the company was initially capitalized november 9 , 2007 , with its first investor closing on may 14 , 2008. the company completed its best-efforts offering of units ( each unit consists of one common share and one series a preferred share ) in december 2010. the company has elected to be treated as a real estate investment trust ( “ reit ” ) for federal income tax purposes . the company 's first hotel was acquired on july 31 , 2008. as of december 31 , 2013 , the company owned 89 hotels ( one acquired during 2012 , 11 acquired and one newly constructed hotel opened during 2011 , 43 acquired during 2010 , 12 acquired during 2009 and 21 acquired during 2008 ) . accordingly , the results of operations include only results from the date of ownership of the properties . recent mergers with apple reit seven , inc. and apple reit eight , inc. effective march 1 , 2014 , the company completed its previously announced mergers with apple reit seven , inc. ( “ apple seven ” ) and apple reit eight , inc. ( “ apple eight ” ) ( the “ a7 and a8 mergers ” ) . pursuant to the agreement and plan of merger entered into on august 7 , 2013 , as amended ( the “ merger agreement ” ) , apple seven and apple eight merged with and into apple seven acquisition sub , inc. ( “ seven acquisition sub ” ) , a wholly owned subsidiary of the company and apple eight acquisition sub , inc. ( “ eight acquisition sub ” ) , a wholly owned subsidiary of the company , respectively . seven acquisition sub and eight acquisition sub were formed solely for engaging in the a7 and a8 mergers and have not conducted any prior activities . upon completion of the a7 and a8 mergers , the separate corporate existence of apple seven and apple eight ceased and seven acquisition sub and eight acquisition sub are the surviving corporations . under the terms of the merger agreement , upon completion of the a7 and a8 mergers , the company 's common shares totaling 182,784,131 prior to the mergers remain outstanding and : · each issued and outstanding unit of apple seven ( consisting of one apple seven common share together with one apple seven series a preferred share ) was converted into one ( the “ apple seven exchange ratio ” ) common share of the company , or a total of approximately 90,613,633 common shares , and each issued and outstanding series b convertible preferred share of apple seven was converted into a number of the company 's common shares equal to 24.17104 multiplied by the apple seven exchange ratio , or a total of 5,801,050 common shares ; and · each issued and outstanding unit of apple eight ( consisting of one apple eight common share together with one apple eight series a preferred share ) was converted into 0.85 ( the “ apple eight exchange ratio ” ) common share of the company , or a total of approximately 78,319,004 common shares , and each issued and outstanding series b 23 index convertible preferred share of apple eight was converted into a number of the company 's common shares equal to 24.17104 multiplied by the apple eight exchange ratio , or a total of 4,930,892 common shares . as contemplated in the merger agreement , in connection with completion of the a7 and a8 mergers , the company became self-advised and the existing advisory agreements between the company and apple nine advisors , inc. and apple suites realty group , inc. were terminated . the termination of the advisory agreements resulted in the conversion of each issued and outstanding series b convertible preferred share of the company into 24.17104 common shares of the company , or a total of 11,602,099 common shares . as a result of the conversion , all of the company 's series a preferred shares were terminated , and the holders of the units only hold common shares of the company . approval of the a7 and a8 mergers by each company 's respective shareholders will result in the recognition of an expense related to the conversion of the company 's series b convertible preferred shares into common shares in the first quarter of 2014. although the final estimate of fair value may vary from these estimates , the company 's preliminary estimate of the fair value of $ 9.00 to $ 11.00 per common share would result in an expense ranging from approximately $ 104 million to $ 128 million , and will be recognized as an expense in the first quarter of 2014 in the company 's statement of operations . all costs related to the a7 and a8 mergers are being expensed in the period they are incurred and are included in the merger transaction costs in the company 's consolidated statements of operations . in connection with these activities , the company incurred approximately $ 3.1 million in expenses for the year ended december 31 , 2013 , and anticipates that the total merger costs will be approximately $ 5.0 million . with the completion of the a7 and a8 mergers , the company owns 188 continuing hotels with an aggregate of 23,490 rooms located in 33 states . in addition , effective with the merger , the company 's name changed from apple reit nine , inc. to apple hospitality reit , inc. and a total of approximately 374 million common shares were outstanding . upon completion of the a7 and a8 mergers , which were effective march 1 , 2014 , the company assumed approximately $ 385.1 million in mortgage debt , secured by 34 properties . story_separator_special_tag total costs for these legal matters for all of the apple reit entities were approximately $ 2.9 million and $ 7.3 million during the years ended december 31 , 2013 and 2012. the company anticipates it will continue to incur costs associated with the litigation discussed herein until resolved and the sec investigation during the first quarter of 2014 and will continue to submit claims requesting reimbursements from its directors and officers liability insurance policy . merger transaction costs for the years ended december 31 , 2013 and 2012 totaled $ 3.1 million and $ 0.6 million . costs incurred during the year ended december 31 , 2013 were in connection with the a7 and a8 mergers discussed herein . the company anticipates incurring additional costs associated with the a7 and a8 mergers in 2014 , bringing total estimated costs for the company to approximately $ 5.0 million . costs incurred during the year ended december 31 , 2012 were associated with the company 's evaluation of a prior potential consolidation transaction with apple reit six , inc. , apple reit seven , inc. and apple reit eight , inc. ( the “ other apple reits ” ) . in may 2012 , it was determined by the board of directors of the company and the board of directors of each of the other apple reits not to move forward with the prior potential consolidation transaction at that time . acquisition related costs for the years ended december 31 , 2013 and 2012 were $ 0.1 million and $ 0.5 million . during the second quarter of 2013 , the company purchased two land parcels which had previously been leased from a third party . the company did not complete any hotel acquisitions during 2013 and completed only one hotel acquisition during 2012 , resulting in a significant decline in these costs from prior years . the costs include title , legal , accounting and other related costs , as well as the brokerage commission paid to apple suites realty group , inc. ( “ asrg ” ) for the properties acquired or newly opened during the respective period . 29 index depreciation expense for the years ended december 31 , 2013 and 2012 was $ 54.8 million and $ 52.7 million . depreciation expense primarily represents expense of the company 's 89 hotel buildings and related improvements , and associated personal property ( furniture , fixtures , and equipment ) for their respective periods owned . the increase was due to the increase in the number of properties owned and renovations completed throughout 2013 and 2012. interest expense for the years ended december 31 , 2013 and 2012 was $ 9.0 million and $ 7.4 million , respectively and for both periods is net of approximately $ 0.7 million of interest capitalized associated with renovation and construction projects . interest expense primarily arose from debt assumed with the acquisition of 14 of the company 's hotels , the origination of three mortgage loans during the third quarter of 2012 , borrowings on the company 's $ 50 million revolving line of credit beginning in january 2013 and borrowings on the company 's $ 30 million non-revolving line of credit in may 2012 that was extinguished and paid off during the third quarter of 2012. during the years ended december 31 , 2013 and 2012 , the company also recognized in both periods $ 0.6 million in interest income , primarily representing interest on excess cash invested in short-term money market instruments and one mortgage note acquired during 2010. results of operations for years 2012 and 2011 as of december 31 , 2012 , the company owned 89 hotels with 11,371 rooms as compared to 88 hotels ( of which 11 were acquired and one newly constructed hotel opened during 2011 ) , with a total of 11,252 rooms as of december 31 , 2011. as a result of the acquisition activity during 2011 and 2012 , a comparison of operations for 2012 to prior periods is not representative of the results that would have occurred if all properties had been owned for the entire periods presented . revenues for the years ended december 31 , 2012 and 2011 , the company had hotel revenue of $ 365.6 million and $ 320.5 million , respectively . this revenue reflects hotel operations for the 89 hotels owned as of december 31 , 2012 for their respective periods of ownership by the company . for the years ended december 31 , 2012 and 2011 , the hotels achieved combined average occupancy of approximately 72 % and 70 % , adr of $ 111 and $ 107 and revpar of $ 80 and $ 74. during 2012 , the company experienced an increase in demand as demonstrated by the improvement in average occupancy for its comparable hotels of 3 % in 2012 as compared to 2011. in addition , also signifying a progressing economy , the company experienced an increase in adr of 4 % for comparable hotels during 2012 as compared to the prior year . the company 's average market yield for 2012 and 2011 was 123 and 122 , respectively and excludes hotels under renovation or open less than two years . in addition , seven of the hotels owned as of december 31 , 2012 had opened since the beginning of 2011. generally , newly constructed hotels require 12-24 months to establish themselves in their respective markets . therefore , revenue is below anticipated or market levels for this period of time . expenses hotel operating expenses relate to the 89 hotels owned as of december 31 , 2012 for their respective periods owned . for the years ended december 31 , 2012 and 2011 , hotel operating expenses totaled $ 206.6 million or 57 % of total revenue and $ 184.6 million or 58 % of total revenue . seven of the hotels owned as of december 31

capital resources in november 2012 , the company entered into a $ 50 million credit facility with a commercial bank that was utilized for working capital , hotel renovations and development , and other general corporate funding purposes , including the payment of redemptions and distributions . under the terms of the credit agreement , the company could make voluntary prepayments in whole or in part , at any time . the initial maturity date was november 2014 ; however , as noted below , the $ 50 million credit facility was terminated in march 2014 after completion of the a7 and a8 mergers . interest payments were due monthly and the interest rate , subject to certain exceptions , was equal to the one-month libor ( the london inter-bank offered rate for a one-month term ) plus a margin ranging from 2.25 % to 2.75 % , depending upon the company 's leverage ratio , as calculated under the terms of the credit agreement . the company was also required to pay an unused facility fee of 0.30 % or 0.40 % on the unused portion of the revolving credit facility , based on the amount of borrowings outstanding during the quarter . as of december 31 , 2013 , there were no borrowings outstanding under the $ 50 million credit facility . the credit agreement required the company to maintain a specific pool of unencumbered borrowing base properties and contained customary affirmative covenants , negative covenants and events of default . as noted above , upon completion of the a7 and a8 mergers , in march 2014 , the company terminated its $ 50 million credit facility , which as of december 31 , 2013 had no borrowings outstanding and entered into a new $ 345 million unsecured credit facility ( comprised of a $ 245 million revolving credit facility and a $ 100 million term loan ) . on march 3 , 2014 , the company borrowed $ 150 million under the new facility which was used to repay apple seven and apple eight 's outstanding balances on their respective credit facilities and to pay closing costs .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```capital resources in november 2012 , the company entered into a $ 50 million credit facility with a commercial bank that was utilized for working capital , hotel renovations and development , and other general corporate funding purposes , including the payment of redemptions and distributions . under the terms of the credit agreement , the company could make voluntary prepayments in whole or in part , at any time . the initial maturity date was november 2014 ; however , as noted below , the $ 50 million credit facility was terminated in march 2014 after completion of the a7 and a8 mergers . interest payments were due monthly and the interest rate , subject to certain exceptions , was equal to the one-month libor ( the london inter-bank offered rate for a one-month term ) plus a margin ranging from 2.25 % to 2.75 % , depending upon the company 's leverage ratio , as calculated under the terms of the credit agreement . the company was also required to pay an unused facility fee of 0.30 % or 0.40 % on the unused portion of the revolving credit facility , based on the amount of borrowings outstanding during the quarter . as of december 31 , 2013 , there were no borrowings outstanding under the $ 50 million credit facility . the credit agreement required the company to maintain a specific pool of unencumbered borrowing base properties and contained customary affirmative covenants , negative covenants and events of default . as noted above , upon completion of the a7 and a8 mergers , in march 2014 , the company terminated its $ 50 million credit facility , which as of december 31 , 2013 had no borrowings outstanding and entered into a new $ 345 million unsecured credit facility ( comprised of a $ 245 million revolving credit facility and a $ 100 million term loan ) . on march 3 , 2014 , the company borrowed $ 150 million under the new facility which was used to repay apple seven and apple eight 's outstanding balances on their respective credit facilities and to pay closing costs .
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 Suspicious Activity Report : the company was initially capitalized november 9 , 2007 , with its first investor closing on may 14 , 2008. the company completed its best-efforts offering of units ( each unit consists of one common share and one series a preferred share ) in december 2010. the company has elected to be treated as a real estate investment trust ( “ reit ” ) for federal income tax purposes . the company 's first hotel was acquired on july 31 , 2008. as of december 31 , 2013 , the company owned 89 hotels ( one acquired during 2012 , 11 acquired and one newly constructed hotel opened during 2011 , 43 acquired during 2010 , 12 acquired during 2009 and 21 acquired during 2008 ) . accordingly , the results of operations include only results from the date of ownership of the properties . recent mergers with apple reit seven , inc. and apple reit eight , inc. effective march 1 , 2014 , the company completed its previously announced mergers with apple reit seven , inc. ( “ apple seven ” ) and apple reit eight , inc. ( “ apple eight ” ) ( the “ a7 and a8 mergers ” ) . pursuant to the agreement and plan of merger entered into on august 7 , 2013 , as amended ( the “ merger agreement ” ) , apple seven and apple eight merged with and into apple seven acquisition sub , inc. ( “ seven acquisition sub ” ) , a wholly owned subsidiary of the company and apple eight acquisition sub , inc. ( “ eight acquisition sub ” ) , a wholly owned subsidiary of the company , respectively . seven acquisition sub and eight acquisition sub were formed solely for engaging in the a7 and a8 mergers and have not conducted any prior activities . upon completion of the a7 and a8 mergers , the separate corporate existence of apple seven and apple eight ceased and seven acquisition sub and eight acquisition sub are the surviving corporations . under the terms of the merger agreement , upon completion of the a7 and a8 mergers , the company 's common shares totaling 182,784,131 prior to the mergers remain outstanding and : · each issued and outstanding unit of apple seven ( consisting of one apple seven common share together with one apple seven series a preferred share ) was converted into one ( the “ apple seven exchange ratio ” ) common share of the company , or a total of approximately 90,613,633 common shares , and each issued and outstanding series b convertible preferred share of apple seven was converted into a number of the company 's common shares equal to 24.17104 multiplied by the apple seven exchange ratio , or a total of 5,801,050 common shares ; and · each issued and outstanding unit of apple eight ( consisting of one apple eight common share together with one apple eight series a preferred share ) was converted into 0.85 ( the “ apple eight exchange ratio ” ) common share of the company , or a total of approximately 78,319,004 common shares , and each issued and outstanding series b 23 index convertible preferred share of apple eight was converted into a number of the company 's common shares equal to 24.17104 multiplied by the apple eight exchange ratio , or a total of 4,930,892 common shares . as contemplated in the merger agreement , in connection with completion of the a7 and a8 mergers , the company became self-advised and the existing advisory agreements between the company and apple nine advisors , inc. and apple suites realty group , inc. were terminated . the termination of the advisory agreements resulted in the conversion of each issued and outstanding series b convertible preferred share of the company into 24.17104 common shares of the company , or a total of 11,602,099 common shares . as a result of the conversion , all of the company 's series a preferred shares were terminated , and the holders of the units only hold common shares of the company . approval of the a7 and a8 mergers by each company 's respective shareholders will result in the recognition of an expense related to the conversion of the company 's series b convertible preferred shares into common shares in the first quarter of 2014. although the final estimate of fair value may vary from these estimates , the company 's preliminary estimate of the fair value of $ 9.00 to $ 11.00 per common share would result in an expense ranging from approximately $ 104 million to $ 128 million , and will be recognized as an expense in the first quarter of 2014 in the company 's statement of operations . all costs related to the a7 and a8 mergers are being expensed in the period they are incurred and are included in the merger transaction costs in the company 's consolidated statements of operations . in connection with these activities , the company incurred approximately $ 3.1 million in expenses for the year ended december 31 , 2013 , and anticipates that the total merger costs will be approximately $ 5.0 million . with the completion of the a7 and a8 mergers , the company owns 188 continuing hotels with an aggregate of 23,490 rooms located in 33 states . in addition , effective with the merger , the company 's name changed from apple reit nine , inc. to apple hospitality reit , inc. and a total of approximately 374 million common shares were outstanding . upon completion of the a7 and a8 mergers , which were effective march 1 , 2014 , the company assumed approximately $ 385.1 million in mortgage debt , secured by 34 properties . story_separator_special_tag total costs for these legal matters for all of the apple reit entities were approximately $ 2.9 million and $ 7.3 million during the years ended december 31 , 2013 and 2012. the company anticipates it will continue to incur costs associated with the litigation discussed herein until resolved and the sec investigation during the first quarter of 2014 and will continue to submit claims requesting reimbursements from its directors and officers liability insurance policy . merger transaction costs for the years ended december 31 , 2013 and 2012 totaled $ 3.1 million and $ 0.6 million . costs incurred during the year ended december 31 , 2013 were in connection with the a7 and a8 mergers discussed herein . the company anticipates incurring additional costs associated with the a7 and a8 mergers in 2014 , bringing total estimated costs for the company to approximately $ 5.0 million . costs incurred during the year ended december 31 , 2012 were associated with the company 's evaluation of a prior potential consolidation transaction with apple reit six , inc. , apple reit seven , inc. and apple reit eight , inc. ( the “ other apple reits ” ) . in may 2012 , it was determined by the board of directors of the company and the board of directors of each of the other apple reits not to move forward with the prior potential consolidation transaction at that time . acquisition related costs for the years ended december 31 , 2013 and 2012 were $ 0.1 million and $ 0.5 million . during the second quarter of 2013 , the company purchased two land parcels which had previously been leased from a third party . the company did not complete any hotel acquisitions during 2013 and completed only one hotel acquisition during 2012 , resulting in a significant decline in these costs from prior years . the costs include title , legal , accounting and other related costs , as well as the brokerage commission paid to apple suites realty group , inc. ( “ asrg ” ) for the properties acquired or newly opened during the respective period . 29 index depreciation expense for the years ended december 31 , 2013 and 2012 was $ 54.8 million and $ 52.7 million . depreciation expense primarily represents expense of the company 's 89 hotel buildings and related improvements , and associated personal property ( furniture , fixtures , and equipment ) for their respective periods owned . the increase was due to the increase in the number of properties owned and renovations completed throughout 2013 and 2012. interest expense for the years ended december 31 , 2013 and 2012 was $ 9.0 million and $ 7.4 million , respectively and for both periods is net of approximately $ 0.7 million of interest capitalized associated with renovation and construction projects . interest expense primarily arose from debt assumed with the acquisition of 14 of the company 's hotels , the origination of three mortgage loans during the third quarter of 2012 , borrowings on the company 's $ 50 million revolving line of credit beginning in january 2013 and borrowings on the company 's $ 30 million non-revolving line of credit in may 2012 that was extinguished and paid off during the third quarter of 2012. during the years ended december 31 , 2013 and 2012 , the company also recognized in both periods $ 0.6 million in interest income , primarily representing interest on excess cash invested in short-term money market instruments and one mortgage note acquired during 2010. results of operations for years 2012 and 2011 as of december 31 , 2012 , the company owned 89 hotels with 11,371 rooms as compared to 88 hotels ( of which 11 were acquired and one newly constructed hotel opened during 2011 ) , with a total of 11,252 rooms as of december 31 , 2011. as a result of the acquisition activity during 2011 and 2012 , a comparison of operations for 2012 to prior periods is not representative of the results that would have occurred if all properties had been owned for the entire periods presented . revenues for the years ended december 31 , 2012 and 2011 , the company had hotel revenue of $ 365.6 million and $ 320.5 million , respectively . this revenue reflects hotel operations for the 89 hotels owned as of december 31 , 2012 for their respective periods of ownership by the company . for the years ended december 31 , 2012 and 2011 , the hotels achieved combined average occupancy of approximately 72 % and 70 % , adr of $ 111 and $ 107 and revpar of $ 80 and $ 74. during 2012 , the company experienced an increase in demand as demonstrated by the improvement in average occupancy for its comparable hotels of 3 % in 2012 as compared to 2011. in addition , also signifying a progressing economy , the company experienced an increase in adr of 4 % for comparable hotels during 2012 as compared to the prior year . the company 's average market yield for 2012 and 2011 was 123 and 122 , respectively and excludes hotels under renovation or open less than two years . in addition , seven of the hotels owned as of december 31 , 2012 had opened since the beginning of 2011. generally , newly constructed hotels require 12-24 months to establish themselves in their respective markets . therefore , revenue is below anticipated or market levels for this period of time . expenses hotel operating expenses relate to the 89 hotels owned as of december 31 , 2012 for their respective periods owned . for the years ended december 31 , 2012 and 2011 , hotel operating expenses totaled $ 206.6 million or 57 % of total revenue and $ 184.6 million or 58 % of total revenue . seven of the hotels owned as of december 31

