On February 2, 2012, we modified our existing credit facility with Wells Fargo Bank, National Association, effective December 31, 2011, as follows:

• The financial covenant relating to the loan commitment coverage ratio was eliminated. In lieu thereof, we agreed that borrowings under the facility's revolving line of credit will be limited based on a formula relating to the trailing twelve-month consolidated net income of the hotel properties collateralizing the facility.

• The financial covenant relating to debt service coverage ratio was liberalized.

• We were relieved of our obligation to offer our hotel in Medford, Oregon as additional security for the facility.

• For the period from January 1, 2012 through August 31, 2012, the margins on the interest rate options under the term loan and revolving line of credit were increased (i) to 2.5% for borrowings accruing interest by reference to the facility's base rate, and (ii) to 5% for borrowings accruing interest by reference to LIBOR. Thereafter, the margins will decrease to at most 2% and 4.5%, respectively, or to as low as 1% and 3.5%, respectively, if our senior leverage ratio decreases sufficiently.

We paid a fee of $10,000 in connection with the modification of the facility.

The foregoing summary of the modifications is qualified by the express terms of the modification documents, copies of which are filed as Exhibits 10.1 through 10.3 to this current report. Although the documents are all dated January 31, 2012, they were first fully executed and delivered on February 2, 2012.

The information described above under "Item 1.01. Entry into a Material Definitive Agreement" is hereby incorporated by reference.

(d) Exhibits.

Exhibit
  No.                                       Exhibit

10.1         First Amendment dated January 31, 2012 to Amended And Restated Credit
             Agreement between the Registrant and Wells Fargo Bank, National
             Association

10.2         First Modification to Promissory Note (Term Note) dated January 31,
             2012

10.3         First Modification to Promissory Note (Revolving Line of Credit Note)
             dated January 31, 2012

Dated: February 7, 2012 By: /s/ Thomas L. McKeirnan Thomas L. McKeirnan Senior Vice President, General Counsel and Secretary