Year-to-date Highlights

For the nine months ended September 30, 2012, RevPAR increased 4.8 percent to $162.26, with ADR growth of 4.2 percent to $200.87 and a 0.6 percent improvement in occupancy to 80.8 percent. The Company's hotel EBITDA margin was 32.6 percent, an increase of 155 basis points compared to the comparable prior year period. The Company invested $48.9 million of capital in its hotels during the nine months ended September 30, 2012.

Balance Sheet

As of September 30, 2012, the Company had total outstanding debt of $1.21 billion, including $201.0 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 4.4 times as of September 30, 2012 and its fixed charge coverage ratio was 2.9 times. For the third quarter, the Company's weighted average interest rate was 4.3 percent. As of September 30, 2012, the Company had $22.4 million of cash and cash equivalents on its balance sheet and capacity of $563.1 million available on its credit facilities.

Park Central Renovation Update

The Company plans to commence the renovation and repositioning of the Park Central Hotel in New York City early January 2013 and continue through at least the third quarter and possibly into the fourth quarter of 2013. Of the hotel's 934 rooms, 761 rooms will be renovated as part of the main hotel, which will undergo a lobby, guestroom and corridor renovation. The remaining 173 rooms will be upgraded as part of the premium hotel, which will include a separate lobby on 55 th Street, premium amenities and a more upscale guestroom product. The Company expects to invest between $60.0 and $70.0 million to complete the renovation.

“We are very excited about our plans for the Park Central. As would be expected from a renovation of this scope and size, in a property that operates with high occupancy, there will be EBITDA displacement during 2013. This displacement is expected to range between $8.0 and $12.0 million during 2013,” said Michael D. Barnello. “The displacement is one time in nature and it is our expectation that the property will be in a much better position in 2014 and beyond. This EBITDA impact will be partially offset by the January inauguration, which will be helpful for our DC portfolio and the rebound from EBITDA displacement at the Roger Williams and Le Montrose hotels, which occurred during the first half of 2012.”

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