This morning, Ed Walter, our President and Chief Executive Officer, will provide a brief overview of our third quarter results and then will describe the current operating environment, as well as the company's outlook for the remainder of 2011.
Larry Harvey, our Chief Financial Officer, will then provide greater detail on our third quarter results, including regional and market performance. Following their remarks, we will be available to respond to your questions.
And now, here's Ed.
W. Edward Edward WalterThanks, Greg. Good morning, everyone. We are pleased to report another strong quarter of operating results despite the impact of Hurricane Irene on our East Coast hotels, and the headwinds emanating from global economic concerns over the last several months. Let's start by reviewing the quarter and then we will offer some insights into the rest of 2011 and next year. Our comparable hotel RevPAR for the third quarter increased 6.4%, driven by an improvement in our average rate of 3.7% combined with an occupancy increase of 1.9 percentage points. Our average rate for the quarter was at $169 and our average occupancy was nearly 76%, which is only 1.3 points shy of 2007 levels. This performance fell slightly short of our expectations because of the arrival of Hurricane Irene in late August, which resulted in group cancellations in Washington and Philadelphia and the complete evacuation of the Marriott New York Downtown Hotel. Altogether, the storm caused an approximately 60 basis point hit to our RevPAR for the quarter. In addition, as we mentioned last quarter, our comparable hotel results do not include the performance of the $1.7 billion of acquisitions we have completed over the last 15 months, which averaged better than 14% growth in the quarter. Comparable hotel F&B revenue growth of 4% contributed to an overall revenue growth of 5.3% for the quarter. This increase, when combined with our comparable hotel adjusted operating profit margin increase of 110 basis points and the performance of our acquisition, resulted in a 28% increase in adjusted EBITDA to $212 million, an FFO per diluted share of $0.16.