Filed Pursuant to Rule 424(B)(3)
                                                              File No. 333-84098

                    Summary of Supplement No. 3 to Prospectus
                 (See the Supplement for Additional Information)

Supplement No. 3 dated November 13, 2002 (supplementing Supplement No. 2, which
incorporated and replaced Supplement No. 1):

     (1)  Reports on the status of the offering ;
     (2)  Reports on a proposed merger with Apple Suites, Inc. and related
          matters, including financial information on Apple Suites, Inc. and pro
          forma financial information;
     (3)  Provides a description of our new Series C convertible preferred
          shares; and
     (4)  Provides other information about us, including information about our
          quarter ended September 30, 2002.

     As of May 1, 2001, we closed on the sale of 3,157,894.70 units and raised
gross proceeds of $30,000,000 at a price of $9.50 per unit. A unit consists of
one common share and one Series A preferred share. As of October 21, 2002, we
had sold 29,320,298 units (9,162,367 of which have been sold in our current
offering) at a price of $10 per unit, including units sold through the
reinvestment of distributions. The net proceeds of our offerings, after
deducting selling commissions and other offering costs, were $262,461,633
($82,461,299 of which has been raised in our current offering). We are
continuing the offering at $10 per unit in accordance with the prospectus.

     We have used the proceeds of our ongoing offering to pay 2% of the gross
purchase price for the hotels purchased since the date of the prospectus, in the
amount of approximately $3.2 million, as a commission to Apple Suites Realty
Group, Inc. This entity is owned by Glade M. Knight, who is one of our directors
and our Chief Executive Officer.