Exhibit 10.7



                               APPLE SUITES, INC.
                    c/o Cornerstone Realty Income Trust, Inc.
                              306 East Main Street
                            Richmond, Virginia 23219


                                December 22, 1999


Promus Hotels, Inc.
755 Crossover Lane
Memphis, Tennessee 38117-4900

                   Re:   Agreement   of  Sale  dated   November  22,  1999  (the
                         "Purchase  Agreement";  capitalized terms not otherwise
                         defined herein shall have the meanings ascribed to such
                         terms in the Purchase  Agreement) between Hampton Inns,
                         Inc.,  Promus Hotels  Florida,  Inc. and Promus Hotels,
                         Inc., as Sellers, and Apple Suites, Inc., as Buyer

Gentlemen:

         Reference is made to (i) the Purchase  Agreement  and (ii) the purchase
money  note of even  date  herewith  made by the  undersigned  in the  amount of
$4,384,500 (the "Note") and the mortgages  and/or deeds of trust and/or deeds to
secure debt securing the Note (individually and collectively, the "Mortgage").

         We hereby  agree  that  until such time as all  amounts  evidenced  and
secured by the Note and the Mortgage have been paid in full we shall not:

         (i) transfer, or agree to transfer (or suffer or permit the transfer or
     agreement to transfer), in any manner, either voluntarily or involuntarily,
     by  operation  of  law or  otherwise,  all  or  any  portion  of any of the
     properties located in Henrico County,  Virginia,  Pinellas County,  Florida
     and Anne Arundel  County,  Maryland  heretofore  transferred to us by deeds
     from you dated  September  20, 1999 or November  29, 1999 (the  "Restricted
     Properties"),  without, in any such case, your prior written consent, which
     shall  not be  unreasonably  withheld  in the  case  of a  transfer  to any
     affiliate or subsidiary wholly owned by Apple Suites, Inc.; or

         (ii) encumber,  or agree to encumber, in any manner, either voluntarily
     or involuntarily,  by operation of law or otherwise,  all or any portion of
     any  of the  Restricted  Properties,  or any  interest  or  rights  therein
     without,  in any such case,

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     your prior  written  consent.  As  used  in this clause,  "encumber"  shall
     include,  without  limitation, the placing or permitting the placing of any
     mortgage,  deed of trust, assignment of rents or other security device. (It
     is understood that you may grant or deny your consent under this clause and
     the immediately preceding clause in your sole discretion).

         Notwithstanding the foregoing,  it is understood that neither the lease
to Apple Suites Management,  Inc. from us, dated September 20, 1999 nor the Deed
of Trust,  Assignment  of Leases  and Rents  and  Security  Agreement  (or other
mortgage document) made by us and Apple Suites Management, Inc. for your benefit
dated September 20, 1999 or November 29, 1999,  shall  constitute a violation of
the foregoing restrictions.

                                         Very truly yours,

                                         APPLE SUITES, INC.,
                                         a Virginia corporation


                                         By  /s/ Glade M. Knight
                                             -----------------------------------
                                             Name:  Glade M. Knight
                                             Title: President







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