"We believe the hospitality sector offers significant investment opportunities for our clients," says Stephen Furnary, ING chairman and CEO, in a statement. "The extended stay segment is particularly attractive. This transaction gives us the ability to enter that market on a large scale with very attractive economics. By investing to improve the properties, we are confident we can add significant value for our clients."

The deal was first reported by GlobeSt.com in January when the two companies signed a letter of intent. Then in February the companies entered into a formal agreement, with ING agreeing to pay $11.20 per share and acquire Apple's debt.

At the time of the formal agreement, an Apple spokeswoman told GlobeSt.com that if the transaction closes, ING will likely take the REIT private.

Apple owned 63 upscale extended-stay hotels across 24 states. All the properties operate either under Hilton's Homewood Suites brand or Marriott's Residence Inn brand. With this acquisition, ING now holds a hotel portfolio worth $3 billion. ING officials say $128 million will be invested into the portfolio to enhance the appeal of the hotels for business and leisure clients.

McGuire Woods LLP is acting as legal advisor to Apple and UBS Investment Bank is acting as its financial advisor.

Glade Knight, president, CEO and chairman of Apple Hospitality Two formed the company in January 2001. In January 2003 it merged with Apple Suites Inc.