Apple REIT 10 Modifies Redemption Policy to Investors Surprise

On May 13, 2011, Apple REIT 10 issued a Form 8-K which indicated that it has amended the company's unit redemption program, to change the purchase price for the units investors redeem during the first five (5) years from the date of purchase to be 92.5% of the price paid for those units. The 8-K in part reads as follows:

"Item 8.01. Other Events.

The Board of Directors of the Company approved the amendment of the Company’s Unit redemption program to change the purchase price for Units redeemed during the first five (5) years from the date of purchase of the Units to be redeemed from 92% of the price paid for the Units to 92.5% of the price paid for the Units. The applicable section of the program was amended to be:

“After you have held your Units for a minimum of one year, our Unit redemption program will provide an opportunity for you to redeem all or a portion of your Units, subject to certain restrictions and limitations, for a purchase price equal to: (1) for redemptions made during the first five (5) years from the date of your purchase of the Units to be redeemed, 92.5% of the price you paid for your Units to be redeemed, and (2) for redemptions made after the first five (5) years from the date of your purchase of the Units to be redeemed, 100% of the price you paid for your Units to be redeemed.. In the case of redemption of Units following the death of all shareholders in one account, the purchase price will equal 100% of the price paid by the deceased shareholders for the Units.”

The entire revised Unit redemption program description is attached hereto as Exhibit 99.1."

If you are an investor in Apple REIT 10 who is surprised by this announcement or who had a different understanding of the Apple REIT 10 redemption program, please contact one of our attorneys at 312-332-0000.