What Happened to the Apple REITs? Six Sold at $11.10 in 2013; Seven to Ten Merged Into APLE by 2016

The roll call: five Apple REITs and what a unit became

Each Apple REIT sold “Units”, one common share plus one Series A preferred share that could not be traded separately. At Six through Nine the Series A share carried no income right; it only gave a priority claim of $11.00 on a sale of the company's assets. A unit is therefore the thing a holder owned and the thing every exchange ratio below is written on.

Before this family there were two earlier Apple companies, and they were also cashed out. Apple Hospitality Two agreed in 2007 to merge into a subsidiary of Lion ES Hotels, LP, an affiliate of ING Clarion Partners, LLC, for approximately $11.20 a unit (proxy dated April 18, 2007). Apple Hospitality Five agreed in 2007 to merge into a subsidiary of Inland American Real Estate Trust, Inc. for $14.05 in cash a share (proxy filed August 13, 2007). Both filed Form 15 in 2007. Apple REIT Six is not the one Inland American bought; our Inland REITs page covers Inland's own funds.

What $10,000 at $11.00 became, per the filings

A holder who paid $11.00 owned 909.09 units for each $10,000 (our arithmetic). The first table follows each exit; the second values the listed shares on two dated prices that appear in Apple Hospitality's own filings. Neither is a forecast, and Apple Hospitality dividends after the exit date come on top.

Only the Dec 31 closes come from annual reports (the 2015 and 2025 10-Ks); the $16.55 is the last reported sale price on August 5, 2026 stated in Apple Hospitality's prospectus supplement of August 6, 2026. The offering price is not a floor: Nine's own estimated value was $10.30 at December 31, 2014, which is $20.60 on the post-split share (our arithmetic), and the stock closed at $19.97 on December 31, 2015, the first year-end after the listing. Our listing discount ladder puts this listing next to other non-traded REITs that went public.

The $11 was never a valuation

The unit redemption programs bought units back at 92% to 100% of the price paid, depending on how long they were held (92.5% to 100% at Ten), and the dividend-reinvestment plans sold new units to existing holders at $11.00. For Apple Six the 10-K says “the last price at which an unrelated person purchased the Units from the Company was $11 per Unit through its Dividend Reinvestment Plan”. Apple Seven's says that price “is not based on an appraisal or valuation of the Company or its assets.” The first estimated values appear only in January 2015 for Apple Nine ($10.30 as of December 31, 2014, announced to help IRA custodians) and in January 2016 for Apple Ten ($11.10 as of December 31, 2015, down from $11.55 a year earlier on a range of $10.60 to $11.60). For Ten that 2015 value was the midpoint of a third-party range.

The gap between the $11 and what a hurried seller could get shows in the tender offers the 10-Ks list, all made by a group of related bidders and counted as announced by the bidders:

The contrast is sharpest at Apple Six: the company's board had signed the Blackstone agreement on November 29, 2012, and bidders still announced an $8.50 offer in February 2013, three months before holders received a stated $11.10. Each company's 10-K puts the units bought in these offers well under 1% of units outstanding (about 0.16% at Six, 0.17% at Seven and 0.27% at Nine), so most holders never sold to them.

Apple REIT Six: the one that was sold to an outside buyer

The merger agreement dated November 29, 2012 made Apple Six a subsidiary of BRE Select Hotels Corp, an affiliate of Blackstone Real Estate Partners VII. Shareholders approved it on May 9, 2013 (67,829,147 common shares for, 1,917,666 against, 338,117 abstaining) and it closed on May 14, 2013. The proxy told holders the exchange “will be a taxable transaction for United States federal income tax purposes”, so a Six holder owed tax in 2013 on the cash and the fair value of the preferred against basis; the $1.90 preferred share, not listed anywhere, was the part that stayed.

That preferred stock paid 7% on its $1.90 preference (the dividend was to rise to 11% if it was not redeemed within five years). BRE Select Hotels was an SEC voluntary filer, which is why the redemptions are public: 28,560,947 shares, about 39.458% of the total, on August 6, 2017 at $1.9082 each ($54.5 million), and the remaining 22,876,901 shares on December 9, 2019 at $1.9319 each, after which it stopped reporting. The preferred shares outstanding fell from 43,821,901 at December 31, 2018 to 22,876,901 at the November 2019 notice, a drop of 20,945,000 (our arithmetic) that the 8-K we read does not explain. The aggregate initial liquidation preference at issue was $184.4 million. The 240,000 Series B shares, issued to the company's chairman, were paid on an as-converted basis: at 24.17104 common shares each that is 5,801,050 share equivalents, about $64.4 million at $11.10 (our arithmetic).

Seven, Eight and Nine: three companies, one 2014 merger

The joint proxy statement dated January 16, 2014 set the exchange ratios the 8-K confirms: each Apple Seven unit became one Apple Nine common share, each Apple Eight unit became 0.85, and each Series B convertible share became 24.17104 shares (times 0.85 for Eight). Nine's shareholders approved the merger on February 27, 2014 (98,773,008 votes for, 10,997,577 against, 1,688,601 abstaining, counting only shares not held or controlled by directors). It closed on March 1, 2014, leaving about 374 million shares and about 55,000 beneficial holders. Counsel's opinion in the proxy was that the Seven and Eight mergers would qualify as a tax-free reorganization under Section 368(a) of the Internal Revenue Code, so holders would not recognize gain or loss and would keep their basis (for holders with units bought at different prices, the proxy says Treasury Regulations guide how basis is allocated). The reverse split came with the listing: on May 18, 2015 every two Apple Hospitality shares became one, so a pre-2015 statement showing 1,000 shares now corresponds to 500.

Two things followed the mergers. The new company ended its advisory agreements and became self-advised on March 1, 2014, and the board approved an annualized rate of $0.66 a share, paid monthly from March 2014. Before the mergers the companies had overlapping directors and executive officers, and disclosure of transactions among the REITs was one of three subjects of the SEC's February 12, 2014 order (below).

Apple REIT Ten: 0.522 share and a dollar

Apple Hospitality's shareholders approved issuing shares for Ten on August 31, 2016 (93,904,289 votes for, 6,289,364 against, 823,337 abstaining), and the merger became effective on September 1, 2016. Each Ten unit became 0.522 APLE share plus $1.00; each Series B share became 12.11423 times those amounts. Apple Hospitality issued about 48.7 million shares and acquired 56 hotels with 7,209 rooms. The joint proxy implied $11.17 a Ten unit at the 20-day volume-weighted average price before announcement, or $10.85 at the April 12, 2016 closing price, against an offering price of $10.50 for the first $100 million and $11.00 after. The merger was expected to qualify as a reorganization, but the proxy says U.S. holders recognize gain, never loss, equal to the smaller of the cash received and the total gain, so the $1.00 cash is the most that can be taxed on a gain.

Ten's unit redemption program, started in April 2012, paid 92.5% of the price paid for units held under five years and 100% after five years, up to 3% of units a year; the older programs allowed up to 5%.

What went wrong in the courts

Three different lawsuits and one SEC order are easy to confuse. The filings separate them:

For a holder the plain reading is: the securities-law class action that could have rescinded purchases at $11 failed on the merits at the trial court, and what paid out was narrower. The $5.5 million Moses fund is the one aimed at units bought at the reinvestment price. The 10-Ks do not say how the money was divided or when claims closed, and a claim window that ended in 2018 will not help a new holder now; the settlement administrator's records, if you were a class member, are the place to ask. The filings we read do not give the SEC civil penalty amounts, so we do not state them.

What Apple Hospitality pays now

The successor is a listed, self-advised hotel REIT. At September 30, 2026 it owned 216 hotels with 29,459 guest rooms in 37 states and the District of Columbia (four held for sale). It had 236,102,620 common shares on October 26, 2026 and “approximately 95 holders of record” on February 17, 2026, with most shares held through brokers.

The 2025 10-K says “The Company’s current annual distribution rate, payable monthly, is $0.96 per common share.” A holder of 454.55 APLE shares per $10,000 originally invested receives about $436 a year at that rate, 4.4% of the original $10,000 (our arithmetic). The old units paid $0.88 a year at Nine in 2009 to 2011, 8% of $11.00, and $0.77 a year at Seven in 2010 to 2012, 7% (our arithmetic).

What a holder or an heir can do with this

• Find out which Apple company your statement is from. An old statement for “Apple REIT Seven” or “Apple REIT Eight” is now 0.5 or 0.425 APLE share per unit held at Apple Hospitality's transfer agent. “Apple REIT Ten” became 0.522 share plus the $1.00 in 2016. “Apple REIT Six” is no longer an equity position: its preferred share was redeemed by December 9, 2019, and a record of the 2013 cash and 2017 and 2019 redemptions should be in your tax files.
• Shares sit at the transfer agent in book-entry form. The 2014 prospectus says units were held electronically in book-entry form with the transfer agent. Apple Hospitality's own investor page says “Equiniti Trust Company, LLC (“EQ”) is the registrar and transfer agent for Apple Hospitality REIT common stock” and lists 1-800-937-5449. The agent was American Stock Transfer & Trust Company in 2014 and 2016; Equiniti's form says “AST is now EQ”.
• If the owner has died. Equiniti's published transfer package (version dated April 5, 2024) requires, for a deceased owner, the signature of the executor, administrator or personal representative, a certificate of appointment, a notarized affidavit of domicile, a copy of the death certificate, a copy of government photo identification, a check for the transfer fee and, only if the state requires it, an inheritance tax waiver. The fee is $100 for a transfer under $5,000 and $200 from $5,000 to $10,000, and the medallion signature guarantee may be waived for transfers of $10,000 or less. Check the current package with the agent before sending anything. Our inherited-shares page explains the repurchase side of non-traded REITs and our inheritance tax page covers what heirs owe by asset.
• Basis through two events. Seven and Eight holders took a carryover basis in 2014 under the tax-free reorganization opinion; the 2015 reverse split halved the share count, so basis per share doubled and total basis did not change (our reading). Ten holders recognized gain only up to the $1.00 cash. Six holders had a taxable sale in 2013. Keep the proxies and the transfer-agent statements that show each step.
• If you cannot find a statement. Apple Nine's 2014 prospectus says its shareholders had no stock certificates, only book-entry positions with the transfer agent; for the other Apple REITs, ask the agent for a statement of holdings under the old company name.

This is analysis of public documents, not investment, legal or tax advice.

FAQ

Sources, read on November 12, 2026: Apple REIT Six (CIK 1277151) Form 10-K for 2012 (0001185185-13-000384), definitive proxy statement/prospectus of April 2, 2013 (0001193125-13-137908) and 8-Ks of May 9 and May 14, 2013 (0000930413-13-002842, 0000930413-13-002931); BRE Select Hotels Corp (CIK 1566445) Form 10-K for 2018 (0001193125-19-091047) and 8-K of November 14, 2019 (0001193125-19-292293); Apple REIT Seven (CIK 1329011) Form 10-K for 2012 (0001185185-13-000437) and joint proxy statement/prospectus of January 2014 (0001185185-14-000120); Apple REIT Eight (CIK 1387361) Form 10-K for 2012 (0001185185-13-000448); Apple REIT Nine / Apple Hospitality REIT (CIK 1418121) Form S-4/A of January 8, 2014 (0001185185-14-000053), 8-Ks of February 28, March 5, 2014 and September 1 and August 31, 2016 (0001185185-14-000448, 0001185185-14-000473, 0001185185-16-005389, 0001185185-16-005376), Forms 10-K for 2013 to 2018, 2020, 2022 and 2025 (0001185185-14-000516, 0001185185-15-000457, 0001185185-16-003772, 0001185185-17-000461, 0001185185-18-000290, 0001185185-19-000277, 0001564590-21-007573, 0000950170-23-003449, 0001193125-26-064008), Forms 10-Q for the first quarter of 2015 and the third quarter of 2026 (0001185185-15-001138, 0001193125-26-449872) and prospectus supplement of August 6, 2026 (0001193125-26-338128); Apple REIT Ten (CIK 1498864) Form 10-K for 2015 (0001185185-16-003844) and joint proxy statement/prospectus of July 15, 2016 (0001185185-16-004996); Apple Hospitality Two (CIK 1132747) proxy of April 18, 2007 (0001193125-07-083503) and Apple Hospitality Five (CIK 1191813) proxy of August 13, 2007 (0001193125-07-180475); Apple Hospitality REIT's investor FAQ page (read November 12, 2026) and Equiniti's Transfer of Ownership Package dated April 5, 2024. Per-$10,000 figures, sums and percentages are our arithmetic and exclude distributions after each exit unless stated. This is analysis of public documents, not investment, legal or tax advice.