Document:

<PAGE>

                                                                     EXHIBIT 4.7

Loan No.:  26-5950580                                          Boulder, Colorado
                                                                 Homewood Suites

            PERCENTAGE LEASE SUBORDINATION AND ATTORNMENT AGREEMENT
            -------------------------------------------------------

          This Percentage Lease Subordination and Attornment Agreement (this
"Agreement") is dated as of the 1st day of June, 2001, between First Union
National Bank, a national banking association ("Lender"), and Apple Suites
Management, Inc., a Virginia corporation ("Lessee").

                                    RECITALS
                                    --------

          TT.  Lessee is the percentage lessee under a certain percentage lease
(the "Percentage Lease") dated June 1, 2001, with Apple Suites SPE III, Inc., a
Virginia corporation ("Lessor") of premises described in the Percentage Lease
being a certain hotel known as Homewood Suites located in 4950 Baseline Road,
Boulder, Colorado 80303 and more particularly described in Exhibit A attached
hereto and made a part hereof (the "Property").

          UU.  This Agreement is being entered into in connection with a
mortgage loan (the "Loan") being made by Lender to Lessor, to be secured by,
among other things:  (a) a first deed of trust on and of the Property (the
"Mortgage"); and (b) a first assignment of leases and rents on the Property (the
"Assignment of Leases and Rents") to be recorded.  The Mortgage and the
Assignment of Leases and Rents are hereinafter collectively referred to as the
"Security Documents".

          VV.  Lessee acknowledges that Lender will rely on this Agreement in
making the Loan to Lessor.

                                   AGREEMENT
                                   ---------

     For mutual consideration, including the mutual covenants and agreements set
forth below, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

          1.   Lessee agrees that the Percentage Lease is and shall be subject
and subordinate to the Security Documents and to all present or future advances
under the obligations secured thereby and all renewals, amendments,
modifications, consolidations, replacements and extensions of the secured
obligations and the Security Documents, to the full extent of all amounts
secured by the Security Documents from time to time.  Said subordination is to
have the same force and effect as if the Security Documents and such renewals,
modifications, consolidations, replacements and extensions thereof had been
executed, acknowledged, delivered and recorded prior to the Percentage Lease,
any amendments or modifications thereof and any notice thereof.
<PAGE>

          2.   Lessee agrees that, in the event of the occurrence and
continuance of an Event of Default under the Mortgage by the Lessor or a
foreclosure of the Mortgage by Lender or the acceptance of a deed in lieu of
foreclosure by Lender or any other succession of Lender to fee ownership, either
Lender or Lessee may elect to terminate the Percentage Lease by written notice
to the other in accordance with Section 8 hereof.  In the event neither Lender
nor Lessee elect to terminate the Percentage Lease, Lessee will attorn to and
recognize Lender as its Lessor under the Percentage Lease for the remainder of
the term of the Percentage Lease (including all extension periods which have
been or are hereafter exercised) upon the same terms and conditions as are set
forth in the Percentage Lease, and Lessee hereby agrees to pay and perform all
of the obligations of Lessee pursuant to the Percentage Lease.

          3.   Lessee agrees that, in the event Lender succeeds to the interest
of Lessor under the Percentage Lease, Lender shall not be:

          (a) liable for any act or omission of any prior Lessor (including,
without limitation, the then defaulting Lessor), or

          (b) subject to any defense or offsets which Lessee may have against
any prior Lessor (including, without limitation, the then defaulting Lessor), or

          (c) bound by any payment of rent or additional rent which Lessee might
have paid for more than one month in advance of the due date under the
Percentage Lease to any prior Lessor (including, without limitation, the then
defaulting Lessor) (unless otherwise expressly permitted therein and such
advance rent shall have been applied to ordinary and necessary expenses or
capital expenditures in connection with owning and operating the Property or
paid to Lender or otherwise as contemplated by the Loan Documents), or

          (d) bound by any obligation to make any payment to Lessee which was
required to be made prior to the time Lender succeeded to any prior Lessor's
interest, or

          (e) accountable for any monies deposited with any prior Lessor
(including security deposits), except to the extent such monies are actually
received by Lender, or

          (f) bound by any surrender, termination, amendment or modification of
the Percentage Lease made without the consent of Lender, unless such consent is
not required by Section 1.12 of the Mortgage.

          4.   Lessee agrees that, notwithstanding any provision hereof to the
contrary, the terms of the Mortgage shall continue to govern with respect to the
disposition of any insurance proceeds or eminent domain awards, and any
obligations of Lessor to restore the real estate of which the Premises are a
part shall, insofar as they apply to Lender, be limited to insurance proceeds or
eminent domain awards received by Lender after the deduction of all costs and
expenses incurred in obtaining such proceeds or awards.

          5.   Lessee hereby agrees to give to Lender copies of all notices of
Lessor

                                       2
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default(s) under the Percentage Lease in the same manner as, and whenever,
Lessee shall give any such notice of default to Lessor, and no such notice of
default shall be deemed given to Lessor unless and until a copy of such notice
shall have been so delivered to Lender. Lender shall have the right to remedy
any Lessor default under the Percentage Lease, or to cause any default of Lessor
under the Percentage Lease to be remedied, and for such purpose Lessee hereby
grants Lender such additional period of time as may be reasonable to enable
Lender to remedy, or cause to be remedied, any such default in addition to the
period given to Lessor for remedying, or causing to be remedied, any such
default. Lessee shall accept performance by Lender of any term, covenant,
condition or agreement to be performed by Lessor under the Percentage Lease with
the same force and effect as though performed by Lessor. Lender shall have the
right, without Lessee's consent, to foreclose the Mortgage or to accept a deed
in lieu of foreclosure of the Mortgage or to exercise any other remedies under
the Security Documents.

          6.   Lessee hereby consents to the Assignment of Leases and Rents from
Lessor to Lender in connection with the Loan.  Lessee acknowledges that the
interest of the Lessor under the Percentage Lease is to be assigned to Lender
solely as security for the purposes specified in said assignments, and Lender
shall have no duty, liability or obligation whatsoever under the Percentage
Lease or any extension or renewal thereof, either by virtue of said assignments
or by any subsequent receipt or collection of rents thereunder, unless Lender
shall specifically undertake such liability in writing or unless Lender or its
designee or nominee becomes, and then only with respect to periods in which
Lender or its designee or nominee becomes, the fee owner of the Premises.
Lessee agrees that upon receipt of a written notice from Lender of a default by
Lessor under the Loan, Lessee will thereafter, if requested by Lender, pay rent
to Lender in accordance with the terms of the Percentage Lease unless and until
the Percentage Lease is terminated.

          7.   The Percentage Lease shall not be assigned by Lessee, modified,
amended or terminated without Lender's prior written consent in each instance,
except as otherwise provided in the Mortgage.

          8.   If Lender succeeds to the interest of Lessor under the Percentage
Lease or if an Event of Default occurs under the Loan Documents which is not
cured within any applicable cure period, if any, Lender or Lessee shall have the
right to terminate the Percentage Lease at any time with or without cause upon
provision of three (3) days written notice to Lessee or Lender, as the case may
be.

          9.   Any notice, election, communication, request or other document or
demand required or permitted under this Agreement shall be in writing and shall
be deemed delivered on the earlier to occur of (a) receipt or (b) the date of
delivery, refusal or nondelivery indicated on the return receipt, if deposited
in a United States Postal Service Depository, postage prepaid, sent certified or
registered mail, return receipt requested, or if sent via a recognized
commercial courier service providing for a receipt, addressed to Lessee or
Lender, as the case may be, at the following addresses:

     If to Lessee:  Apple Suites Management, Inc.

                                       3
<PAGE>

                      306 East Main Street
                      Richmond, Virginia 23219
                      Attention:  Glade M. Knight

     If to Lender:    First Union National Bank
                      One First Union Center DC6
                      Charlotte, North Carolina 28288-0166
                      Attention:  William J. Cohane

     with a copy to:  Kilpatrick Stockton LLP
                      301 South College Street, Suite 3500
                      Charlotte, NC 28202
                      Attention:  John Nicholas Suhr, Jr., Esq.

     10.  The term "Lender" as used herein includes any successor or assign of
the named Lender herein, including without limitation, any co-lender at the time
of making the Loan, any purchaser at a foreclosure sale and any transferee
pursuant to a deed in lieu of foreclosure, and their successors and assigns, and
the terms "Lessee" and "Lessor" as used herein include any successor and assign
of the named Lessee and Lessor herein, respectively; provided, however, that
such reference to Lessee's or Lessor's successors and assigns shall not be
construed as Lender's consent to any assignment or other transfer by Lessee or
Lessor.

     11.  If any provision of this Agreement is held to be invalid or
unenforceable by a court of competent jurisdiction, such provision shall be
deemed modified to the extent necessary to be enforceable, or if such
modification is not practicable, such provision shall be deemed deleted from
this Agreement, and the other provisions of this Agreement shall remain in full
force and effect.

     12.  Neither this Agreement nor any of the terms hereof may be terminated,
amended, supplemented, waived or modified orally, but only by an instrument in
writing executed by the party against which enforcement of the termination,
amendment, supplement, waiver or modification is sought.

     This Agreement shall be construed in accordance with the laws of the state
of in which the Property is located.

     The person executing this Agreement on behalf of Lessee is authorized by
Lessee to do so and execution hereof is the binding act of Lessee enforceable
against Lessee.

            [THE BALANCE OF THIS PAGE WAS LEFT BLANK INTENTIONALLY]

                                       4
<PAGE>

     Witness the execution hereof [under seal] as of the date first above
written.

                              LENDER:

                              FIRST UNION NATIONAL BANK

                              By: /s/ Alan Kronovet
                                 ----------------------------------
                                 Name:  Alan Kronovet
                                 Title: Vice President

                              APPLE SUITES MANAGEMENT, INC.,
                              a Virginia corporation

                              By: /s/ Glade M. Knight
                                 --------------------------------
                                 Name:   Glade M. Knight
                                 Title:  President
<PAGE>

     The undersigned Lessor hereby consents to the foregoing Agreement.

                              APPLE SUITES SPE III, INC.,
                              a Virginia limited partnership

                              By: /s/ Glade M. Knight
                                 --------------------
                                 Name:  Glade M. Knight
                                 Title:  President
<PAGE>

STATE OF NORTH CAROLINA
         --------------

COUNTY OF MECKLENBURG
          -----------

This instrument was acknowledged before me on June 25, 2001, by Alan Kronovet, a
Vice President  of First Union National Bank, a national banking association on
behalf of said national banking association.

/s/  Renee D. Sides
------------------------------
Notary Public

My commission expires:  10/19/2003

COMMONWEALTH OF VIRGINIA

CITY OF RICHMOND

This instrument was acknowledged before me on May 30, 2001, by Glade M. Knight,
the President of Apple Suites Management, Inc. on behalf of said corporation.

/s/ Kay T. Eaves
----------------------------------------
Notary Public

My commission expires: 2/29/2004
                       -----------------

COMMONWEALTH OF VIRGINIA

CITY OF RICHMOND

This instrument was acknowledged before me on May 30, 2001, by Glade M. Knight,
the President of Apple Suites SPE III, Inc., on behalf of said corporation.

/s/ Kay T. Eaves
----------------------------------------
Notary Public

My commission expires: 2/29/2004
                       -----------------<PAGE>

                                                                     EXHIBIT 4.8

Loan No.:  26-5950580                                          Boulder, Colorado
                                                                 Homewood Suites

                        CONSENT AND AGREEMENT OF MANAGER
                        --------------------------------

     PROMUS HOTELS, INC., a Delaware corporation ("Manager"), acknowledges an
assignment of documents contained in that certain Deed of Trust and Security
Agreement (the "Deed of Trust") to be executed and delivered by APPLE SUITES SPE
III, INC., a Virginia corporation ("Borrower") to FIRST UNION NATIONAL BANK, a
national banking association ("Lender"), in connection with that certain loan
(the "Loan") of TEN MILLION SEVEN HUNDRED THOUSAND and No/100 Dollars
($10,700,000) being made by Lender to Borrower to finance certain real property
and improvements located at 4950 Baseline Road, Boulder, Colorado 80303 and more
particularly described in the Deed of Trust (the "Premises").

     APPLE SUITES MANAGEMENT INC., a Virginia corporation and an affiliate of
Borrower ("Owner"), is the master lessee of the Premises pursuant to that
certain Amended and Restated Hotel Lease Agreement between Borrower and Owner
dated June 30, 2000 (the "Master Lease").

     Manager has agreed to perform or supply certain services to Owner in
connection with the management of the Premises pursuant to that certain
Management Agreement dated as of June 30, 2000 (the "Contract") attached hereto.
Manager does hereby (a) warrant and represent that the Contract contains all
agreements between Manager and Owner relating to property management of the
Premises; (b) acknowledge and consent to the assignment of the Contract by Owner
for the benefit of Borrower and to any further assignment thereof by Lender; (c)
warrant and represent that as of the date hereof, to Manager's knowledge no
default exists under the terms of any agreement between Owner and Manager; and
(d) acknowledge that as of the date hereof, to Manager's knowledge Owner has
satisfied all conditions precedent to commencement of performance by Manager
under the Contract.

     Manager does hereby agree that: (i) upon an Event of Default (as defined in
the Deed of Trust) by Borrower under the terms of the "Loan Documents" (as
defined in the Deed of Trust), Manager shall, upon receipt of written notice and
demand of Lender, continue performance on behalf of Lender provided that Manager
is reimbursed for such performance rendered thereafter on behalf of Lender in
accordance with the Contract; and (ii) in the event of any default by Borrower
under the Contract, Manager shall deliver to Lender, by certified United States
mail, postage prepaid, return receipt requested, addressed to FIRST UNION
NATIONAL BANK, One First Union Center, 301 South College Street, Mailcode
NC0166, Charlotte, North Carolina 28288, Attention:  Contract Finance, a copy of
the written notice delivered to Owner in accordance with the Contract, and
Lender shall have a reasonable time (but in no event less than thirty days after
receipt of such notice) within which Lender shall have the right, but not the
obligation, to cure such default, and the delivery of such notice of default and
the failure of
<PAGE>

Lender to cure the same within such time allowed shall be conditions precedent
to the exercise of any right or remedy of Manager arising by reason of such
default; and (iii) Manager shall not enter into any material modification of, or
material addition to, the Contract without the prior written consent of Lender;
and (iv) in the event of either (a) any material default by Borrower under the
terms of the Loan Documents and the taking of control of the Premises by Lender
or (b) the foreclosure of the Deed of Trust or transfer of title to the Premises
by conveyance in lieu thereof, then, the Contract shall be terminable at the
option of Lender upon thirty days' notice. Manager represents that it is looking
solely to Owner, and not to Lender, for payment under the Contract, except as
provided in Clause (i) above or except for payments incurred after Lender elects
not to terminate the Contract when entitled to do so. Lender acknowledges that
upon an Event of Default under the Contract, Manager shall be entitled to
receive from Owner all fees commissions or other amounts payable to Manager
under the Contract, including without limitation, its Management Fee (as defined
in the Contract).

     Manager agrees that, notwithstanding any terms of the Contract to the
contrary, if Borrower (or any of Borrower's successors or assigns including
Lender in the event Lender controls or forecloses upon the Property) terminates
the Master Lease, Manager shall recognize and treat Borrower as the Owner of the
Premises and the Contract shall remain in full force and effect thereafter but
subject to the terms of the preceding paragraph.

     At such time as the Loan is paid in full and the Deed of Trust is released
of record, this Consent and Agreement of Manager and all of Lender's right,
title and interest with respect to the Contract shall terminate.

     Lender may sell, transfer and deliver the Loan Documents to one or more
investors in the secondary Deed of Trust market.  In connection with such sale,
Lender may retain or assign responsibility for servicing the debt secured by the
Deed of Trust or may delegate some or all of such responsibility or obligations
to a servicer, including, but not limited to, any subservicer or master
servicer, on behalf of the investors.

     This Consent and Agreement of Manager is given by Manager for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by Manager, and is intended to induce Lender to make the Loan to
Borrower.

            [THE BALANCE OF THIS PAGE WAS LEFT BLANK INTENTIONALLY]

     WITNESS the hand and seal of Manager, as of June 1st, 2001.

                              PROMUS HOTELS, INC., a
                              Delaware corporation

                                       2
<PAGE>

                              By:  /s/ Thomas P. Powell
                                   -----------------------------
                              Name:   Thomas P. Powell
                                     ---------------------------
                              Title:   Vice President
                                     ---------------------------

                                       3

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