FILED PURSUANT TO RULE 424(B)(3)
FILE NUMBER: 333-77055
STICKER SUPPLEMENT TO SUPPLEMENT NO. 5 DATED MARCH 21, 2000,
SUPPLEMENT NO. 6 DATED MAY 31, 2000 AND
SUPPLEMENT NO. 7 DATED JUNE 20, 2000
SUPPLEMENT NO. 5 TO BE USED WITH SUPPLEMENT NO. 6, SUPPLEMENT NO. 7 AND
PROSPECTUS DATED AUGUST 3, 1999
SUMMARY OF SUPPLEMENTS TO PROSPECTUS (SEE THE SUPPLEMENTS FOR ADDITIONAL
INFORMATION)
Supplement No. 5 dated March 21, 2000 (incorporating and replacing all prior
Supplements in use, No. 1 though 4):
(1) Reports on our purchase, either directly or through a subsidiary, of
eleven extended-stay hotels for an aggregate purchase price of
$91,426,000
(2) Reports on the short-term financing of 75% of the aggregate purchase
price, or $68,569,500, secured by the properties and having maturity
dates of October 1, 2000, December 1, 2000 and January 1, 2001
(3) Reports on the manner in which the hotels are being leased, operated
and managed, including a summary of the material contracts affecting
these matters
(4) Provides certain other information about us and the hotels we have
purchased
Supplement No. 6 dated May 31, 2000:
(1) Reports on our purchase, through a subsidiary, of a long-term leasehold
interest in an extended-stay hotel for a purchase price of $15,489,000
(2) Reports on the short-term financing of 75% of the purchase price, or
$11,616,750, secured by the property and having a maturity date of
April 28, 2001
(3) Reports on the manner in which the hotel is being leased, operated and
managed, including a summary of the material contracts affecting these
matters
(4) Provides certain other information about us and the hotel
Supplement No. 7 dated June 20, 2000:
(1) Reports on the potential refinancing of our short-term debt
(2) Reports on the possible purchase of an additional extended-stay hotel
(3) Provides certain updated information about our hotels
As of August 23, 1999, we had closed on the sale of 1,666,666.67 of our
common shares at a price of $9 per share, representing completion of the
minimum offering. As of June 19, 2000, we had closed on the sale of 3,278,875
of our common shares at a price of $10 per share. These sales, when combined,
represent gross proceeds of $47,788,750 and proceeds net of selling commissions
and marketing expenses of $43,009,875. We are continuing the offering at $10
per share in accordance with the prospectus.
RECENT DEVELOPMENT: As of June 30, 2000, we purchased the hotel in
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Boulder, Colorado, which is described in Supplement No. 7. The total purchase
price for the hotel was $14,885,000. Of this total, $3,721,250 (representing
25%) was paid in cash at closing and the balance of $11,163,750 (or 75%) is
payable by us to Promus Hotels, Inc., as the seller, under a secured promissory
note having a final maturity date of April 28, 2001.
We have paid a total real estate commission of $2,436,000, representing 2%
of the aggregate purchase price for all of our hotels, to Apple Suites Realty
Group, Inc., which is our real estate broker and is owned by our Chairman and
Chief Executive Officer.
