Equity Inns will acquire two hotels in Grand Rapids, Michigan, one a Hampton Inn and the other a SpringHill Suites, along with two Hampton Inns located in East Lansing, Michigan, and Champaign/Urbana, Illinois. Collectively, the four hotels have an average age of 5 years and will add 376 rooms to the Company's hotel portfolio. The average cap rate of the acquisition is approximately 9.7% on a trailing 12-month net operating income basis. 

HSI will manage the properties for three years with a base fee plus incentive structured management agreement. In addition to the four hotels to be acquired by Equity Inns, HSI owns and operates 19 other hotels in the upper Midwest region. 

Howard Silver, President and Chief Executive Officer commented, "We are pleased to expand our presence in Michigan and Illinois, with Hilton and Marriott branded hotels. With this transaction we are acquiring newer, premium-branded hotels in growth markets at a discount to their replacement value. Importantly, we are also adding a new hotel management company and hotel developer to our roster, in keeping with our strategy of adding quality managers, while diversifying our hotel portfolio." 

The Hampton Inn and SpringHill Suites in Grand Rapids are located two miles north of downtown, with easy access from major highways. Grand Rapids is the second largest MSA in Michigan and serves as the primary commercial, medical and financial hub for the western Michigan area. The Hampton Inns in East Lansing and Champaign are both located near major state universities - Michigan State University and the University of Illinois. 

When these transactions and other announced acquisitions are finalized, the Company will own 122 hotels with 14,643 rooms in 35 states. 
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. 

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 14,061 rooms located in 34 states. 

Equity Inns, Inc.
Howard Silver/Mitch Collins
901-754-7774
www.equityinns.com