Equity Inns to Purchase Fourth Metro-Chicago Hotel.
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.
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|Date:||Feb 12, 2007|
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