UNITED STATES
SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549

FORM 10-Q

|  |                                                                                                                                              
|- | ---------------------------------------------------------------------------------------------------------------------------------------------
|x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
 SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED September 30,
 2010  
|  |                                                                                                                                              
|o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
 SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _______ TO
 _______

|                                                       
|-------------------------------------------------------
|Commission File Number 000-51270                       
|                                                       
|APPLE REIT SIX, INC.                                   
|(Exact
 name of registrant as specified in its charter)

|                                         |  |                    
|---------------------------------------- |  | -------------------
|VIRGINIA                                 |  | 20-0620523         
|(State or other jurisdiction             |  | (IRS Employer      
|of incorporation or organization)        |  | Identification No.)
|                                         |  |                    
|814 EAST MAIN STREET                     |  |                    
|RICHMOND, VIRGINIA                       |  | 23219              
|(Address of principal executive offices) |  | (Zip Code)         

(804) 344-8121(Registrants
telephone number, including area code)

Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes  x  No o

Indicate by check mark
whether the registrant has submitted electronically and posted on its corporate
Web site, if any, every Interactive Data File required to be submitted and
posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months
(or for such shorter period that the registrant was required to submit and post
such files). Yes  o  No o

Indicate by check mark
whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company. See the definitions of
large accelerated filer, accelerated filer and smaller reporting company
in Rule 12b-2 of the Exchange Act:


|                                                                        |                             
|----------------------------------------------------------------------- | ----------------------------
|Large accelerated filer o                                               | Accelerated filer  o        
|Non-accelerated filer  x (Do not check if a smaller reporting
 company) | Smaller reporting company  o

Indicate by check mark
whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).      Yes o     No x

Number of registrants common
shares outstanding as of November 1, 2010: 91,030,960

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APPLE REIT SIX, INC.FORM 10-Q INDEX

|                               |  |                                                                                                                                             |  |                | 
|------------------------------ |  | ------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------- | 
|                               |  |                                                                                                                                             |  | Page
 
 Number
|                               |  |                                                                                                                                             |  |               
|                               |  |                                                                                                                                             |  |                | 
|PART I. FINANCIAL
 INFORMATION |  |                                                                                                                                             | 
|                               |  |                                                                                                                                             |  |                | 
|Item 1.                        |  | Financial Statements (Unaudited)                                                                                                            |  |                | 
|                               |  |                                                                                                                                             |  |                | 
|                               |  | Consolidated Balance Sheets - September 30,
 2010 and December 31, 2009                                                                     |  | 3              | 
|                               |  |                                                                                                                                             |  |                | 
|                               |  | Consolidated Statements of Operations - Three
 and nine months ended September 30, 2010 and Three and nine months ended
 September 30, 2009 |  | 4              | 
|                               |  |                                                                                                                                             |  |                | 
|                               |  | Consolidated Statements of Cash Flows - Nine
 months ended September 30, 2010 and Nine months ended September 30, 2009                      |  | 5              | 
|                               |  |                                                                                                                                             |  |                | 
|                               |  | Notes to Consolidated Financial Statements                                                                                                  |  | 6              | 
|                               |  |                                                                                                                                             |  |                | 
|Item 2.                        |  | Managements Discussion and Analysis of
 Financial Condition and Results of Operations                                                      |  | 10             | 
|                               |  |                                                                                                                                             |  |                | 
|Item 3.                        |  | Quantitative and Qualitative Disclosures
 About Market Risk                                                                                 |  | 16             | 
|                               |  |                                                                                                                                             |  |                | 
|Item 4.                        |  | Controls
 and Procedures                                                                                                                    |  | 17             | 
|                               |  |                                                                                                                                             |  |                | 
|PART
 II. OTHER INFORMATION    |  |                                                                                                                                             | 
|                               |  |                                                                                                                                             |  |                | 
|Item 2.                        |  | Unregistered
 Sales of Equity Securities and Use of Proceeds                                                                                |  | 18             | 
|                               |  |                                                                                                                                             |  |                | 
|Item 6.                        |  | Exhibits                                                                                                                                    |  | 19             | 
|                               |  |                                                                                                                                             |  |                | 
|Signatures                     |  | 20                                                                                                                                          | 

This
Form 10-Q includes references to certain trademarks or service marks. The
SpringHill Suites® by Marriott, TownePlace Suites® by
Marriott, Fairfield Inn® by Marriott, Courtyard® by
Marriott, Residence Inn® by Marriott and Marriott Suites®
trademarks are the property of Marriott International, Inc. or one of its
affiliates. The Homewood Suites® by Hilton, Hilton Garden Inn®,
Hampton Inn® and Hampton Inn & Suites® trademarks are
the property of Hilton Worldwide or one or more of its affiliates. For
convenience, the applicable trademark or servicemark symbol has been omitted
but will be deemed to be included wherever the above referenced terms are used.

2

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Apple REIT Six, Inc.
Consolidated Balance Sheets
(unaudited)
(in thousands, except share data)

|                                                                                                                                                 |  |                     |          |                    |   |          |  
|------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------- | -------- | ------------------ | - | -------- | -
|                                                                                                                                                 |  | September 30,
 2010 |          | December 31,
 2009 |  
|                                                                                                                                                 |  |                     |          |                    |  
|ASSETS                                                                                                                                           |  |                     |          |                    |   |          |  
|Investment in real estate, net of
 accumulated depreciation of $145,674 and $124,943, respectively                                               |  | $                   | 768,772  |                    | $ | 801,646  |  
|Hotels held for sale                                                                                                                             |  |                     | 11,250   |                    |   |         |  
|Restricted cash-furniture, fixtures and
 other escrows                                                                                           |  |                     | 4,446    |                    |   | 4,506    |  
|Due from third party manager, net                                                                                                                |  |                     | 9,484    |                    |   | 6,331    |  
|Other assets, net                                                                                                                                |  |                     | 3,158    |                    |   | 3,101    |  
|                                                                                                                                                 |  |                     |          |                    |   |          |  
|                                                                                                                                                 |  |                     |          |                    |   |          |  
|TOTAL ASSETS                                                                                                                                     |  | $                   | 797,110  |                    | $ | 815,584  |  
|                                                                                                                                                 |  |                     |          |                    |   |          |  
|                                                                                                                                                 |  |                     |          |                    |   |          |  
|LIABILITIES                                                                                                                                      |  |                     |          |                    |   |          |  
|Notes payable                                                                                                                                    |  | $                   | 59,170   |                    | $ | 54,040   |  
|Other liabilities                                                                                                                                |  |                     | 5,182    |                    |   | 4,056    |  
|                                                                                                                                                 |  |                     |          |                    |   |          |  
|                                                                                                                                                 |  |                     |          |                    |   |          |  
|TOTAL LIABILITIES                                                                                                                                |  |                     | 64,352   |                    |   | 58,096   |  
|                                                                                                                                                 |  |                     |          |                    |   |          |  
|SHAREHOLDERS EQUITY                                                                                                                             |  |                     |          |                    |   |          |  
|Preferred stock, authorized 15,000,000
 shares; none issued and outstanding                                                                      |  |                     |         |                    |   |         |  
|Series A preferred stock, no par value,
 authorized 200,000,000 shares; issued and outstanding 91,485,740 and
 91,472,421 shares, respectively   |  |                     |         |                    |   |         |  
|Series B convertible preferred stock, no
 par value, authorized 240,000 shares; issued and outstanding 240,000 and
 240,000 shares, respectively |  |                     | 24       |                    |   | 24       |  
|Common stock, no par value, authorized
 200,000,000 shares; issued and outstanding 91,485,740 and 91,472,421 shares,
 respectively               |  |                     | 902,519  |                    |   | 902,202  |  
|Distributions greater than net income                                                                                                            |  |                     | (169,785 | )                  |   | (144,738 | )
|                                                                                                                                                 |  |                     |          |                    |   |          |  
|                                                                                                                                                 |  |                     |          |                    |   |          |  
|TOTAL SHAREHOLDERS EQUITY                                                                                                                       |  |                     | 732,758  |                    |   | 757,488  |  
|                                                                                                                                                 |  |                     |          |                    |   |          |  
|                                                                                                                                                 |  |                     |          |                    |   |          |  
|TOTAL LIABILITIES AND SHAREHOLDERS EQUITY                                                                                                       |  | $                   | 797,110  |                    | $ | 815,584  |  
|                                                                                                                                                 |  |                     |          |                    |   |          |  

See notes to consolidated financial
statements.

3

---



Apple REIT Six, Inc.
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)

|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|-------------------------------------------------------------- |  | --------------------------------------- | ------ | --------------------------------------- | - | -------------------------------------- | - | -------------------------------------- | ------- | - | - | ------- | -
|                                                               |  | Three months
 ended
 September 30, 2010 |        | Three months
 ended
 September 30, 2009 |   | Nine Months
 ended
 September 30, 2010 |   | Nine Months
 ended
 September 30, 2009 |        
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |        
|Revenues:                                                      |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Room revenue                                                   |  | $                                       | 58,094 |                                         | $ | 53,952                                 |   | $                                      | 159,752 |   | $ | 151,597 |  
|Other revenue                                                  |  |                                         | 3,676  |                                         |   | 3,558                                  |   |                                        | 10,792  |   |   | 11,009  |  
|Reimbursed expenses                                            |  |                                         | 1,417  |                                         |   | 1,311                                  |   |                                        | 4,685   |   |   | 3,931   |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Total revenue                                                  |  |                                         | 63,187 |                                         |   | 58,821                                 |   |                                        | 175,229 |   |   | 166,537 |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Expenses:                                                      |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Operating expense                                              |  |                                         | 15,541 |                                         |   | 14,837                                 |   |                                        | 43,657  |   |   | 42,178  |  
|Hotel administrative expense                                   |  |                                         | 4,753  |                                         |   | 4,758                                  |   |                                        | 13,877  |   |   | 13,919  |  
|Sales and marketing                                            |  |                                         | 4,730  |                                         |   | 4,333                                  |   |                                        | 13,531  |   |   | 12,961  |  
|Utilities                                                      |  |                                         | 2,826  |                                         |   | 2,766                                  |   |                                        | 7,371   |   |   | 7,350   |  
|Repair and maintenance                                         |  |                                         | 2,817  |                                         |   | 2,650                                  |   |                                        | 8,022   |   |   | 7,688   |  
|Franchise fees                                                 |  |                                         | 2,601  |                                         |   | 2,429                                  |   |                                        | 7,158   |   |   | 6,783   |  
|Management fees                                                |  |                                         | 2,107  |                                         |   | 1,749                                  |   |                                        | 5,542   |   |   | 5,269   |  
|Taxes, insurance and other                                     |  |                                         | 2,965  |                                         |   | 3,343                                  |   |                                        | 9,254   |   |   | 10,112  |  
|Reimbursed expenses                                            |  |                                         | 1,417  |                                         |   | 1,311                                  |   |                                        | 4,685   |   |   | 3,931   |  
|General and administrative                                     |  |                                         | 1,203  |                                         |   | 1,057                                  |   |                                        | 3,645   |   |   | 3,559   |  
|Depreciation expense                                           |  |                                         | 7,711  |                                         |   | 7,634                                  |   |                                        | 23,028  |   |   | 22,767  |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Total expenses                                                 |  |                                         | 48,671 |                                         |   | 46,867                                 |   |                                        | 139,770 |   |   | 136,517 |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Operating income                                               |  |                                         | 14,516 |                                         |   | 11,954                                 |   |                                        | 35,459  |   |   | 30,020  |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Interest expense, net                                          |  |                                         | (990   | )                                       |   | (660                                   | ) |                                        | (2,864  | ) |   | (1,470  | )
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Income from continuing operations                              |  |                                         | 13,526 |                                         |   | 11,294                                 |   |                                        | 32,595  |   |   | 28,550  |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Loss from discontinued operations                              |  |                                         | (3,289 | )                                       |   | (270                                   | ) |                                        | (2,908  | ) |   | (29     | )
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Net income                                                     |  | $                                       | 10,237 |                                         | $ | 11,024                                 |   | $                                      | 29,687  |   | $ | 28,521  |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Basic and diluted net income (loss) per common share           |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|From continuing operations                                     |  | $                                       | 0.15   |                                         | $ | 0.12                                   |   | $                                      | 0.36    |   | $ | 0.31    |  
|From discontinued operations                                   |  |                                         | (0.04  | )                                       |   |                                       |   |                                        | (0.03   | ) |   |        |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|                                                               |  | $                                       | 0.11   |                                         | $ | 0.12                                   |   | $                                      | 0.33    |   | $ | 0.31    |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|                                                               |  |                                         |        |                                         |   |                                        |   |                                        |         |   |   |         |  
|Weighted average common shares outstanding - basic and diluted |  |                                         | 91,300 |                                         |   | 91,097                                 |   |                                        | 91,334  |   |   | 91,165  |  

See notes to consolidated financial statements.

4

---



Apple REIT Six, Inc.
Consolidated Statements of Cash Flows
(unaudited)
(in thousands)

|                                                                               |  |                                       |         |                                       |   |         |  
|------------------------------------------------------------------------------ |  | ------------------------------------- | ------- | ------------------------------------- | - | ------- | -
|                                                                               |  | Nine months ended
 September 30, 2010 |         | Nine months ended
 September 30, 2009 |  
|                                                                               |  |                                       |         |                                       |  
|Cash flow provided by operating activities:                                    |  |                                       |         |                                       |   |         |  
|Net income                                                                     |  | $                                     | 29,687  |                                       | $ | 28,521  |  
|Adjustments to reconcile net income to cash provided by operating
 activities: |  |                                       |         |                                       |   |         |  
|Depreciation, including discontinued operations                                |  |                                       | 23,421  |                                       |   | 23,157  |  
|Loss on hotels held for sale                                                   |  |                                       | 3,071   |                                       |   |        |  
|Other non-cash expenses, net                                                   |  |                                       | 533     |                                       |   | 51      |  
|Changes in operating assets and liabilities, net of amounts acquired/assumed:  |  |                                       |         |                                       |   |         |  
|Due from third party manager                                                   |  |                                       | (3,153  | )                                     |   | (1,212  | )
|Other assets                                                                   |  |                                       | (614    | )                                     |   | 155     |  
|Other liabilities                                                              |  |                                       | 1,353   |                                       |   | 1,333   |  
|                                                                               |  |                                       |         |                                       |   |         |  
|Net cash provided by operating activities                                      |  |                                       | 54,298  |                                       |   | 52,005  |  
|                                                                               |  |                                       |         |                                       |   |         |  
|Cash flow used in investing activities:                                        |  |                                       |         |                                       |   |         |  
|Capital improvements                                                           |  |                                       | (5,095  | )                                     |   | (8,663  | )
|Redemption of investment interest in non-hotel assets                          |  |                                       |        |                                       |   | 3,240   |  
|Net decrease (increase) in cash restricted for property improvements           |  |                                       | 165     |                                       |   | (380    | )
|                                                                               |  |                                       |         |                                       |   |         |  
|Net cash used in investing activities                                          |  |                                       | (4,930  | )                                     |   | (5,803  | )
|                                                                               |  |                                       |         |                                       |   |         |  
|Cash flow used in financing activities:                                        |  |                                       |         |                                       |   |         |  
|Net proceeds from line of credit                                               |  |                                       | 8,670   |                                       |   | 19,805  |  
|Repayment of secured notes payable                                             |  |                                       | (3,506  | )                                     |   | (587    | )
|Net proceeds from issuance of Units                                            |  |                                       | 23,120  |                                       |   | 26,268  |  
|Redemptions of Units                                                           |  |                                       | (22,918 | )                                     |   | (30,964 | )
|Cash distributions paid to shareholders                                        |  |                                       | (54,734 | )                                     |   | (61,659 | )
|                                                                               |  |                                       |         |                                       |   |         |  
|Net cash used in financing activities                                          |  |                                       | (49,368 | )                                     |   | (47,137 | )
|                                                                               |  |                                       |         |                                       |   |         |  
|Decrease in cash and cash equivalents                                          |  |                                       |        |                                       |   | (935    | )
|                                                                               |  |                                       |         |                                       |   |         |  
|Cash and cash equivalents, beginning of period                                 |  |                                       |        |                                       |   | 935     |  
|                                                                               |  |                                       |         |                                       |   |         |  
|                                                                               |  |                                       |         |                                       |   |         |  
|Cash and cash equivalents, end of period                                       |  | $                                     |        |                                       | $ |        |  
|                                                                               |  |                                       |         |                                       |   |         |  

See
notes to consolidated financial statements.

5

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 1

Basis of Presentation

The
accompanying unaudited consolidated financial statements have been prepared in
accordance with the instructions for Form 10-Q and Article 10 of Regulation
S-X. Accordingly, they do not include all of the information required by
accounting principles generally accepted in the United States. In the opinion
of management, all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included. These
unaudited financial statements should be read in conjunction with the Companys
audited financial statements included in its 2009 Annual Report on Form 10-K.
Operating results for the period ended September 30, 2010 are not necessarily
indicative of the results that may be expected for the period ending December
31, 2010.

Note 2

General Information and Summary of Significant Accounting
Policies

Organization

Apple
REIT Six, Inc. (the Company) is a Virginia corporation formed to invest in
hotels and other selected real estate in select metropolitan areas in the
United States. The Company has elected to be treated as a real estate
investment trust (REIT) for federal income tax purposes. Initial
capitalization occurred on January 20, 2004 and operations began on May 28,
2004 when the Company acquired its first hotel. On March 3, 2006, the Company
concluded its best-efforts offering of Units (each Unit consists of one common
share and one Series A preferred share). The Company has no foreign operations
or assets and its operating structure includes only one segment. The
consolidated financial statements include the accounts of the Company and its
subsidiaries. All intercompany transactions and balances have been eliminated
upon consolidation.

Earnings per Common Share

Basic
earnings per common share are computed based upon the weighted average number
of shares outstanding during the year. Diluted earnings per share are
calculated after giving effect to all potential common shares that were
dilutive and outstanding for the year. There were no potential common shares
with a dilutive effect during the three and nine months ended September 30,
2010 or 2009. Series B convertible preferred shares are not included in earnings
per common share calculations until such time as the Series B convertible
preferred shares are converted to common shares.

Use of Estimates

The
preparation of the financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the amounts reported in the financial statements and accompanying
notes. Actual results could differ from those estimates.

Recent Accounting Pronouncements

In
June 2009, the Financial Accounting Standards Board (FASB) issued a
pronouncement (Accounting Standards Update No. 2009-17) which amends its
guidance surrounding a companys analysis to determine whether any of its
variable interests constitute controlling financial interests in a variable
interest entity. This analysis identifies the primary beneficiary of a variable
interest entity as the enterprise that has both of the following
characteristics: (a) the power to direct the activities of a variable interest
entity that most significantly impact the entitys economic performance, and
(b) the obligation to absorb losses of the entity that could potentially be
significant to the variable interest entity or the right to receive benefits
from the entity that could potentially be significant to the variable interest
entity. Additionally, an

6

---



enterprise is required to
assess whether it has an implicit financial responsibility to ensure that a
variable interest entity operates as designed when determining whether it has
the power to direct the activities of the variable interest entity that most
significantly impact the entitys economic performance. The new pronouncement
also requires ongoing assessments of whether an enterprise is the primary
beneficiary of a variable interest entity and enhanced disclosure about an
enterprises involvement with a variable interest entity. This pronouncement
was adopted by the Company in the first quarter of 2010. The adoption of this
standard did not have a material impact on the Companys consolidated financial
statements.

Note 3

Sale of Ownership Interest

In
January 2009, the Companys ownership interest in Apple Air Holding, LLC
(Apple Air), was reduced from 50% to 26% through the redemption of a 24%
ownership interest by Apple Air. The Company received approximately $3.2
million for the ownership interest redeemed. No gain or loss from the
redemption was recognized by the Company. Due to the reduction in ownership the
Company deconsolidated Apple Air and now records its ownership interest of
approximately $2.1 and $2.4 million at September 30, 2010 and December 31, 2009
in Other assets, net in the Companys Consolidated Balance Sheets. The
Company records its share of income or loss of Apple Air under the equity method
of accounting, adjusting its investment accordingly. The loss of $0.4 and $0.3
million for the nine months ended September 30, 2010 and 2009 is included in
General and administrative expense in the Companys Consolidated Statements
of Operations. The other members of Apple Air are Apple REIT Seven, Inc., Apple
REIT Eight, Inc. and Apple REIT Nine, Inc.

Note 4

Notes Payable

In
March 2008, the Company entered into a $20 million unsecured line of credit
with a commercial bank. In August 2009 and June 2010, the Company modified this
agreement, increasing its capacity to $60 million. The principal is required to
be paid by the maturity date of June 10, 2011, and may be prepaid without
penalty. The Company has an option to extend the line of credit one year,
subject to a fee and certain conditions. Interest payments are due monthly and
the applicable interest rate is equal to LIBOR (the London Interbank Offered
Rate) plus 3.5%, with a minimum interest rate of 5.0%. The line of credit also
has an unused fee of 0.5%. At September 30, 2010 and December 31, 2009, the
credit line had outstanding principal balances of $34.8 and $25.9 million.

Note 5

Fair Value of Financial Instruments

The
Company estimates the fair value of its fixed rate debt and the credit spreads
over variable market rates on its variable rate debt by discounting the future
cash flows of each instrument at estimated market rates or credit spreads
consistent with the maturity of the debt obligation with similar credit policies.
Credit spreads take into consideration general market conditions and maturity.
As of September 30, 2010, the carrying value and estimated fair value of the
Companys debt was $59.2 and $60.1 million. As of December 31, 2009, the
carrying value and estimated fair value of the Companys debt was $54.0 and
$55.5 million. The carrying value of the Companys other financial instruments
approximates fair value due to the short-term nature of these financial
instruments.

7

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Note 6

Related Parties

The
Company has significant transactions with related parties. These transactions
cannot be construed to be arms length, and the results of the Companys
operations may be different if these transactions were conducted with
non-related parties.

The
Company is party to an advisory agreement with Apple Six Advisors, Inc.
(A6A), pursuant to which A6A provides management services to the Company. An
annual fee ranging from .1% to .25% of total equity proceeds received by the
Company, in addition to certain reimbursable expenses, is payable for these
services. During the first nine months of 2010 and 2009, A6A utilized Apple
Fund Management, LLC, a subsidiary of the Company, to provide these services.
The advisory fees incurred under the agreement with A6A for the nine months
ended September 30, 2010 and 2009, totaled approximately $1.1 million for each
period.

Through
its wholly-owned subsidiary, Apple Fund Management, LLC, the Company provides
support services to Apple Suites Realty Group, Inc. (ASRG), A6A, Apple Seven
Advisors, Inc. (A7A), Apple REIT Seven, Inc., Apple Eight Advisors, Inc.
(A8A), Apple REIT Eight, Inc., Apple Nine Advisors, Inc. (A9A) and Apple
REIT Nine, Inc. A7A provides day to day advisory and administrative functions
for Apple REIT Seven, Inc. A8A provides day to day advisory and administrative
functions for Apple REIT Eight, Inc. A9A provides day to day advisory and
administrative functions for Apple REIT Nine, Inc. ASRG provides real estate
brokerage services to Apple REIT Seven, Inc., Apple REIT Eight, Inc. and Apple
REIT Nine, Inc. Each of these companies has agreed to reimburse the Company for
its costs in providing these services. For the nine months ended September 30,
2010 and 2009, the Company received reimbursement of its costs totaling
approximately $4.7 and $3.9 million. ASRG, A6A, A7A, A8A and A9A are 100% owned
by Glade Knight, the Companys Chairman and Chief Executive Officer.

Including
ASRG, A6A, A7A, A8A and A9A discussed above, Mr. Knight is also Chairman and
Chief Executive Officer of Apple REIT Seven, Inc., Apple REIT Eight, Inc.,
Apple REIT Nine, Inc. and Apple REIT Ten, Inc. (a newly formed REIT). Members
of the Companys Board of Directors are also on the boards of Apple REIT Seven,
Inc., Apple REIT Eight, Inc. and Apple REIT Nine, Inc.

Note 7

Shareholders Equity

In
July 2005, the Company instituted a Unit Redemption Program to provide limited
interim liquidity to its shareholders who have held their Units for at least
one year. Shareholders may request redemption of Units for a purchase price
equal to the lesser of: (1) the purchase price per Unit that the shareholder
actually paid for the Unit; or (2) $11.00 per Unit. The Company reserves the
right to change the purchase price of redemptions, reject any request for
redemption, or otherwise amend the terms of, suspend, or terminate the Unit
Redemption Program. During the nine months ended September 30, 2010, the
Company redeemed approximately 2.1 million Units in the amount of $22.9 million
under the program. Since the inception of the program through September 30,
2010, the Company has redeemed approximately 13.2 million Units for $144.7
million under the program.

In
February 2006, the Company instituted a Dividend Reinvestment Plan for its
shareholders. The plan provides a convenient and cost effective way to increase
shareholder investment in the Company by reinvesting dividends to purchase
additional Units of the Company. The uses of the proceeds from this plan may
include purchasing Units under the Companys Unit Redemption Program, enhancing
properties, satisfying financing obligations and other expenses, increasing
working capital, funding various corporate operations, and acquiring hotels.
During the nine months ended September 30, 2010, approximately 2.1 million
Units, representing $23.1 million in proceeds to the Company, were issued under
the plan. Since the inception of the plan through September 30, 2010, 13.6
million Units, representing $149.1 million in proceeds to the Company, were
issued under the plan.

8

---



The
Companys annual distribution rate as of September 30, 2010 was $0.77 per
common share, payable monthly. For the nine months ended September 30, 2010 and
2009 the company has made distributions of $0.60 and $0.68 per common share for
a total of $54.7 and $61.7 million. For the three months ended September 30,
2010 and 2009 the Company has made distributions of $0.19 and $0.23 per common
share for a total of $17.6 and $20.5 million.

Note 8

Discontinued Operations

Based
on the performance and location of the Tempe, Arizona TownePlace Suites and
SpringHill Suites, the Company committed to sell these two properties in the
third quarter of 2010. These hotels have been classified on the Consolidated
Balance Sheets as Hotels held for sale as of September 30, 2010, and are
recorded at the anticipated sale proceeds less cost to sell or fair value. The
results of operations for these properties for the three and nine months ended
September 30, 2010 and 2009 are classified on the Consolidated Statements of
Operations in the line item Loss from discontinued operations. The results
for the three and nine months ended September 30, 2010 include a loss on the
anticipated sale of $3.1 million representing the difference between the net
book value of the hotels and the anticipated sale proceeds less cost to sell or
fair value. The estimated fair value is based on actual third party bids for
the properties and other third party information which is considered a Level 2
measurement under the FASBs standard on Fair Value Measurements and
Disclosures.

The
following table sets forth the components of income from discontinued
operations for the three and nine months ended September 30, 2010 and 2009 (in
thousands):

|                                                    |  |                                         |        |                                         |   |                                        |   |                                        |        |   |   |       |  
|--------------------------------------------------- |  | --------------------------------------- | ------ | --------------------------------------- | - | -------------------------------------- | - | -------------------------------------- | ------ | - | - | ----- | -
|                                                    |  | Three months
 ended
 September 30, 2010 |        | Three months
 ended
 September 30, 2009 |   | Nine Months
 ended
 September 30, 2010 |   | Nine Months
 ended
 September 30, 2009 |       
|                                                    |  |                                         |        |                                         |   |                                        |   |                                        |       
|                                                    |  |                                         |        |                                         |   |                                        |   |                                        |        |   |   |       |  
|Total revenue                                       |  | $                                       | 526    |                                         | $ | 491                                    |   | $                                      | 2,753  |   | $ | 2,517 |  
|Hotel operating expenses                            |  |                                         | 539    |                                         |   | 576                                    |   |                                        | 1,968  |   |   | 1,903 |  
|Taxes, insurance and other                          |  |                                         | 74     |                                         |   | 54                                     |   |                                        | 229    |   |   | 253   |  
|Depreciation expense                                |  |                                         | 131    |                                         |   | 131                                    |   |                                        | 393    |   |   | 390   |  
|Loss on adjustment to fair
 value less cost to sell |  |                                         | 3,071  |                                         |   |                                       |   |                                        | 3,071  |   |   |      |  
|                                                    |  |                                         |        |                                         |   |                                        |   |                                        |        |   |   |       |  
|Loss from discontinued
 operations                  |  | $                                       | (3,289 | )                                       | $ | (270                                   | ) | $                                      | (2,908 | ) | $ | (29   | )
|                                                    |  |                                         |        |                                         |   |                                        |   |                                        |        |   |   |       |  

Note 9

Subsequent Events

In
October 2010, the Company declared and paid approximately $5.9 million, or
$.064 per share, in distributions to its common shareholders of which $2.5 million
or 223,222 Units were reinvested under the Companys Dividend Reinvestment
Plan.

On
October 20, 2010, the Company redeemed 678,002 Units in the amount of $7.4
million under its Unit Redemption Program.

9

---



Item 2.
Managements Discussion and Analysis of Financial Condition and Results of
Operation

This
quarterly report contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements involve known and
unknown risks, uncertainties, and other factors which may cause the actual
results, performance, or achievements of the Company to be materially different
from future results, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, but are not limited to, the
ability of the Company to implement its acquisition strategy and operating
strategy; the Companys ability to manage planned growth; changes in economic
cycles, including the current economic recession throughout the United States;
and competition within the hotel industry. Although the Company believes that
the assumptions underlying the forward-looking statements contained herein are
reasonable, any of the assumptions could be inaccurate, and therefore there can
be no assurance that such statements included in the quarterly report will
prove to be accurate. In light of the significant uncertainties inherent in the
forward-looking statements included herein, the inclusion of such information
should not be regarded as a representation by the Company or any other person
that the results or conditions described in such statements or the objectives
and plans of the Company will be achieved. In addition, the Companys
qualification as a real estate investment trust involves the application of
highly technical and complex provisions of the Internal Revenue Code. Readers
should carefully review the Companys financial statements and the notes
thereto, as well as the risk factors described in the Companys filings with
the Securities and Exchange Commission. Any forward-looking statement that the
Company makes speaks only as of the date of this report. The Company undertakes
no obligation to publicly update or revise any forward-looking statements or
cautionary factors as a result of new information, future events or otherwise,
except as required by law.

Overview

Apple
REIT Six, Inc. (together with its wholly owned subsidiaries, the Company) was
formed and initially capitalized on January 20, 2004, with its first investor
closing on April 23, 2004. The Company owns 68 hotels within different markets
in the United States. The Company is treated as a Real Estate Investment Trust
(REIT) for federal income tax purposes. The Companys first hotel was
acquired on May 28, 2004. Although hotel performance can be influenced by many
factors including local competition, local and general economic conditions in
the United States and the performance of individual managers assigned to each
hotel, performance of the hotels within their respective markets, in general,
has met the Companys expectations for the period owned. With the decline in
economic conditions throughout the United States, the Company has experienced a
significant decline in revenue as compared to 2008, but a slight recovery in
revenue as compared to the first nine months of 2009. Although there is no way
to predict general economic conditions, the Company anticipates revenue and
income to improve slightly for the remainder of 2010 as compared to 2009, and
based on industry forecasts to grow at a mid-single digit percentage rate in
2011 as compared to 2010. In evaluating financial condition and operating
performance, the most important matters on which the Company focuses are
revenue measurements, such as: average occupancy, average daily rate, revenue
per available room, and market yield (a comparison of a hotels revenue results
to the average of other hotels in its local market); and expenses, such as
hotel operating expenses, general and administrative and other expenses
described below.

The
Company continually monitors the profitability of its properties and attempts
to maximize shareholder value by timely disposal of properties. During the
third quarter of 2010 the Company committed to sell two underperforming assets.
The properties are the Tempe, Arizona TownePlace Suites and SpringHill Suites.
The Company recorded a loss from discontinued operations of $3.1 million based
on the anticipated net sale proceeds (or fair value), less the properties net
book value. The results of these properties have been included in discontinued
operations and are not included in the summary below. The following is a
summary of the Companys results from continuing operations:

10

---



|                                                 |  |                                  |        |                                 |  |      |     |                        |  |               |        |      |  |                        |     |      |  |                        |     |               |  |   |         |   |  |  |     |   |  |   |         |   |  |  |     |   |  |  |    |  
|------------------------------------------------ |  | -------------------------------- | ------ | ------------------------------- |  | ---- | --- | ---------------------- |  | ------------- | ------ | ---- |  | ---------------------- | --- | ---- |  | ---------------------- | --- | ------------- |  | - | ------- | - |  |  | --- | - |  | - | ------- | - |  |  | --- | - |  |  | -- | -
|                                                 |  | Three months ended September 30, |        | Nine months ended September 30,
|                                                 |  |                                  |        |                                
|(in thousands except statistical data)           |  | 2010                             |        | Percent ofHotelRevenue          |  | 2009 |     | Percent ofHotelRevenue |  | PercentChange |        | 2010 |  | Percent ofHotelRevenue |     | 2009 |  | Percent ofHotelRevenue |     | PercentChange
|                                                 |  |                                  |        |                                 |  |      |     |                        |  |               |        |      |  |                        |     |      |  |                        |     |              
|                                                 |  |                                  |        |                                 |  |      |     |                        |  |               |        |      |  |                        |     |      |  |                        |     |               |  |   |         |   |  |  |     |   |  |   |         |   |  |  |     |   |  |  |    |  
|Total hotel revenue                              |  | $                                | 61,770 |                                 |  |      | 100 | %                      |  | $             | 57,510 |      |  |                        | 100 | %    |  |                        | 7   | %             |  | $ | 170,544 |   |  |  | 100 | % |  | $ | 162,606 |   |  |  | 100 | % |  |  | 5  | %
|Hotel operating expenses                         |  |                                  | 35,375 |                                 |  |      | 57  | %                      |  |               | 33,522 |      |  |                        | 58  | %    |  |                        | 6   | %             |  |   | 99,158  |   |  |  | 58  | % |  |   | 96,148  |   |  |  | 59  | % |  |  | 3  | %
|Taxes, insurance and other expense               |  |                                  | 2,965  |                                 |  |      | 5   | %                      |  |               | 3,343  |      |  |                        | 6   | %    |  |                        | -11 | %             |  |   | 9,254   |   |  |  | 5   | % |  |   | 10,112  |   |  |  | 6   | % |  |  | -8 | %
|General and administrative expense               |  |                                  | 1,203  |                                 |  |      | 2   | %                      |  |               | 1,057  |      |  |                        | 2   | %    |  |                        | 14  | %             |  |   | 3,645   |   |  |  | 2   | % |  |   | 3,559   |   |  |  | 2   | % |  |  | 2  | %
|                                                 |  |                                  |        |                                 |  |      |     |                        |  |               |        |      |  |                        |     |      |  |                        |     |               |  |   |         |   |  |  |     |   |  |   |         |   |  |  |     |   |  |  |    |  
|Depreciation                                     |  |                                  | 7,711  |                                 |  |      |     |                        |  |               | 7,634  |      |  |                        |     |      |  |                        | 1   | %             |  |   | 23,028  |   |  |  |     |   |  |   | 22,767  |   |  |  |     |   |  |  | 1  | %
|Interest expense, net                            |  |                                  | 990    |                                 |  |      |     |                        |  |               | 660    |      |  |                        |     |      |  |                        | 50  | %             |  |   | 2,864   |   |  |  |     |   |  |   | 1,470   |   |  |  |     |   |  |  | 95 | %
|                                                 |  |                                  |        |                                 |  |      |     |                        |  |               |        |      |  |                        |     |      |  |                        |     |               |  |   |         |   |  |  |     |   |  |   |         |   |  |  |     |   |  |  |    |  
|Number of Hotels, excluding hotels held for sale |  |                                  | 66     |                                 |  |      |     |                        |  |               | 66     |      |  |                        |     |      |  |                        |    | %             |  |   | 66      |   |  |  |     |   |  |   | 66      |   |  |  |     |   |  |  |   | %
|Average RevPAR Market Yield (1)                  |  |                                  | 119    |                                 |  |      |     |                        |  |               | 120    |      |  |                        |     |      |  |                        | -1  | %             |  |   | 120     |   |  |  |     |   |  |   | 120     |   |  |  |     |   |  |  |   | %
|ADR                                              |  | $                                | 108    |                                 |  |      |     |                        |  | $             | 108    |      |  |                        |     |      |  |                        |    | %             |  | $ | 105     |   |  |  |     |   |  | $ | 108     |   |  |  |     |   |  |  | -3 | %
|Occupancy                                        |  |                                  | 77     | %                               |  |      |     |                        |  |               | 71     | %    |  |                        |     |      |  |                        | 8   | %             |  |   | 73      | % |  |  |     |   |  |   | 67      | % |  |  |     |   |  |  | 9  | %
|RevPAR                                           |  | $                                | 83     |                                 |  |      |     |                        |  | $             | 77     |      |  |                        |     |      |  |                        | 8   | %             |  | $ | 76      |   |  |  |     |   |  | $ | 73      |   |  |  |     |   |  |  | 4  | %
|Total rooms sold (thousands)(2)                  |  |                                  | 536    |                                 |  |      |     |                        |  |               | 496    |      |  |                        |     |      |  |                        | 8   | %             |  |   | 1,515   |   |  |  |     |   |  |   | 1,392   |   |  |  |     |   |  |  | 9  | %
|Total rooms available (thousands)(3)             |  |                                  | 699    |                                 |  |      |     |                        |  |               | 699    |      |  |                        |     |      |  |                        |    | %             |  |   | 2,077   |   |  |  |     |   |  |   | 2,077   |   |  |  |     |   |  |  |   | %

|    |                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------
|(1) | Excludes properties under
 renovation during the applicable periods. Calculated from information
 provided by Smith Travel Research, Inc.
|(2) | Represents the number of
 room nights sold during the period.                                                                            
|(3) | Represents the number of rooms
 owned by the Company multiplied by the number of nights in the period.                                   

Hotels Owned

As
of September 30, 2010, the Company owned 68 hotels, two of which are classified
as held for sale, with a total of 7,897 rooms. The following table summarizes
the location, brand, manager, date acquired, number of rooms and gross purchase
price for each hotel. All dollar amounts are in thousands.

|               |  |  |             |  |  |                      |  |  |              |  |                |          |       |  |                        |  |   |        | 
|-------------- |  |  | ----------- |  |  | -------------------- |  |  | ------------ |  | -------------- | -------- | ----- |  | ---------------------- |  | - | ------ | 
|City           |  |  | State       |  |  | Brand                |  |  | Manager      |  | Date
 Acquired |          | Rooms |  | Gross
 Purchase
 Price | 
|               |  |  |             |  |  |                      |  |  |              |  |                |          |       |  |                        | 
|Birmingham     |  |  | Alabama     |  |  | Fairfield Inn        |  |  | LBA          |  |                | 8/25/05  |       |  | 63                     |  | $ | 2,176  | 
|Dothan         |  |  | Alabama     |  |  | Courtyard            |  |  | LBA          |  |                | 8/11/05  |       |  | 78                     |  |   | 8,016  | 
|Dothan         |  |  | Alabama     |  |  | Hampton Inn & Suites |  |  | LBA          |  |                | 6/24/05  |       |  | 85                     |  |   | 8,673  | 
|Huntsville     |  |  | Alabama     |  |  | Fairfield Inn        |  |  | LBA          |  |                | 9/30/05  |       |  | 79                     |  |   | 4,954  | 
|Huntsville     |  |  | Alabama     |  |  | Residence Inn        |  |  | LBA          |  |                | 6/24/05  |       |  | 78                     |  |   | 8,288  | 
|Montgomery     |  |  | Alabama     |  |  | SpringHill Suites    |  |  | LBA          |  |                | 9/30/05  |       |  | 79                     |  |   | 6,835  | 
|Tuscaloosa     |  |  | Alabama     |  |  | Courtyard            |  |  | LBA          |  |                | 8/25/05  |       |  | 78                     |  |   | 7,551  | 
|Tuscaloosa     |  |  | Alabama     |  |  | Fairfield Inn        |  |  | LBA          |  |                | 8/25/05  |       |  | 63                     |  |   | 3,982  | 
|Anchorage      |  |  | Alaska      |  |  | Hampton Inn          |  |  | Stonebridge  |  |                | 3/14/05  |       |  | 101                    |  |   | 11,500 | 
|Anchorage      |  |  | Alaska      |  |  | Hilton Garden Inn    |  |  | Stonebridge  |  |                | 10/12/04 |       |  | 125                    |  |   | 18,900 | 
|Anchorage      |  |  | Alaska      |  |  | Homewood Suites      |  |  | Stonebridge  |  |                | 10/12/04 |       |  | 122                    |  |   | 13,200 | 
|Phoenix        |  |  | Arizona     |  |  | Hampton Inn          |  |  | Stonebridge  |  |                | 10/12/04 |       |  | 99                     |  |   | 6,700  | 
|* Tempe        |  |  | Arizona     |  |  | SpringHill Suites    |  |  | Western      |  |                | 6/30/05  |       |  | 121                    |  |   | 8,060  | 
|* Tempe        |  |  | Arizona     |  |  | TownePlace Suites    |  |  | Western      |  |                | 6/30/05  |       |  | 119                    |  |   | 8,128  | 
|Arcadia        |  |  | California  |  |  | Hilton Garden Inn    |  |  | Stonebridge  |  |                | 10/12/04 |       |  | 124                    |  |   | 12,000 | 
|Arcadia        |  |  | California  |  |  | SpringHill Suites    |  |  | Stonebridge  |  |                | 10/12/04 |       |  | 86                     |  |   | 8,100  | 
|Bakersfield    |  |  | California  |  |  | Hilton Garden Inn    |  |  | Hilton       |  |                | 3/18/05  |       |  | 120                    |  |   | 11,500 | 
|Folsom         |  |  | California  |  |  | Hilton Garden Inn    |  |  | Inn Ventures |  |                | 11/30/05 |       |  | 100                    |  |   | 18,028 | 
|Foothill Ranch |  |  | California  |  |  | Hampton Inn          |  |  | Stonebridge  |  |                | 4/21/05  |       |  | 84                     |  |   | 7,400  | 
|Lake Forest    |  |  | California  |  |  | Hilton Garden Inn    |  |  | Stonebridge  |  |                | 10/12/04 |       |  | 103                    |  |   | 11,400 | 
|Milpitas       |  |  | California  |  |  | Hilton Garden Inn    |  |  | Inn Ventures |  |                | 11/30/05 |       |  | 161                    |  |   | 18,600 | 
|Roseville      |  |  | California  |  |  | Hilton Garden Inn    |  |  | Inn Ventures |  |                | 11/30/05 |       |  | 131                    |  |   | 20,759 | 
|San Francisco  |  |  | California  |  |  | Hilton Garden Inn    |  |  | Inn Ventures |  |                | 1/30/06  |       |  | 169                    |  |   | 12,266 | 
|Boulder        |  |  | Colorado    |  |  | Marriott             |  |  | WLS          |  |                | 5/9/05   |       |  | 157                    |  |   | 30,000 | 
|Glendale       |  |  | Colorado    |  |  | Hampton Inn & Suites |  |  | Stonebridge  |  |                | 10/12/04 |       |  | 133                    |  |   | 14,700 | 
|Lakewood       |  |  | Colorado    |  |  | Hampton Inn          |  |  | Stonebridge  |  |                | 10/12/04 |       |  | 170                    |  |   | 10,600 | 
|Farmington     |  |  | Connecticut |  |  | Courtyard            |  |  | WLS          |  |                | 10/20/05 |       |  | 119                    |  |   | 16,330 | 
|Rocky Hill     |  |  | Connecticut |  |  | Residence Inn        |  |  | WLS          |  |                | 8/1/05   |       |  | 96                     |  |   | 12,070 | 
|Wallingford    |  |  | Connecticut |  |  | Homewood Suites      |  |  | WLS          |  |                | 7/8/05   |       |  | 104                    |  |   | 12,780 | 
|Clearwater     |  |  | Florida     |  |  | SpringHill Suites    |  |  | LBA          |  |                | 2/17/06  |       |  | 79                     |  |   | 6,923  | 
|Lake Mary      |  |  | Florida     |  |  | Courtyard            |  |  | LBA          |  |                | 3/18/05  |       |  | 86                     |  |   | 6,000  | 
|Lakeland       |  |  | Florida     |  |  | Residence Inn        |  |  | LBA          |  |                | 6/24/05  |       |  | 78                     |  |   | 9,886  | 
|Orange Park    |  |  | Florida     |  |  | Fairfield Inn        |  |  | LBA          |  |                | 11/8/05  |       |  | 83                     |  |   | 7,221  | 
|Panama City    |  |  | Florida     |  |  | Courtyard            |  |  | LBA          |  |                | 4/26/06  |       |  | 84                     |  |   | 9,245  | 
|Pensacola      |  |  | Florida     |  |  | Courtyard            |  |  | LBA          |  |                | 8/25/05  |       |  | 90                     |  |   | 11,369 | 
|Pensacola      |  |  | Florida     |  |  | Fairfield Inn        |  |  | LBA          |  |                | 8/25/05  |       |  | 63                     |  |   | 4,858  | 
|Pensacola      |  |  | Florida     |  |  | Hampton Inn & Suites |  |  | LBA          |  |                | 7/21/05  |       |  | 85                     |  |   | 9,279  | 

11

---



|                 |  |  |                |  |  |                   |  |  |              |  |  |          |  |  |       |  |   |         | 
|---------------- |  |  | -------------- |  |  | ----------------- |  |  | ------------ |  |  | -------- |  |  | ----- |  | - | ------- | 
|Tallahassee      |  |  | Florida        |  |  | Hilton Garden Inn |  |  | Hilton       |  |  | 3/18/05  |  |  | 99    |  |   | 10,850  | 
|Albany           |  |  | Georgia        |  |  | Courtyard         |  |  | LBA          |  |  | 6/24/05  |  |  | 84    |  |   | 8,597   | 
|Columbus         |  |  | Georgia        |  |  | Residence Inn     |  |  | LBA          |  |  | 6/24/05  |  |  | 78    |  |   | 7,888   | 
|Savannah         |  |  | Georgia        |  |  | SpringHill Suites |  |  | LBA          |  |  | 9/30/05  |  |  | 79    |  |   | 5,407   | 
|Valdosta         |  |  | Georgia        |  |  | Courtyard         |  |  | LBA          |  |  | 10/3/05  |  |  | 84    |  |   | 8,284   | 
|Mt. Olive        |  |  | New Jersey     |  |  | Residence Inn     |  |  | WLS          |  |  | 9/15/05  |  |  | 123   |  |   | 12,070  | 
|Somerset         |  |  | New Jersey     |  |  | Homewood Suites   |  |  | WLS          |  |  | 8/17/05  |  |  | 123   |  |   | 17,750  | 
|Saratoga Springs |  |  | New York       |  |  | Hilton Garden Inn |  |  | WLS          |  |  | 9/29/05  |  |  | 112   |  |   | 17,750  | 
|Roanoke Rapids   |  |  | North Carolina |  |  | Hilton Garden Inn |  |  | Newport      |  |  | 3/10/08  |  |  | 147   |  |   | 17,764  | 
|Hillsboro        |  |  | Oregon         |  |  | Courtyard         |  |  | Inn Ventures |  |  | 3/9/06   |  |  | 155   |  |   | 11,000  | 
|Hillsboro        |  |  | Oregon         |  |  | Residence Inn     |  |  | Inn Ventures |  |  | 3/9/06   |  |  | 122   |  |   | 15,500  | 
|Hillsboro        |  |  | Oregon         |  |  | TownePlace Suites |  |  | Inn Ventures |  |  | 12/19/05 |  |  | 136   |  |   | 11,500  | 
|Portland         |  |  | Oregon         |  |  | Residence Inn     |  |  | Inn Ventures |  |  | 12/19/05 |  |  | 258   |  |   | 42,000  | 
|Pittsburgh       |  |  | Pennsylvania   |  |  | Residence Inn     |  |  | WLS          |  |  | 9/2/05   |  |  | 156   |  |   | 11,000  | 
|Myrtle Beach     |  |  | South Carolina |  |  | Courtyard         |  |  | Marriott     |  |  | 6/8/04   |  |  | 135   |  |   | 9,200   | 
|Nashville        |  |  | Tennessee      |  |  | Homewood Suites   |  |  | Hilton       |  |  | 5/24/05  |  |  | 121   |  |   | 8,103   | 
|Arlington        |  |  | Texas          |  |  | SpringHill Suites |  |  | Western      |  |  | 6/30/05  |  |  | 122   |  |   | 7,486   | 
|Arlington        |  |  | Texas          |  |  | TownePlace Suites |  |  | Western      |  |  | 6/30/05  |  |  | 95    |  |   | 7,148   | 
|Dallas           |  |  | Texas          |  |  | SpringHill Suites |  |  | Western      |  |  | 12/9/05  |  |  | 147   |  |   | 19,500  | 
|Ft. Worth        |  |  | Texas          |  |  | Homewood Suites   |  |  | Hilton       |  |  | 5/24/05  |  |  | 137   |  |   | 9,097   | 
|Ft. Worth        |  |  | Texas          |  |  | Residence Inn     |  |  | Western      |  |  | 5/6/05   |  |  | 149   |  |   | 17,000  | 
|Ft. Worth        |  |  | Texas          |  |  | SpringHill Suites |  |  | Marriott     |  |  | 5/28/04  |  |  | 145   |  |   | 13,340  | 
|Laredo           |  |  | Texas          |  |  | Homewood Suites   |  |  | Western      |  |  | 11/30/05 |  |  | 106   |  |   | 10,500  | 
|Laredo           |  |  | Texas          |  |  | Residence Inn     |  |  | Western      |  |  | 9/12/05  |  |  | 109   |  |   | 11,445  | 
|Las Colinas      |  |  | Texas          |  |  | TownePlace Suites |  |  | Western      |  |  | 6/30/05  |  |  | 136   |  |   | 7,178   | 
|McAllen          |  |  | Texas          |  |  | Hilton Garden Inn |  |  | Western      |  |  | 7/19/05  |  |  | 104   |  |   | 9,000   | 
|Fredericksburg   |  |  | Virginia       |  |  | Hilton Garden Inn |  |  | Hilton       |  |  | 12/20/05 |  |  | 148   |  |   | 16,600  | 
|Kent             |  |  | Washington     |  |  | TownePlace Suites |  |  | Inn Ventures |  |  | 12/19/05 |  |  | 152   |  |   | 12,000  | 
|Mukilteo         |  |  | Washington     |  |  | TownePlace Suites |  |  | Inn Ventures |  |  | 12/19/05 |  |  | 128   |  |   | 12,000  | 
|Redmond          |  |  | Washington     |  |  | Marriott          |  |  | Marriott     |  |  | 7/7/04   |  |  | 262   |  |   | 64,000  | 
|Renton           |  |  | Washington     |  |  | Hilton Garden Inn |  |  | Inn Ventures |  |  | 11/30/05 |  |  | 150   |  |   | 16,096  | 
|                 |  |  |                |  |  |                   |  |  |              |  |  |          |  |  |       |  |   |         | 
|                 |  |  |                |  |  |                   |  |  |              |  |  | Total    |  |  | 7,897 |  | $ | 845,330 | 
|                 |  |  |                |  |  |                   |  |  |              |  |  |          |  |  |       |  |   |         | 

* - Hotels are reported as
held for sale

Results of Operations

As
of September 30, 2010, the Company owned 68 hotels with 7,897 rooms, including
the two hotels held for sale. The Companys portfolio of hotels owned is
unchanged since 2008. Hotel performance is impacted by many factors, including
the economic conditions in the United States, as well as each locality. Due to
a continuing recessionary economic environment throughout the United States,
the financial results of the Companys hotels continue to be below
pre-recessionary levels. However, economic conditions have begun to improve as
shown in the Companys year to date growth in revenue from continuing
operations of 5% from the same period of 2009. Although it is anticipated that
the properties performance will continue to be below comparable pre-recession
operating periods until general economic conditions become more stable, the
Company does anticipate modest improvement in revenue and income for the rest
of 2010 as compared to 2009 results, which is consistent with many industry
forecasts. The improvement is expected to continue into 2011. The Company will
continue to aggressively pursue market opportunities to improve revenue and
aggressively pursue cost controls to improve results during and after the
economic downturn.

Revenues

The
Companys principal source of revenue is hotel room revenue and other related
revenue. For the three months ended September 30, 2010 and 2009, the Company
had total hotel revenue from continuing operations of $61.8 and $57.5 million,
respectively, with average occupancy of 77% and 71%, average daily rate (ADR)
of $108 and $108 and revenue per available room (RevPAR) of $83 and $77. For
the nine months ended September 30, 2010 and 2009, the Company had total hotel
revenue from continuing operations of $170.5 and $162.6 million, respectively,
with average occupancy of 73% and 67%, ADR of $105 and $108 and RevPAR of $76
and $73. ADR is calculated as room revenue divided by the number of rooms sold,
and RevPAR is calculated as occupancy multiplied by ADR. Since the end of 2009,
the Company has experienced an increase in demand as shown by the improved
occupancy rates as compared to prior year. While ADR still trails pre-recession
levels and has declined 3% for the nine months ending September 30, 2010 as
compared to the nine months ending September 30, 2009, it did stabilize for the
third quarter of 2010 as compared to the third quarter of 2009 and is expected
to grow slightly in 2011.

12

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While
the revenue rates earned by the Company are consistent with industry and brand
averages, the Company continually works with the hotel managers to maximize
rates and occupancy. As a result, although RevPAR has declined from
pre-recession levels, the Company has continued to maintain its average market
share and continues to be significantly ahead of the market average of 100,
with a RevPAR market yield of 120 year-to-date through September 30, 2010.

Expenses

With
the decline in revenues as compared to pre-recession levels, the Company and
its managers have aggressively reduced expenses relative to revenue where
possible while still maintaining the quality and service levels of its
properties. For the three months ended September 30, 2010 and 2009, hotel
operating expenses from continuing operations totaled $35.4 and $33.5 million,
respectively, or 57% and 58% of total hotel revenue. For the nine months ended
September 30, 2010 and 2009, hotel operating expenses from continuing operations
totaled $99.2 and $96.1 million, respectively, or 58% and 59% of total hotel
revenue. While certain costs of a hotel are fixed in nature, such as management
costs, certain utility costs, minimum maintenance and supply costs, the Company
has been successful in reducing, relative to revenue, certain payroll costs,
food and supplies, and utilities by continually monitoring and sharing
utilization data across its hotels and management companies. The Company will
continue to aggressively work with its managers to contain operating costs.

Taxes,
insurance, and other expenses from continuing operations for the three months
ended September 30, 2010 and 2009 were $3.0 and $3.3 million, or 5% and 6% of
total hotel revenue. For the nine months ended September 30, 2010 and 2009,
taxes, insurance, and other expenses from continuing operations were $9.3 and
$10.1 million, or 5% and 6% of total hotel revenue. The decline is a result of
lower real estate property tax assessments at selected hotels, including the
results of successful appeals of initial assessments for some locations. In
addition, the Company has experienced slightly lower property insurance expense
for most hotel properties, in comparison to insurance rates in effect during
2009.

General
and administrative expenses from continuing operations for the three months
ended September 30, 2010 and 2009 were $1.2 and $1.1 million, or 2% of total
hotel revenue for each period. For the nine months ended September 30, 2010 and
2009, general and administrative expenses from continuing operations were $3.6
million, or 2% of hotel revenue, for each period. The principal components of
general and administrative expense are advisory fees, loss on equity method
investment in Apple Air Holding, LLC, legal fees, accounting fees and reporting
expenses.

Depreciation
expense from continuing operations was $7.7 and $7.6 million for the three
months ended September 30, 2010 and 2009. For the nine months ended September
30, 2010 and 2009, depreciation expense from continuing operations was $23.0
and $22.8 million. Depreciation expense represents expense of the Companys 66
hotels that are included in continuing operations and related personal property
for their respective periods owned. The increase in depreciation is due to
renovations completed throughout 2009 and in the first nine months of 2010.

Interest
expense, net from continuing operations was $1.0 and $0.7 million for the three
months ended September 30, 2010 and 2009, and $2.9 and $1.5 million for the
nine months ended September 30, 2010 and 2009. Interest expense relates to debt
assumed with certain properties acquired, as well as borrowings on the
Companys line of credit. During the nine months ended September 30, 2010 and
2009, the Company capitalized approximately $0.1 and $0.3 million of interest
associated with renovation activities. Interest expense increased from 2009 to
2010 as the Company increased borrowings on its line of credit.

Liquidity
and Capital Resources

Operating
cash flow from the properties owned and a $60 million line of credit are the
Companys principal source of liquidity. In addition, the Company may also
borrow additional funds, subject to limitations set forth in its bylaws. With
the availability of this line of credit, the Company maintains little

13

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cash on hand, accessing the line as necessary. As a
result, cash on hand was $0 at September 30, 2010. The outstanding balance on
the line of credit was $34.8 million at September 30, 2010 and its interest
rate was 5.0%. The Company anticipates that cash flow from operations and the
revolving line of credit will be adequate to meet its liquidity requirements,
including required distributions to shareholders (the Company is not required
to make any distributions at this time), capital expenditures and debt service.
The Companys line of credit matures in June 2011, with an option to extend
maturity to June 2012. The Company intends to maintain a relatively stable
distribution rate instead of raising and lowering the distribution rate with
varying economic cycles. With the depressed financial results of the Company
and the lodging industry, the Company will attempt if necessary to utilize
additional financing to achieve this objective. Although the Company has
relatively low levels of debt, there can be no assurances it will be successful
with this strategy and may need to reduce its distributions to required levels.
If the Company were unsuccessful in extending its maturing debt in 2011 or if
it were to default on its debt, it may be unable to make distributions.

To
maintain its REIT status the Company is required to distribute at least 90% of
its ordinary income. Distributions in the first nine months of 2010 totaled
$54.7 million. For the same period the Companys cash generated from operations
was $54.3 million. The shortfall was funded by borrowings on the line of
credit. The Company intends to continue paying distributions on a monthly
basis. However, since there can be no assurance of the ability of the Companys
properties to provide income at this level, there can be no assurance as to the
classification or duration of distributions at the current rate. Additionally,
in light of the weakness in economic conditions throughout the United States,
the Board of Directors monitors the Companys distribution rate relative to the
performance of the hotels on an ongoing basis and may make adjustments to the
distribution rate as determined to be prudent in relation to other cash
requirements of the Company. In January 2010 the Board of Directors reduced the
Companys annual distribution rate from $0.90 to $0.77 per common share. The
reduction was effective March 2010. The distribution continues to be paid
monthly.

The
Company has on-going capital commitments to fund its capital improvements. The
Company is required, under all of the hotel management agreements, to make
available, for the repair, replacement, refurbishing of furniture, fixtures,
and equipment, an amount of 3% to 5% of gross revenues provided that such
amount may be used for the Companys capital expenditures with respect to the
hotels. The Company expects that this amount will be adequate to fund required
repair, replacement, and refurbishments and to maintain the Companys hotels in
a competitive condition. During the first nine months of 2010, total capital
expenditures were approximately $5 million. The Company anticipates
expenditures of approximately $7-$8 million for the full year of 2010 in
connection with renovations and brand initiatives. With the depressed economic
environment, the Company will only complete the most cost-effective projects.

In
July 2005, the Company instituted a Unit Redemption Program to provide limited
interim liquidity to its shareholders who have held their Units for at least
one year. Shareholders may request redemption of Units for a purchase price
equal to the lesser of: (1) the purchase price per Unit that the
shareholder actually paid for the Unit; or (2) $11.00 per Unit. The Company
reserves the right to change the purchase price of redemptions, reject any
request for redemption, or otherwise amend the terms of, suspend, or terminate
the Unit Redemption Program. During the nine months ended September 30, 2010,
the Company redeemed approximately 2.1 million Units in the amount of $22.9
million under the program. Since the inception of the program through September
30, 2010, the Company has redeemed approximately 13.2 million Units for $144.7
million under the program.

In
February 2006, the Company instituted a Dividend Reinvestment Plan for its
shareholders. The plan provides a convenient and cost effective way to increase
shareholder investment in the Company by reinvesting dividends to purchase
additional Units of the Company. The uses of the proceeds from this plan may
include purchasing Units under the Companys Unit Redemption Program, enhancing
properties, satisfying financing obligations and other expenses, increasing
working capital, funding various corporate operations, and acquiring hotels.
During the nine months ended September 30, 2010, approximately 2.1 million
Units, representing $23.1 million in proceeds to the Company, were issued under
the plan. Since

14

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the inception of the plan through September 30, 2010,
13.6 million Units, representing $149.1 million in proceeds to the Company,
were issued under the plan.

Related
Party Transactions

The
Company has significant transactions with related parties. These transactions
cannot be construed to be arms length, and the results of the Companys
operations may be different if these transactions were conducted with
non-related parties.

The
Company is party to an advisory agreement with Apple Six Advisors, Inc.
(A6A), pursuant to which A6A provides management services to the Company. An
annual fee ranging from .1% to .25% of total equity proceeds received by the
Company, in addition to certain reimbursable expenses, is payable for these
services. During the first nine months of 2010 and 2009, A6A utilized Apple
Fund Management, LLC, a subsidiary of the Company, to provide these services.
The advisory fees incurred under the agreement with A6A for the nine months
ended September 30, 2010 and 2009, totaled approximately $1.1 million for each
period.

Through
its wholly-owned subsidiary, Apple Fund Management, LLC, the Company provides
support services to Apple Suites Realty Group, Inc. (ASRG), A6A, Apple Seven
Advisors, Inc. (A7A), Apple REIT Seven, Inc., Apple Eight Advisors, Inc.
(A8A), Apple REIT Eight, Inc., Apple Nine Advisors, Inc. (A9A) and Apple
REIT Nine, Inc. A7A provides day to day advisory and administrative functions
for Apple REIT Seven, Inc. A8A provides day to day advisory and administrative
functions for Apple REIT Eight, Inc. A9A provides day to day advisory and
administrative functions for Apple REIT Nine, Inc. ASRG provides real estate
brokerage services to Apple REIT Seven, Inc., Apple REIT Eight, Inc. and Apple
REIT Nine, Inc. Each of these companies has agreed to reimburse the Company for
its costs in providing these services. For the nine months ended September 30,
2010 and 2009, the Company received reimbursement of its costs totaling
approximately $4.7 and $3.9 million. ASRG, A6A, A7A, A8A and A9A are 100% owned
by Glade Knight, the Companys Chairman and Chief Executive Officer.

Including
ASRG, A6A, A7A, A8A and A9A discussed above, Mr. Knight is also Chairman
and Chief Executive Officer of Apple REIT Seven, Inc., Apple REIT Eight, Inc.,
Apple REIT Nine, Inc. and Apple REIT Ten, Inc. (a newly formed REIT). Members
of the Companys Board of Directors are also on the boards of Apple REIT Seven,
Inc., Apple REIT Eight, Inc. and Apple REIT Nine, Inc.

In
January 2009, the Companys ownership interest in Apple Air Holding, LLC
(Apple Air), was reduced from 50% to 26% through the redemption of a 24%
ownership interest by Apple Air. The Company received approximately $3.2
million for the ownership interest redeemed. No gain or loss from the redemption
was recognized by the Company. Due to the reduction in ownership the Company
deconsolidated Apple Air and now records its ownership interest of
approximately $2.1 and $2.4 million at September 30, 2010 and December 31, 2009
in Other assets, net in the Companys Consolidated Balance Sheets. The
Company records its share of income or loss of Apple Air under the equity
method of accounting, adjusting its investment accordingly. The loss of $0.4
and $0.3 million for the nine months ended September 30, 2010 and 2009 is
included in General and administrative expense in the Companys Consolidated
Statements of Operations. The other members of Apple Air are Apple REIT Seven,
Inc., Apple REIT Eight, Inc. and Apple REIT Nine, Inc.

Impact
of Inflation

Operators
of hotels, in general, possess the ability to adjust room rates daily to
reflect the effects of inflation. Competitive pressures may, however, limit the
operators ability to raise room rates. Currently the Company is not
experiencing any material impact from inflation.

15

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Business
Interruption

Being
in the real estate industry, the Company is exposed to natural disasters both
locally and nationally, and although management believes there is adequate
insurance to cover this exposure, there can be no assurance that such events
will not have a material adverse effect on the Companys financial position or
results of operations.

Seasonality

The
hotel industry historically has been seasonal in nature. Generally, occupancy
rates and hotel revenues are greater in the second and third quarters than in
the first and fourth quarters. As a result, there may be quarterly fluctuations
in results of operations. To the extent that cash flow from operations is
insufficient during any quarter, due to temporary or seasonal fluctuations in
revenue, the Company expects to utilize cash on hand and available credit to
make distributions.

Recent
Accounting Pronouncements

In
June 2009, the Financial Accounting Standards Board (FASB) issued a
pronouncement (Accounting Standards Update No. 2009-17) which amends its
guidance surrounding a companys analysis to determine whether any of its
variable interests constitute controlling financial interests in a variable
interest entity. This analysis identifies the primary beneficiary of a variable
interest entity as the enterprise that has both of the following
characteristics: (a) the power to direct the activities of a variable interest
entity that most significantly impact the entitys economic performance, and
(b) the obligation to absorb losses of the entity that could potentially be
significant to the variable interest entity or the right to receive benefits
from the entity that could potentially be significant to the variable interest
entity. Additionally, an enterprise is required to assess whether it has an
implicit financial responsibility to ensure that a variable interest entity
operates as designed when determining whether it has the power to direct the
activities of the variable interest entity that most significantly impact the
entitys economic performance. The new pronouncement also requires ongoing
assessments of whether an enterprise is the primary beneficiary of a variable
interest entity and enhanced disclosure about an enterprises involvement with
a variable interest entity. This pronouncement was adopted by the Company in
the first quarter of 2010. The adoption of this standard did not have a
material impact on the Companys consolidated financial statements.

Subsequent
Events

In
October 2010, the Company declared and paid approximately $5.9 million, or
$.064 per share, in distributions to its common shareholders of which $2.5
million or 223,222 Units were reinvested under the Companys Dividend
Reinvestment Plan.

On
October 20, 2010, the Company redeemed 678,002 Units in the amount of $7.4
million under its Unit Redemption Program.

Item 3. Quantitative and Qualitative Disclosures About
Market Risk

The Company does not engage in transactions in
derivative financial instruments or derivative commodity instruments. As of
September 30, 2010, the Companys financial instruments were not exposed
to significant market risk due to interest rate risk, foreign currency exchange
risk, commodity price risk or equity price risk. The Company is exposed to
changes in short term interest rates paid on its line of credit. Based on the
balance of the Companys line of credit at September 30, 2010, of $34.8
million, every 100 basis points change in interest rates could impact the
Companys annual net income by $348,000, subject to the interest rate floor and
all other factors remaining the same.

16

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Item 4.
Controls and Procedures

Senior
management, including the Chief Executive Officer and Chief Financial Officer,
evaluated the effectiveness of the Companys disclosure controls and procedures
as of the end of the period covered by this report. Based on this evaluation
process, the Chief Executive Officer and Chief Financial Officer have concluded
that the Companys disclosure controls and procedures are effective and that
there have been no changes in the Companys internal control over financial
reporting that occurred during the last fiscal quarter that have materially
affected, or are reasonably likely to materially affect, the Companys internal
control over financial reporting. Since that evaluation, there have been no
significant changes in internal controls or in other factors that could
significantly affect these controls.

17

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|          |                    | 
|--------- | ------------------ | 
|PART
 II. | OTHER
 INFORMATION | 

Item 2. Unregistered Sales of Equity Securities and Use
of Proceeds

Unit
Redemption Program

In
July 2005, the Company instituted a Unit redemption program to provide its
shareholders who have held their Units for at least one year with the benefit
of limited interim liquidity, by presenting for redemption all or any portion
of their Units at any time and in accordance with certain procedures. Once this
time limitation has been met, the Company may, subject to certain conditions
and limitations, redeem the Units presented for redemption for cash, to the
extent that the Company has sufficient funds available to fund the redemption.
If Units are held for the required one-year period, the Units may be redeemed
for a purchase price equal to the lesser of: (1) $11.00 per Unit; or (2) the
purchase price per Unit that was actually paid for the Units. The board of
directors reserves the right, in its sole discretion, at any time and from time
to time, to waive the one-year holding period, reject any request for
redemption, change the purchase price for redemptions or otherwise amend the
terms of, suspend, or terminate the Unit redemption program. The following is a
summary of redemptions during the third quarter of 2010 (no redemptions
occurred in August and September 2010):

|                                       |  |                                   |         |                              |  |                                                                                     |  |                                                                                   |            |  |  |     | 
|-------------------------------------- |  | --------------------------------- | ------- | ---------------------------- |  | ----------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------- | ---------- |  |  | --- | 
|Issuer Purchases of Equity
 Securities
|                                       |  |                                   |         |                              |  |                                                                                     |  |                                                                                   |            |  |  |     | 
|                                       |  | (a)                               |         | (b)                          |  | (c)                                                                                 |  | (d)                                                                               |           
|                                       |  |                                   |         |                              |  |                                                                                     |  |                                                                                   |           
|Period                                 |  | Total Number
 of Units
 Purchased |         | Average Price Paid
 per Unit |  | Total Number of
 Units Purchased as
 Part of Publicly
 Announced Plans
 or Programs |  | Maximum Number
 of Units that May
 Yet Be Purchased
 Under the Plans or
 Programs |           
|                                       |  |                                   |         |                              |  |                                                                                     |  |                                                                                   |           
|July 2010                              |  |                                   | 699,410 |                              |  | $10.98                                                                              |  |                                                                                   | 13,197,931 |  |  | (1) | 

(1)
The maximum number of Units that may be redeemed in any 12 month period is
limited to five percent (5.0%) of the weighted average number of Units
outstanding from the beginning of the 12 month period.

18

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Item 6.
Exhibits

|                |  |                                                                                                                                                                                                               
|--------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit
 Number |  | Description                                                                                                                                                                                                   
|                |  |                                                                                                                                                                                                               
|                |  |                                                                                                                                                                                                               
|3.1             |  | Articles of Incorporation of the Company. (Incorporated
 by reference to Exhibit 3.1 to the Companys registration statement on Form
 S-11 (SEC File No. 333-112169) effective April 23, 2004).               
|                |  |                                                                                                                                                                                                               
|3.2             |  | Bylaws of the Company. (Incorporated by reference to
 Exhibit 3.2 to the Companys Post-Effective Amendment No. 4 to Form S-11 (SEC
 File No. 333-112169) effective June 14, 2005).                           
|                |  |                                                                                                                                                                                                               
|31.1            |  | Certification of the Companys Chief Executive
 Officer pursuant to Rule 13a  14(a) and Rule 15d  14(a) of the Securities
 Exchange Act, as amended (FILED HEREWITH).                                       
|                |  |                                                                                                                                                                                                               
|31.2            |  | Certification of the Companys Chief Financial
 Officer pursuant to Rule 13a  14(a) and Rule 15d  14(a) of the Securities
 Exchange Act, as amended (FILED HEREWITH).                                       
|                |  |                                                                                                                                                                                                               
|32.1            |  | Certification of the Companys Chief Executive
 Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as
 adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (FILED HEREWITH).

19

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SIGNATURES

Pursuant
to the requirements of Section 13 or 15(d) of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.

|                     |                                                        |  |                        | 
|-------------------- | ------------------------------------------------------ |  | ---------------------- | 
|Apple Reit Six, Inc.
|                     |                                                        |  |                        | 
|By:                  | /s/Glade M. Knight                                     |  | Date: November 5, 2010 | 
|                     |                                                        |  |                        | 
|                     | Glade M. Knight,                                       |  |                        | 
|                     | Chairman of the Board and                              |  |                        | 
|                     | Chief Executive Officer                                |  |                        | 
|                     | (Principal Executive Officer)                          |  |                        | 
|                     |                                                        |  |                        | 
|By:                  | /s/Bryan Peery                                         |  | Date: November 5, 2010 | 
|                     |                                                        |  |                        | 
|                     | Bryan Peery,                                           |  |                        | 
|                     | Chief Financial Officer                                |  |                        | 
|                     | (Principal Financial and Principal Accounting Officer) |  |                        | 

20

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