Apple REIT Ten 10-Q 6 Aug 15 2015 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 01, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	Apple REIT Ten, Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		89,685,096
Amendment Flag	false
Entity Central Index Key	1,498,864
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Non-accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets
Investment in real estate, net of accumulated depreciation of $89,283 and $72,106, respectively	$ 926,070	$ 839,032
Cash and cash equivalents	0	46,341
Restricted cash-furniture, fixtures and other escrows	13,289	11,920
Due from third party managers, net	12,968	5,565
Other assets, net	10,447	6,178
Total Assets	962,774	909,036
Liabilities
Credit facility	25,400	0
Mortgage debt	169,821	119,708
Accounts payable and other liabilities	11,429	12,162
Total Liabilities	206,650	131,870
Shareholders' Equity
Preferred stock, value issued	0	0
Common stock, no par value, authorized 400,000,000 shares; issued and outstanding 90,209,554 and 91,037,588 shares, respectively	883,334	891,801
Distributions greater than net income	(127,258)	(114,683)
Total Shareholders' Equity	756,124	777,166
Total Liabilities and Shareholders' Equity	962,774	909,036
Series A Preferred Stock [Member]
Shareholders' Equity
Preferred stock, value issued	0	0
Series B Convertible Preferred Stock [Member]
Shareholders' Equity
Preferred stock, value issued	$ 48	$ 48

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Real estate accumulated depreciation (in Dollars)	$ 89,283	$ 72,106
Preferred stock, shares authorized	30,000,000	30,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	90,209,554	91,037,588
Common stock, shares outstanding	90,209,554	91,037,588
Series A Preferred Stock [Member]
Preferred stock, shares authorized	400,000,000	400,000,000
Preferred stock, shares issued	90,209,554	91,037,588
Preferred stock, shares outstanding	90,209,554	91,037,588
Series B Convertible Preferred Stock [Member]
Preferred stock, shares authorized	480,000	480,000
Preferred stock, shares issued	480,000	480,000
Preferred stock, shares outstanding	480,000	480,000

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Room	$ 64,666	$ 54,475	$ 120,403	$ 100,751
Other	5,391	4,855	10,051	9,043
Total revenue	70,057	59,330	130,454	109,794
Expenses:
Operating	16,342	14,334	30,975	26,898
Hotel administrative	5,180	4,448	10,186	8,598
Sales and marketing	5,460	4,849	10,413	9,175
Utilities	2,064	1,907	4,167	3,893
Repair and maintenance	2,293	2,074	4,439	4,188
Franchise fees	3,073	2,652	5,753	4,906
Management fees	2,339	1,838	4,654	3,602
Property taxes, insurance and other	3,880	3,348	7,910	6,673
General and administrative	1,920	1,663	3,409	3,092
Acquisition related costs	642	33	2,222	1,041
Depreciation	8,788	7,042	17,177	14,011
Total expenses	51,981	44,188	101,305	86,077
Operating income	18,076	15,142	29,149	23,717
Investment income	0	3,492	15	6,945
Interest expense	(2,159)	(2,341)	(3,858)	(4,674)
Income before income taxes	15,917	16,293	25,306	25,988
Income tax expense	(471)	(1,444)	(530)	(1,731)
Net income	$ 15,446	$ 14,849	$ 24,776	$ 24,257
Basic and diluted net income per common share (in Dollars per share)	$ 0.17	$ 0.18	$ 0.27	$ 0.30
Weighted average common shares outstanding - basic and diluted (in Shares)	90,294	83,502	90,496	81,728

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 24,776	$ 24,257
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	17,177	14,011
Other non-cash expenses, net	201	194
Changes in operating assets and liabilities:
Increase in due from third party managers, net	(7,189)	(5,361)
(Increase) decrease in other assets, net	(442)	111
Increase in accounts payable and other liabilities	1,214	23
Net cash provided by operating activities	35,737	33,235
Cash flows from investing activities:
Cash paid for the acquisition of hotel properties, net	(85,729)	(41,371)
Capital improvements	(9,571)	(5,990)
(Increase) decrease in capital improvement reserves	69	(551)
Net cash used in investing activities	(95,231)	(47,912)
Cash flows from financing activities:
Net proceeds related to issuance of Units	0	91,986
Redemptions of Units	(8,550)	(7,397)
Distributions paid to common shareholders	(37,351)	(33,643)
Net proceeds from (payments on) credit facility	25,400	(34,953)
Proceeds from mortgage debt	35,000	0
Payments of mortgage debt	(1,128)	(1,062)
Financing costs	(218)	(254)
Net cash provided by financing activities	13,153	14,677
Decrease in cash and cash equivalents	(46,341)	0
Cash and cash equivalents, beginning of period	46,341	0
Cash and cash equivalents, end of period	0	0
Supplemental cash flow information:
Interest paid	4,027	4,773
Income taxes paid	676	1,934
Non-cash transactions:
Notes payable assumed in acquisitions	$ 16,569	$ 0

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]	1. Organization and Summary of Significant Accounting Policies Organization Apple REIT Ten, Inc., together with its wholly owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company was formed to invest in hotels and other income-producing real estate in selected metropolitan areas in the United States. Initial capitalization occurred on August 13, 2010, when 10 Units, each Unit consisting of one common share and one Series A preferred share, were purchased by Apple Ten Advisors, Inc. (“A10A”) and 480,000 Series B convertible preferred shares were purchased by Glade M. Knight, the Company’s Chairman and Chief Executive Officer. The Company began operations on March 4, 2011, when it purchased its first hotel. The Company concluded its best-efforts offering on July 31, 2014. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of these entities, and therefore does not consolidate the entities. As of June 30, 2015, the Company owned 54 hotels located in 17 states with an aggregate of 6,898 rooms. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States for complete financial statements. 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 consolidated financial statements included in its 2014 Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2015. Use of Estimates The preparation of the financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Earnings Per Common Share Basic earnings per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted earnings per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for the three and six months ended June 30, 2015 and 2014. As a result, basic and diluted earnings per common share were the same. Series B convertible preferred shares are not included in earnings per common share calculations until such time that such shares are eligible to be converted to common shares. Recent Accounting Standards In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs

Investment in Real Estate

Investment in Real Estate	6 Months Ended
	Jun. 30, 2015
Real Estate [Abstract]
Real Estate Disclosure [Text Block]	2. Investment in Real Estate The Company acquired three hotels during the first six months of 2015. The following table sets forth 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 Tustin CA Fairfield Inn & Suites Marriott 2/5/2015 145 $ 31,000 Tustin CA Residence Inn Marriott 2/5/2015 149 42,800 San Juan Capistrano CA Residence Inn Marriott 6/5/2015 130 29,200 Total 424 $ 103,000 At the date of purchase, the purchase price for these properties, net of debt assumed, was funded by cash on hand and borrowings under the Company’s unsecured revolving credit facility. The Company assumed approximately $16.6 million of debt in connection with the purchase of and secured by the San Juan Capistrano Residence Inn. The Company also used borrowings under its unsecured credit facility to pay approximately $2.2 million in acquisition related costs, including approximately $2.1 million, representing 2% of the gross purchase price for these hotels, as a brokerage commission to Apple Suites Realty Group, Inc. (“ASRG”), which is 100% owned by Glade M. Knight, the Company’s Chairman and Chief Executive Officer, and approximately $0.1 million in other acquisition related costs, including title, legal and other related costs. These costs are included in acquisition related costs in the Company’s consolidated statements of operations for the six months ended June 30, 2015. For the three hotels acquired during the first six months of 2015, the amount of revenue and operating income (excluding acquisition related costs totaling $2.2 million) included in the Company’s consolidated statement of operations from the acquisition date to June 30, 2015 was approximately $5.7 million and $1.7 million, respectively. The Company leases all of its hotels to its wholly-owned taxable REIT subsidiary (or a subsidiary thereof) under master hotel lease agreements. In connection with the acquisition of the San Juan Capistrano Residence Inn hotel in June 2015, the Company assumed a land lease with a remaining initial term of approximately 27 years and four 30 year renewal options. The lease was valued at below market rates and as a result the Company recorded an intangible asset totaling approximately $4.4 million, which is included in other assets, net in the Company’s consolidated balance sheets. The amount is being amortized through February 2072, the end of the first renewal option. As of June 30, 2015, the remaining minimum lease payments, including the first renewal option, were approximately $46.5 million. No goodwill was recorded in connection with any of the acquisitions. As of June 30, 2015, the Company owned 54 hotels located in 17 states with an aggregate of 6,898 rooms, and the Company’s investment in real estate consisted of the following (in thousands): June 30, December 31, 2015 2014 Land $ 87,439 $ 77,943 Building and Improvements 848,195 762,134 Furniture, Fixtures and Equipment 76,187 67,529 Franchise Fees 3,532 3,532 1,015,353 911,138 Less Accumulated Depreciation (89,283 ) (72,106 ) Investment in Real Estate, net $ 926,070 $ 839,032 As of June 30, 2015, the Company had outstanding contracts for the potential purchase of two additional hotels for a total purchase price of $50.6 million. These two hotels are under construction and are planned to be completed over the next six to nine months from June 30, 2015. Closing on these two hotels is expected upon completion of construction. Although the Company is working towards acquiring these hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the location, brand, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) contract deposits paid, and gross purchase price for each of the contracts outstanding at June 30, 2015. All dollar amounts are in thousands. Location Brand Rooms Deposits Paid Gross Purchase Price Under Construction (a) Cape Canaveral, FL (b) Homewood Suites 153 $ 3 $ 25,245 Rosemont, IL Hampton Inn & Suites 158 300 25,400 Total 311 $ 303 $ 50,645 (a) These hotels are currently under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise brand. Assuming all conditions to closing are met, the purchase of these hotels is expected to close over the next six to nine months from June 30, 2015. (b) If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing. As there can be no assurance that all conditions to closing will be satisfied, the Company includes deposits paid for hotels under contract in other assets, net in the Company’s consolidated balance sheets. The Company intends to use borrowings under its credit facility to purchase the hotels currently under contract if a closing occurs.

Credit Facility and Mortgage De

Credit Facility and Mortgage Debt	6 Months Ended
	Jun. 30, 2015
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	3. Credit Facility and Mortgage Debt Credit Facility On July 2, 2015, the Company entered into a second amendment of its existing $100 million revolving credit facility. The amendment extends the maturity date to July 2, 2017, reduces the annual interest rate to the one-month LIBOR (the London Inter-Bank Offered Rate for a one-month term) plus a margin ranging from 1.85% to 2.35%, depending upon the Company’s leverage ratio, as calculated under the terms of the credit agreement, and reduces the annual unused facility fee to 0.20% or 0.30% on the average unused portion of the revolving credit facility, based on the amount of borrowings outstanding during each quarter. The Company incurred approximately $0.4 million of loan origination costs related to the amendment, which will be amortized as interest expense through the maturity date. At June 30, 2015, the outstanding balance on the Company’s $100 million revolving credit facility was $25.4 million, increasing from no amounts outstanding at December 31, 2014, primarily due to the hotel acquisitions discussed in Note 2. The annual interest rate at June 30, 2015 was 2.44%. The credit facility contains customary affirmative covenants, negative covenants and events of default. In addition, the credit facility contains covenants restricting the level of certain investments and quarterly financial covenants which include, among others, a minimum net worth requirement, maximum debt limits, minimum debt service and fixed charge coverage ratios, and maximum distribution limits. The Company was in compliance with each of the applicable covenants at June 30, 2015. The amendment to the credit facility increased the Minimum Net Worth requirement to $580 million and limits, effective July 2, 2016, distributions to 100% of Funds From Operations (as defined in the amended credit facility). Mortgage Debt In June 2015, the Company entered into a secured mortgage loan agreement with a commercial lender. The mortgage loan for $35.0 million is secured by the Company’s Denver, Colorado Hilton Garden Inn. Scheduled payments of interest and principal of approximately $194,000 are due monthly, and the loan will amortize on a 25 year term with a balloon payment due at maturity in June 2025. The mortgage loan has an applicable annual fixed interest rate of approximately 4.46%. At closing, the Company used proceeds from the loan to reduce the outstanding balance on its revolving credit facility, and to pay transaction costs. Loan origination costs totaling approximately $0.2 million are being amortized as interest expense through the maturity date. In June 2015, the Company assumed approximately $16.6 million in mortgage debt in connection with the acquisition of the San Juan Capistrano Residence Inn. Scheduled payments of interest and principal of approximately $83,000 are due monthly with a balloon payment due at maturity in June 2020. The mortgage loan has an applicable annual fixed interest rate of approximately 4.15%. Loan origination costs totaling approximately $0.02 million are being amortized as interest expense through the maturity date.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	4. Fair Value of Financial Instruments The Company estimates the fair value of its debt by discounting the future cash flows of each instrument at estimated market rates consistent with the maturity of a debt obligation with similar credit terms and credit characteristics, which are Level 3 inputs under the fair value hierarchy. Market rates take into consideration general market conditions and maturity. As of June 30, 2015, the carrying value and estimated fair value of the Company’s debt was $195.2 million and $196.5 million, respectively. As of December 31, 2014, the carrying value and estimated fair value of the Company’s debt was $119.7 million and $122.8 million, respectively. The carrying value of the Company’s other financial instruments approximates fair value due to the short-term nature of these financial instruments.

Related Parties

Related Parties	6 Months Ended
	Jun. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	5. Related Parties The Company has, and is expected to continue to engage in, significant transactions with related parties. These transactions cannot be construed to be at arm’s length and the results of the Company’s operations may be different if these transactions were conducted with non-related parties. The Company’s independent members of the Board of Directors oversee and annually review the Company’s related party relationships (including the relationships discussed in this section) and are required to approve any significant modifications to existing relationships, as well as any new significant related party transactions. The Board of Directors is not required to approve each individual transaction that falls under the related party relationships. However, under the direction of the Board of Directors, at least one member of the Company’s senior management team approves each related party transaction. There have been no changes to the contracts and relationships discussed in the Company’s 2014 Annual Report on Form 10-K. Below is a summary of the related party relationships in effect and transactions that occurred during the six months ended June 30, 2015 and 2014. The Company is externally managed and does not have any employees. ASRG provides the Company with property acquisition and disposition services. Its advisor, A10A, provides the Company with its day-to-day management services. The Company pays fees and reimburses certain expenses to A10A and ASRG for these services. Effective March 1, 2014, A10A subcontracted its obligations to Apple Hospitality REIT, Inc. (“Apple Hospitality”). The subcontract agreement provides that Apple Hospitality provides to the Company the advisory services contemplated under the A10A advisory agreement (“Advisory Agreement”) and Apple Hospitality receives the fees and expense reimbursements payable under the Advisory Agreement from the Company. The subcontract agreement has no impact on the Company’s Advisory Agreement with A10A. Approximately $0.3 million was due to Apple Hospitality at June 30, 2015 for advisory fees and expense reimbursements and is included in accounts payable and other liabilities in the Company’s consolidated balance sheet. Glade M. Knight, the Company’s Chairman and Chief Executive Officer, is also Executive Chairman of Apple Hospitality, and owns ASRG and A10A. Effective January 1, 2015, Justin G. Knight, the Company’s President, was appointed to the Board of Directors of Apple Hospitality. He also serves as President and Chief Executive Officer of Apple Hospitality. ASRG Agreement The Company has a contract with ASRG to acquire and dispose of real estate assets for the Company. A fee of 2% of the gross purchase price or gross sale price in addition to certain reimbursable expenses is paid to ASRG for these services. As of June 30, 2015, payments to ASRG for fees under the terms of this contract have totaled approximately $19.4 million since inception. Of this amount, the Company incurred $2.1 million and $0.9 million, respectively, for the six months ended June 30, 2015 and 2014, which is included in acquisition related costs in the Company’s consolidated statements of operations. A10A Agreement Under the Advisory Agreement, A10A provides management services to the Company. As discussed above, effective March 1, 2014, A10A subcontracts its obligations under this agreement to Apple Hospitality. An annual fee ranging from 0.1% to 0.25% of total equity proceeds received by the Company, in addition to certain reimbursable expenses as described below, is payable to Apple Hospitality for these management services. Total advisory fees incurred by the Company under the Advisory Agreement are included in general and administrative expenses and totaled approximately $1.2 million and $0.7 million for the six months ended June 30, 2015 and 2014, respectively. The increase from 2014 to 2015 was primarily due to the Company reaching the next fee tier under the Advisory Agreement due to improved results of operations. Advisors Cost Sharing Structure In addition to the fees payable to ASRG and A10A, the Company reimbursed to ASRG or A10A, or paid directly to Apple Hospitality on behalf of ASRG or A10A, approximately $1.2 million and $1.4 million for the six months ended June 30, 2015 and 2014. The costs are included in general and administrative expenses and are for the Company’s allocated share of the staffing and related costs provided by Apple Hospitality through its relationships with A10A and ASRG. As part of the cost sharing arrangements, certain day-to-day transactions may result in amounts due to or from Apple Hospitality. To efficiently manage cash disbursements, the Company, Apple Hospitality, A10A or ASRG may make payments for any or all of the related companies. Under the cash management process, each of the companies may advance or defer up to $1 million at any time. Each month, any outstanding amounts are settled among the affected companies. This process allows each company to minimize its cash on hand, which, in turn, reduces the cost of each company’s credit facility. The amounts outstanding at any point in time are not significant to any of the companies. Apple Air Holding, LLC (“Apple Air”) Membership Interest Included in other assets, net on the Company’s consolidated balance sheet as of June 30, 2015 and December 31, 2014 is a 26% equity investment in Apple Air. As of June 30, 2015, the other member of Apple Air was Apple Hospitality, which owned a 74% interest. The Company’s equity investment was approximately $0.8 million and $0.9 million as of June 30, 2015 and December 31, 2014, and is included in other assets, net in the Company’s consolidated balance sheets. The Company has recorded its share of income and losses of the entity under the equity method of accounting and adjusted its investment in Apple Air accordingly. For the six months ended June 30, 2015 and 2014, the Company recorded a loss of approximately $139,000 and $118,000 as its share of the net loss of Apple Air, which primarily relates to the depreciation of the aircraft, and is included in general and administrative expense in the Company’s consolidated statements of operations. Through its equity investment, the Company has access to Apple Air’s aircraft primarily for acquisition, asset management and renovation purposes. Total costs paid for the usage of the aircraft for the six months ended June 30, 2015 and 2014 were approximately $50,000 and $128,000.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	6. Shareholders’ Equity Unit Redemption Program In April 2012, 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 92.5% of the price paid per Unit if the Units have been owned for less than five years, or 100% of the price paid per Unit if the Units have been owned more than five years. The maximum number of Units that may be redeemed in any given year is three percent (3%) of the weighted average number of Units outstanding during the 12-month period immediately prior to the date of redemption. 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. Since the inception of the program through June 30, 2015, the Company has redeemed approximately 5.9 million Units in the amount of $59.9 million, including 0.8 million Units in the amount of $8.6 million and 0.7 million Units in the amount of $7.4 million during the six months ended June 30, 2015 and 2014. As contemplated in the program, the Company has redeemed Units on a pro-rata basis due to the 3% limitation discussed above, including in the first quarter of 2014 where the Company redeemed approximately 68% of all requested redemptions. Since the beginning of the second quarter of 2014, the Company has redeemed 100% of the redemption requests. The following is a summary of the Unit redemptions during 2014 and the first six months of 2015: Redemption Date Total Requested Unit Redemptions at Redemption Date Units Redeemed Total Redemption Requests Not Redeemed at Redemption Date First Quarter 2014 357,013 242,644 114,369 Second Quarter 2014 479,078 479,078 0 Third Quarter 2014 496,839 496,839 0 Fourth Quarter 2014 296,642 296,642 0 First Quarter 2015 425,833 425,833 0 Second Quarter 2015 402,201 402,201 0 Distributions The Company’s annual distribution rate as of June 30, 2015 was $0.825 per common share, payable monthly. For the three months ended June 30, 2015 and 2014, the Company made distributions of $0.20625 per common share for a total of $18.6 million and $17.2 million. For the six months ended June 30, 2015 and 2014, the Company made distributions of $0.4125 per common share for a total of $37.4 million and $33.6 million.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]	7. Subsequent Events In July 2015, the Company declared and paid approximately $6.2 million, or $0.06875 per outstanding common share, in distributions to its common shareholders. In July 2015, under the guidelines of the Company’s Unit Redemption Program, the Company redeemed approximately 0.5 million Units in the amount of $5.3 million, representing 100% of the requested Unit redemptions.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Jun. 30, 2015
Accounting Policies [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Organization Apple REIT Ten, Inc., together with its wholly owned subsidiaries (the “Company”), is a Virginia corporation that has elected to be treated as a real estate investment trust (“REIT”) for federal income tax purposes. The Company was formed to invest in hotels and other income-producing real estate in selected metropolitan areas in the United States. Initial capitalization occurred on August 13, 2010, when 10 Units, each Unit consisting of one common share and one Series A preferred share, were purchased by Apple Ten Advisors, Inc. (“A10A”) and 480,000 Series B convertible preferred shares were purchased by Glade M. Knight, the Company’s Chairman and Chief Executive Officer. The Company began operations on March 4, 2011, when it purchased its first hotel. The Company concluded its best-efforts offering on July 31, 2014. The Company’s fiscal year end is December 31. The Company has no foreign operations or assets and its operating structure includes only one reportable segment. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions have been eliminated. Although the Company has interests in variable interest entities through its purchase commitments, it is not the primary beneficiary as the Company does not have any elements of power in the decision making process of these entities, and therefore does not consolidate the entities. As of June 30, 2015, the Company owned 54 hotels located in 17 states with an aggregate of 6,898 rooms.
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the rules and regulations for reporting on Form 10-Q. Accordingly, they do not include all of the information required by accounting principles generally accepted in the United States for complete financial statements. 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 consolidated financial statements included in its 2014 Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2015.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of the financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates.
Earnings Per Share, Policy [Policy Text Block]	Earnings Per Common Share Basic earnings per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted earnings per common share is calculated after giving effect to all potential common shares that were dilutive and outstanding for the period. There were no potential common shares with a dilutive effect for the three and six months ended June 30, 2015 and 2014. As a result, basic and diluted earnings per common share were the same. Series B convertible preferred shares are not included in earnings per common share calculations until such time that such shares are eligible to be converted to common shares.
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Standards In April 2015, the Financial Accounting Standards Board issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs

Investment in Real Estate (Tabl

Investment in Real Estate (Tables)	6 Months Ended
	Jun. 30, 2015
Real Estate [Abstract]
Schedule of Business Acquisitions, by Acquisition [Table Text Block]	The Company acquired three hotels during the first six months of 2015. The following table sets forth 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 Tustin CA Fairfield Inn & Suites Marriott 2/5/2015 145 $ 31,000 Tustin CA Residence Inn Marriott 2/5/2015 149 42,800 San Juan Capistrano CA Residence Inn Marriott 6/5/2015 130 29,200 Total 424 $ 103,000
Property, Plant and Equipment [Table Text Block]	As of June 30, 2015, the Company owned 54 hotels located in 17 states with an aggregate of 6,898 rooms, and the Company’s investment in real estate consisted of the following (in thousands): June 30, December 31, 2015 2014 Land $ 87,439 $ 77,943 Building and Improvements 848,195 762,134 Furniture, Fixtures and Equipment 76,187 67,529 Franchise Fees 3,532 3,532 1,015,353 911,138 Less Accumulated Depreciation (89,283 ) (72,106 ) Investment in Real Estate, net $ 926,070 $ 839,032
Schedule of Outstanding Contracts for Potential Purchase of Hotels [Table Text Block]	As of June 30, 2015, the Company had outstanding contracts for the potential purchase of two additional hotels for a total purchase price of $50.6 million. These two hotels are under construction and are planned to be completed over the next six to nine months from June 30, 2015. Closing on these two hotels is expected upon completion of construction. Although the Company is working towards acquiring these hotels, there are many conditions to closing that have not yet been satisfied and there can be no assurance that a closing on these hotels will occur under the outstanding purchase contracts. The following table summarizes the location, brand, expected number of rooms, refundable (if the seller does not meet its obligations under the contract) contract deposits paid, and gross purchase price for each of the contracts outstanding at June 30, 2015. All dollar amounts are in thousands. Location Brand Rooms Deposits Paid Gross Purchase Price Under Construction (a) Cape Canaveral, FL (b) Homewood Suites 153 $ 3 $ 25,245 Rosemont, IL Hampton Inn & Suites 158 300 25,400 Total 311 $ 303 $ 50,645 (a) These hotels are currently under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise brand. Assuming all conditions to closing are met, the purchase of these hotels is expected to close over the next six to nine months from June 30, 2015. (b) If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing.

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2015
Stockholders' Equity Note [Abstract]
Summary of Unit Redemptions [Table Text Block]	The following is a summary of the Unit redemptions during 2014 and the first six months of 2015: Redemption Date Total Requested Unit Redemptions at Redemption Date Units Redeemed Total Redemption Requests Not Redeemed at Redemption Date First Quarter 2014 357,013 242,644 114,369 Second Quarter 2014 479,078 479,078 0 Third Quarter 2014 496,839 496,839 0 Fourth Quarter 2014 296,642 296,642 0 First Quarter 2015 425,833 425,833 0 Second Quarter 2015 402,201 402,201 0

Organization and Summary of S16

Organization and Summary of Significant Accounting Policies (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2015shares	Jun. 30, 2014shares	Jun. 30, 2015shares	Jun. 30, 2014shares	Dec. 31, 2014shares
Organization and Summary of Significant Accounting Policies (Details) [Line Items]
Unit Description			one common share and one Series A preferred share
Preferred Stock, Shares Issued	0		0		0
Number of Reportable Segments			1
Aggregate Number of Hotel Rooms	6,898		6,898
Weighted Average Number Diluted Shares Outstanding Adjustment	0	0	0	0
Series B Convertible Preferred Stock [Member]
Organization and Summary of Significant Accounting Policies (Details) [Line Items]
Preferred Stock, Shares Issued	480,000		480,000		480,000
Issued on August 13, 2010 (Initial Capitalization) [Member] | Series B Convertible Preferred Stock [Member]
Organization and Summary of Significant Accounting Policies (Details) [Line Items]
Units sold at inception	10		10
Preferred Stock, Shares Issued	480,000		480,000
Hotels [Member]
Organization and Summary of Significant Accounting Policies (Details) [Line Items]
Number of Hotels	54		54
Number of States in which Hotels Are Located	17		17

Investment in Real Estate (Deta

Investment in Real Estate (Details) $ in Thousands	3 Months Ended		6 Months Ended		59 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)
Investment in Real Estate (Details) [Line Items]
Assumed Mortgage Debt			$ 16,569	$ 0
Business Combination, Acquisition Related Costs	$ 642	$ 33	2,222	1,041
Revenues	70,057	59,330	130,454	109,794
Operating Income (Loss)	18,076	$ 15,142	29,149	23,717
Goodwill	$ 0		$ 0		$ 0
Aggregate Number of Hotel Rooms	6,898		6,898		6,898
Costs Other Than ASRG Fee [Member] | Acquisition-related Costs [Member]
Investment in Real Estate (Details) [Line Items]
Business Combination, Acquisition Related Costs			$ 100
Hotels [Member]
Investment in Real Estate (Details) [Line Items]
Number of Hotels	54		54		54
Number of States in which Hotels Are Located	17		17		17
Apple Suites Realty Group (ASRG) [Member]
Investment in Real Estate (Details) [Line Items]
Real estate acquisition and disposal fee, Related Party, Percent			2.00%
Apple Suites Realty Group (ASRG) [Member] | Real Estate Acquisition and Disposal Fees Incurred [Member]
Investment in Real Estate (Details) [Line Items]
Costs and Expenses, Related Party			$ 2,100	$ 900	$ 19,400
Chairman and CEO of Company [Member] | Apple Suites Realty Group (ASRG) [Member]
Investment in Real Estate (Details) [Line Items]
Related person ownership of related parties			100.00%
Hotel Acquisitions [Member]
Investment in Real Estate (Details) [Line Items]
Number of Businesses Acquired			3
Business Combination, Acquisition Related Costs			$ 2,200
Revenues			5,700
Operating Income (Loss)			$ 1,700
Potential Purchase of Additional Hotels [Member]
Investment in Real Estate (Details) [Line Items]
Aggregate Number of Hotel Rooms	311		311		311
Potential Number of Hotel Properties	2		2		2
Business Acquisition, Gross Purchase Price	$ 50,645		$ 50,645		$ 50,645
Hotel Construction, Time to Completion			over the next six to nine months
Residence Inn San Juan Capistrano, CA [Member]
Investment in Real Estate (Details) [Line Items]
Aggregate Number of Hotel Rooms	130		130		130
Business Acquisition, Gross Purchase Price	$ 29,200		$ 29,200		$ 29,200
Residence Inn San Juan Capistrano, CA [Member] | Hotel Acquisitions [Member]
Investment in Real Estate (Details) [Line Items]
Assumed Mortgage Debt			$ 16,600
Land Lease, Remaining Initial Term			27 years
Number of Renewal Options on Land Lease			4
Land Lease Renewal Period			30 years
Finite-Lived Intangible Asset, Off-market Lease, Favorable, Gross	4,400		$ 4,400		4,400
Operating Leases, Future Minimum Payments Due	$ 46,500		$ 46,500		$ 46,500

Investment in Real Estate (De18

Investment in Real Estate (Details) - Hotel Acquisitions - Jun. 30, 2015 $ in Thousands	USD ($)
Business Acquisition [Line Items]
Rooms	6,898
Fairfield Inn & Suites Tustin, CA [Member]
Business Acquisition [Line Items]
State	CA
Brand	Fairfield Inn & Suites
Manager	Marriott
Date Acquired	Feb. 5, 2015
Rooms	145
Gross Purchase Price	$ 31,000
Residence Inn Tustin, CA [Member]
Business Acquisition [Line Items]
State	CA
Brand	Residence Inn
Manager	Marriott
Date Acquired	Feb. 5, 2015
Rooms	149
Gross Purchase Price	$ 42,800
Residence Inn San Juan Capistrano, CA [Member]
Business Acquisition [Line Items]
State	CA
Brand	Residence Inn
Manager	Marriott
Date Acquired	Jun. 5, 2015
Rooms	130
Gross Purchase Price	$ 29,200
Total [Member]
Business Acquisition [Line Items]
Rooms	424
Gross Purchase Price	$ 103,000

Investment in Real Estate (De19

Investment in Real Estate (Details) - Investment in Real Estate - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Investment in Real Estate [Abstract]
Land	$ 87,439	$ 77,943
Building and Improvements	848,195	762,134
Furniture, Fixtures and Equipment	76,187	67,529
Franchise Fees	3,532	3,532
	1,015,353	911,138
Less Accumulated Depreciation	(89,283)	(72,106)
Investment in Real Estate, net	$ 926,070	$ 839,032

Investment in Real Estate (De20

Investment in Real Estate (Details) - Outstanding Contracts - Jun. 30, 2015 $ in Thousands		USD ($)
Under Construction (a)
Rooms		6,898
Potential Purchase of Additional Hotels [Member]
Under Construction (a)
Rooms		311
Deposits Paid		$ 303
Gross Purchase Price		$ 50,645
Homewood Suites Cape Canaveral, FL [Member] | Potential Purchase of Additional Hotels Under Construction [Member]
Under Construction (a)
Brand	[1],[2]	Homewood Suites
Rooms		153
Deposits Paid		$ 3
Gross Purchase Price		$ 25,245
Hampton Inn & Suites Rosemont, IL [Member] | Potential Purchase of Additional Hotels Under Construction [Member]
Under Construction (a)
Brand	[2]	Hampton Inn & Suites
Rooms		158
Deposits Paid		$ 300
Gross Purchase Price		$ 25,400
[1]	If the seller meets all of the conditions to closing, the Company is obligated to specifically perform under the contract. As the property is under construction, at this time, the seller has not met all of the conditions to closing.
[2]	These hotels are currently under construction. The table shows the expected number of rooms upon hotel completion and the expected franchise brand. Assuming all conditions to closing are met, the purchase of these hotels is expected to close over the next six to nine months from June 30, 2015.

Credit Facility and Mortgage 21

Credit Facility and Mortgage Debt (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Credit Facility and Mortgage Debt (Details) [Line Items]
Long-term Line of Credit	$ 25,400,000		$ 0
Assumed Mortgage Debt	16,569,000	$ 0
Revolving Credit Facility [Member]
Credit Facility and Mortgage Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	100,000,000
Long-term Line of Credit	$ 25,400,000		$ 0
Line of Credit Facility, Interest Rate at Period End	2.44%
Line of Credit Facility, Covenant Terms	The credit facility contains customary affirmative covenants, negative covenants and events of default. In addition, the credit facility contains covenants restricting the level of certain investments and quarterly financial covenants which include, among others, a minimum net worth requirement, maximum debt limits, minimum debt service and fixed charge coverage ratios, and maximum distribution limits. The Company was in compliance with each of the applicable covenants at June 30, 2015.
Amended Revolving Credit Facility [Member]
Credit Facility and Mortgage Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 100,000,000
Debt Instrument, Maturity Date, Description	July 2, 2017
Debt Issuance Cost	$ 400,000
Line of Credit Facility, Covenant Terms	The amendment to the credit facility increased the Minimum Net Worth requirement to $580 million and limits, effective July 2, 2016, distributions to 100% of Funds From Operations (as defined in the amended credit facility).
Amended Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Credit Facility and Mortgage Debt (Details) [Line Items]
Debt Instrument, Description of Variable Rate Basis	one-month LIBOR
Hilton Garden Inn Denver, CO [Member] | Mortgage Debt [Member]
Credit Facility and Mortgage Debt (Details) [Line Items]
Debt Issuance Cost	$ 200,000
Debt Instrument, Face Amount	$ 35,000,000
Debt Instrument, Collateral	the Company’s Denver, Colorado Hilton Garden Inn
Debt Instrument, Periodic Payment	$ 194,000
Debt Instrument, Frequency of Periodic Payment	monthly
Debt Instrument, Payment Terms	loan will amortize on a 25 year term with a balloon payment due at maturity in June 2025
Debt Instrument, Interest Rate, Stated Percentage	4.46%
Residence Inn San Juan Capistrano, CA [Member] | Mortgage Debt [Member]
Credit Facility and Mortgage Debt (Details) [Line Items]
Debt Issuance Cost	$ 20,000
Debt Instrument, Periodic Payment	$ 83,000
Debt Instrument, Frequency of Periodic Payment	monthly
Debt Instrument, Payment Terms	balloon payment due at maturity in June 2020
Debt Instrument, Interest Rate, Stated Percentage	4.15%
Assumed Mortgage Debt	$ 16,600,000
Minimum [Member] | Amended Revolving Credit Facility [Member]
Credit Facility and Mortgage Debt (Details) [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.20%
Minimum [Member] | Amended Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Credit Facility and Mortgage Debt (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.85%
Maximum [Member] | Amended Revolving Credit Facility [Member]
Credit Facility and Mortgage Debt (Details) [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage	0.30%
Maximum [Member] | Amended Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Credit Facility and Mortgage Debt (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.35%

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Fair Value Disclosures [Abstract]
Long-term Debt	$ 195.2	$ 119.7
Long-term Debt, Fair Value	$ 196.5	$ 122.8

Related Parties (Details)

Related Parties (Details) - USD ($)	6 Months Ended		59 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Dec. 31, 2014
Related Parties (Details) [Line Items]
Related Party Transaction, Description of Transaction	To efficiently manage cash disbursements, the Company, Apple Hospitality, A10A or ASRG may make payments for any or all of the related companies. Under the cash management process, each of the companies may advance or defer up to $1 million at any time. Each month, any outstanding amounts are settled among the affected companies.
Apple Suites Realty Group (ASRG) [Member]
Related Parties (Details) [Line Items]
Real estate acquisition and disposal fee, Related Party, Percent	2.00%
Apple Suites Realty Group (ASRG) [Member] | Real Estate Acquisition and Disposal Fees Incurred [Member]
Related Parties (Details) [Line Items]
Costs and Expenses, Related Party	$ 2,100,000	$ 900,000	$ 19,400,000
Apple Ten Advisors (A10A) [Member]
Related Parties (Details) [Line Items]
Management Advisory Fee, Related Party, Percent	0.1% to 0.25%
Apple Ten Advisors (A10A) [Member] | Advisory Fees Incurred [Member]
Related Parties (Details) [Line Items]
Costs and Expenses, Related Party	$ 1,200,000	700,000
ASRG and A10A [Member] | Reimbursement to Related Party for Company's Proportionate Share of Staffing and Related Costs Provided by Related Party [Member]
Related Parties (Details) [Line Items]
Costs and Expenses, Related Party	$ 1,200,000	1,400,000
Apple Air Holding, LLC [Member]
Related Parties (Details) [Line Items]
Equity Method Investment, Ownership Percentage	26.00%		26.00%	26.00%
Equity Method Investments	$ 800,000		$ 800,000	$ 900,000
Income (Loss) from Equity Method Investments	(139,000)	(118,000)
Apple Air Holding, LLC [Member] | Aircraft Usage Fees [Member]
Related Parties (Details) [Line Items]
Costs and Expenses, Related Party	50,000	$ 128,000
Advisory Fees and Reimbursements Under Cost Sharing Structure [Member] | Affiliated Entity [Member]
Related Parties (Details) [Line Items]
Due to Related Parties	$ 300,000		$ 300,000
Apple Hospitality's Interest in Apple Air Holding, LLC [Member]
Related Parties (Details) [Line Items]
Equity Method Investment, Ownership Percentage	74.00%		74.00%

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended			6 Months Ended		15 Months Ended	39 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2015
Shareholders' Equity (Details) [Line Items]
Payments for Repurchase of Equity				$ 8,550	$ 7,397
Payments of Ordinary Dividends, Common Stock				$ 37,351	$ 33,643
Unit Redemption Program [Member]
Shareholders' Equity (Details) [Line Items]
Unit redemption eligibility period				1 year
Redemption rate, Units owned less than 5 years				92.50%
Redemption rate, Units owned more than 5 years				100.00%
Weighted average number of Units outstanding, percentage redeemable				3.00%
Units Redeemed (in Shares)				0.8	0.7		5.9
Payments for Repurchase of Equity				$ 8,600	$ 7,400		$ 59,900
Redemption requests redeemed, description			pro-rata basis
Redemption requests redeemed, percentage			68.00%			100.00%
Distributions [Member]
Shareholders' Equity (Details) [Line Items]
Annual Distribution rate (in Dollars per share)				$ 0.825
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share)	$ 0.20625	$ 0.20625		$ 0.4125	$ 0.4125
Payments of Ordinary Dividends, Common Stock	$ 18,600	$ 17,200		$ 37,400	$ 33,600

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Schedule of Unit Redemption - Redemptions [Member] - shares	3 Months Ended
	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014
Shareholders' Equity (Details) - Schedule of Unit Redemption [Line Items]
Total Requested Unit Redemptions at Redemption Date	402,201	425,833	296,642	496,839	479,078	357,013
Units Redeemed	402,201	425,833	296,642	496,839	479,078	242,644
Total Redemption Requests Not Redeemed at Redemption Date	0	0	0	0	0	114,369

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	1 Months Ended	6 Months Ended
	Jul. 31, 2015	Jun. 30, 2015	Jun. 30, 2014
Subsequent Events (Details) [Line Items]
Payments of Ordinary Dividends, Common Stock		$ 37,351	$ 33,643
Payments for Repurchase of Equity		$ 8,550	$ 7,397
Subsequent Event [Member]
Subsequent Events (Details) [Line Items]
Payments of Ordinary Dividends, Common Stock	$ 6,200
Common Stock, Dividends, Per Share, Cash Paid (in Dollars per share)	$ 0.06875
Units Redeemed (in Shares)	0.5
Payments for Repurchase of Equity	$ 5,300
Redemption requests redeemed, percentage	100.00%