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EXHIBIT 10.94

                            APPLE SUITES SPE I, INC.

                                     BYLAWS

                                    ARTICLE I
                            MEETINGS OF SHAREHOLDERS

     1.1 PLACE AND TIME OF MEETINGS.  Meetings of shareholders  shall be held at
such place,  either within or without the Commonwealth of Virginia,  and at such
time,  as may be  provided  in the notice of the  meeting  and  approved  by the
President or the Board of Directors.

     1.2 ANNUAL MEETING.  The annual meeting of  shareholders,  shall be held on
the second Tuesday in August of each year, or on such date, as may be designated
by  resolution  of the Board of  Directors  from time to time for the purpose of
electing  directors  and  conducting  such other  business as may properly  come
before the meeting.

     1.3 SPECIAL MEETINGS. Special meetings of the shareholders may be called by
the  President  or the Board of Directors  and shall be called by the  Secretary
upon demand of shareholders as required by law. Only business within the purpose
or purposes described in the notice for a special meeting of shareholders may be
conducted at the meeting.

     1.4 RECORD DATES. The Board of Directors may fix, in advance, a record date
to make a determination  of  shareholders  entitled to notice of, or to vote at,
any meeting of  shareholders,  to receive any dividend or for any purpose,  such
date to be not more  than  seventy  (70)  days  before  the  meeting  or  action
requiring a determination  of  shareholders.  If no such record date is set then
the  record  date shall be the close of  business  on the day before the date on
which the first notice is given.

     When a determination of shareholders  entitled to notice of, or to vote at,
any meeting of shareholders has been made, such determination shall be effective
for any  adjournment  of the meeting  unless the Board of Directors  fixes a new
record  date,  which it shall do if the meeting is adjourned to a date more than
one hundred twenty (120) days after the date fixed for the original meeting.

     1.5 NOTICE OF MEETINGS.  Written notice stating the place,  day and hour of
each meeting of shareholders  and, in case of a special meeting,  the purpose or
purposes for which the meeting is called,  shall be given not less than ten (10)
nor more than sixty (60) days before the

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date of the meeting (except when a different time is required in these Bylaws or
by law) either personally or by mail, courier,  facsimile,  email, or other form
of wire or wireless  communication,  to each  shareholder of record  entitled to
vote at such  meeting.  Each such notice shall be deemed  effective  on: (a) the
fifth (5th)  business day after being mailed by United  States  certified  mail,
return receipt requested,  postage prepaid;  (b) the day when delivered by hand;
(c) the first  business  day after  being  deposited  with a national  overnight
courier; or (d) the day when transmitted by facsimile or email with confirmation
of receipt or successful transmission.

     If a meeting is adjourned to a different date,  time or place,  notice need
not be given if the new date,  time or place is announced at the meeting  before
adjournment.  However,  if a new record date for an adjourned  meeting is fixed,
notice of the  adjourned  meeting shall be given to  shareholders  as of the new
record date, unless a court of competent jurisdiction provides otherwise.

     1.6 WAIVER OF NOTICE.  A shareholder  may waive any notice required by law,
the Articles of  Incorporation or these Bylaws before or after the date and time
of the  meeting  that is the  subject of such  notice.  The  waiver  shall be in
writing,  be signed by the shareholder  entitled to the notice, and be delivered
to the Secretary of the  Corporation for inclusion in the minutes or filing with
the corporate records.

     A  shareholder  who attends a meeting  waives any  objection (a) to lack of
notice or  defective  notice  of the  meeting,  unless  the  shareholder  at the
beginning of the meeting objects to holding the meeting or transacting  business
at the meeting,  and (b) to consideration of a particular  matter at the meeting
that is not within the purpose or  purposes  described  in the  meeting  notice,
unless the shareholder objects to considering the matter when it is presented.

     1.7 QUORUM AND VOTING  REQUIREMENTS.  Unless  otherwise  required by law, a
majority of the votes  entitled to be cast on a matter  constitutes a quorum for
action on that matter. Once a share is represented for any purpose at a meeting,
it is deemed  present for quorum  purposes for the  remainder of the meeting and
for any  adjournment of that meeting unless a new record date is or shall be set
for that adjourned meeting. If a quorum exists,  action on a matter,  other than
the  election of  directors,  is approved if the votes cast  favoring the action
exceed  the  votes  cast  opposing  the  action,  unless  a  greater  number  of
affirmative votes is required by law.  Directors shall be elected by a plurality
of the votes cast by the shares entitled

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to vote in the  election at a meeting at which a quorum is present.  Less than a
quorum may adjourn a meeting.

     1.8 ACTION WITHOUT  MEETING.  Action required or permitted to be taken at a
meeting of the shareholders may be taken without a meeting and without action by
the Board of Directors if the action is taken by all the  shareholders  entitled
to vote on the action.  The action  shall be  evidenced  by one or more  written
consents  describing  the  action  taken,  signed  by all the  shareholders  and
delivered to the  Secretary of the  Corporation  for inclusion in the minutes or
filing with the corporate  records.  Action taken by unanimous  consent shall be
effective  according to its terms when all consents are in the possession of the
Corporation,  unless the consent specifies a different  effective date, in which
event the action  taken  shall be  effective  as of the date  specified  therein
provided that the consent  states the date of execution by each  shareholder.  A
shareholder  may  withdraw  a consent  only by  delivering  a written  notice of
withdrawal  to the  Corporation  prior to the time that all  consents are in the
possession of the Corporation.

     If not otherwise  fixed pursuant to the  provisions of Section,  the record
date for determining  shareholders  entitled to take action without a meeting is
the date the first  shareholder  signs the consent  described  in the  preceding
paragraph.

                                   ARTICLE II
                                    DIRECTORS

     2.1 GENERAL POWERS.  The Corporation  shall have a Board of Directors.  All
corporate  powers  shall be  exercised  by or under the  authority  of,  and the
business and affairs of the  Corporation  managed  under the  direction  of, its
Board of  Directors,  subject to any  limitation  set forth in the  Articles  of
Incorporation.  Notwithstanding  any  provision of these Bylaws to the contrary,
the   Corporation   shall  comply  with  all   provisions  of  its  Articles  of
Incorporation  regarding  the  Board  of  Directors,  including  any  provisions
relating to the composition thereof or approval thereby.

     2.2 NUMBER,  TERM AND ELECTION.  The number of directors of the Corporation
shall be a minimum of one (1) and a maximum of five (5). The number of directors
may be fixed or changed  from time to time,  within the minimum and the maximum,
by the  shareholders  or by the Board of Directors.  Only the  shareholders  may
change the range of the size of the Board of

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Directors  or  determine  whether the Board of  Directors  shall have a fixed or
variable  size.  No decrease in number shall have the effect of  shortening  the
term of any incumbent director. Each director shall hold office until his death,
resignation, retirement or removal, or until his successor is elected.

     Except as provided in Section 2.3 of this  Article,  the  directors  (other
than initial  directors) shall be elected by the holders of the Common Shares at
the annual meeting of  shareholders,  and those persons who receive the greatest
number of votes  shall be  deemed  elected  even  though  they do not  receive a
majority  of the  votes  cast.  No  individual  shall be named or  elected  as a
director without his prior consent.

     2.3  REMOVAL  AND  VACANCIES.  The  shareholders  may  remove  one or  more
directors,  with or  without  cause,  if the  number of votes cast to remove him
constitutes  a  majority  of the votes  entitled  to be cast at an  election  of
directors.  A  director  may be removed  by the  shareholders  only at a meeting
called for the  purpose of removing  him and the meeting  notice must state that
the purpose, or one of the purposes of the meeting, is removal of the director.

     A vacancy on the Board of Directors, including a vacancy resulting from the
removal of a director or an increase in the number of  directors,  may be filled
by (a) the shareholders,  (b) the Board of Directors or (c) the affirmative vote
of a majority of the remaining  directors though less than a quorum of the Board
of Directors,  and may, in the case of a resignation  that will become effective
at a specified  later  date,  be filled  before the  vacancy  occurs but the new
director may not take office until the vacancy occurs.

     2.4  ANNUAL  AND  REGULAR  MEETINGS.  An  annual  meeting  of the  Board of
Directors,   which  shall  be  considered  a  regular  meeting,  shall  be  held
immediately  following each annual meeting of  shareholders,  for the purpose of
electing  officers  and  carrying on such other  business as may  properly  come
before  the  meeting.  The  Board of  Directors  may also  adopt a  schedule  of
additional meetings which shall be considered regular meetings. Regular meetings
shall  be  held  at such  times  and at  such  places,  within  or  without  the
Commonwealth  of Virginia,  as the  President  or the Board of  Directors  shall
designate from time to time. If no place is designated,  regular  meetings shall
be held at the principal office of the Corporation.

     2.5 SPECIAL  MEETINGS.  Special  meetings of the Board of Directors  may be
called by the President or a majority of the directors of the  Corporation,  and
shall  be  held  at such  times  and at  such  places,  within  or  without  the
Commonwealth of Virginia, as the person or persons calling

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the meetings shall designate.  If no such place is designated in the notice of a
meeting, it shall be held at the principal office of the Corporation.

     2.6 NOTICE OF MEETINGS.  No notice need be given of regular meetings of the
Board of Directors.

     Notices of special  meetings  of the Board of  Directors  shall be given to
each  director in person or delivered to his  residence or business  address (or
such other place as he may have  directed in writing) not less than  twenty-four
(24) hours before the meeting by mail, courier,  facsimile, email, or other form
of wire or wireless communication or by telephoning such notice to him. Any such
notice  shall set forth the time and place of the  meeting and state the purpose
for which it is called.

     2.7 WAIVER OF  NOTICE;  ATTENDANCE  AT  MEETING.  A director  may waive any
notice required by law, the Articles of Incorporation, or these Bylaws before or
after  the  date  and time  stated  in the  notice,  and  such  waiver  shall be
equivalent  to the  giving  of such  notice.  Except  as  provided  in the  next
paragraph  of this  section,  the  waiver  shall be in  writing,  signed  by the
director entitled to the notice and filed with the minutes or corporate records.

     A director  who attends or  participates  at a meeting  waives any required
notice to him of the  meeting  unless  the  director,  at the  beginning  of the
meeting  or  promptly  upon his  arrival,  objects  to  holding  the  meeting or
transacting  business at the meeting and does not thereafter vote for, or assent
to, action taken at the meeting.

     2.8 QUORUM;  VOTING.  A majority of the number of directors  fixed in these
Bylaws shall constitute a quorum for the transaction of business at a meeting of
the  Board of  Directors.  If a quorum  is  present  when a vote is  taken,  the
affirmative vote of a majority of the directors  present is the act of the Board
of  Directors.  A director who is present at a meeting of the Board of Directors
or a  committee  of the Board of  Directors  when  corporate  action is taken is
deemed to have  assented  to the  action  taken  unless  (a) he  objects  at the
beginning  of the  meeting,  or  promptly  upon his  arrival,  to  holding it or
transacting  specified  business at the  meeting;  or (b) he votes  against,  or
abstains from, the action taken.

     2.9  TELEPHONIC  MEETINGS.  The Board of  Directors  may  permit any or all
directors  to  participate  in a regular or special  meeting  by, or conduct the
meeting  through the use of, any means of  communication  by which all directors
participating may simultaneously hear each other

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during  the  meeting.  A  director  participating  in a meeting by this means is
deemed to be present in person at the meeting.

     2.10 ACTION WITHOUT MEETING.  Action required or permitted to be taken at a
meeting of the Board of Directors  may be taken  without a meeting if the action
is taken by all members of the Board.  The action  shall be  evidenced by one or
more written consents  stating the action taken,  signed by each director either
before or after the action taken,  and included in the minutes or filed with the
corporate records  reflecting the action taken.  Action taken under this section
shall be effective  when the last director  signs the consent unless the consent
specifies  a  different  effective  date,  in which  event the  action  taken is
effective as of the date specified  therein provided the consent states the date
of execution by each director.

     2.11  COMPENSATION.  The Board of  Directors  may fix the  compensation  of
directors  and may provide for the payment of all  expenses  incurred by them in
attending meetings of the Board of Directors.

                                   ARTICLE III
                                    OFFICERS

     3.1 OFFICERS.  The officers of the  Corporation  shall be a President and a
Secretary and, in the discretion of the Board of Directors,  such other officers
as may be  deemed  necessary  or  advisable  to  carry  on the  business  of the
Corporation. Any two or more offices may be held by the same person.

     3.2 ELECTION AND TERM.  Officers  shall be elected at the annual meeting of
the Board of  Directors  and may be  elected  at such other time or times as the
Board of Directors  shall  determine.  They shall hold office,  unless  removed,
until  the next  annual  meeting  of the  Board  of  Directors  or  until  their
successors  are elected.  Any officer may resign at any time upon written notice
to the Board of Directors,  and such resignation  shall be effective when notice
is delivered unless the notice specifies a later effective date.

     3.3 REMOVAL OF OFFICERS.  The Board of Directors  may remove any officer at
any time, with or without cause.

     3.4 DUTIES OF OFFICERS.  The President shall be the chief executive officer
of the Corporation.  He and the other officers shall have such powers and duties
as  generally  pertain to their  respective  offices as well as such  powers and
duties as may be delegated to them from time

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to time by the Board of Directors.  The President, if present, shall be chairman
of all meetings of the shareholders  and the Board of Directors,  as well as any
committee of which he is a member.

                                   ARTICLE IV
                               SHARE CERTIFICATES

     4.1 FORM.  Shares of the Corporation,  when fully paid, may be evidenced by
certificates  containing such  information as is required by law and approved by
the Board of Directors.  Any share certificates shall be signed by the President
and the  Secretary  and may  (but  need  not) be  sealed  with  the  seal of the
Corporation.  The seal of the  Corporation  and any or all signatures on a share
certificate may be facsimile.  The validity of a share certificate that has been
duly signed by an officer of the Corporation shall not be affected in any way in
the event  that such  officer,  subsequent  to such  signature,  ceases to be an
officer of the Corporation.

     4.2  TRANSFER.  The  Board of  Directors  may make  rules  and  regulations
concerning the issue, registration and transfer of certificates representing the
shares  of  the  Corporation.  Transfers  of  shares  and  of  the  certificates
representing  such  shares  shall be made upon the books of the  Corporation  by
surrender of the certificates  representing  such shares  accompanied by written
assignments given by the owners or their attorneys-in-fact.

     4.3  RESTRICTIONS  ON  TRANSFER.  A lawful  restriction  on the transfer or
registration of transfer of shares is valid and  enforceable  against the holder
or a transferee of the holder if the restriction  complies with the requirements
of law and its  existence  is noted  conspicuously  on the  front or back of the
certificate  representing  the  shares.  Unless  so noted a  restriction  is not
enforceable against a person without knowledge of the restriction.

     4.4 LOST OR DESTROYED SHARE  CERTIFICATES.  The Corporation may issue a new
share  certificate in the place of any certificate  theretofore  issued which is
alleged  to have  been  lost or  destroyed  and may  require  the  owner of such
certificate,  or his legal representative,  to give the Corporation a bond, with
or without surety, or such other agreement, undertaking or security as the Board
of Directors  shall  determine is  appropriate,  to  indemnify  the  Corporation
against any claim that may be made  against it on account of the alleged loss or
destruction or the issuance of any such new certificate.

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                                    ARTICLE V
                            MISCELLANEOUS PROVISIONS

     5.1 CORPORATE SEAL. The corporate seal of the Corporation, if any, shall be
circular and shall have inscribed  thereon,  within and around the circumference
the full name of the  Corporation.  In the center  shall be the word "SEAL" or a
substantially similar term.

     5.2 FISCAL YEAR. The fiscal year of the Corporation  shall be determined in
the  discretion  of the  Board  of  Directors,  but in the  absence  of any such
determination it shall be the calendar year.

     5.3  AMENDMENTS.  Except as otherwise  provided by law, these Bylaws may be
amended  or  repealed,  and new  Bylaws  may be made at any  regular  or special
meeting of the Board of Directors.  Bylaws made by the Board of Directors may be
repealed  or changed  and new Bylaws  may be made by the  shareholders,  and the
shareholders  may  prescribe  that any Bylaw made by them shall not be  altered,
amended or repealed by the Board of Directors.

                                       8EXHIBIT 10.95

                            APPLE SUITES SPE II, INC.

                            ARTICLES OF INCORPORATION

                                    ARTICLE I
                                      NAME

      1. Name. The name of the Corporation is Apple Suites SPE II, Inc.

                                   ARTICLE II
                                     PURPOSE

      2.  Purpose.  Notwithstanding  any provision  hereof to the contrary,  the
following shall govern:  The nature of the  Corporation's  business,  and of the
purposes to be conducted and promoted by the Corporation,  are limited solely to
the following activities:

          (a) To acquire from Apple Suites, Inc., a Virginia corporation,  those
certain parcels of real property listed on Schedule A hereto,  together with all
improvements located thereon (collectively, the "Properties");

          (b) To own, hold, sell, assign,  transfer,  operate,  lease, mortgage,
pledge and otherwise deal with the Properties; and

          (c) To exercise all powers that are  enumerated in the Virginia  Stock
Corporation  Act and are necessary or  convenient  to the conduct,  promotion or
attainment of the business or purposes of the Corporation as set forth herein.

                                   ARTICLE III
                                  PROHIBITIONS

      3.  Certain Prohibited Activities. Notwithstanding any provision hereof to
the contrary, the following shall govern:

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          (a) The indebtedness of the Corporation  shall consist only of a first
lien mortgage on the Properties arising from refinancing by First Union National
Bank (the "Mortgage"),  any other indebtedness permitted under the Mortgage, and
normal trade accounts payable in the ordinary course of business. For so long as
any obligation secured by the Mortgage remains outstanding and not paid in full,
the  Corporation  shall not incur,  assume,  or guaranty  any  indebtedness  not
permitted hereunder.

          (b) The  Corporation  shall not  consolidate or merge with or into any
other entity,  or convey or transfer its properties and assets  substantially as
an entirety to any entity, unless:

              (i) the entity (if other than the Corporation) formed or surviving
such  consolidation  or merger,  or that  acquired by conveyance or transfer the
properties and assets of the Corporation  substantially  as an entirety,  shall:
(A) be organized and existing  under the laws of the United States of America or
any  State or the  District  of  Columbia,  (B)  include  in its  organizational
documents the same  limitations set forth in this Article III and in Article VII
(Separateness  Covenants),  and (C) shall expressly  assume the due and punctual
performance of the Corporation's obligations; and

              (ii)  immediately  after  giving  effect to such  transaction,  no
default or event of default  under any agreement to which the  Corporation  is a
party shall have been committed and be continuing.

          (c) For so long as any  obligation  secured  by the  Mortgage  remains
outstanding and not paid in full, the Corporation shall not voluntarily commence
a case with respect to itself, as debtor,  under the Federal  Bankruptcy Code or
any similar federal or state statute without the unanimous  consent of the Board
of  Directors.  For so long as any  obligation  secured by the Mortgage  remains
outstanding  and not paid in full,  no material  amendment to these  Articles of
Incorporation  or to the  Corporation's  Bylaws  may be made  without  the prior
approval of the mortgagee holding the Mortgage.

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                                   ARTICLE IV
                                AUTHORIZED SHARES

      4.1.  Number and  Designation.  The number of shares  the  Corporation  is
authorized to issue is set forth below,  together with the  designation  thereof
and the par value per share:

            Number of Shares     Class Designation   Par Value Per Share
            ----------------     -----------------   ------------------

            5,000                Common              no par value

      4.2  Preemptive  Rights.  No holder of  outstanding  shares shall have any
preemptive  right  with  respect  to:  (a)  any  shares  of  any  class  of  the
Corporation,  whether now or hereafter authorized;  (b) any warrants,  rights or
options to purchase any such shares; or (c) any obligations convertible into any
such shares or into warrants, rights or options to purchase any such shares.

      4.3 Voting and Distributions.  The holders of the Common Shares shall have
unlimited  voting  rights and shall be entitled to receive the net assets of the
Corporation  upon the  liquidation of the  Corporation,  its  dissolution or the
winding up of its affairs.

                                    ARTICLE V
                       INITIAL REGISTERED OFFICE AND AGENT

      5.1  Initial  Registered  Office.  The  initial  registered  office of the
Corporation  is  located in the City of  Richmond,  Virginia,  at the  following
address:

                                    McGuireWoods LLP
                                    One James Center
                                    901 East Cary Street
                                    Richmond, Virginia  23219

      5.2  Initial  Registered  Agent.  The  initial  registered  agent  of  the
Corporation is Martin B. Richards,  Esquire,  whose business office is identical
with the  initial  registered  office and who is a resident  of  Virginia  and a
member of the Virginia State Bar.

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<PAGE>

                                   ARTICLE VI
                     LIMIT ON LIABILITY AND INDEMNIFICATION

      6.1 Limit on  Liability.  To the maximum  extent that the  Virginia  Stock
Corporation  Act, as it exists on the date hereof or may  hereafter  be amended,
permits  elimination  of, or  limitations  upon,  the liability of a director or
officer of a corporation,  the directors and officers of the  Corporation  shall
have, as applicable, no liability or limited liability to the Corporation or its
shareholders.

      6.2 Indemnification, Advancement of Expenses and Related Matters.

          (a) The Corporation,  in accordance with the mandatory indemnification
provisions of the Virginia Stock Corporation Act, shall indemnify a director who
entirely  prevails  in the  defense  of any  proceeding  to which he was a party
because he is or was a director of the Corporation  against reasonable  expenses
incurred by him in connection with the proceeding. An officer of the Corporation
shall be  entitled  to such  mandatory  indemnification  to the same extent as a
director.

          (b) In  addition to any  mandatory  indemnification,  the  Corporation
shall  provide the maximum  indemnification  permitted  by law to any  director,
officer,  employee or agent of the Corporation in connection with any proceeding
(including any proceeding by or in the right of the Corporation) that is brought
against such person and that is based on the actions  taken or not taken by such
person on  behalf  of the  Corporation,  or on the  status  of such  person as a
director,  officer,  employee or agent of the Corporation,  except to the extent
that such  person  has  engaged  in (i)  willful  misconduct,  or (ii) a knowing
violation of the criminal law.

          (c) The  provisions  of this  Article  shall not be deemed to prevent,
deny or limit (i) the  indemnification  or insurance  permitted under applicable
law to the directors,  officers, employees or agents of the Corporation, or (ii)
the authority of the Corporation  under applicable law to advance,  reimburse or
pay expenses for the benefit of any director, officer, employee or agent.

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<PAGE>

          (d) The  determination  of whether  the  Corporation  is  required  or
permitted, in a particular case, to indemnify a director,  officer,  employee or
agent (or to provide such person with related advances,  reimbursements or other
payments of expenses) shall be conducted in accordance with Section  13.1-701 of
the Virginia Stock Corporation Act, or any successor provision.

      6.3 Mandatory  Subordination.  Notwithstanding any provision hereof to the
contrary,  the  following  shall  govern:  Any  indemnification  shall  be fully
subordinated  to  any  obligations  respecting  the  Properties  and  shall  not
constitute  a claim  against  the  Corporation  in the  event  that cash flow is
insufficient to pay such obligations.

      6.4 Amendments. No amendment, modification or repeal of this Article shall
diminish the rights  provided  hereunder  to any person  arising from conduct or
events occurring before the adoption of such amendment, modification or repeal.

                                   ARTICLE VII
                             SEPARATENESS COVENANTS

      7.1 Separateness  Covenants.  Notwithstanding  any provision hereof to the
contrary,  the following shall govern:  For so long as any obligation secured by
the Mortgage remains  outstanding and not paid in full, in order to preserve and
ensure the Corporation's  separate and distinct corporate identity,  in addition
to the  other  provisions  set forth in these  Articles  of  Incorporation,  the
Corporation   shall  conduct  its  affairs  in  accordance  with  the  following
provisions:

          (a) It shall  establish  and  maintain  an  office  through  which its
business shall be conducted  separate and apart from those of its parent and any
affiliate  and shall  allocate  fairly and  reasonably  any  overhead for shared
office space.

          (b) It shall maintain separate  corporate records and books of account
from those of its parent and any affiliate.

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<PAGE>

          (c) Its Board of Directors shall hold appropriate  meetings (or act by
unanimous  consent) to  authorize  all  appropriate  corporate  actions,  and in
authorizing such actions, shall observe all corporate formalities.  The Board of
Directors shall include at least one individual who is an Independent Director.

          (d) It shall not  commingle  assets  with  those of its parent and any
affiliate.

          (e) It shall conduct its own business in its own name.

          (f) It shall maintain  financial  statements  separate from its parent
and any affiliate.

          (g) It  shall  pay any  liabilities  out of its own  funds,  including
salaries of any employees, not funds of its parent or any affiliate.

          (h) It shall maintain an arm's length relationship with its parent and
any affiliate.

          (i) It shall not  guarantee or become  obligated  for the debts of any
other  entity,  including  its parent or any affiliate or hold out its credit as
being available to satisfy the obligations of others.

          (j) It shall use  stationery,  invoices and checks  separate  from its
parent and any affiliate.

          (k) It shall  not  pledge  its  assets  for the  benefit  of any other
entity, including its parent and any affiliate.

          (l) It shall hold itself out as an entity separate from its parent and
any affiliate.

                                       6
<PAGE>

          (m) It shall  not  make  any  loans or  advances  to any  third  party
(including any affiliate).

          (n) It shall  comply with its  obligations  under the  agreements  and
instruments evidencing the Mortgage.

      7.2  Definitions.  For purpose of this Article VII,  the  following  terms
shall have the indicated meanings:

          (a) "Independent  Director" means a duly appointed member of the Board
of Directors of the Corporation who has not been at any time during the five (5)
years  preceding  his or her initial  appointment,  and shall not be at any time
while serving as Independent Director, any of the following:

              (i) a shareholder,  director (other than in his or her capacity as
an  Independent  Director),  officer  or  employee  of  the  Corporation  or its
shareholders, or any affiliate of any of the foregoing;

              (ii) a  shareholder,  director,  officer,  employee,  partner,  or
member  of  any  customer  of,  or  supplier  or  service  provider   (including
professionals)  to, or other person who derives  more than ten percent  (10%) of
its purchases, revenues,  compensation, or other financial remuneration from its
activities  with, the  Corporation,  its shareholders or any affiliate of any of
the foregoing,  or any person or entity who otherwise is  financially  dependent
upon an officer,  director,  or employee of the Corporation or its shareholders,
or any family  member (by blood or marriage) of any such officer,  director,  or
employee, or a business entity owned or controlled by any of the foregoing;

              (iii) a person or other entity controlling or under common control
with any shareholder,  director,  officer, employee, customer or supplier of the
Corporation; or

                                       7
<PAGE>

              (iv) a member of the immediate family of any individual  described
in clause (1), (2) or (3) above.

          (b) "affiliate" means, with respect to a specified person or entity:

              (i)  any  person  or  entity   directly  or   indirectly   owning,
controlling  or  holding  with  power to vote ten  percent  (10%) or more of the
outstanding voting securities or interests of the specified entity;

              (ii) any  person  or  entity  ten  percent  (10%) or more of whose
outstanding  voting securities are directly or indirectly  owned,  controlled or
held with power to vote by the specified person or entity;

              (iii) any person or entity  directly  or  indirectly  controlling,
controlled by or under common control with the specified person or entity;

              (iv) any officer,  director or partner of the specified  person or
entity;

              (v) if the specified  person or entity is an officer,  director or
partner,  any company for which the specified  person or entity acts in any such
capacity; and

              (vi) any close relative or spouse of the specified person.

          (c) "control"  means the  possession,  directly or indirectly,  of the
power to direct or cause the  direction  of the  management  and  policies  of a
person or entity, whether through ownership of voting securities, by contract or
otherwise.

          (d)  "parent"  means,  with  respect  to  a  corporation,   any  other
corporation owning or controlling,  directly or indirectly,  fifty percent (50%)
or more of the voting shares of such corporation.

                                       8
<PAGE>

          (e) "person" means any individual,  corporation,  partnership, limited
liability  company,  joint  venture,  association,  joint stock  company,  trust
(including any beneficiary thereof),  unincorporated organization, or government
or any agency or political subdivision thereof.

Dated:   September 1, 2000

                                            By: /s/ Martin B. Richards
                                                --------------------------------
                                                Martin B. Richards, Incorporator

                                       9
<PAGE>

                                   SCHEDULE A

               (LIST OF PROPERTIES FOR APPLE SUITES SPE II, INC.)

The Properties consist of those real properties,  together with all improvements
thereon,  that are located at the following  addresses  (and that are more fully
described in agreements and instruments evidencing the Mortgage):

Atlanta-Peachtree Homewood Suites
450 Technology Parkway
Norcross, GA  30092

Baltimore-BWI Airport Homewood Suites
1181 Winterson Road
Linthicum, MD  21090

Clearwater Homewood Suites
2233 Ulmerton Road
Clearwater, FL  33762

Detroit-Warren Homewood Suites
30180 N. Civic Center Drive
Warren, MI  48093

Richmond-West End Homewood Suites
4100 Innslake Drive
Glen Allen, VA  23060

                                       10

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