GERMANTOWN, Tenn. - July 27, 2006 -- Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate investment trust (REIT), today announced the purchase of three hotels from LinGate Hospitality Group for a combined purchase price of $26.16 million. The three hotels have a combined 378 rooms, equating to a purchase price of approximately $69,000 per key. LinGate Hospitality will retain management of the three hotels.
Two of the hotels are SpringHill Suites by Marriott located in the Texas markets of San Antonio and Houston including a 122-room hotel located one mile north of the Houston Hobby Airport and a 122-room property located at San Antonio's northwest side at the intersection of I-410 and I-10. Additionally, the agreement includes a 144-room Fairfield Inn & Suites located in the Atlanta suburb of Vinings directly across from Home Depot's world headquarters.
Mr. Howard Silver, President and Chief Executive Officer, commented, "This portfolio purchase is beneficial in a number of ways. All of the hotels are well-located in top-25 MSAs, each with multiple demand drivers. This is an attractively priced portfolio with an average cap rate of just under 10%. We are excited about the continued growth of our relationship with LinGate and look to furthering our partnership in the years to come as we continue to focus on increasing value for our shareholders."
The average age of the portfolio is eight years. Each of the hotels, with the exception of the Fairfield Inn & Suites, has recently completed multi-million dollar renovations. The Company expects this transaction to close by the end of the third quarter of 2006.
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Equity Inns, Inc.
|Also See:||Equity Inns, Inc. Acquiring Four Midwest Hotels for Approximately $25.9 million, or $69,000 Per Room / August 2005|
|Equity Inns, Inc. Acquiring Five Marriott Branded Hotels Containing 435 rooms from the McKibbon Hotel Group for $45.5 million / December 2005|