EXHIBIT 10.2


                        PROPERTY ACQUISITION/DISPOSITION
                                    AGREEMENT

         THIS  AGREEMENT  is  made  and  entered  into  as of  the  __st  day of
_________,  2001,  by and  between  Apple  Hospitality  Two,  Inc.,  a  Virginia
corporation (hereinafter referred to as "Owner"), and Apple Suites Realty Group,
Inc., a Virginia corporation (hereinafter referred to as "Agent").

                              W I T N E S S E T H :

         WHEREAS,  Owner plans to conduct business as a "real estate  investment
trust," and, in connection  therewith,  plans to, from time to time, acquire and
dispose  of real  property,  including  particularly  corporate  apartments  and
upper-end,  extended-stay hotel properties (hereinafter referred to individually
as a "Property" and collectively as the "Properties");

         WHEREAS,  Owner  desires  to use the  services  of Agent as a broker in
connection  with the  acquisition and disposition of the Properties on the terms
set forth in this Agreement; and

         WHEREAS,  Owner and Agent desire to enter into this  Agreement  for the
purposes herein contained.

         NOW, THEREFORE, in consideration of the promises herein contained,  and
for other valuable consideration,  receipt of which is hereby acknowledged,  the
parties agree as follows:

         1.  Engagement  of Agent as Broker  for the  Properties.  Owner  hereby
engages  Agent as a broker  in  connection  with  the  purchase  and sale of the
Properties,  upon the  conditions and for the term and  compensation  herein set
forth.  All or any  portion  of the  services  being  performed  by Agent may be
contracted  or  subcontracted  by Agent to another  company,  provided that such
company agrees to be bound by the terms of this Agreement.

         2. Term of Agreement;  Renewal.  This  Agreement  shall be valid for an
initial term of five (5) years ending  ________,  2006.  Unless  either party by
written  notice  sent to the other party at least sixty (60) days before the end
of any 5-year term hereof  elects not to renew this  Agreement,  this  Agreement
shall renew  automatically  for  successive  terms of five (5) years on the same
terms as contained herein.

         3.  Acceptance of Engagement.  Agent hereby accepts its engagement as a
broker for the  purchase  and sale of the  Properties  and agrees to perform all
services  necessary to effectuate such purchases and sales which are customarily
provided by commercial  real estate  brokers,  and,  without  limitation,  Agent
agrees:

             a. To supervise,  on behalf of Owner,  the preparation of contracts
of purchase or sale for each  Property,  on such terms as are specified by Owner
or its duly authorized representatives,  and all other documents related thereto
or required to effectuate such purchase or sale;

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             b. To  coordinate  the  activities  of, and act as liaison  between
Owner and,  independent  professionals  connected with the purchase or sale of a
Property, including attorneys,  appraisers,  engineers,  inspectors, lenders, if
any, and others;

             c. To assist Owner and its authorized representatives in satisfying
any  conditions  precedent  to the  purchase or sale of a Property,  which shall
include contracting on behalf of Owner with any third parties whose services are
required to close any such purchase or sale;

             d. To  represent  Owner at the closing of the purchase or sale of a
Property,  to coordinate the activities of professionals and other third persons
connected  with such closing,  and to supervise the compliance by Owner with all
requirements  and  customary  actions  associated  with such  purchase  or sale,
including,  without limitation,  the obtaining of property title insurance,  the
delivery and recordation of deeds and other  instruments of conveyance,  and the
delivery  and  recordation,  as  required,  of any  documents  evidencing  loans
obtained or made by Owner;

             e.  Generally  to act on  behalf of Owner in  connection  with such
purchase or sale as a commercial  real estate broker would  customarily act with
respect to such transaction, including the provision of such additional services
as would normally be provided by such a person.

         4. Indemnification.  Owner hereby agrees to indemnify and hold harmless
Agent against and in respect of any loss, cost or expense (including  reasonable
investigative  expenses and attorneys' fees),  judgment,  award,  amount paid in
settlement,  fine,  penalty and  liability of any and every kind  incurred by or
asserted  against  Agent by reason of or in  connection  with the  engagement of
Agent  hereunder,  the performance by Agent of the services  described herein or
the  occurrence  or existence of any event or  circumstance  which results or is
alleged to have resulted in death or injury to any person or  destruction  of or
damage to any property and any suit, action or proceeding  (whether  threatened,
initiated or completed) by reason of the foregoing;  provided,  however, that no
such  indemnification of Agent shall be made, and Agent shall indemnify and hold
Owner harmless against, and to the extent of, any loss that a court of competent
jurisdiction  shall,  by final  adjudication,  determine to have  resulted  from
willful misconduct, gross negligence or fraud by or on the part of Agent.

         5.  Compensation  of  Agent.  Owner  shall  pay to Agent a real  estate
commission in connection  with each purchase of a Property in an amount equal to
two percent (2%) of the gross  purchase  price of the  Property  (which does not
include amounts  budgeted for repairs and  improvements),  in  consideration  of
Agent (or any  person  with whom  Agent  subcontracts  or  contracts  hereunder)
performing the services  provided for in this  Agreement in connection  with the
purchase of the  Property.  In  consideration  of Agent (or any person with whom
Agent subcontracts or contracts hereunder)  performing the services provided for
in this Agreement in connection with the sale of a Property,  Owner shall pay to
Agent the following:  a real estate  commission in connection with the sale of a
Property in an amount  equal to two percent (2%) of the gross sales price of the
Property,  if, but only if, the sales price of the  Property  exceeds the sum of
(A) the Company's  cost for the Property  (consisting  of the original  purchase
price plus all

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capitalized  costs and  expenditures  connected with the Property),  without any
reduction for depreciation, and (B) ten percent (10%) of such cost. If the sales
price of the Property  does not equal such amount,  Agent shall be entitled only
to payment by the  Company of its "direct  costs"  incurred  in  marketing  such
property  (where "direct costs" refers to a reasonable  allocation of all costs,
[including  salaries  of  personnel,  overhead  and  utilities]),  allocable  to
services  in  marketing  such  property.  If the two  percent  (2%) real  estate
commission  is payable in  connection  with sale of a Property,  Agent shall not
also be paid  the  reimbursement  of its  "direct  costs"  as  described  in the
preceding  sentence.  If the person from whom Owner  purchases  or to whom Owner
sells a Property pays any fee to Agent, such amount shall decrease the amount of
Owner's  obligation  to Agent.  Furthermore,  Agent shall not be entitled to any
real estate commission in connection with a sale of a Property by Owner to Agent
or any Affiliate of Agent (where  "Affiliate"  has the meaning  specified in the
Prospectus  of Owner),  but Agent will,  in such case, be entitled to payment by
Owner of its direct  costs in such regard.  The fees and  expenses  provided for
herein  shall be  payable  if Owner  sells a  property,  sells  shares in Owner,
effects  a merger  of  Owner  with  another  entity,  or  undertakes  any  other
transaction,  the purpose or effect of which is, in essence,  to dispose of some
or all  Properties.  In any case other than an actual sale of Properties,  Owner
and Agent shall in good faith agree upon an allocation of purchase price to each
Property which is effectively disposed of.

         6. Power of Attorney.  Owner  hereby  makes,  constitutes  and appoints
Agent its true and lawful  attorney-in-fact,  for it and in its name,  place and
stead and for its use and benefit to sign,  acknowledge  and file all  documents
and  agreements  (other  than  contracts  for  purchase  or sale of a  Property,
promissory  notes,  mortgages,  deeds of trust or other documents or instruments
which would bind Owner to purchase  or sell a Property,  result or evidence  the
incurrence  of debt by Owner,  or encumber a Property)  necessary  to perform or
effect the duties and  obligations  of Agent under the terms of this  Agreement.
The foregoing  power of attorney is a special power of attorney  coupled with an
interest. It shall terminate when this Agreement terminates as provided herein.

         7.  Relationship  of Parties.  The parties agree and  acknowledge  that
Agent is and shall operate as an independent contractor in performing its duties
under this Agreement, and shall not be deemed an employee of Owner.

         8. Entire Agreement. This Agreement represents the entire understanding
between the parties hereto with regard to the transactions  described herein and
may only be amended by a written  instrument  signed by the party  against  whom
enforcement is sought.

         9. Governing Law. This Agreement  shall be construed in accordance with
and be governed by the laws of the Commonwealth of Virginia.


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         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement as
of the day and year first above written.



                                            OWNER:

                                            APPLE HOSPITALITY TWO, INC.,
                                              a Virginia corporation



                                            By:
                                                --------------------------------

                                            Title:    President
                                                  -----------------------------



                                            AGENT:

                                            APPLE SUITES REALTY GROUP, INC.,
                                              a Virginia corporation



                                            By:
                                                --------------------------------

                                            Title:    President
                                                   -----------------------------