If cash is king, Glade Knight is king of kings. The chairman and CEO of Apple REIT Cos. touted the value of cash as a business-building tool during a keynote address Monday at the Hunter Investment Conference in Atlanta. Through its nine funds, Apple now owns 192 hotels with 23,000 rooms under nine brands, with a total market value of $3.8 billion. Last year, the company bought 74 hotels for $1.35 billion, and it has a $1.5-billion war chest for future acquisitions. The amazing thing is the entire portfolio was purchased for nearly all cash.

But Knight wasn't always a cash-only real estate magnate. In the 1980s, he built a multi-family housing real estate business with a highly leveraged syndication model. After the tax laws changed, he morphed from a borrower to a cash customer.

"Remarkably, we went from a company with 120-percent leverage to close to one with no debt, and we proved that it works," said Knight. "We're confident we can weather uncertain times with this strategy."

He admitted the company's success is a product of more than its financial model. It invests exclusively in high-quality, well-located extended-stay and limited-service hotels in the Hilton and Marriott brand families and places a premium on its people.

"In a downturn like this, it's important to only field the strongest team possible," he said. "You can't afford to have anyone on the bench so you've got to hire only those people who can be starters on your team."

The formula seems to work. Even in this difficult environment, 30 percent of Apple's properties have occupancies above 75 percent and 18 percent are above 80 percent. And while revenues for the portfolio were down 16 percent in January, the year-over-year decline in February shrunk to 13 percent. Knight says investors put between $40 million and $60 million a month into the company for its all-cash acquisition strategy.

"2009 may not be our best year, but it won't be our worst either," said Knight. "The best games are the ones you play against tough teams. To win, however, you've got to work like crazy, know what to do and surround yourself with the best people possible."