ENN Equity Inns

Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate investment trust (REIT), today announced its results for the three and six months ended June 30, 2007. Adjusted funds from operations (AFFO) for the three months ended June 30, 2007 increased 35% to $0.50 per diluted share, as compared to $0.37 per diluted share for the three-month period ended June 30, 2006. Adjusted EBITDA was $41.6 million for the second quarter of 2007 as compared to $33.5 million for the second quarter of 2006. Net income applicable to common shareholders for the second quarter of 2007 was $10.3 million, or $0.19 per diluted share, as compared to $8.6 million, or $0.16 per diluted share in the prior year period. The only difference between AFFO and funds from operations (FFO) for the second quarter of 2007 was approximately $1.6 million, or $0.03 per diluted share, related to transaction costs associated with the Company�s pending definitive merger agreement with an affiliate of Whitehall Street Global Real Estate Limited Partnership 2007 (Whitehall), an affiliate of Goldman Sachs & Co., Inc. These merger costs are included as a component of general and administrative expenses in the accompanying condensed consolidated statements of operations. The merger with Whitehall is expected to be completed in the fourth quarter of 2007. Financial Highlights for the Second Quarter 2007: Total hotel revenue increased to $117.5 million for the second quarter of 2007 as compared to $99.5 million for the second quarter of 2006. The Company�s all comparable revenue per available room (RevPAR) growth for the second quarter of 2007 was 7.8% as compared to the second quarter of 2006. This improvement was driven primarily by a 7.7% increase in the average daily rate (ADR) to $106.47 and a slight improvement in occupancy to 77.1%. The Company�s all comparable RevPAR results exclude the negative impact of the repositioning of the Company�s 18 AmeriSuites hotels which are being converted to Hyatt Place hotels on an ongoing basis throughout 2007. Management believes that excluding these hotels is a more accurate measure of the normalized performance of the Company�s hotel portfolio. Including the 18 AmeriSuites hotels, all comparable RevPAR growth for the second quarter of 2007 was 6.6%. The Company�s gross operating profit margin (GOP margin) increased 180 basis points to 47.4% in the second quarter of 2007 as compared to the second quarter of 2006, excluding the Company�s 18 AmeriSuites hotels. Including the 18 AmeriSuites hotels, the Company�s GOP margin improved 130 basis points to 46.7%. Capital Structure: At June 30, 2007, Equity Inns had $690.5 million of long-term debt outstanding. Total debt represented 46.4% of the historical cost of the Company�s hotels at the end of the second quarter 2007. Equity Inns� leverage ratio of 4.7 times at the end of the second quarter 2007 is near a five-year low for the Company. Fixed rate debt, together with variable rate debt hedged by an interest rate swap, amounted to approximately 100% of total debt. At June 30, 2007, the Company�s outstanding common stock and partnership units were a combined 56.0 million. Dividend: During the second quarter of 2007, the Company paid a cash dividend on its common stock of $0.25 per share. The $0.25 per share common dividend represents a 32% increase over the prior year quarter. Earnings Call and Forward-Looking Earnings Guidance: Given the pending merger with Whitehall, the Company does not intend to have an earnings call regarding today�s announcement nor provide any further forward-looking earnings guidance. Forward-Looking Statements Certain matters discussed in this press release which are not historical facts are �forward-looking statements� within the meaning of the federal securities laws and involve risks and uncertainties. The words �may,� �plan,� �project,� �anticipate,� �believe,� �estimate,� �forecast, �expect,� �intend,� �will,� and similar terms are intended to identify forward-looking statements, which include, without limitation, statements concerning our outlook for the hotel industry, acquisition and disposition plans for our hotels and assumptions and forecasts of future results for fiscal year 2007 and the anticipated closing of the Company�s merger with an affiliate of Whitehall. Forward-looking statements are not guarantees of future performance and involve numerous risks and uncertainties which may cause our actual financial condition, results of operations and performance to be materially different from the results of expectations expressed or implied by such statements. Such risks and uncertainties include, but are not limited to, the following: the ability of the Company to complete the merger with an affiliate of Whitehall on the terms and the conditions set forth in the agreement and plan of merger, the ability of the Company to cope with domestic economic and political disruption, war, terrorism, states of emergency or similar activities; risks associated with debt financing; risks associated with the hotel and hospitality industry; the ability of the Company to successfully implement its operating strategy; availability of capital; changes in economic cycles; competition from other hospitality companies; and changes in the laws and government regulations applicable to it.. These risks and uncertainties are described in greater detail in Item 1.A. of our Annual Report on Form 10-K for the year ended December 31, 2006 filed with the United States Securities and Exchange Commission (SEC) on February 28, 2007, and our other periodic filings with the SEC. We undertake no obligation and do not intend to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially. Notes to Financial Information The Company operates as a self-managed and self-administered real estate investment trust, or REIT. Readers are encouraged to find further detail regarding Equity Inns� organizational structure in its Annual Report on Form 10-K for the year ended December 31, 2006 as filed with the SEC. Non-GAAP Financial Measures Periodically in press releases the Company uses certain "non-GAAP financial measures," which are measures of the Company's historical or future financial performance that are different from measures calculated and presented in accordance with generally accepted accounting principles, or GAAP, within the meaning of applicable SEC rules. These include: (i) Gross Operating Profit Margin, (ii) Funds From Operations, (iii) Adjusted Funds From Operations, (iv) Adjusted EBITDA, (v) Cash Available for Distribution (CAD), (vi) CAD Payout Ratio, (vii) Capitalization Rate (viii) Leverage Ratio, (ix) Total Shareholder Return and (x) Hotel Operating Statistics. The following discussion defines these terms, which the Company believes can be useful measures of its performance. Gross Operating Profit Margin The Company uses a measure common in the hotel industry, gross operating profit margin (GOP margin), to evaluate its operating results. GOP margin is defined as total hotel revenue minus hotel operating expenses before property taxes, insurance and management fees, divided by hotel revenues. Funds from Operations The National Association of Real Estate Investment Trusts, or NAREIT, defines funds from operations, or FFO, as net income (loss) applicable to common shareholders, excluding gains (or losses) from sales of real estate, the cumulative effect of changes in accounting principles, real estate-related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO does not include the cost of capital improvements or any related capitalized interest. Equity Inns uses FFO per diluted share as a measure of performance to adjust for certain non-cash expenses such as depreciation and amortization because historical cost accounting for real estate assets implicitly assumes that the value of real estate assets diminishes predictably over time. Because real estate values have historically risen or fallen with market conditions, many industry investors have considered presentation of operating results for real estate companies that use historical cost accounting to be less informative. NAREIT adopted the definition of FFO in order to promote an industry-wide standard measure of REIT operating performance. Accordingly, as a member of NAREIT, Equity Inns adopted FFO as a measure to evaluate performance and facilitate comparisons between the Company and other REITs, although FFO and FFO per diluted share may not be comparable to those measures, or similarly titled measures, as reported by other companies. Additionally, FFO is used by management in the annual budget process. Adjusted Funds From Operations Equity Inns further adjusts FFO for losses on impairment of hotels, prepayment penalties on extinguishment of debt and other non-cash or unusual items, including transaction costs relating to the pending merger with an affiliate of Whitehall. We refer to this as adjusted funds from operations, or AFFO. The Company�s computation of AFFO and AFFO per diluted share is not comparable to the NAREIT definition of FFO or to similar measures reported by other REITs, but the Company believes it is an appropriate measure for this Company. The Company uses AFFO because it believes that this measure provides investors a useful indicator of the operating performance of the Company�s hotels by adjusting for the effects of certain non-cash or non-recurring items arising from the Company�s financing activities, impairment charges on hotels held for sale and other areas. In addition to being used by management in the annual budget process, AFFO per diluted share is also used by the Compensation Committee of the Board of Directors as one of the criteria for performance-based executive compensation. EBITDA and Adjusted EBITDA Earnings before Interest Expense, Income Taxes, Depreciation and Amortization, or EBITDA, is a commonly used measure of performance in many industries, which the Company believes provides useful information to investors regarding its results of operations. The Company believes that EBITDA helps investors evaluate the ongoing operating performance of its properties and facilitates comparisons with other lodging REITs, hotel owners who are not REITs, and other capital-intensive companies. The Company uses EBITDA to provide a baseline when evaluating hotel results. The Company also uses EBITDA as one measure in determining the value of acquisitions and dispositions and, like FFO and AFFO, it is also used by management in the annual budget process. The Company further adjusts EBITDA to exclude preferred stock dividends, income or losses from discontinued operations, minority interests and losses on impairment of hotels because it believes that including such items in EBITDA is not consistent with reflecting the ongoing operating performance of the remaining assets. The Company has historically adjusted EBITDA when evaluating its performance because management believes that the exclusion of certain non-cash and non-recurring items described above assists the Company in measuring the performance of its hotels and reflects the ongoing value of the Company as a whole. Therefore, the Company modifies EBITDA and refers to this measure as Adjusted EBITDA. Cash available for distribution (CAD) and CAD Payout Ratio Cash available for distribution (CAD) is defined as AFFO, adjusted for certain non-cash amortization and an allowance for recurring capital expenditures equal to four percent of total hotel revenue from continuing operations. The Company computes the CAD Payout Ratio by dividing common dividends per share and unit paid over the last twelve months by trailing twelve-month CAD per share for the same period. The Company believes the CAD Payout Ratio also helps improve equity holders' ability to understand the Company�s ability to make distributions to its shareholders. Capitalization Rate The Company uses a measure common in the hotel industry to discuss its underwriting of acquired or disposed hotel assets. Capitalization rate, for this discussion, is defined as the percentage derived by dividing the net operating income of the hotel asset(s), less a management fee and an allowance for recurring capital expenditures, by the purchase price paid or received for the hotel asset(s). Leverage Ratio The Company uses a measure common in the hotel industry to evaluate its financial leverage. Leverage ratio is defined as the Company�s long-term debt divided by EBITDA as defined in the financial covenants of its Line of Credit. Total Shareholder Return The Company uses a measure common in the hotel industry to discuss its return to common shareholders. Total shareholder return is defined as reinvested stock dividend income plus the percentage of stock price appreciation or minus the percentage of stock price reduction over the respective period. Total shareholder return is also used by the Compensation Committee of the Board of Directors as one of the criteria for performance-based executive compensation. Hotel Operating Statistics The Company uses a measure common in the hotel industry to evaluate the operations of its hotel room revenue per available room, or RevPAR. RevPAR is the product of the average daily rate, or ADR, charged and the average daily occupancy achieved. RevPAR does not include food and beverage or other ancillary revenues such as parking, telephone, or other guest services generated by the property. Similar to the reporting periods for the Company's statement of operations, hotel operating statistics (i.e., RevPAR, ADR and average occupancy) are reported based on quarter end and year-to-date measures. This facilitates year-to-year comparisons of hotel results, as each reporting period will be comprised of the same number of days of operations as in the prior year. GOP Margin, FFO, AFFO, FFO per share, AFFO per share, Adjusted EBITDA, CAD, CAD Payout Ratio, Capitalization Rate, Leverage Ratio, Total Shareholder Return and Hotel Operating Statistics presented, may not be comparable to the same or similarly titled measures calculated by other companies and may not be helpful to investors when comparing Equity Inns to other companies. This information should not be considered as an alternative to net income, income from operations, cash from operations, or any other operating performance measure prescribed by GAAP. Cash expenditures for various long-term assets (such as renewal and replacement capital expenditures), interest expense (for Adjusted EBITDA purposes) and other items have been and will be incurred and are not reflected in the Adjusted EBITDA, FFO and AFFO presentations. Equity Inns' statement of operations and cash flows include disclosure of its interest expense, capital expenditures, and other excluded items, all of which should be considered when evaluating the Company's performance, as well as the usefulness of its non-GAAP financial measures. Additionally, FFO, AFFO, FFO per share, AFFO per share, Adjusted EBITDA and CAD should not be considered as a measure of the Company's liquidity or indicative of funds available to fund its cash needs, including the Company's ability to make cash distributions. In addition, FFO per share, AFFO per share and CAD do not measure, and should not be used as measures of, amounts that accrue directly to shareholders' benefit. About Equity Inns Equity Inns, Inc. is a self-advised REIT that focuses on the upscale extended stay, all-suite and midscale limited-service segments of the hotel industry. The Company, which ranks as the third largest hotel REIT based on number of hotels, currently owns 133 hotels with 15,822 rooms located in 35 states. For more information about Equity Inns, visit the Company's Web site at www.equityinns.com. EQUITY INNS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share data) (unaudited) � June 30, 2007 December 31, 2006 ASSETS Investment in hotel properties, at cost $1,478,800 $1,409,508 Accumulated depreciation (349,255) (318,189) Investment in hotel properties, net 1,129,545 1,091,319 Cash and cash equivalents 16,258 7,484 Accounts receivable, net of doubtful accounts of $200 and $200, respectively � 9,602 7,767 Interest rate swap 441 516 Notes receivable, net 1,879 1,896 Deferred expenses, net 13,767 13,286 Deposits and other assets, net 18,611 15,014 � Total Assets $1,190,103 $1,137,282 � LIABILITIES AND SHAREHOLDERS� EQUITY Long-term debt $690,542 $635,365 Accounts payable and accrued expenses 48,681 42,445 Distributions payable 16,047 14,855 Minority interests in Partnership 4,626 4,853 � Total Liabilities 759,896 697,518 � Commitments and Contingencies � Shareholders� Equity: � Preferred Stock, $.01 par value, 10,000,000 shares authorized Series B, 8.75%, $.01 par value, 3,450,000 and 3,450,000 shares issued and outstanding 83,524 83,524 Series C, 8.00%, $.01 par value, 2,400,000 and 2,400,000 shares issued and outstanding 57,862 57,862 Common stock, $.01 par value, 100,000,000 shares authorized, 55,058,698 and 54,735,137 shares issued and outstanding 551 547 Additional paid-in capital 576,381 574,238 Distributions in excess of net earnings (288,552) (276,923) Unrealized gain on interest rate swap 441 516 � Total Shareholders� Equity 430,207 439,764 � Total Liabilities and Shareholders� Equity $1,190,103 $1,137,282 EQUITY INNS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share data) (unaudited) � For The Three MonthsEnded June 30, � For the Six MonthsEnded June 30, 2007 � 2006 � 2007 � 2006 Revenue: Room revenue $112,799 $95,732 $214,457 $184,467 Other hotel revenue 4,734 � 3,724 � 8,853 � 7,114 Total hotel revenue 117,533 99,456 223,310 191,581 � Operating expenses: Direct hotel expenses 62,127 54,274 118,372 104,162 Other hotel expenses 3,470 2,799 6,431 5,352 Depreciation 15,628 12,957 31,066 25,629 Property taxes, insurance and other 6,369 6,741 13,793 12,743 General and administrative expenses 4,872 3,226 8,953 6,940 Loss on impairment of hotels � � 3,000 � � � 5,210 Total operating expenses 92,466 � 82,997 � 178,615 � 160,036 � Operating income 25,067 16,459 44,695 31,545 � Interest expense, net 11,481 � 9,587 � 22,362 � 19,400 � Income from continuing operations before minority interests and income taxes 13,586 6,872 22,333 12,145 Minority interest income (expense) (169) (168) (261) (110) Deferred income tax benefit (expense) � � � � � � � � Income from continuing operations 13,417 6,704 22,072 12,035 � Discontinued operations: Gain (loss) on sale of hotel properties � 4,552 � 4,535 Loss on impairment of hotels held for sale � � � (6,690) Income (loss) from operations of discontinued operations 3 � 394 � (2) � 942 Income from discontinued operations 3 � 4,946 � (2) � (1,213) � Net income (loss) 13,420 11,650 22,070 10,822 � Preferred stock dividends (3,087) (3,087) (6,173) (5,560) � Net income (loss) applicable to common shareholders $10,333 � $8,563 � $15,897 � $5,262 � Net income (loss) per share data: Basic and diluted income (loss) per share: Continuing operations $0.19 $0.07 $0.29 $0.12 Discontinued operations 0.00 � 0.09 � 0.00 � (0.02) � Net income (loss) per common shares $0.19 � $0.16 � $0.29 � $0.10 � Weighted average number of common shares outstanding, basic and diluted 55,058 � 54,630 � 55,036 � 54,470 EQUITY INNS, INC. RECONCILIATION OF NET INCOME (LOSS) TO FUNDS FROM OPERATIONS, ADJUSTED FUNDS FROM OPERATIONS AND CASH AVAILABLE FOR DISTRIBUTION (unaudited) � The following is a reconciliation of net income (loss) to FFO and AFFO, both applicable to common shareholders, and cash available for distribution and illustrates the difference in these measures of operating performance (in thousands, except per share and unit data): � For the Three Months Ended June 30, � For the Six Months Ended June 30, 2007 � 2006 � 2007 � 2006 � Net income (loss) applicable to common shareholders $10,333 $8,563 $15,897 $5,262 � Add (subtract): (Gain) loss on sale of hotel properties � (4,552) � (4,535) Minority interests (income) expense 169 168 261 110 Depreciation 15,628 12,957 31,066 25,629 Depreciation from discontinued operations � � 213 � � � 753 � Funds From Operations (FFO) 26,130 17,349 47,224 27,219 � Loss on impairment of hotels � 3,000 � 11,900 � Merger costs 1,624 � � � 1,624 � � � Adjusted Funds From Operations (AFFO) 27,754 � 20,349 � 48,848 � 39,119 � Add: Amortization of debt issuance costs 481 511 956 977 Amortization of non-cash stock-based compensation and deferred expenses 918 1,132 1,952 2,227 � Allowance for capital reserves (4,703) � (3,978) � (8,933) � (7,663) � Cash Available for Distribution $24,450 � $18,014 � $42,823 � $34,660 � Weighted average number of diluted common shares and Partnership units outstanding 55,960 � 55,627 � 55,939 � 55,591 � � � � � � � FFO per Share and Unit $0.47 � $0.31 � $0.84 � $0.49 � � � � � � � AFFO per Share and Unit $0.50 � $0.37 � $0.87 � $0.70 � � � � � � � Cash Available for Distribution per Share and Unit $0.44 � $0.32 � $0.77 � $0.62 EQUITY INNS, INC. RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (unaudited) � � The following is a reconciliation of net income (loss) applicable to common shareholders to Adjusted EBITDA and illustrates the difference in these measures of operating performance (in thousands): � For the Three Months Ended June 30, � For the Six Months Ended June 30, 2007 � 2006 � 2007 � 2006 � Net income (loss) applicable to common shareholders $10,333 $8,563 $15,897 $5,262 � Add (subtract): Preferred stock dividends 3,087 3,087 6,173 5,560 (Income) loss from discontinued operations (3) (4,946) 2 1,213 Minority interests (income) expense 169 168 261 110 Interest expense, net 11,481 9,587 22,362 19,400 Loss on impairment of hotels � 3,000 � 5,210 Depreciation 15,628 12,957 31,066 25,629 Amortization of non-cash stock-based compensation and deferred expenses 918 � 1,132 � 1,952 � 2,227 � Adjusted EBITDA $41,613 � $33,548 � $77,713 � $64,611 Equity Inns, Inc. � Hotel Performance � For the Three Months Ended June 30, 2007 and 2006 � All Comparable (1) � � RevPAR (2) � Occupancy � ADR # of Rooms � # of Hotels � 2007 � Variance to 2006 � 2007 � Variance to 2006 � 2007 � Variance to 2006 Portfolio 15,822 133 $78.90 6.6% 75.8% -0.5 pts. $104.07 7.4% � Franchise Hampton Inn 5,554 45 $73.11 8.8% 75.5% 0.4 pts. $96.87 8.2% Residence Inn 2,299 23 $88.44 7.3% 79.5% 1.3 pts. $111.29 5.6% AmeriSuites 2,291 18 $59.79 -2.3% 68.0% -4.4 pts. $87.97 4.0% Courtyard 1,664 16 $89.07 2.2% 78.7% -4.0 pts. $113.23 7.4% Homewood Suites 1,378 10 $108.81 12.6% 82.9% 1.1 pts. $131.26 11.2% SpringHill Suites 694 7 $78.55 8.3% 79.0% 0.5 pts. $99.43 7.7% Hilton Garden Inn 489 4 $73.99 1.6% 73.2% -0.5 pts. $101.13 2.3% Holiday Inn 397 3 $64.82 7.6% 70.7% -0.1 pts. $91.67 7.8% Hampton Inn & Suites 291 2 $84.98 1.4% 72.4% -3.5 pts. $117.38 6.3% Comfort Inn 281 2 $77.96 17.0% 68.5% 4.2 pts. $113.86 9.9% Embassy Suites 246 1 $105.24 7.8% 79.9% 1.8 pts. $131.69 5.4% Fairfield Inn & Suites 143 1 $63.88 7.5% 75.9% -0.6 pts. $84.18 8.4% TownePlace Suites 95 1 $60.20 28.9% 76.9% 12.0 pts. $78.24 8.7% � Region East North Central 2,399 19 $75.78 9.3% 70.5% -1.5 pts. $107.53 11.6% East South Central 2,320 22 $76.52 8.7% 77.0% 0.0 pts. $99.32 8.7% Middle Atlantic 825 6 $83.10 8.6% 75.6% 3.9 pts. $109.87 3.0% Mountain 1,155 9 $73.54 5.9% 77.3% -0.8 pts. $95.09 6.9% New England 809 7 $70.92 8.7% 73.7% 1.0 pts. $96.24 7.2% Pacific 474 3 $113.62 11.0% 86.3% 2.9 pts. $131.64 7.3% South Atlantic 5,405 48 $81.49 4.2% 77.0% -0.6 pts. $105.78 5.1% West North Central 830 7 $71.58 3.6% 71.5% -3.9 pts. $100.06 9.3% West South Central 1,605 12 $77.63 6.5% 77.1% -1.9 pts. $100.72 9.1% � Type Upper Upscale 246 1 $105.24 7.8% 79.9% 1.8 pts. $131.69 5.4% Upscale 8,815 78 $82.72 5.1% 76.5% -1.4 pts. $108.16 7.0% Midscale without Food & Beverage 6,364 51 $73.47 8.9% 75.1% 0.5 pts. $97.88 8.2% Midscale with Food & Beverage 397 3 $64.82 7.6% 70.7% -0.1 pts. $91.67 7.8% (1) All Comparable is defined as our system-wide gross lodging revenues for hotels that the Company owned at period end. (2) RevPAR is calculated by multiplying the Company�s average daily rate (ADR) by occupancy. Equity Inns, Inc. � Hotel Performance � For the Six Months Ended June 30, 2007 and 2006 � All Comparable (1) � RevPAR (2) � Occupancy � ADR # of Rooms � # of Hotels � 2007 � Variance to 2006 � 2007 � Variance to 2006 � 2007 � Variance to 2006 Portfolio 15,822 133 $75.92 5.4% 72.6% -1.1 pts. $104.53 6.9% � Franchise Hampton Inn 5,554 45 $70.38 7.9% 71.9% 0.5 pts. $97.88 7.2% Residence Inn 2,299 23 $85.83 7.7% 76.3% 0.6 pts. $112.53 6.9% AmeriSuites 2,291 18 $58.49 -2.4% 66.0% -4.5 pts. $88.56 4.2% Courtyard 1,664 16 $85.86 1.5% 75.7% -4.6 pts. $113.44 7.6% Homewood Suites 1,378 10 $98.58 7.6% 77.6% -1.8 pts. $126.99 10.1% SpringHill Suites 694 7 $74.22 9.6% 76.2% 1.2 pts. $97.45 7.8% Hilton Garden Inn 489 4 $76.15 2.6% 71.5% 0.7 pts. $106.52 1.6% Holiday Inn 397 3 $55.57 9.9% 63.8% -0.8 pts. $87.14 11.3% Hampton Inn & Suites 291 2 $101.29 -2.3% 76.3% -4.1 pts. $132.67 2.9% Comfort Inn 281 2 $70.04 10.6% 65.8% 3.1 pts. $106.45 5.5% Embassy Suites 246 1 $107.10 2.7% 76.9% -1.8 pts. $139.28 5.1% Fairfield Inn & Suites 143 1 $59.32 4.4% 71.6% -3.4 pts. $82.81 9.3% TownePlace Suites 95 1 $57.16 5.8% 75.1% -1.5 pts. $76.07 7.9% � Region East North Central 2,399 19 $66.79 7.4% 65.2% -1.1 pts. $102.48 9.2% East South Central 2,320 22 $70.65 5.9% 72.3% -2.3 pts. $97.75 9.3% Middle Atlantic 825 6 $72.62 13.1% 68.8% 6.0 pts. $105.53 3.3% Mountain 1,155 9 $75.33 6.4% 75.7% -0.7 pts. $99.47 7.4% New England 809 7 $62.41 5.0% 66.4% -1.2 pts. $94.00 6.8% Pacific 474 3 $104.82 9.8% 82.7% 2.5 pts. $126.70 6.5% South Atlantic 5,405 48 $84.06 2.3% 75.8% -1.8 pts. $110.86 4.7% West North Central 830 7 $66.85 5.1% 68.5% -2.4 pts. $97.62 8.8% West South Central 1,605 12 $75.09 8.0% 75.6% -1.1 pts. $99.36 9.6% � Type Upper Upscale 246 1 $107.10 2.7% 76.9% -1.8 pts. $139.28 5.1% Upscale 8,815 78 $79.27 4.2% 73.4% -2.0 pts. $107.94 7.0% Midscale without Food & Beverage 6,364 51 $71.33 7.2% 71.9% 0.3 pts. $99.23 6.8% Midscale with Food & Beverage 397 3 $55.57 9.9% 63.8% -0.8 pts. $87.14 11.3% (1) All Comparable is defined as our system-wide gross lodging revenues for hotels that the Company owned at period end. (2) RevPAR is calculated by multiplying the Company�s average daily rate (ADR) by occupancy.