SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A-1
Date of Report (Date of earliest event reported) June 9, 1997
Essex Hospitality Associates IV L.P.
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(Exact name of registrant as specified in its charter)
New York
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(State of other jurisdiction of incorporation)
33-96716 16-1485632
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(Commission File Number) (IRS Employer Identification No.)
100 Corporate Woods, Suite 300, Rochester, NY 14623
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (716) 272-2300
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An exhibit index is presented on page 2.
<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
On June 9, 1997, the Registrant sold 1.05 limited partnership units of its
interest in Essex Glenmaura L.P. (Glenmaura) for $105,000. The sale price per
unit was the same as its original price per unit, $100,000. Prior to the sale of
the 1.05 units, the Registrant had a 54% interest in Glenmaura, after the sale,
the Registrant's interest in Glenmaura was reduced to 49.8%. Prior to the sale,
the financial statements of the Registrant were consolidated with those of
Glenmaura. As of December 31, 1996, the assets of Glenmaura represented 61% of
the consolidated assets of the Registrant. After June 9, 1997, the Registrant
will account for the its interest in Glenmaura by the equity method.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(a) The balance sheet of the Registrant as of June 30, 1997 and pro forma
Statements of Operations for the year ended December 31, 1996 and the
six months ended June 30, 1997 reflecting the sale of the limited
partnership units are presented.
(c) Exhibits
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ESSEX HOSPITALITY ASSOCIATES IV L.P.
(Registrant)
Dated: September __, 1997 By: /s/ Lorrie L. LoFaso
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Lorrie L. LoFaso
Vice President
Essex Partners Inc.
(Managing General Partner)
<PAGE>
<TABLE>
<CAPTION>
Essex Hospitality Associates IV L.P.
Balance Sheet
June 30, 1997
(unaudited)
ASSETS 1997
------ ----
<S> <C>
Investments in real estate, at cost:
Land $2,074,526
Construction in progress 4,806,188
----------
6,880,714
Less accumulated depreciation -
----------
Net investments in real estate 6,880,714
----------
Investment in partnership 529,494
Cash and cash equivalents 11,013
Deferred costs:
Debt issuance 610,147
Franchise 85,000
Other 73,224
----------
768,371
Less accumulated amortization (97,840)
----------
670,531
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Other assets 8,411
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Total assets $8,100,163
==========
LIABILIITIES AND PARTNERS' CAPITAL
----------------------------------
Liabilities
Accounts payable - construction $1,566,637
Accounts payable and accrued expenses -
Due to affiliate 596,156
Subordinated notes payable 5,298,000
Construction loan payable -
Notes payable -
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Total liabilities 7,460,793
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Commitments and contingencies (note 5)
Partners' capital 677,812
Less notes receivable from partners (38,442)
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Total partners' capital 639,370
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Total liabilities and partners' capital $8,100,163
==========
</TABLE>
<PAGE>
<PAGE>
PRO FORMA FINANCIAL INFORMATION
The Partnership's unaudited pro forma financial statements are derived from
historical financial statements of the Partnership, and are adjusted to give
effect to the disposition of 1.05 limited partnership units of the investment in
Glenmaura as if the transaction was consummated as of January 1, 1996 for the
purposes of the December 31, 1996 pro forma statement of operations and January
1, 1997 for purposes of the June 30, 1997 statement of operations. The sale of
the 1.05 limited partnership units of the investment in Glenmaura results in the
Partnership's ownership interest changing from 54.3% to 49.8%. As a result,
accounting for the investment in Glenmaura has changed from the consolidation
method to the equity method.
The unaudited pro forma condensed financial statements are presented for
informational purposes only and do not purport to represent what the
Partnership's results of operations would have been had the event actually
occurred on the dates indicated, or to project the Partnership's results of
operations for any future period. The unaudited pro forma adjustments are based
upon available information and certain assumptions that the Partnership believes
are reasonable.
<PAGE>
<TABLE>
<CAPTION>
Pro Forma Condensed Statement of Operations
For the Year Ended December 31, 1996
------------------------------------
Pro Forma
Historical Adjustments (1) Pro Forma
---------- --------------- ---------
<S> <C> <C> <C>
Revenue:
Rooms ................................................ $ 394,134 $(394,134) -
Food and beverage .................................... 54,048 (54,048) -
Telephone and other commissions ...................... 34,880 (34,880) -
----------- -------- -------
483,062 (483,062) -
----------- -------- -------
Operating expenses:
Rooms ................................................ 249,766 (249,766) -
Administrative ....................................... 155,429 (153,854) 1,575
Food and beverage .................................... 128,541 (128,541) -
Marketing ............................................ 89,240 (89,240) -
Repairs and maintenance .............................. 82,573 (81,196) 1,377
Utilities ............................................ 28,822 (28,822) -
Management fees to affiliate ......................... 25,338 (25,338) -
Telephone and other commissions ...................... 19,869 (19,869) -
Royalty fees ......................................... 15,766 (15,766) -
Insurance ............................................ 12,058 (12,058) -
Property taxes ....................................... 6,569 (6,569) -
Depreciation and amortization ........................ 345,756 (273,476) 72,280
Miscellaneous ........................................ 72,214 (53,554) 18,660
----------- -------- -------
1,231,941 (1,138,049) 93,892
----------- -------- -------
Loss from operations .............................. (748,879) 654,987 (93,892)
----------- -------- -------
Other income (expense):
Interest income....................................... 74,202 (3,217) 70,985
Interest expense...................................... (548,788) 162,807 (385,981)
Equity income (loss) of partnership .................. 0 (422,947) (422,947)
----------- -------- -------
(474,586) (263,357) (737,943)
----------- -------- -------
Loss before minority interest ..................... (1,223,465) 391,630 (831,835)
in loss of partnership
Minority interest in loss of partnership ................ 356,524 (356,524) -
----------- -------- -------
Net loss .......................................... $ ( 866,941) 35,106 (831,835)
=========== ======== ========
Net loss - general partner............................... (8,669) 351 (8,318)
limited partners ............................. (858,272) 34,755 (823,517)
----------- -------- -------
$ ( 866,941) 35,106 (831,835)
=========== ======== ========
Net loss per limited partnership unit ................... $ ( 551) 22 (529)
=========== ======== ========
</TABLE>
See accompanying notes to pro forma financial statements
<PAGE>
<TABLE>
<CAPTION>
Pro Forma Condensed Statement of Operations
For the Period Ended June 30, 1997
------------------------------------
Pro Forma
Historical Adjustments (1) Pro Forma
---------- --------------- ---------
<S> <C> <C> <C>
Revenue:
Rooms ..................................... $ 754,675 (754,675) -
Food and beverage ......................... 95,678 (95,678) -
Telephone and other commissions ........... 54,703 (54,703) -
--------- -------- --------
905,056 (905,056) -
--------- -------- --------
Operating expenses:
Rooms ..................................... 210,552 (210,552) -
Administrative ............................ 85,521 (84,971) 550
Food and beverage ......................... 108,148 (108,148) -
Marketing ................................. 52,310 (52,310) -
Repairs and maintenance ................... 45,917 (45,917) -
Utilities ................................. 61,810 (61,810) -
Management fees to affiliate .............. 44,401 (44,401) -
Telephone and other commissions ........... 24,097 (24,097) -
Royalty fees .............................. 26,245 (26,245) -
Insurance ................................. 13,506 (13,506) -
Property taxes ............................ 15,835 (15,835) -
Depreciation and amortization ............. 247,925 (222,365) 25,560
Miscellaneous ............................. 22,687 (8,288) 14,399
--------- -------- --------
958,954 (918,445) 40,509
--------- -------- --------
Loss from operations ................... (53,898) 13,389 (40,509)
--------- -------- --------
Other income (expense):
Interest income............................ 37,898 (440) 37,458
Interst expense............................ (368,967) 230,495 (138,472)
Loss on termination of franchise agreement. (40,000) 0 (40,000)
Equity income (loss) of partnership ....... (12,763) (121,235) (133,998)
--------- -------- --------
(383,832) 108,820 (275,012)
--------- -------- --------
Loss before minority interest
in loss of partnership............... (437,730) 122,209 (315,521)
Minority interest in loss of partnership...... 111,254 (111,254) -
--------- -------- --------
Net loss ............................... $ (326,476) 10,955 (315,521)
========= ======== ========
Net loss - general partners................... (3,265) 110 (3,155)
limited partners .................. (323,211) 10,845 (312,366)
--------- -------- --------
$ (326,476) 10,955 (315,521)
========= ======== ========
Net loss per limited partnership unit......... $ ( 135) 5 (130)
========= ======== ========
</TABLE>
See accompanying note to pro forma financial statements.
<PAGE>
Notes to Pro Forma Condensed Financial Statements
(1) The pro forma adjustments are the adjustments necessary to reflect the
change in accounting method from the consolidation method to the equity
method. The adjustments remove the income and expense amounts relating to
Glenmaura from the separate income and expense accounts. In addition, the
pro forma equity loss of the partnership reflects a 49.8% interest in
Glenmaura from the beginning of the respective period.
