BRE Select Hotels Corp., an affiliate of the Blackstone Group, is to merge with Apple REIT Six in a deal worth US$1.2 billion.
The merger with Apple REIT Six includes the acquisition of 66 hotels with more than 7,600 rooms, including such brands as Fairfield Inn and Hilton Garden Inn. The transaction is not expected to be completed until the first half of 2013, as the deal is still subject to investor approval.Apple REIT Six‘s dividend reinvestment and share redemption programs have been suspended, as well as dividend payments, until execution of the merger agreement. The new preferred shares will have an option for the holder to redeem after 7.5 years, a dividend rate of 7 percent, and a liquidation preference of $1.90.
