Question-and-Answer Session
Operator
(Operator Instructions). Our first question is from Michael Salinsky with RBC Capital Markets.
Michael Salinsky - RBC Capital Markets
Good morning. Mark, could you touch on your capital spending plans, the full year plans for this year and maybe your initial thoughts about 2009 at this point?
John Murray
As I said, we will probably spend around another 20 million in the fourth quarter. We are in the process right now of working with all of our operators on 2009 capital plans. So, we will be able to give you some color during next quarter's call.
For both total expenditures, we plan to make at our hotels next year as well as how much of those improvements will be funded out of existing FFO reserves versus additional funding by the company.
Michael Salinsky - RBC Capital Markets
Okay. How far would RevPAR have to fall next year before your dividend would be coming into question? You deal with the uncovered by cash flow?
John Murray
We have weathered some pretty significant downturn. You have to remember we have well large capitalized operators and the payment of our rents or minimum returns does not have anything to do with RevPAR growth or declines. So, there are security deposits and guarantees and well capitalized operators. So, we expect that even if there is a fairly significant RevPAR declines in 2009, that we will continue to be paid our rent and minimum returns. Our percentage rent and percentage of returns contingent returns may be impacted but that should be the only impact.
Michael Salinsky - RBC Capital Markets
Okay. That is helpful.
John Murray
We do not rely on those contingent returns to pay our dividends.
Michael Salinsky - RBC Capital Markets
Okay. Third, in terms of TA; obviously the fourth quarter and first quarter are slow periods; do you expect them to take the full deferral again and did they take the deferral in October?
John Murray
We expect that they will through the entire fourth quarter and first quarter continue to defer the rent under the deferral agreement. It may not be necessary in any given month at the front end as you have probably seen that the price of fuel has continued to decline over the course of the month of October but we expect that the deferral will be taken at least through the end of the first quarter.
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