Shutters on the Beach is a 198 room full-service, luxury hotel, with guestrooms located between two buildings: the 157 room Ocean House and the 41 room Beach House. Shutters features three food and beverage options, including the 230-seat casual beachfront restaurant called Coast, the upscale 85-seat One Pico and a lounge called The Living Room. Shutters also includes 9,000 square feet of flexible meeting and function space.Hotel Casa Del Mar is a 129 room full-service, luxury hotel located on the beach in Santa Monica, California. Food and beverage options include the 75-seat Catch restaurant as well as a lobby lounge. The ocean-front hotels are located one block from the Company’s Viceroy Santa Monica, two blocks from Santa Monica Pier and proximate to the Third Street Promenade and the Main Street shopping district. Santa Monica is a premier corporate and leisure destination. A variety of companies hold offices in Santa Monica, including Apple, Microsoft, Symantec, Blackstone, Colony Capital, HBO, Universal Music, Sony BMG Music Entertainment and MTV, among many others. The city is well known for world-class shopping throughout the Third Street Promenade, Main Street, Montana Avenue, Santa Monica Place and Ocean Park. Santa Monica also includes attractions such as the Santa Monica Pier and the Main Street district with its art galleries, cafes and antique shops. Year-to-date Highlights For the six months ended June 30, 2012, RevPAR increased 4.7 percent to $153.97, with ADR growth of 4.8 percent to $198.07, offset by a 0.1 percent decline in occupancy to 77.7 percent. The Company’s hotel EBITDA margin was 30.8 percent, an increase of 143 basis points compared to the comparable prior year period. The Company invested $35.2 million of capital in its hotels during the six months ended June 30, 2012. Balance Sheet As of June 30, 2012, the Company had total outstanding debt of $1.18 billion, including $376.0 million outstanding on its senior unsecured credit facility. Total net debt to trailing 12 month Corporate EBITDA (as defined in the Company’s senior unsecured credit facility) was 4.5 times as of June 30, 2012 and its fixed charge coverage ratio was 2.7 times. For the second quarter, the Company’s weighted average interest rate was 4.1 percent. As of June 30, 2012, the Company had $41.6 million of cash and cash equivalents on its balance sheet and capacity of $392.5 million available on its credit facilities.