We are committed to maintaining a conservative and flexible capital structure with prudent leverage levels. We have taken advantage of the low interest environment by fixing our debt rates for an extended period of time. Depending on the outlook for interest rates in the future we maintain the flexibility to modify these strategies.

As of December 31, 2007, 99.4% of our debt carried fixed interest rates, with a weighted-average interest rate of 5.6%, and a weighted-average maturity date of 7.6 years. As of December 31, 2007, we had $824.5 million of debt outstanding, representing a net debt-to-enterprise value ratio of 36%, which is calculated as our net debt (debt less unrestricted cash) divided by our enterprise value, which is our market capitalization plus net debt.

We prefer a relatively simple but efficient capital structure. We have not invested in joint ventures and have not issued any operating partnership units or preferred stock. We endeavor to structure our hotel acquisitions so that they will not overly complicate our capital structure; however, we will consider a more complex transaction if we believe that the projected returns to our stockholders will significantly exceed the returns that would otherwise be available.

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