Equity Inns Completes Purchase of Hilton Garden Inn and Marriott Courtyard

Business Wire, Nov 2, 2004

GERMANTOWN, Tenn. -- Equity Inns, Inc. (NYSE:ENN), a hotel real estate investment trust (REIT), today announced that it has finalized its purchase of a 93-room Marriott Courtyard in Dalton, Georgia and a 112-room Hilton Garden Inn in Louisville, Kentucky, for approximately $14.4 million. The Company funded the purchase with proceeds from its common stock offering of October 18, 2004. The purchase price represents a capitalization rate of approximately 10.0% on trailing 12 months' net operating income. Equity Inns' expects the hotels to have a positive impact to its 2005 funds from operations.

As previously disclosed, the properties were purchased below their replacement values. Both properties are ideally located, with great visibility from major Interstate highways. The hotel in Dalton, the carpet industry capital of the world, is considered the premier upscale property in that area of the city, while the Louisville property is located in the heart of a major office and industrial park.

Certain matters discussed in this press release which are not historical facts are "forward-looking statements" within the meaning of the federal securities laws and involve risks and uncertainties. The words "may," "plan," "project," "anticipate," "believe," "estimate," "expect," "intend," "will," and similar terms are intended to identify forward-looking statements, which include, without limitation, statements concerning our outlook for the hotel industry, acquisition and disposition plans for our hotels and assumptions and forecasts of future results for fiscal year 2004 and 2005 FFO and FFO per diluted share. Forward-looking statements are not guarantees of future performance and involve numerous risks and uncertainties which may cause our actual financial condition, results of operation and performance to be materially different from the results of expectations expressed or implied by such statements. General economic conditions, future acts of terrorism or war, risks associated with the hotel and hospitality business, the availability of capital, risks associated with our debt financing, hotel operating risks and numerous other factors, may affect our future results and performance and achievements. These risks and uncertainties are described in greater detail in our periodic filings with the United States Securities and Exchange Commission (SEC), including our Form 8-K dated March 11, 2004. We undertake no obligation and do not intend to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially.

About Equity Inns

Equity Inns, Inc. is a self-advised REIT that focuses on the upscale extended stay, all-suite and midscale limited-service segments of the hotel industry. The Company owns 106 hotels with 13,186 rooms located in 34 states. For more information about Equity Inns, visit the Company's Web site at www.equityinns.com.