An increase in revenue per available room of 8.7%, to $92.11, upfrom $84.71, was responsible for the increase in FFO. The increasewas balanced between a rise in the average daily rate of 5.3% andan increase in occupancy of 3.2%.

CEO and president Jeff Fisher notes that, "Our record resultsduring the third quarter were fueled solely by strong internalgrowth. Once again our Silicon Valley properties led the way,reporting average RevPAR growth of 19.5%.

The firm, which operates 67 extended-stay hotels, continues tosell non-strategic properties, about 10% of its portfolio, andadding hotels in markets with high barriers to entry and strongunderlying demand growth. Its 121-room Residence Inn in TysonsCorner, scheduled to open early next year, is being partiallyfunded by the sale of its Comfort Inn in Allentown, PA for about$6.5 million. The balance of the funding will come from borrowingon its $130 million unsecured line of credit. Total developmentcosts should amount to approximately $14 million.