The hotel REIT said the 13 percent increase in its FFO was fueled by an 8.4% advance in revenue per available room (RevPar) from $81.95 in the second quarter 1999 to $88.91. Eight Silicon Valley properties accounted for 3 percent of the jump among all of Innkeepers 67 hotels, the company reported.

Alas, because of more difficult comparisons with a strong 1999 second half and persistent moves by the Fed to slow the economy by increasing interest rates, Innkeepers chairman, CEO and president Jeff Fisher says the RevPAR growth "may not be sustainable in the second half."

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