|MEMPHIS, Tenn., June 29, 1998 - Equity Inns, Inc.
(NYSE: ENN) today announced that the Company has closed its purchase of
a portfolio of nine AmeriSuites for approximately $97 million from Prime
Hospitality Corp. (NYSE: PDQ). The nine properties, which have a total
of 1,165 rooms, are located in eight different states and include the AmeriSuites
chain's largest hotel, a 202 room hotel located in Las Vegas, Nevada.
Commenting on the transaction, Phillip H. McNeill, Sr., Chairman and Chief Executive Officer, said, "With thisacquisition, Equity Inns' portfolio surpasses the 100 hotel mark. We are very proud of reaching this milestone, which highlights the steady growth Equity Inns has achieved since becoming a public company with eight hotels in March 1994."
Howard Silver, President and Chief Operating Officer, added, "This acquisition also demonstrates the success of Equity Inns' strategy of forming strategic alliances with dynamic companies that are aggressively growing their franchises. Since entering into our alliance with Prime Hospitality in September 1997, we have acquired 19 AmeriSuites with more than 2,400 rooms. In total, Equity Inns has formed four strategic alliances with carefully selected partners that provide us with a significant flow of acquisition candidates and a proven avenue for future growth."
In September 1997, Equity Inns entered into a strategic alliance with Prime Hospitality that gives Equity Inns the right of first offer to purchase up to 20 AmeriSuites per year for three years. Equity Inns' other strategic alliance partners are Promus Hotel Corporation, Interstate Hotels Company and U.S. Franchise Systems.
In addition to Las Vegas, NV, the nine AmeriSuites are located in Miami (Kendall), FL; Memphis-Wolfchase, TN; Baltimore-BWI, MD, Albuquerque, NM; Baton Rouge, LA; Birmingham-Riverchase, AL; Minneapolis-Mall of America, MN, and Nashville-Cool Springs, TN. The portfolio originally included a tenth hotel that Equity Inns elected not to purchase.
Memphis-based Equity Inns, Inc. is a self-advised REIT that focuses on the upscale extended stay, all suite and premium limited-service segments of the hotel industry. With the settlement of previously announced acquisitions, and its planned merger with RFS Hotel Investors, Inc., the Company will own 170 hotels with over 22,000 rooms located in 37 states.
Certain matters within this press release are discussed using forward-
looking language as specified in the 1995 Private Securities Litigation
Reform Law, and, as such, may involve known and unknown risks, uncertainties
and other factors that may cause the actual results or performance to differ
from those projected in the forward-looking statement. From time to time,
these risks are discussed in the Company's filings with the Securities
and Exchange Commission.