the predecessor owners of AFM under prior transfer agreements involving the transfer of the membership interests in AFM (including Apple Hospitality Two, Inc., Apple Hospitality Five, Inc., Apple Six and A9A) and relieve the predecessor owners and the other advisory companies of any liability with respect to AFM. | |
Shareholders_Equity
Shareholder's Equity | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||||||||
7. Shareholders’ Equity | |||||||||||||
Special Distribution | |||||||||||||
As a result of the sale of its 110 parcels, the Board of Directors approved a special distribution of $0.75 per Unit, totaling $136.1 million on May 17, 2012 to shareholders of record on May 11, 2012 (the “Special Distribution”). | |||||||||||||
Monthly Distributions | |||||||||||||
For the three months ended September 30, 2013 and 2012, the Company made distributions of $0.2076 and $0.2075 per common share for a total of $37.9 million and $37.8 million. For the nine months ended September 30, 2013 and 2012, the Company made distributions (excluding the Special Distribution discussed above) of $0.6227 and $0.6434 per common share for a total of $113.6 million and $117.2 million. In conjunction with the Special Distribution, in May 2012 the Company’s Board of Directors reduced the annual distribution rate from $0.88 per common share to $0.83 per common share. The reduction was effective with the June 2012 distribution. In August 2012, the Board of Directors increased the annualized distribution rate from $0.83 per common share to $0.83025 per common share. The distribution will continue to be paid monthly. Total distributions (including the Special Distribution) for the nine months ended September 30, 2013 and 2012 totaled $113.6 million and $253.3 million. | |||||||||||||
Unit Redemption Program | |||||||||||||
In July 2009, the Company instituted a Unit Redemption Program to provide limited interim liquidity to its shareholders who have held their Units for at least one year. Since the inception of the program through April 2012, shareholders were permitted to request redemption of Units for a purchase price equal to 92% of the price paid per Unit if the Units have been owned for less than three years, or 100% of the price paid per Unit if the Units have been owned more than three years. In May 2012, as a result of the Special Distribution, the purchase price per Unit under the Company’s Unit Redemption Program was adjusted by the amount of the Special Distribution (from $11.00 to $10.25 for the maximum purchase price, based on the original purchase price and length of time such Units have been held by the shareholder). The maximum number of Units that may be redeemed in any given year is five percent of the weighted average number of Units outstanding during the 12-month period immediately prior to the date of redemption. The Company reserves the right to change the purchase price of redemptions, reject any request for redemption, or otherwise amend the terms of, suspend, or terminate the Unit Redemption Program. On June 27, 2013, the Company announced the suspension of its Unit Redemption Program as it evaluated the potential merger transaction. Under the Merger Agreement, the Company is required to continue the suspension of the program until the Merger Agreement is terminated or the mergers are completed. | |||||||||||||
Since inception of the program through September 30, 2013, the Company has redeemed approximately 11.7 million Units representing $121.2 million, including 2.0 million Units in the amount of $20.0 million and 4.0 million Units in the amount of $42.0 million redeemed during the nine months ended September 30, 2013 and 2012, respectively. Since July 2011, the total redemption requests have exceeded the authorized amount of redemptions and, as a result, the Board of Directors has limited the amount of redemptions as deemed prudent. Therefore, as contemplated in the program, beginning with the July 2011 redemption, the scheduled redemption date for the third quarter of 2011, the Company redeemed Units on a pro-rata basis. Prior to July 2011, the Company redeemed 100% of redemption requests. The following is a summary of the Unit redemptions during 2012 and the first nine months of 2013: | |||||||||||||
Redemption Date | Total Requested Unit | Units Redeemed | Total Redemption | ||||||||||
Redemptions at | Requests Not | ||||||||||||
Redemption Date | Redeemed at | ||||||||||||
Redemption Date | |||||||||||||
First Quarter 2012 | 10,689,219 | 1,507,187 | 9,182,032 | ||||||||||
Second Quarter 2012 | 11,229,890 | 1,509,922 | 9,719,968 | ||||||||||
Third Quarter 2012 | 10,730,084 | 1,004,365 | 9,725,719 | ||||||||||
Fourth Quarter 2012 | 11,155,269 | 1,003,267 | 10,152,002 | ||||||||||
First Quarter 2013 | 12,135,251 | 990,324 | 11,144,927 | ||||||||||
Second Quarter 2013 | 13,039,019 | 988,095 | 12,050,924 | ||||||||||
Dividend Reinvestment Plan | |||||||||||||
In December 2010, the Company instituted a Dividend Reinvestment Plan for its shareholders. The plan provides a way to increase shareholder investment in the Company by reinvesting dividends to purchase additional Units of the Company. The uses of the proceeds from this plan may include purchasing Units under the Company’s Unit Redemption Program, enhancing properties, satisfying financing obligations and other expenses, increasing working capital, funding various corporate operations, and acquiring hotels. As a result of the Special Distribution, beginning in May 2012, the offering price per Unit under the Company’s Dividend Reinvestment Plan was adjusted by the amount of the Special Distribution (from $11.00 to $10.25). The Company has registered 20.0 million Units for potential issuance under the plan. Since inception of the plan through September 30, 2013, approximately 12.3 million Units, representing $131.0 million in proceeds to the Company, were issued under the plan. During the nine months ended September 30, 2013 and 2012, approximately 2.1 million Units, representing $22.0 million in proceeds to the Company, and 3.6 million Units, representing $38.2 million in proceeds to the Company, were issued under the plan. On June 27, 2013, the Company announced the suspension of its Dividend Reinvestment Plan as it evaluated the potential merger transaction. Under the Merger Agreement, the Company is required to continue the suspension of the plan until the Merger Agreement is terminated or the mergers are completed. | |||||||||||||
Legal_Proceedings_and_Related_
Legal Proceedings and Related Matters | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block Supplement [Abstract] | ' |
Legal Matters and Contingencies [Text Block] | ' |
8. Legal Proceedings and Related Matters | |
On December 13, 2011, the United States District Court for the Eastern District of New York ordered that three putative class actions, Kronberg, et al. v. David Lerner Associates, Inc., et al., Kowalski v. Apple REIT Ten, Inc., et al., and Leff v. Apple REIT Ten, Inc., et al., be consolidated and amended the caption of the consolidated matter to be In re Apple REITs Litigation. The District Court also appointed lead plaintiffs and lead counsel for the consolidated action and ordered lead plaintiffs to file and serve a consolidated complaint by February 17, 2012. The Company was previously named as a party in all three of the above mentioned class action lawsuits. | |
On February 17, 2012, lead plaintiffs and lead counsel in the In re Apple REITs Litigation, Civil Action No. 1:11-cv-02919-KAM-JO, filed an amended consolidated complaint in the United States District Court for the Eastern District of New York against the Company, Apple Suites Realty Group, Inc., Apple Eight Advisors, Inc., Apple Nine Advisors, Inc., Apple Ten Advisors, Inc., Apple Fund Management, LLC, Apple REIT Six, Inc., Apple REIT Seven, Inc., Apple REIT Eight, Inc. and Apple REIT Ten, Inc., their directors and certain officers, and David Lerner Associates, Inc. and David Lerner. The consolidated complaint, which was dismissed in April 2013, was purportedly brought on behalf of all purchasers of Units in the Company and the other Apple REIT Entities, or those who otherwise acquired these Units that were offered and sold to them by David Lerner Associates, Inc., or its affiliates and on behalf of subclasses of shareholders in New Jersey, New York, Connecticut and Florida, and alleges that the Apple REIT Entities “misrepresented the investment objectives of the Apple REITs, the dividend payment policy of the Apple REITs, and the value of their Apple REIT investments.” The consolidated complaint asserts claims under Sections 11, 12 and 15 of the Securities Act of 1933, as well as claims for breach of fiduciary duty, aiding and abetting breach of fiduciary duty, negligence, and unjust enrichment, and claims for violation of the securities laws of Connecticut and Florida. The complaint seeks, among other things, certification of a putative nationwide class and the state subclasses, damages, rescission of share purchases and other costs and expenses. | |
On April 18, 2012, the Company, and the other defendants moved to dismiss the consolidated complaint in the In re Apple REITs Litigation. By Order entered on March 31, 2013 and opinion issued on April 3, 2013, the Court dismissed the consolidated complaint in its entirety with prejudice and without leave to amend. Plaintiffs filed a Notice of Appeal to the Second Circuit Court of Appeals on April 12, 2013, and filed their Brief for Plaintiffs-Appellants on July 26, 2013. Defendants-Appellees filed their Briefs on October 25, 2013. The Company believes that Plaintiffs’ claims against it, its officers and directors and other Apple REIT Entities were properly dismissed by the lower court, and intends to vigorously defend the judgment as entered. In the event some or all of Plaintiffs’ claims are revived as a result of Plaintiffs’ appeal, the Company will, once again, defend against them vigorously. At this time, the Company cannot reasonably predict the outcome of these proceedings or provide a reasonable estimate of the possible loss or range of loss due to these proceedings, if any. | |
The Securities and Exchange Commission (“SEC”) staff has been conducting a non-public investigation, which is focused principally on the adequacy of certain disclosures in the Company's filings with the SEC beginning in 2008, as well as the Company's review of certain transactions involving the Company and the other Apple REIT Entities. The Company intends to continue to cooperate with the SEC staff, and it is engaging in a dialogue with the SEC staff concerning these issues and the roles of certain officers. The Company does not believe the issues raised by the SEC staff affect the material accuracy of the Company's consolidated financial statements. At this time, the Company cannot predict the outcome of this investigation as to the Company or any of its officers, nor can it predict the timing associated with any such conclusion or resolution. | |
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
9. Subsequent Events | |
In October 2013, the Company declared and paid approximately $12.6 million, or $0.0691875 per outstanding common share, in distributions to its common shareholders. | |
On November 1, 2013, the $60 million note receivable, as discussed in note 3 was repaid by the purchaser in full and the purchaser was released from all liability and obligations under the note. In exchange for the early payment and waiver by the purchaser of certain terms of the note, the Company agreed to waive approximately $0.5 million of interest for the month of October 2013. As a result of the repayment of the note, the Company will recognize the deferred gain on sale totaling $33.3 million and deferred interest earned totaling $9.0 million for a total gain of approximately $42.3 million as of September 30, 2013 in the fourth quarter of 2013. The Company plans to use the proceeds from the repayment of the note to reduce the outstanding balance under its $50 million credit facility and to fund general corporate purposes, including working capital, renovations and hotel development. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Organization | |
Apple REIT Nine, Inc., together with its wholly owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company was formed to invest in income-producing real estate in the United States. Initial capitalization occurred on November 9, 2007 and operations began on July 31, 2008 when the Company acquired its first hotel. The Company concluded its best-efforts offering of Units (each Unit consists of one common share and one Series A preferred share) in December 2010. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has an interest in a variable interest entity through its note receivable, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of the entity and does not share in any of the benefits, and therefore does not consolidate the entity. As of September 30, 2013, the Company owned 89 hotels located in 27 states with an aggregate of 11,371 rooms. | |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These unaudited financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its 2012 Annual Report on Form 10-K. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2013. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of the financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
Certain amounts in the 2012 consolidated financial statements have been reclassified to conform with the 2013 presentation with no effect on previously reported net income or shareholders’ equity. | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Restricted Cash | |
Restricted cash includes reserves for debt service, real estate taxes, and insurance, and reserves for furniture, fixtures, and equipment replacements of up to 5% of property revenue for certain hotels, as required by certain management or mortgage debt agreement restrictions and provisions. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings Per Common Share | |
Basic earnings per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted earnings per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for the three and nine months ended September 30, 2013 or 2012. As a result, basic and dilutive outstanding shares were the same. Series B convertible preferred shares are not included in earnings per common share calculations until such time that such shares are eligible to be converted to common shares. |
Disposition_and_Discontinued_O1
Disposition and Discontinued Operations (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | ||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block] | 'The following table sets forth the components of income from discontinued operations for the three and nine months ended September 30, 2012 (in thousands): | ||||||||
Three Months | Nine Months | ||||||||
Ended | Ended | ||||||||
30-Sep-12 | 30-Sep-12 | ||||||||
Rental revenue | $ | 0 | $ | 6,826 | |||||
Operating expenses | 0 | 34 | |||||||
Depreciation expense | 0 | 0 | |||||||
Income from discontinued operations | $ | 0 | $ | 6,792 |
Shareholders_Equity_Tables
Shareholder's Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||
Summary of Unit Redemptions [Table Text Block] | 'The following is a summary of the Unit redemptions during 2012 and the first nine months of 2013: | ||||||||||||
Redemption Date | Total Requested Unit | Units Redeemed | Total Redemption | ||||||||||
Redemptions at | Requests Not | ||||||||||||
Redemption Date | Redeemed at | ||||||||||||
Redemption Date | |||||||||||||
First Quarter 2012 | 10,689,219 | 1,507,187 | 9,182,032 | ||||||||||
Second Quarter 2012 | 11,229,890 | 1,509,922 | 9,719,968 | ||||||||||
Third Quarter 2012 | 10,730,084 | 1,004,365 | 9,725,719 | ||||||||||
Fourth Quarter 2012 | 11,155,269 | 1,003,267 | 10,152,002 | ||||||||||
First Quarter 2013 | 12,135,251 | 990,324 | 11,144,927 | ||||||||||
Second Quarter 2013 | 13,039,019 | 988,095 | 12,050,924 |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Unit description | ' | ' | 'one common share and one Series A preferred share | ' |
Number of Reportable Segments | ' | ' | 1 | ' |
Percentage of Revenue Reserved for Replacements | ' | ' | 'up to 5% | ' |
Weighted Average Number Diluted Shares Outstanding Adjustment (in Shares) | 0 | 0 | 0 | 0 |
Hotels [Member] | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Number of Real Estate Properties | 89 | ' | 89 | ' |
Number of States in which Entity Operates | 27 | ' | 27 | ' |
Aggregate Hotel Rooms [Member] | ' | ' | ' | ' |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' |
Number of Units in Real Estate Property | 11,371 | ' | 11,371 | ' |
Merger_Agreement_Details
Merger Agreement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Merger Agreement (Details) [Line Items] | ' | ' | ' | ' |
Business Combination, Merger Agreement Description | ' | ' | 'On August 7, 2013, Apple REIT Seven, Inc. ("Apple Seven"), Apple REIT Eight, Inc. ("Apple Eight"), Apple REIT Nine, Inc. ("Apple Nine"), Apple Seven Acquisition Sub, Inc. ("Seven Acquisition Sub") a wholly owned subsidiary of Apple Nine, and Apple Eight Acquisition Sub, Inc. ("Eight Acquisition Sub") a wholly owned subsidiary of Apple Nine, entered into an Agreement and Plan of Merger, as amended (the "Merger Agreement").The Merger Agreement provides for the merger of Apple Seven and Apple Eight with and into Seven Acquisition Sub and Eight Acquisition Sub, respectively, which were formed solely for engaging in the mergers and have not conducted any prior activities.Upon completion of the mergers, the separate corporate existence of Apple Seven and Apple Eight will cease and Seven Acquisition Sub and Eight Acquisition Sub will be the surviving corporations.Pursuant to the terms of the Merger Agreement, upon completion of the mergers, the current Apple Nine common shares totaling 182,784,131 will remain outstanding | ' |
Business Combination, Merger Agreement, Termination Terms | ' | ' | 'Under the Merger Agreement, Apple Seven, Apple Eight and Apple Nine may terminate the Merger Agreement under certain circumstances; however, each of the companies may be required to pay a fee of $1.7 million, plus reasonable third party expenses to each of the other companies upon such termination. | ' |
Merger Transaction Costs (in Dollars) | $1,908,000 | $0 | $1,970,000 | $637,000 |
Apple Seven, Eight and Nine Merger Agreement [Member] | Apple Seven [Member] | ' | ' | ' | ' |
Merger Agreement (Details) [Line Items] | ' | ' | ' | ' |
Business Combination, Merger Agreement Description | ' | ' | 'Each issued and outstanding unit of Apple Seven (consisting of one Apple Seven common share together with one Apple Seven Series A preferred share) will be converted into one (the "Apple Seven exchange ratio") common share of Apple Nine, or a total of approximately 90,613,633 common shares (assuming no dissenting shares), and each issued and outstanding Series B convertible preferred share of Apple Seven will be converted into a number of Apple Nine's common shares equal to 24.17104 multiplied by the Apple Seven exchange ratio, or a total of 5,801,050 common shares | ' |
Business Combination, Unit Exchange Ratio | 1 | ' | 1 | ' |
Business Combination, Common Shares to be Issued Upon Conversion of Acquiree Units | 90,613,633 | ' | 90,613,633 | ' |
Convertible Preferred Stock, Conversion Rate | 24.17104 | ' | 24.17104 | ' |
Business Combination, Conversion of Preferred Stock Into Number of Common Shares to be Issued | 5,801,050 | ' | 5,801,050 | ' |
Apple Seven, Eight and Nine Merger Agreement [Member] | Apple Eight [Member] | ' | ' | ' | ' |
Merger Agreement (Details) [Line Items] | ' | ' | ' | ' |
Business Combination, Merger Agreement Description | ' | ' | 'Each issued and outstanding unit of Apple Eight (consisting of one Apple Eight common share together with one Apple Eight Series A preferred share) will be converted into 0.85 (the "Apple Eight exchange ratio") common share of Apple Nine, or a total of approximately 78,319,004 common shares (assuming no dissenting shares), and each issued and outstanding Series B convertible preferred share of Apple Eight will be converted into a number of Apple Nine's common shares equal to 24.17104 multiplied by the Apple Eight exchange ratio, or a total of 4,930,892 common shares. | ' |
Business Combination, Unit Exchange Ratio | 0.85 | ' | 0.85 | ' |
Business Combination, Common Shares to be Issued Upon Conversion of Acquiree Units | 78,319,004 | ' | 78,319,004 | ' |
Convertible Preferred Stock, Conversion Rate | 24.17104 | ' | 24.17104 | ' |
Business Combination, Conversion of Preferred Stock Into Number of Common Shares to be Issued | 4,930,892 | ' | 4,930,892 | ' |
Apple Seven, Eight and Nine Merger Agreement [Member] | Apple Nine [Member] | ' | ' | ' | ' |
Merger Agreement (Details) [Line Items] | ' | ' | ' | ' |
Convertible Preferred Stock, Conversion Rate | 24.17104 | ' | 24.17104 | ' |
Termination of Advisory Agreements, Description | ' | ' | 'As contemplated in the Merger Agreement, in connection with completion of the mergers, Apple Nine will become self-advised and the existing advisory agreements between Apple Nine and Apple Nine Advisors, Inc. and Apple Suites Realty Group, Inc. will be terminated.The termination of the advisory agreements will result in the conversion of each issued and outstanding Series B convertible preferred share of Apple Nine into the right to receive 24.17104 common shares of Apple Nine, or a total of 11,602,099 common shares.As a result of the conversion, all of Apple Nine's Series A preferred shares will terminate.In addition, upon termination of the advisory agreements, Apple Nine will record an expense related to the conversion of Apple Nine's Series B convertible preferred shares into common shares. | ' |
Conversion of Preferred Stock, Number of Common Shares Issued | 11,602,099 | ' | 11,602,099 | ' |
Preliminary Minimum Estimate of the Fair Value of the Company's Common Stock, Per Share (in Dollars per share) | $9 | ' | $9 | ' |
Preliminary Maximum Estimate of the Fair Value of the Company's Common Stock, Per Share (in Dollars per share) | $11 | ' | $11 | ' |
Estimated Expense Related to the Conversion of the Convertible Preferred Stock, Minimum (in Dollars) | ' | ' | 104,000,000 | ' |
Estimated Expense Related to the Conversion of the Convertible Preferred Stock, Maximum (in Dollars) | ' | ' | 128,000,000 | ' |
Merger Transaction Costs (in Dollars) | ' | ' | $2,000,000 | ' |
Disposition_and_Discontinued_O2
Disposition and Discontinued Operations (Details) (USD $) | 9 Months Ended | 12 Months Ended | 1 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Apr. 27, 2012 | Apr. 30, 2009 | |
Sale of 110 Sites Leased to Third Party [Member] | Sale of 110 Sites Leased to Third Party [Member] | Sale of 110 Sites Leased to Third Party [Member] | Acquisition of 110 Sites Leased to Third Party [Member] | ||||
acre | |||||||
Disposition and Discontinued Operations (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Disposal Date | ' | ' | ' | 27-Apr-12 | ' | ' | ' |
Area of Land (in Acres) | ' | ' | ' | 406 | ' | ' | ' |
Land Sites Sold | ' | ' | ' | 110 | ' | ' | ' |
Total Sales Price of Real Estate Sold | ' | ' | ' | $198,400,000 | ' | ' | ' |
Land Parcels Sold | ' | ' | ' | 110 | ' | ' | ' |
Payments to Acquire Real Estate | ' | ' | ' | ' | ' | ' | 147,300,000 |
Proceeds from Sale of Real Estate Held-for-investment | ' | ' | ' | 138,400,000 | ' | ' | ' |
Note Receivable Issued | ' | ' | ' | 60,000,000 | ' | ' | ' |
Note Receivable, Collateral | ' | ' | ' | 'junior lien on the land and land improvements owned by the purchaser | ' | ' | ' |
Interest Rate on Note Receivable | ' | ' | ' | 10.50% | ' | ' | ' |
Gains (Losses) on Sales of Investment Real Estate | ' | ' | ' | 33,300,000 | ' | ' | ' |
Assets Held-for-sale, at Carrying Value | ' | ' | ' | ' | ' | 160,500,000 | ' |
Closing Costs on Sale of Real Estate | ' | ' | ' | 300,000 | ' | ' | ' |
Franchise Taxes on Sale of Real Estate | ' | ' | ' | 300,000 | ' | ' | ' |
Note Receivable, Net | 17,675,000 | ' | 22,375,000 | 22,400,000 | 17,700,000 | ' | ' |
Notes, Loans and Financing Receivable, Gross, Noncurrent | 60,000,000 | ' | 60,000,000 | 60,000,000 | 60,000,000 | ' | ' |
Deferred Gain on Sale of Real Estate Assets | ' | ' | ' | 33,400,000 | 33,300,000 | ' | ' |
Deferred Interest Earned on Note Receivable | ' | ' | ' | 4,300,000 | 9,000,000 | ' | ' |
Straight Line Rent | $0 | $1,975,000 | ' | ' | ' | ' | ' |
Disposition_and_Discontinued_O3
Disposition and Discontinued Operations (Details) - Components of Income from Discontinued Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Components of Income from Discontinued Operations [Abstract] | ' | ' | ' | ' |
Rental revenue | ' | $0 | ' | $6,826 |
Operating expenses | ' | 0 | ' | 34 |
Depreciation expense | ' | 0 | ' | 0 |
Income from discontinued operations | $0 | $0 | $0 | $6,792 |
Credit_Facility_Details
Credit Facility (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Credit Facility (Details) [Line Items] | ' | ' |
Line of Credit Facility, Amount Outstanding (in Dollars) | $22,000,000 | $0 |
Revolving Credit Facility $50 Million [Member] | ' | ' |
Credit Facility (Details) [Line Items] | ' | ' |
Debt Instrument, Origination Date | 'November 2012 | ' |
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | 50,000,000 | ' |
Line of Credit Facility, Borrowing Capacity, Description | 'may be increased to $100 million, subject to certain conditions | ' |
Debt Instrument, Maturity Date, Description | 'matures in November 2014; however, the Company has the right, upon satisfaction of certain conditions, including covenant compliance and payment of an extension fee, to extend the maturity date to November 2015 | ' |
Line of Credit Facility, Interest Rate Description | 'one-month LIBOR (the London Inter-Bank Offered Rate for a one-month term) plus a margin ranging from 2.25% to 2.75%, depending upon the Company's leverage ratio, as calculated under the terms of the credit agreement | ' |
Line of Credit Facility, Amount Outstanding (in Dollars) | $22,000,000 | $0 |
Line of Credit Facility, Interest Rate at Period End | 2.43% | ' |
Line of Credit Facility, Collateral | 'the Company to maintain a specific pool of Unencumbered Borrowing Base Properties (must be a minimum of ten properties and must satisfy conditions as defined in the credit agreement) | ' |
Line of Credit Facility, Covenant Terms | 'The credit facility contains customary affirmative covenants, negative covenants and events of defaults.It also contains quarterly financial covenants, which include, among others, a minimum tangible net worth, maximum debt limits, and minimum debt service and fixed charge coverage ratios.The Company was in compliance with each of these covenants at September 30, 2013. | ' |
Minimum [Member] | Revolving Credit Facility $50 Million [Member] | ' | ' |
Credit Facility (Details) [Line Items] | ' | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.30% | ' |
Maximum [Member] | Revolving Credit Facility $50 Million [Member] | ' | ' |
Credit Facility (Details) [Line Items] | ' | ' |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | ' |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Fair Value Disclosures [Abstract] | ' | ' |
Long-term Debt | $185.60 | $166.80 |
Long-term Debt, Fair Value | 190.1 | 173.3 |
Notes, Loans and Financing Receivable, Gross, Noncurrent | 60 | 60 |
Notes Receivable, Fair Value Disclosure | $60 | $60 |
Related_Parties_Details
Related Parties (Details) (USD $) | Sep. 30, 2013 | 14-May-13 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Jun. 30, 2012 | 13-May-13 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 |
Real Estate Disposal Fees Remaining To Be Paid [Member] | Cash Consideration Exchanged Between Entities [Member] | Reimbursement Received From Related Parties For Their Proportionate Share of Office Related Costs Provided by Apple REIT Nine, Inc. [Member] | Purchase of Previously Leased Land Parcels [Member] | Sale of 110 Sites Leased to Third Party [Member] | Sale of 110 Sites Leased to Third Party [Member] | Acquisition of Headquarters and Assignment of Office Lease Agreement from Apple REIT Six, Inc. [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Nine Advisors (A9A) [Member] | Apple Nine Advisors (A9A) [Member] | Apple Nine Advisors (A9A) [Member] | Apple Nine Advisors (A9A) [Member] | Apple Nine Advisors (A9A) [Member] | ASRG and A9A [Member] | ASRG and A9A [Member] | All Apple REIT Entities [Member] | All Apple REIT Entities [Member] | Apple REIT Nine, Inc. [Member] | Apple REIT Nine, Inc. [Member] | Apple Air Holding, LLC [Member] | Apple Air Holding, LLC [Member] | Apple Air Holding, LLC [Member] | Net Allocated Office Related Costs to Apple REIT Nine, Inc. [Member] | |
Sale of 110 Sites Leased to Third Party [Member] | Assignment and Transfer of Apple REIT Six, Inc.'s Interest in Apple Fund Management to Apple Nine Advisors (A9A) [Member] | Apple Suites Realty Group (ASRG) [Member] | Apple Suites Realty Group (ASRG) [Member] | Real Estate Acquisition Fees Incurred [Member] | Real Estate Acquisition Fees Incurred [Member] | Real Estate Acquisition Fees Incurred [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Advisory Fees Incurred [Member] | Advisory Fees Incurred [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member] | Legal Proceedings and SEC Investigation [Member] | Legal Proceedings and SEC Investigation [Member] | Legal Proceedings and SEC Investigation [Member] | Legal Proceedings and SEC Investigation [Member] | ||||||||||
Apple Suites Realty Group (ASRG) [Member] | Real Estate Disposal Fees Incurred [Member] | Real Estate Disposal Fees Paid [Member] | ||||||||||||||||||||||||||
Related Parties (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate acquisition and disposal fee, Related Party, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs and Expenses, Related Party | ' | ' | ' | ' | $4,000,000 | $2,800,000 | ' | $100,000 | $400,000 | $33,600,000 | $0 | $100,000 | ' | $2,100,000 | $2,200,000 | $1,600,000 | $1,500,000 | ' | $1,600,000 | $1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Land Parcels Purchased | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts Payable, Related Parties | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Amounts of Transaction | ' | 0 | ' | ' | ' | ' | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Management Advisory Fee, Related Party, Percent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '0.1% to 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reimbursement of Office Related Costs From Related Parties | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Allocated Office Related Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 |
Legal Fees | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,200,000 | 5,700,000 | 500,000 | 1,300,000 | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24.00% | ' | ' | ' |
Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | 1,900,000 | ' |
Income (Loss) from Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($181,000) | ($145,000) | ' | ' |
Shareholders_Equity_Details
Shareholder's Equity (Details) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 2 Months Ended | 5 Months Ended | 14 Months Ended | 9 Months Ended | 17 Months Ended | 24 Months Ended | 34 Months Ended | 51 Months Ended | 9 Months Ended | 17 Months Ended | 34 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2012 | 31-May-12 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2011 | Apr. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Apr. 30, 2012 | Sep. 30, 2013 | |
Special Distribution [Member] | Monthly Distributions [Member] | Monthly Distributions [Member] | Monthly Distributions [Member] | Monthly Distributions [Member] | Annual Distribution [Member] | Annual Distribution [Member] | Annual Distribution [Member] | Total Distributions [Member] | Total Distributions [Member] | Unit Redemption Program [Member] | Unit Redemption Program [Member] | Unit Redemption Program [Member] | Unit Redemption Program [Member] | Unit Redemption Program [Member] | Unit Redemption Program [Member] | Unit Redemption Program [Member] | Dividend Reinvestment Plan [Member] | Dividend Reinvestment Plan [Member] | Dividend Reinvestment Plan [Member] | Dividend Reinvestment Plan [Member] | Dividend Reinvestment Plan [Member] | |||
Shareholder's Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Special Distribution, Amount Per Unit (in Dollars per share) | ' | ' | $0.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Special Distribution | $0 | $136,113,000 | $136,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date to be Paid | ' | ' | 17-May-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Date of Record | ' | ' | 11-May-12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | ' | ' | ' | $0.21 | $0.21 | $0.62 | $0.64 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Ordinary Dividends, Common Stock | 113,646,000 | 117,164,000 | ' | 37,900,000 | 37,800,000 | 113,600,000 | 117,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual Distribution rate (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | $0.83 | $0.88 | $0.83 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of Total Distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 113,600,000 | 253,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unit redemption eligibility period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption rate, Units owned less than 3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 92.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption rate, Units owned more than 3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes Resulting From Special Distribution, Description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'In May 2012, as a result of the Special Distribution, the purchase price per Unit under the Company's Unit Redemption Program was adjusted by the amount of the Special Distribution (from $11.00 to $10.25 for the maximum purchase price, based on the original purchase price and length of time such Units have been held by the shareholder). | ' | ' | ' | ' | ' | ' | 'As a result of the Special Distribution, beginning in May 2012, the offering price per Unit under the Company's Dividend Reinvestment Plan was adjusted by the amount of the Special Distribution (from $11.00 to $10.25). | ' | ' |
Unit Redemption, Maximum Purchase Price (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10.25 | ' | ' | $11 | ' | ' | ' | ' | ' | ' |
Weighted average number of Units outstanding, percentage redeemable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Units Redeemed (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | 4,000,000 | ' | ' | ' | ' | 11,700,000 | ' | ' | ' | ' | ' |
Payments for Redemption of Units | 19,992,000 | 41,988,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | 42,000,000 | ' | ' | ' | ' | 121,200,000 | ' | ' | ' | ' | ' |
Redemption requests redeemed, description | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'pro-rata basis | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption requests redeemed, percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Dividend Reinvestment Plan, Offering Price Per Unit (in Dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10.25 | $11 | ' |
Units Authorized (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' | 20,000,000 | ' | 20,000,000 |
Stock Issued During Period, Shares, Dividend Reinvestment Plan (in Shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,100,000 | 3,600,000 | ' | ' | 12,300,000 |
Stock Issued During Period, Value, Dividend Reinvestment Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $22,000,000 | $38,200,000 | ' | ' | $131,000,000 |
Shareholders_Equity_Details_Sc
Shareholder's Equity (Details) - Schedule of Unit Redemption (Redemptions [Member]) | 3 Months Ended | |||||
Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | |
Redemptions [Member] | ' | ' | ' | ' | ' | ' |
Shareholder's Equity (Details) - Schedule of Unit Redemption [Line Items] | ' | ' | ' | ' | ' | ' |
Total Requested Unit Redemptions at Redemption Date | 13,039,019 | 12,135,251 | 11,155,269 | 10,730,084 | 11,229,890 | 10,689,219 |
Units Redeemed (in Shares) | 988,095 | 990,324 | 1,003,267 | 1,004,365 | 1,509,922 | 1,507,187 |
Total Redemption Requests Not Redeemed at Redemption Date | 12,050,924 | 11,144,927 | 10,152,002 | 9,725,719 | 9,719,968 | 9,182,032 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 9 Months Ended | 0 Months Ended | 1 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | Nov. 01, 2013 | Oct. 31, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | |||
Repayment of $60 Million Note Receivable [Member] | ||||
Subsequent Events (Details) [Line Items] | ' | ' | ' | ' |
Payments of Ordinary Dividends, Common Stock | $113,646,000 | $117,164,000 | ' | $12,600,000 |
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share) | ' | ' | ' | $0.07 |
Proceeds from Collection of Notes Receivable | ' | ' | 60,000,000 | ' |
Note Receivable, Interest Waived | ' | ' | 500,000 | ' |
Recognition of Deferred Gain on Sale of Real Estate Assets | ' | ' | 33,300,000 | ' |
Recognition of Deferred Interest Earned on Note Receivable | ' | ' | 9,000,000 | ' |
Total Deferred Gain Recognized Upon Repayment of Note Receivable | ' | ' | $42,300,000 | ' |
Subsequent Event, Description | ' | ' | 'The Company plans to use the proceeds from the repayment of the note to reduce the outstanding balance under its $50 million credit facility and to fund general corporate purposes, including working capital, renovations and hotel development. | ' |