Equity Inns to Acquire Second Hilton Garden Inn

Business Wire, Feb 24, 2005

GERMANTOWN, Tenn. -- Equity Inns, Inc. (NYSE: ENN), a hotel real estate investment trust (REIT), today announced that it has agreed to purchase a 126-room Hilton Garden Inn located in Ft. Myers, Florida from a Massachusetts based partnership for a total cost of $14.5 million, or $115,000 per room. This represents an approximate 10% capitalization rate on trailing 12 month's net operating income. This acquisition is scheduled to close in the first quarter of 2005, subject to the Company completing its customary due diligence procedures.

The hotel opened in September 2001 in a market dominated by hotels over fifteen years old. The property is situated in the center of the Ft. Myers' predominate office market, which includes more than one million square feet within one mile.

As part of the acquisition, McKibbon Hotel Management, Inc. will manage the hotel with incentive-based management contracts. McKibbon currently manages thirteen Marriott brand hotels for Equity Inns in the southeast United States. This marks the first time McKibbon has been selected to manage a hotel that Equity Inns did not acquire from the McKibbon Group.

Howard Silver, Chief Executive Officer and President stated, "Our goal in 2005 is to continue to identify and acquire properties that can contribute meaningfully and provide value over the long-term. With this purchase of the Company's second Hilton Garden Inn, we further increase our presence in the state of Florida and expand into a new market for us. The Fort Myers/Bonita Springs area is the third fastest growing MSA in the United States and is the dominant commercial hub for the expanding southwest Florida market."

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 109 hotels with 13,511 rooms located in 34 states. For more information about Equity Inns, visit the Company's Web site at www.equityinns.com.