Document:

Exhibit 10.5

                                                     May 8, 2000

Apple Suites, Inc.
306 East Main Street
Richmond, Virginia 23219

Attention:        Mr. Glade M. Knight

                           Re:      Agreement of Sale dated November 22, 1999 by
                                    and  between  the  undersigned  and you (the
                                    "Agreement"; capitalized terms not otherwise
                                    defined herein have the meanings ascribed to
                                    them in the Agreement)
                                    --------------------------------------------

Gentlemen:

                  We  hereby  agree  that  the  Outside  Closing  Date  shall be
extended to May 9, 2000 and, if you or your wholly-owned subsidiary acquires the
property located in Malvern,  Pennsylvania  pursuant to the Agreement of Sale on
or before May 9, 2000,  the Outside  Closing  Date shall be further  extended to
June 30, 2000.

We hereby  further agree that,  notwithstanding  anything to the contrary in (i)
the notes (collectively, the "Notes") dated September 20, 1999, October 5, 1999,
November  29, 1999 and December 22, 1999 in the  aggregate  principal  amount of
$68,569,500  and, if the closing occurs with respect to the property  located in
Malvern,  Pennsylvania  pursuant to the Agreement,  the  $11,616,750  note to be
executed in  connection  therewith or (ii) the  Agreement  and for so long as no
Event of Default exists under the mortgages, deeds of trust, deed to secure debt
and like  instruments  securing  the  Notes and such new  note,  Buyer  shall be
permitted  to retain  and  invest the Net Equity  Proceeds  that  otherwise  are
required to be paid to Promus to be applied to the payment of  principal  of the
Notes  and  such new note  (the  "Retained  Amounts"),  until  such  time as the
remaining two (2)  properties  the subject of the Agreement  (each, a "Remaining
Property" and, collectively,  the "Remaining  Properties") close, at which time,
in the case of the first closing, a portion of the Retained Amounts equal to 25%
of the  purchase  price of the Malvern  property  shall be applied in respect of
such purchase  price and, in the case of the last  Remaining  Property to close,
the sum of (a) a portion of the  Retained  Amounts  equal to 25% of the purchase
price of such last  Remaining  Property plus (b) after  application  pursuant to
clause (a), all then remaining  Retained Amounts in excess of $1,500,000 or such
higher  amount as is  agreed to by us (such  $1,500,000  or higher  amount,  the
"Closing  Costs  Amount")  shall be applied in respect of the purchase  price of
such  Remaining  Property;  provided,  however,  that  upon the sale of the last
Remaining

<PAGE>

Property,  if the purchase price of such last Remaining Property is paid in full
from such Retained Amounts,  the balance of any then remaining  Retained Amounts
in excess of the  Closing  Costs  Amount  shall be applied in  reduction  of the
outstanding  principal  balance  of the Notes  and such new note and,  provided,
further,  however,  that if, on or before May 9, 2000,  the property  located in
Malvern,  Pennsylvania  has not been  purchased by Buyer in accordance  with the
Agreement  or if, on or before June 30, 2000,  the property  located in Boulder,
Colorado has not then been purchased by Buyer in accordance  with the Agreement,
the "Amortization  Amount",  as defined in the Notes,  shall be due and payable,
except  that  Buyer  shall  be  permitted,  subject  to  the  provisions  of the
immediately  succeeding sentence, to retain and invest the Closing Costs Amount,
which shall thus not  constitute a portion of the  Amortization  Amount.  If the
refinancing  described in that certain  letter  agreement of even date  herewith
between you and Promus Hotels,  Inc. occurs on or before September 30, 2000, the
Closing  Costs Amount shall be applied in respect of closing  costs  incurred in
connection  with the  closing of such  refinancing  with any  excess  applied in
reduction  of any notes from Buyer then held by us or if such  refinancing  does
not occur on or before  September  30, 2000,  the Closing  Costs Amount shall be
applied in reduction of the outstanding  principal balance of the Notes and such
new notes.  Except as expressly  set forth herein,  the Notes shall  continue in
full force and effect, binding upon Buyer in favor of Promus.

                  If  either  or both of the  Remaining  Properties  close,  the
maturity  date of the note or notes  executed in  connection  with the  purchase
money financing provided by Promus Hotels, Inc. shall be April 28, 2001.

                  If you are in agreement with the foregoing, please sign in the
space provided below.

                  This  letter   agreement  may  be  executed  in  one  or  more
counterparts, each of which shall be deemed an original. Said counterparts shall
constitute but one and the same instrument and shall be binding upon each of the
parties hereto individually as fully and completely as if all had signed but one
instrument and shall be unaffected by the failure of any party hereto to execute
any or all of said counterparts.

                                     Very truly yours,

                                     HAMPTON INNS, INC. , successor-by-
                                     merger to Homewood Suites Equity
                                     Development Corp.

                                     By  /s/  Stevan D. Porter
                                       -----------------------
                                          Name:
                                          Title:

                                       2
<PAGE>

                                      PROMUS HOTELS FLORIDA, INC.

                                      By  /s/  Stevan D. Porter
                                        -----------------------
                                           Name:
                                           Title:

                                      PROMUS HOTELS, INC.

                                      By  /s/  Stevan D. Porter
                                        -----------------------
                                           Name:
                                           Title:

Accepted and agreed to this 8th
day of May, 2000.

APPLE SUITES, INC., a
Virginia corporation

By  /s/  Glade M. Knight
   ------------------------------
     Name:  Glade M. Knight
     Title:    Chairman of the Board and President

                                       3Exhibit 10.6

                                                     May 8, 2000

Apple Suites, Inc.
306 East Main Street
Richmond, Virginia 23219

Attention:        Mr. Glade M. Knight

                           Re:      The notes (collectively,  the "Notes") dated
                                    September   20,   1999,   October  5,  1999,
                                    November  29, 1999 and  December 22, 1999 in
                                    the    aggregate    principal    amount   of
                                    $68,569,500
                                    --------------------------------------------

Gentlemen:

                  We are the  owner and  holder of the Notes and the  mortgages,
deeds of trust,  deeds to secure debt and like  instruments  securing  the Notes
dated  the  same  dates  as the  Notes  (collectively,  the  "Existing  Security
Documents").  On the date  hereof we have  provided  financing  in the amount of
$11,616,750 in connection with the purchase by your  wholly-owned  subsidiary of
property  located  in  Malvern,  Pennsylvania  (the  "Malvern  Property")  which
financing is evidenced by a note of even date herewith made by you in the amount
of $11,616,750 (the "Malvern Note") and is secured by a mortgage encumbering the
Malvern  Property (the  "Malvern  Mortgage")  and by mortgages,  deeds of trust,
deeds to  secure  debt and like  instruments  encumbering  the  properties  (the
"Existing   Properties")   encumbered   by  the  Existing   Security   Documents
(collectively,  the "Malvern  Cross-Collateralization  Security Documents").  In
addition,  if you or your wholly-owned  subsidiary acquires the property located
in Boulder,  Colorado (the "Boulder Property") pursuant to the Agreement of Sale
dated November 22, 1999 among the undersigned and you, among others (as amended,
the  "Agreement  of Sale"),  we shall provide  financing in accordance  with the
Agreement  of Sale in  connection  with such  acquisition  in which  event  such
financing shall be evidenced by a note made by you (the "Boulder Note") and will
be secured by a deed of trust  encumbering  the Boulder  Property  (the "Boulder
DOT")  and by  mortgages,  deeds  of  trust,  deeds  to  secure  debt  and  like
instruments  encumbering  the  Existing  Properties  and  the  Malvern  Property
(collectively, the "Boulder Cross-Collateralization Security Documents").

                  You have  advised us that you intend to finance  the  Existing
Properties  with another  lender and in connection  therewith  repay in full the
amounts evidenced and secured by the Notes and the Existing  Security  Documents
and have  requested  that upon such  financing and repayment we agree to release
the Existing  Properties  as security for the Malvern Note and the Boulder Note.
We hereby agree that,  simultaneously  with the

<PAGE>

repayment  in full of all  amounts  evidenced  and  secured by the Notes and the
Existing  Security  Documents (which for the avoidance of doubt does not include
amounts  evidenced by the Malvern Note and the Boulder Note) and provided  there
then exists no monetary  default with respect to the Malvern Note or the Boulder
Note or any  bankruptcy  related  default under the Malvern  Mortgage or Boulder
DOT,   we   shall   release   the   Existing   Properties   from   the   Malvern
Cross-Collateralization      Security      Documents     and     the     Boulder
Cross-Collateralization  Security Documents, except that cross-collateralization
between the Malvern Property and the Boulder Property as to the Malvern Note and
the Boulder Note shall remain in place.  We  acknowledge  that the "repayment in
full" of amounts secured by the Existing Security Documents does not include any
amounts owed to us under management agreements or license agreements with us but
is limited to amounts evidenced by the Notes and protective advances made by us,
if any, pursuant to the Existing Security Documents.

                  You have further advised us that the financing described above
may be in two tranches,  with the second or junior tranche being  amortized with
the net proceeds  available from the public offering of your shares.  The use of
net proceeds to amortize any indebtedness other than Promus's indebtedness would
conflict with the terms of the Malvern Note and, if executed,  the Boulder Note.
We hereby agree that if the amounts  evidenced  and secured by the Notes and the
Existing  Security  Documents  are repaid in full as described  above and if the
structure of the repayment  financing  contains a second or junior tranche in an
amount of not more than $13,000,000  which requires  amortization  from such net
proceeds,  simultaneously with the repayment of the Notes, the Malvern Note and,
if executed, the Boulder Note will be modified to permit Net Equity Proceeds (as
defined in the Malvern Note) to be applied in reduction of the principal balance
of any such second or junior  tranche in lieu of being  applied in  reduction of
the Malvern Note and, if executed, the Boulder Note.

                  [Remainder of page intentionally left blank]

                                       2
<PAGE>

                  This  letter   agreement  may  be  executed  in  one  or  more
counterparts, each of which shall be deemed an original. Said counterparts shall
constitute but one and the same instrument and shall be binding upon each of the
undersigned  individually  as fully and  completely as if all had signed but one
instrument  and shall be unaffected by the failure of any of the  undersigned to
execute any or all of said counterparts.

                                       Very truly yours,

                                       PROMUS HOTELS, INC.

                                       By  /s/  Stevan D. Porter
                                          -----------------------------------
                                            Stevan D. Porter
                                            Executive Vice President

Accepted and agreed to this 8th
day of May, 2000.

APPLE SUITES, INC., a
Virginia corporation

By  /s/  Glade M. Knight
   --------------------------------------------
     Name:  Glade M. Knight
     Title:    Chairman of the Board and President

                                       3

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