Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

Subsequent Events

On October 25, 2012, the Company acquired a leasehold interest in the 196-room Hotel Palomar located in San Francisco, California for $58.0 million. The acquisition was funded with $30.8 million of available cash and the assumption of a $27.2 million first mortgage loan. The hotel is subject to a long-term lease that expires in June 2097. The hotel is required to pay the greater of a base rent, as adjusted for consumer price index (“CPI”) increases, or a percentage of rooms revenues, food and beverage revenues, and other department revenues in excess of certain thresholds, as defined in the agreement.

In October 2012, the Company issued 150,000 common shares at an average price of $23.50 per share to settle the September 27, 2012 final sale under the $125.0 million ATM program and raised $3.5 million, net of commissions. As of October 25, 2012, $170.0 million of common shares remained available for issuance under the $170.0 million ATM program.