Printer Friendly

Equity Inns to Purchase Fourth Metro-Chicago Hotel.

GERMANTOWN, Tenn. -- Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate investment trust (REIT), announced today that the Company signed an agreement to purchase a 140-room Marriott Courtyard in the western Chicago suburb of Elmhurst from a partnership controlled by First Hospitality Group for $13.9 million, or $98,000 per key. Exclusive of the estimated market value of an adjoining outparcel which is included in the purchase price, the total purchase price equates to an average cap rate of approximately 9.5%, based upon expected net operating income for the year-end 2006.

The hotel recently completed a $2 million dollar renovation and is not expected to require any significant additional capital investment. The hotel is located on Route 83, a major north-south artery serving Chicago's western suburbs. A significant portion of the hotel's business is concentrated in the numerous office and industrial parks located in the Elmhurst and Oak Brook areas. First Hospitality, which also manages Equity Inn's Homewood Suites in downtown Chicago, will continue to manage the hotel under a performance based contract.

Mr. Howard A. Silver, President and Chief Executive Officer commented, "We are excited to expand our existing relationship with First Hospitality on this proposed acquisition. With the recent completion of an extensive renovation, the hotel is well positioned to continue to outperform its primary competition. Additionally, the purchase price represents an attractive discount to estimated replacement costs in the Chicago 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, which ranks as the third largest hotel REIT based on number of hotels, currently owns 129 hotels with 15,366 rooms located in 35 states. For more information about Equity Inns, visit the Company's Web site at www.equityinns.com.

Non-GAAP Financial Measures

Included in this press release is the term Capitalization Rate, a "non-GAAP financial measure", common in the hotel industry, used by the Company to help discuss its underwriting of acquired or disposed hotel assets. Capitalization rate, for this discussion, is defined as the percentage derived by dividing the net operating income of the hotel asset(s), less a management fee and an allowance for recurring capital expenditures, by the purchase price paid or received for the hotel asset(s).

Forward Looking Statements

Certain matters discussed in this press release which are not historical fact are "forward-looking statements" within the meaning of the federal securities laws and involve risks and uncertainties. The words "may," "plan," "project," "anticipate," "believe," "estimate," "forecast," 'expect," "intend," "will," and similar terms are intended to identify forward-looking statements, which include, without limitation, statements concerning our outlook for the hotel industry, acquisition and disposition plans for our hotels and assumptions and forecasts of future results for fiscal year 2006. Forward-looking statements are not guarantees of future performance and involve numerous risks and uncertainties which may cause our actual financial condition, results of operations 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 2005 Annual Report on Form 10-K filed on March 15, 2006, and our other 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 results 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.
COPYRIGHT 2007 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 
Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Feb 12, 2007
Words:648
Previous Article:Russell Pension Report 2007 Forecasts a Significant 'Breaking Up of the Herd'.
Next Article:New BasePoint Study Finds Fraud Linked to Up to 70% of Early Payment Defaults.
Topics:


Related Articles
Equity Inns Corrects Fourth Quarter 2005 Net Income Guidance.
Equity Inns Announces Fourth Quarter and Year End Results.
Equity Inns Closes the Purchase of Three Marriott Branded Hotels; Company Also Completes the Sale of Three Non-Strategic Assets.
Equity Inns to Purchase Kentucky Hotels.
Equity Inns Announces Third Quarter 2006 Results.
Equity Inns Announces Agreement with Global Hyatt.
Equity Inns to Purchase Hilton Garden Inn Albuquerque North/Rio Rancho, New Mexico.
Equity Inns Completes Purchase of Four Hotels.
Equity Inns Announces Fourth Quarter and Year End 2006 Results.
Equity Inns Expands Presence in California and Texas.

Terms of use | Privacy policy | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters