Apple REIT Ten 10-Q 9 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 01, 2016
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		87,558,918
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, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Investment in real estate, net of accumulated depreciation of $126,446 and $107,525, respectively	$ 947,813	$ 938,417
Restricted cash-furniture, fixtures and other escrows	11,416	13,412
Due from third party managers, net	14,283	7,329
Other assets, net	8,003	9,227
Total Assets	981,515	968,385
Liabilities
Revolving credit facility	105,200	30,400
Mortgage debt	158,401	196,887
Accounts payable and other liabilities	14,280	13,352
Total Liabilities	277,881	240,639
Shareholders' Equity
Preferred stock, value issued	0	0
Common stock, no par value, authorized 400,000,000 shares; issued and outstanding 87,558,918 and 88,785,416 shares, respectively	856,098	868,852
Distributions greater than net income	(152,512)	(141,154)
Total Shareholders' Equity	703,634	727,746
Total Liabilities and Shareholders' Equity	981,515	968,385
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, 2016	Dec. 31, 2015
Real estate accumulated depreciation (in Dollars)	$ 126,446	$ 107,525
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	87,558,918	88,785,416
Common stock, shares outstanding	87,558,918	88,785,416
Series A Preferred Stock [Member]
Preferred stock, shares authorized	400,000,000	400,000,000
Preferred stock, shares issued	87,558,918	88,785,416
Preferred stock, shares outstanding	87,558,918	88,785,416
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, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Room	$ 70,470	$ 64,666	$ 130,918	$ 120,403
Other	5,763	5,391	10,795	10,051
Total revenue	76,233	70,057	141,713	130,454
Expenses:
Operating	17,471	16,342	33,343	30,975
Hotel administrative	5,542	5,180	11,043	10,186
Sales and marketing	5,973	5,460	11,387	10,413
Utilities	2,048	2,064	4,051	4,167
Repair and maintenance	2,624	2,293	5,042	4,439
Franchise fees	3,327	3,073	6,135	5,753
Management fees	2,672	2,339	5,172	4,654
Property taxes, insurance and other	4,363	3,720	8,700	7,665
Ground lease	321	160	632	245
General and administrative	1,800	1,920	3,646	3,409
Transaction costs	2,263	642	2,545	2,222
Depreciation	9,592	8,788	18,921	17,177
Total expenses	57,996	51,981	110,617	101,305
Operating income	18,237	18,076	31,096	29,149
Interest and other expense, net	(2,691)	(2,159)	(5,447)	(3,843)
Income before income taxes	15,546	15,917	25,649	25,306
Income tax expense	(616)	(471)	(672)	(530)
Net income	$ 14,930	$ 15,446	$ 24,977	$ 24,776
Basic and diluted net income per common share (in Dollars per share)	$ 0.17	$ 0.17	$ 0.28	$ 0.27
Weighted average common shares outstanding - basic and diluted (in Shares)	87,693	90,294	88,009	90,496

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 24,977	$ 24,776
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation	18,921	17,177
Other non-cash expenses, net	395	201
Changes in operating assets and liabilities:
Increase in due from third party managers, net	(6,932)	(7,189)
Decrease (increase) in other assets, net	2,952	(442)
Increase in accounts payable and other liabilities	1,874	1,214
Net cash provided by operating activities	42,187	35,737
Cash flows from investing activities:
Acquisition of hotel properties, net	(25,410)	(85,729)
Capital improvements	(4,195)	(9,571)
Decrease in capital improvement reserves	231	69
Net cash used in investing activities	(29,374)	(95,231)
Cash flows from financing activities:
Redemptions of Units	(12,810)	(8,550)
Distributions paid to common shareholders	(36,335)	(37,351)
Net proceeds from credit facility	74,800	25,400
Proceeds from mortgage debt	0	35,000
Payments of mortgage debt	(38,304)	(1,128)
Financing costs	(164)	(218)
Net cash provided by (used in) financing activities	(12,813)	13,153
Decrease in cash and cash equivalents	0	(46,341)
Cash and cash equivalents, beginning of period	0	46,341
Cash and cash equivalents, end of period	0	0
Supplemental cash flow information:
Interest paid	5,659	4,027
Non-cash transactions:
Notes payable assumed in acquisitions	$ 0	$ 16,569

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
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. As of June 30, 2016, the Company owned 56 hotels located in 17 states with an aggregate of 7,209 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 2015 Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2016. 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. Reclassifications Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported net income, shareholders’ equity or cash flows. Net Income Per Common Share Basic net income per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income 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, 2016 and 2015. As a result, basic and diluted net income per common share were the same. Series B convertible preferred shares are not included in net income per common share calculations until such time that such shares are eligible to be converted to common shares.

Merger Agreement with Apple Hos

Merger Agreement with Apple Hospitality REIT, Inc.	6 Months Ended
	Jun. 30, 2016
Disclosure Text Block Supplement [Abstract]
Mergers, Acquisitions and Dispositions Disclosures [Text Block]	2. Merger Agreement with Apple Hospitality REIT, Inc. On April 13, 2016, the Company, Apple Hospitality REIT, Inc. (“Apple Hospitality”) and 34 Consolidated, Inc., a wholly-owned subsidiary of Apple Hospitality (“Acquisition Sub”), entered into an Agreement and Plan of Merger, as amended on July 13, 2016 (the “Merger Agreement”). The terms and conditions of the Merger Agreement provide that the Company will merge with and into Acquisition Sub, with Acquisition Sub being the surviving corporation in the merger and remaining a wholly-owned subsidiary of Apple Hospitality (the “merger”). Acquisition Sub was formed solely for the purpose of engaging in the merger and has not conducted any prior activities. Under the terms of the Merger Agreement, each issued and outstanding Unit of the Company, other than those Units with respect to which statutory dissenters’ rights of appraisal have been properly exercised, perfected and not subsequently withdrawn or lost under Virginia law, will be converted into the right to receive (i) 0.522 (the “unit exchange ratio”) common shares of Apple Hospitality and (ii) $1.00 in cash, and each issued and outstanding Series B convertible preferred share of the Company will be converted into the right to receive (i) a number of common shares of Apple Hospitality equal to 12.11423 multiplied by the unit exchange ratio and (ii) an amount in cash equal to 12.11423 multiplied by $1.00, resulting in the issuance of a total of approximately 48.7 million common shares of Apple Hospitality and a total payment of approximately $93.4 million in cash to the Company’s shareholders (assuming no exercise of dissenters’ rights). The current outstanding Apple Hospitality common shares will remain outstanding. As a result of the merger, Apple Hospitality, through its wholly-owned subsidiary, will assume all of the Company’s assets and liabilities at closing. If the merger closes, the advisory and related party arrangements with respect to the Company and its advisors, as described in more detail in Note 6, will terminate. The merger is subject to approval by the Company’s shareholders and the proposed issuance of common shares by Apple Hospitality in the merger is subject to approval by Apple Hospitality’s shareholders. In addition to the shareholder approvals, the merger is subject to other customary closing conditions, therefore there is no assurance that the merger will occur. Shareholder meetings for each company are scheduled for August 31, 2016. All costs related to the merger are being expensed in the period they are incurred and are included in transaction costs in the Company’s consolidated statements of operations. In connection with these activities, the Company incurred approximately $1.9 million in expenses for the six months ended June 30, 2016, and anticipates that the Company’s total merger costs will be approximately $6 million. If the merger is approved by the shareholders of the Company and Apple Hospitality and all of the other conditions to the merger are completed, the Company will record an expense related to the conversion of the Company’s Series B convertible preferred shares into common shares of Apple Hospitality for the period immediately prior to the merger, which based on the closing price of Apple Hospitality’s common shares as of June 30, 2016, would result in an expense to the Company of approximately $62.9 million.

Investment in Real Estate

Investment in Real Estate	6 Months Ended
	Jun. 30, 2016
Real Estate [Abstract]
Real Estate Disclosure [Text Block]	3. Investment in Real Estate The Company’s investment in real estate consisted of the following (in thousands): June 30, December 31, 2016 2015 Land $ 91,611 $ 89,823 Building and Improvements 893,909 871,454 Furniture, Fixtures and Equipment 84,907 80,983 Franchise Fees 3,832 3,682 1,074,259 1,045,942 Less Accumulated Depreciation (126,446 ) (107,525 ) Investment in Real Estate, net $ 947,813 $ 938,417 As of June 30, 2016, the Company owned 56 hotels with an aggregate of 7,209 rooms, located in 17 states. On April 29, 2016, the Company closed on the purchase of a newly constructed 153-room Homewood Suites hotel in Cape Canaveral, Florida which opened for business in April 2016, for a purchase price of approximately $25.2 million. The Company used borrowings under its credit facility to purchase the hotel. The Company also used borrowings under its credit facility to pay approximately $0.6 million in acquisition related costs, including approximately $0.5 million, which represents 2% of the gross purchase price, as a brokerage commission to Apple Realty Group, Inc., formerly known as Apple Suites Realty Group, Inc. (“ARG”), 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 transaction costs in the Company’s consolidated statements of operations. No goodwill was recorded in connection with this acquisition and the hotel was leased to a wholly-owned subsidiary of the Company’s taxable REIT subsidiary. For the Homewood Suites hotel in Cape Canaveral, Florida, the amount of revenue and operating income (excluding acquisition related costs totaling $0.6 million) included in the Company’s consolidated statements of operations from the acquisition date to the period ending June 30, 2016 was approximately $0.9 million and $0.2 million, respectively.

Debt

Debt	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	4. Debt Credit Facility On April 8, 2016, the Company entered into an amendment to its existing $100 million unsecured revolving credit facility to increase the amount of the facility to $150 million. At June 30, 2016, the outstanding balance on the Company’s credit facility was $105.2 million, increasing from $30.4 million outstanding at December 31, 2015 due to the hotel acquisition discussed in Note 3, the extinguishment of mortgage debt discussed below and the Unit redemptions discussed in Note 7. The annual interest rate at June 30, 2016 was approximately 2.32%. The credit facility has been utilized for acquisitions, hotel renovations, working capital and other general corporate funding purposes, including the funding of redemptions and the payment of distributions. Under the terms of the credit agreement, the Company may make voluntary prepayments in whole or in part, at any time. The credit agreement governing 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, maximum debt limits, minimum debt service and fixed charge coverage ratios, and maximum distribution and redemption limits. The Company was in compliance with each of the applicable covenants at June 30, 2016. Effective in 2016, distributions are limited to 100% of Funds From Operations (as defined in the credit agreement). Mortgage Debt In April 2016, the Company extinguished through pay-off a mortgage loan secured by the Skokie, Illinois Hampton Inn & Suites. The mortgage loan had a scheduled maturity in July 2016 and was originally assumed upon acquisition of the hotel in 2011. The mortgage loan had a principal balance at pay-off of approximately $17.6 million, an interest rate of 6.15%, and was extinguished without premium or discount to the balance outstanding. Funds for the debt extinguishment were provided by borrowings under the Company’s credit facility. In April 2016, the Company also extinguished through pay-off a mortgage loan secured by the Des Plaines, Illinois Hilton Garden Inn. The mortgage loan had a scheduled maturity in August 2016 and was originally assumed upon acquisition of the hotel in 2011. The mortgage loan had a principal balance at pay-off of approximately $19.0 million, an interest rate of 5.99%, and was extinguished without premium or discount to the balance outstanding. Funds for the debt extinguishment were provided by borrowings under the Company’s credit facility.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	5. 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, 2016, the carrying value and estimated fair value of the Company’s debt was $263.6 million and $263.7 million, respectively. As of December 31, 2015, the carrying value and estimated fair value of the Company’s debt was $227.3 million and $225.6 million, respectively. Both the carrying value and estimated fair value of the Company’s debt (as discussed above) is net of unamortized debt issuance costs related to mortgage debt for each respective year. 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, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	6. 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. As of June 30, 2016, there have been no changes to the contracts and relationships discussed in the Company’s 2015 Annual Report on Form 10-K, other than the Merger Agreement and related transactions discussed herein. Below is a summary of the related party relationships in effect and transactions that occurred during the six months ended June 30, 2016 and 2015. Glade M. Knight, the Company’s Chairman and Chief Executive Officer, is currently Executive Chairman of Apple Hospitality. ARG and A10A are wholly owned by Mr. Knight. Mr. Knight is also Chief Executive Officer and partner of Energy 11 GP, LLC, which is the general partner of Energy 11, L.P. Justin G. Knight, the Company’s President, also serves as President and Chief Executive Officer of Apple Hospitality and is a member of the Board of Directors of Apple Hospitality. The Company is externally managed and does not have any employees. ARG 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 ARG for these services. A10A has subcontracted its obligations to Apple Hospitality, which 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. ARG Agreement The Company has a contract with ARG 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 ARG for these services. As of June 30, 2016, payments to ARG for fees under the terms of this contract have totaled approximately $20.4 million since inception. Of this amount, the Company incurred fees of $0.5 million and $2.1 million for the six months ended June 30, 2016 and 2015, which are included in transaction 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, 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 for each of the six months ended June 30, 2016 and 2015. Advisors Cost Sharing Structure In addition to the fees payable to ARG and A10A, the Company reimbursed to ARG or A10A, or paid directly to Apple Hospitality on behalf of ARG or A10A, approximately $1.5 million and $1.2 million for the six months ended June 30, 2016 and 2015, respectively. 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 ARG and A10A. As of June 30, 2016 and December 31, 2015, total amounts due to Apple Hospitality for reimbursements under the cost sharing structure totaled approximately $0.01 million and $0.2 million, respectively, and are included in accounts payable and other liabilities in the Company’s consolidated balance sheets. As part of the cost sharing arrangements, certain day-to-day transactions may result in amounts due to or from the Company. To efficiently manage cash disbursements, the Company, Apple Hospitality, ARG or A10A 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, 2016 and December 31, 2015 is a 26% equity investment in Apple Air. As of June 30, 2016, the other member of Apple Air was Apple Hospitality, which owned a 74% interest. The Company’s equity investment was approximately $0.7 million and $0.6 million as of June 30, 2016 and December 31, 2015, respectively, 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, 2016 and 2015, the Company recorded a loss of approximately $0.1 million for each period 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 were not significant during the reporting periods. Merger Agreement and Related Transactions Concurrently with the execution of the Merger Agreement, as discussed in Note 2, on April 13, 2016, the Company, Apple Hospitality, A10A and ARG entered into a termination agreement (the “termination agreement”). Pursuant to the terms of the termination agreement, the Advisory Agreement, property acquisition/disposition agreement and subcontract agreement with respect to the Company, discussed above, will be terminated effective immediately after the effective time of the merger, and no fees will be payable as a result of the termination of these agreements. As a result, if the merger is completed, the Company would no longer pay the various fees currently paid under these agreements and would no longer have any advisory contracts with A10A or ARG after the merger. Both the advisory fees and reimbursed costs paid by the Company to Apple Hospitality are recorded as general and administrative expense by the Company and reductions to general and administrative expense by Apple Hospitality and, therefore, the termination of the Advisory Agreement and subcontract agreement will have no financial impact on the combined company after the effective time of the merger. Also, under the Merger Agreement, Apple Ten’s 26% interest in Apple Air would be part of the assets acquired by Apple Hospitality if the merger is completed. As discussed in Note 2, at the effective time of the merger, the Company will incur an expense related to the conversion of the Company’s Series B convertible preferred shares into common shares of Apple Hospitality for the period immediately prior to the merger, which based on the closing price of Apple Hospitality’s common shares as of June 30, 2016, would result in an expense to the Company of approximately $62.9 million.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	7. 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 for 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, otherwise amend the terms of, suspend, or terminate the Unit Redemption Program. In accordance with the Merger Agreement, the Company suspended its Unit Redemption Program effective after the April 2016 redemptions and will continue the suspension until the Merger Agreement is terminated or the Unit Redemption Program is terminated if the merger is completed. Since the inception of the program through June 30, 2016, the Company has redeemed approximately 8.5 million Units in the amount of $87.3 million, including approximately 1.2 million Units in the amount of $12.8 million and 0.8 million Units in the amount of $8.6 million during the six months ended June 30, 2016 and 2015. As contemplated in the program, for the April 2016 redemption, the Company redeemed Units on a pro-rata basis due to the 3% limitation discussed above, with approximately 39% of the requested shares redeemed in the second quarter of 2016. For all other scheduled redemption dates after January 2014, the Company redeemed 100% of the redemption requests. The following is a summary of the Unit redemptions during 2015 and the first six months of 2016: Redemption Date Total Requested Unit Redemptions at Redemption Date Units Redeemed Total Redemption Requests Not Redeemed at Redemption Date First Quarter 2015 425,833 425,833 0 Second Quarter 2015 402,201 402,201 0 Third Quarter 2015 524,458 524,458 0 Fourth Quarter 2015 899,680 899,680 0 First Quarter 2016 582,852 582,852 0 Second Quarter 2016 1,633,094 643,646 989,448 Distributions The Company’s annual distribution rate as of June 30, 2016 was $0.825 per common share, payable monthly. For the three months ended June 30, 2016 and 2015, the Company made distributions of $0.20625 per common share for a total of $18.1 million and $18.6 million. For the six months ended June 30, 2016 and 2015, the Company made distributions of $0.4125 per common share for a total of $36.3 million and $37.4 million.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	8. Subsequent Events In July 2016, the Company declared and paid approximately $6.0 million, or $0.06875 per outstanding common share, in distributions to its common shareholders. On July 19, 2016, one lawsuit was filed against the Company and the Company’s Board of Directors, Apple Hospitality and certain officers of each company in connection with the proposed merger. For additional information about the lawsuit, refer to Part II, Item 1, Legal Proceedings, appearing elsewhere in this Quarterly Report on Form 10-Q.

Accounting Policies, by Policy

Accounting Policies, by Policy (Policies)	6 Months Ended
	Jun. 30, 2016
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. As of June 30, 2016, the Company owned 56 hotels located in 17 states with an aggregate of 7,209 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 2015 Annual Report on Form 10-K. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the twelve month period ending December 31, 2016.
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.
Reclassification, Policy [Policy Text Block]	Reclassifications Certain prior period amounts in the consolidated financial statements have been reclassified to conform to the current period presentation with no effect on previously reported net income, shareholders’ equity or cash flows.
Earnings Per Share, Policy [Policy Text Block]	Net Income Per Common Share Basic net income per common share is computed based upon the weighted average number of shares outstanding during the period. Diluted net income 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, 2016 and 2015. As a result, basic and diluted net income per common share were the same. Series B convertible preferred shares are not included in net income per common share calculations until such time that such shares are eligible to be converted to common shares.

Investment in Real Estate (Tabl

Investment in Real Estate (Tables)	6 Months Ended
	Jun. 30, 2016
Real Estate [Abstract]
Property, Plant and Equipment [Table Text Block]	The Company’s investment in real estate consisted of the following (in thousands): June 30, December 31, 2016 2015 Land $ 91,611 $ 89,823 Building and Improvements 893,909 871,454 Furniture, Fixtures and Equipment 84,907 80,983 Franchise Fees 3,832 3,682 1,074,259 1,045,942 Less Accumulated Depreciation (126,446 ) (107,525 ) Investment in Real Estate, net $ 947,813 $ 938,417

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
Summary of Unit Redemptions [Table Text Block]	The following is a summary of the Unit redemptions during 2015 and the first six months of 2016: Redemption Date Total Requested Unit Redemptions at Redemption Date Units Redeemed Total Redemption Requests Not Redeemed at Redemption Date First Quarter 2015 425,833 425,833 0 Second Quarter 2015 402,201 402,201 0 Third Quarter 2015 524,458 524,458 0 Fourth Quarter 2015 899,680 899,680 0 First Quarter 2016 582,852 582,852 0 Second Quarter 2016 1,633,094 643,646 989,448

Organization and Summary of S17

Organization and Summary of Significant Accounting Policies (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016shares	Jun. 30, 2015shares	Jun. 30, 2016shares	Jun. 30, 2015shares	Dec. 31, 2015shares
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
Number of Hotels	56		56
Number of States in which Hotels Are Located	17		17
Aggregate Number of Hotel Rooms	7,209		7,209
Weighted Average Number Diluted Shares Outstanding Adjustment	0	0	0	0
Issued on August 13, 2010 (Initial Capitalization) [Member]
Organization and Summary of Significant Accounting Policies (Details) [Line Items]
Units sold at inception	10		10
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
Series B Convertible Preferred Stock [Member] | Issued on August 13, 2010 (Initial Capitalization) [Member]
Organization and Summary of Significant Accounting Policies (Details) [Line Items]
Preferred Stock, Shares Issued	480,000		480,000

Merger Agreement with Apple H18

Merger Agreement with Apple Hospitality REIT, Inc. (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Merger Agreement with Apple Hospitality REIT, Inc. (Details) [Line Items]
Transaction Costs	$ 2,263	$ 642	$ 2,545	$ 2,222
Apple Ten and Apple Hospitality Merger Agreement [Member]
Merger Agreement with Apple Hospitality REIT, Inc. (Details) [Line Items]
Business Combination, Merger Agreement Description			Under the terms of the Merger Agreement, each issued and outstanding Unit of the Company, other than those Units with respect to which statutory dissenters’ rights of appraisal have been properly exercised, perfected and not subsequently withdrawn or lost under Virginia law, will be converted into the right to receive (i) 0.522 (the “unit exchange ratio”) common shares of Apple Hospitality and (ii) $1.00 in cash, and each issued and outstanding Series B convertible preferred share of the Company will be converted into the right to receive (i) a number of common shares of Apple Hospitality equal to 12.11423 multiplied by the unit exchange ratio and (ii) an amount in cash equal to 12.11423 multiplied by $1.00, resulting in the issuance of a total of approximately 48.7 million common shares of Apple Hospitality and a total payment of approximately $93.4 million in cash to the Company’s shareholders (assuming no exercise of dissenters’ rights). The current outstanding Apple Hospitality common shares will remain outstanding. As a result of the merger, Apple Hospitality, through its wholly-owned subsidiary, will assume all of the Company’s assets and liabilities at closing.If the merger closes, the advisory and related party arrangements with respect to the Company and its advisors, as described in more detail in Note 6, will terminate. The merger is subject to approval by the Company’s shareholders and the proposed issuance of common shares by Apple Hospitality in the merger is subject to approval by Apple Hospitality’s shareholders. In addition to the shareholder approvals, the merger is subject to other customary closing conditions, therefore there is no assurance that the merger will occur.
Transaction Costs			$ 1,900
Total Anticipated Transaction Costs	$ 6,000		6,000
Estimated Expense Related to the Conversion of the Convertible Preferred Stock			$ 62,900
Apple Ten and Apple Hospitality Merger Agreement [Member] | Apple Ten Unit and Series B Convertible Preferred Share Consideration [Member]
Merger Agreement with Apple Hospitality REIT, Inc. (Details) [Line Items]
Business Combination, Exchange Rate of Shares Issued (in Shares)	0.522		0.522
Business Combination, Cash Paid as Partial Consideration (in Dollars per share)	$ 1		$ 1
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares)	12.11423		12.11423
Business Combination, Total Common Shares to be Issued Upon Exchange of Acquiree Units and Shares (in Shares)	48,700,000		48,700,000
Business Combination, Total Cash to be Paid as Partial Consideration	$ 93,400		$ 93,400

Investment in Real Estate (Deta

Investment in Real Estate (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)
Investment in Real Estate (Details) [Line Items]
Number of Hotels	56		56
Aggregate Number of Hotel Rooms	7,209		7,209
Number of States in which Hotels Are Located	17		17
Revenues	$ 76,233,000	$ 70,057,000	$ 141,713,000	$ 130,454,000
Operating Income (Loss)	$ 18,237,000	$ 18,076,000	$ 31,096,000	$ 29,149,000
Apple Realty Group (ARG) [Member]
Investment in Real Estate (Details) [Line Items]
Real estate acquisition and disposal fee, Related Party, Percent			2.00%
Chairman and CEO of Company [Member] | Apple Realty Group (ARG) [Member]
Investment in Real Estate (Details) [Line Items]
Related person ownership of related parties			100.00%
Homewood Suites Cape Canaveral, FL [Member] | Hotel Acquisitions [Member]
Investment in Real Estate (Details) [Line Items]
Aggregate Number of Hotel Rooms	153		153
Business Acquisition, Effective Date of Acquisition			Apr. 29, 2016
Business Acquisition, Gross Purchase Price	$ 25,200,000		$ 25,200,000
Business Combination, Acquisition Related Costs			600,000
Goodwill	$ 0		0
Revenues			900,000
Operating Income (Loss)			200,000
Homewood Suites Cape Canaveral, FL [Member] | Hotel Acquisitions [Member] | Other Acquisition Related Costs [Member]
Investment in Real Estate (Details) [Line Items]
Business Combination, Acquisition Related Costs			100,000
Homewood Suites Cape Canaveral, FL [Member] | Hotel Acquisitions [Member] | Apple Realty Group (ARG) [Member] | Brokerage Commission [Member]
Investment in Real Estate (Details) [Line Items]
Business Combination, Acquisition Related Costs			$ 500,000
Real estate acquisition and disposal fee, Related Party, Percent			2.00%

Investment in Real Estate (Det

Investment in Real Estate (Details) - Investment in Real Estate - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Investment in Real Estate [Abstract]
Land	$ 91,611	$ 89,823
Building and Improvements	893,909	871,454
Furniture, Fixtures and Equipment	84,907	80,983
Franchise Fees	3,832	3,682
	1,074,259	1,045,942
Less Accumulated Depreciation	(126,446)	(107,525)
Investment in Real Estate, net	$ 947,813	$ 938,417

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	1 Months Ended	6 Months Ended
	Apr. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Debt (Details) [Line Items]
Long-term Line of Credit (in Dollars)		$ 105,200	$ 30,400
Hampton Inn & Suites Skokie, IL [Member]
Debt (Details) [Line Items]
Extinguishment of Debt, Amount (in Dollars)	$ 17,600
Debt Instrument, Interest Rate, Stated Percentage	6.15%
Hilton Garden Inn Des Plaines, IL [Member]
Debt (Details) [Line Items]
Extinguishment of Debt, Amount (in Dollars)	$ 19,000
Debt Instrument, Interest Rate, Stated Percentage	5.99%
Revolving Credit Facility [Member]
Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars)		150,000
Long-term Line of Credit (in Dollars)		$ 105,200	$ 30,400
Line of Credit Facility, Interest Rate at Period End		2.32%
Line of Credit Facility, Expiration Date		July 2,017
Debt Instrument, Maturity Date, Description		The Company has the right, upon satisfaction of certain conditions, including covenant compliance and payment of an extension fee, to extend the maturity date to July 2018.
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, maximum debt limits, minimum debt service and fixed charge coverage ratios, and maximum distribution and redemption limits. The Company was in compliance with each of the applicable covenants at June 30, 2016. Effective in 2016, distributions are limited to 100% of Funds From Operations (as defined in the credit agreement).
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt (Details) [Line Items]
Debt Instrument, Description of Variable Rate Basis		one-month LIBOR
Revolving Credit Facility [Member] | Minimum [Member]
Debt (Details) [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.20%
Revolving Credit Facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.85%
Revolving Credit Facility [Member] | Maximum [Member]
Debt (Details) [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage		0.30%
Revolving Credit Facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member]
Debt (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.35%
Prior to April 8, 2016 [Member] | Revolving Credit Facility [Member]
Debt (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars)		$ 100,000

Fair Value of Financial Instr22

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2016	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Long-term Debt	$ 263.6	$ 227.3
Long-term Debt, Fair Value	$ 263.7	$ 225.6

Related Parties (Details)

Related Parties (Details) - USD ($) $ in Thousands	6 Months Ended		71 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Dec. 31, 2015
Related Parties (Details) [Line Items]
Related Party Transaction, Description of Transaction	To efficiently manage cash disbursements, the Company, Apple Hospitality, ARG or A10A 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 Ten and Apple Hospitality Merger Agreement [Member]
Related Parties (Details) [Line Items]
Estimated Expense Related to the Conversion of the Convertible Preferred Stock	$ 62,900
Apple Hospitality's Interest in Apple Air Holding, LLC [Member]
Related Parties (Details) [Line Items]
Equity Method Investment, Ownership Percentage	74.00%		74.00%
Apple Realty Group (ARG) [Member]
Related Parties (Details) [Line Items]
Real estate acquisition and disposal fee, Related Party, Percent	2.00%
Apple Realty Group (ARG) [Member] | Real Estate Acquisition and Disposal Fees Incurred [Member]
Related Parties (Details) [Line Items]
Costs and Expenses, Related Party	$ 500	$ 2,100	$ 20,400
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	1,200
ARG 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	1,500	1,200
Apple Hospitality REIT [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]
Accounts Payable, Related Parties	$ 10		$ 10	$ 200
Apple Air Holding, LLC [Member]
Related Parties (Details) [Line Items]
Equity Method Investment, Ownership Percentage	26.00%		26.00%	26.00%
Equity Method Investments	$ 700		$ 700	$ 600
Income (Loss) from Equity Method Investments	$ (100)	$ (100)

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended		6 Months Ended		24 Months Ended	51 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016	Jun. 30, 2016
Shareholders' Equity (Details) [Line Items]
Payments of Ordinary Dividends, Common Stock			$ 36,335	$ 37,351
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)			1.2	0.8		8.5
Payments for Repurchase of Equity			$ 12,800	$ 8,600		$ 87,300
Redemption requests redeemed, description	pro-rata basis
Redemption requests redeemed, percentage	39.00%				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	$ 18,100	$ 18,600	$ 36,300	$ 37,400

Shareholders' Equity (Details)

Shareholders' Equity (Details) - Schedule of Unit Redemption - Redemptions [Member] - shares	3 Months Ended
	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015
Shareholders' Equity (Details) - Schedule of Unit Redemption [Line Items]
Total Requested Unit Redemptions at Redemption Date	1,633,094	582,852	899,680	524,458	402,201	425,833
Units Redeemed	643,646	582,852	899,680	524,458	402,201	425,833
Total Redemption Requests Not Redeemed at Redemption Date	989,448	0	0	0	0	0

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	6 Months Ended
	Jul. 31, 2016	Jun. 30, 2016	Jun. 30, 2015
Subsequent Events (Details) [Line Items]
Payments of Ordinary Dividends, Common Stock		$ 36,335	$ 37,351
Subsequent Event [Member]
Subsequent Events (Details) [Line Items]
Payments of Ordinary Dividends, Common Stock	$ 6,000
Common Stock, Dividends, Per Share, Cash Paid	$ 0.06875