Equity Inns Divests Two Exterior Corridor Hampton Inns Hotels; Completes Purchase of Previously Announced Hilton-Branded Hampton Inn and Suites

Business Wire, August 9, 2005

GERMANTOWN, Tenn. -- Equity Inns, Inc. (NYSE: ENN), a hotel real estate investment trust (REIT), today announced that it has finalized the divestiture of two hotels for approximately $5.1 million at a combined capitalization rate of 7.7% in two separate transactions. The sold properties include two Hampton Inns located in Memphis, Tennessee and Louisville, Kentucky. Collectively, the two Hampton Inns have 235 rooms and an average age of almost 20 years.

Additionally, the Company recently completed the purchase of a 127-room Hilton-branded Hampton Inn & Suites in Nashville (Franklin), Tennessee for $9.9 million. The hotel was purchased from the Franklin Inn & Suites, L.P.

Howard Silver, Chief Executive Officer and President stated, "We continue to upgrade our hotel portfolio by simultaneously acquiring and divesting hotel properties when it makes sense. These sales are in keeping with our desire to limit our presence in hotels with exterior corridors, and improve the age profile of our hotel portfolio."

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). 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 116 hotels with 14,062 rooms located in 34 states. For more information about Equity Inns, visit the Company's Web site at www.equityinns.com.