EXHIBIT 10.7

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


                                                     June 30, 2000


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


                    Re:  Agreement of Sale dated  November 22, 1999 (as amended,
                         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 $11,163,750
(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,  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).


<PAGE>


     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 and Chairman











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