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Filed Pursuant to Rule 424(b)(3)
Registration No. 33-96716
Essex Hospitality Associates IV L.P.
Supplement No. 1 Dated
December 2, 1996 to Prospectus
Dated November 24, 1995
THIS SUPPLEMENT IS INTENDED TO MODIFY, AND MUST BE READ IN CONJUNCTION
WITH, THE PROSPECTUS OF ESSEX HOSPITALITY ASSOCIATES IV L.P. (THE
"PARTNERSHIP") DATED NOVEMBER 24, 1995, AS AMENDED BY THE
POST-EFFECTIVE AMENDMENT DATED AUGUST 13, 1996.
UPDATED PROPERTY INFORMATION
The Partnership acquired a site in Warwick, Rhode Island in December, 1995 upon
which it intended to construct an 80-suite Homewood Suites hotel. See "THE
PARTNERSHIP'S BUSINESS -- The Specified Properties -- Warwick Property" and "THE
PARTNERSHIP'S BUSINESS -- Description of the Hotel Concepts." The Partnership
had selected a general contractor and was prepared to start construction in the
fall. In light of recent developments, including the announcement of three
additional hotels proposed to be built in the Warwick market, the Partnership
has elected to postpone commencement of construction until it can better assess
the effect of the additional hotel rooms on the expected performance of the
Partnership's Hotel. The Partnership currently is exploring its options with
respect to the Warwick Property, including reducing the size of the Homewood
Suites hotel, the development of other hotel brands and possible sale of the
property. The Partnership anticipates making a decision within the next 90 to
120 days.
The Partnership acquired a site in Solon, Ohio in December, 1995 upon which it
intends to build a 100-room Hampton Inn. See "THE PARTNERSHIP'S BUSINESS -- The
Specified Properties -- Solon Property" and "THE PARTNERSHIP'S BUSINESS --
Description of the Hotel Concepts." The Partnership is in the process of
selecting the general contractor and expects to start construction before the
end of 1996 and open in the summer of 1997. The General Partner expects to
secure External Financing, however, no External Financing source has issued a
commitment to lend funds to the Partnership for construction or permanent
financing of the Hotel. See "THE PARTNERSHIP'S BUSINESS" and "RISK FACTORS."
The Partnership acquired a partnership interest in Essex Glenmaura L.P. ("Essex
Glenmaura") in the first quarter of 1996. See "THE PARTNERSHIP'S BUSINESS -- The
Specified Properties -- The Essex Glenmaura Investment." Essex Glenmaura
constructed a 120-room Courtyard by Marriott near Scranton, Pennsylvania which
opened in early September, 1996. To date operating results have met the General
Partner's expectations.
The General Partner is evaluating other potential sites to be acquired by the
Partnership, however, it has not identified any additional property for
acquisition. See "RISK FACTORS."
As of November 30, 1996, the Partnership had received gross offering proceeds of
approximately $7,013,000, including $4,920,000 from the sale of Subordinated
Notes and approximately $2,093,000 from the sale of Units. The Partnership
currently does not have sufficient funds to complete construction of the Solon
Property. Although additional funding is not assured, based on the rate funds
are being raised, the timing of construction, and the expected availability of
External Financing, the Partnership anticipates sufficient funds will be
available to pay for construction and for future property acquisitions when
required.
