Equity Inns to Purchase Two Hotels in Texas
Adds Marriott and Hilton Branded Hotels in Strong Suburban Austin Market
DECEMBER 12, 2006. Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate investment trust (REIT), announced today that the Company executed an agreement to purchase the 104-room SpringHill Suites by Marriott and the 122-room Hilton Garden Inn in the Austin, Texas suburb of Round Rock for a total of $16.3 million, or $72,000 per key from partnerships controlled by LinGate Hospitality. The total purchase price equates to an average cap rate of 9.7%, based upon trailing twelve months net operating income.
The hotels, which are six years old and not encumbered with any existing debt, are well located to a variety of major demand sources including Dell Computer's World Headquarters. The hotels will continue to be managed by LinGate Hospitality under a performance based contract.
Mr. Howard A. Silver, President and Chief Executive Officer commented, 'We continue to purchase younger upscale hotels in good locations with multiple demand drivers. Our ability to acquire each of the hotels at a meaningful discount to estimated replacement cost contributes to the ongoing value creation we have produced for our shareholders. Additionally, we are pleased to be furthering our relationship with LinGate Hospitality.'
Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda,Maryland, USA, with more than 4,200 properties in 80 countries and territories. Marriott International reported revenues of nearly $14 billion in fiscal year 2014. The company operates and franchises hotels and licenses vacation ownership resorts under 19 brands, including: The Ritz-Carlton®, BVlgari®, EDITION®, JW Marriott®, Autograph Collection® Hotels, Renaissance® Hotels, Marriott Hotels®, Delta Hotels and Resorts®, Marriott Executive Apartments®, Marriott Vacation Club®, Gaylord Hotels®, AC Hotels by Marriott®, Courtyard®, Residence Inn®, SpringHill Suites®, Fairfield Inn & Suites®, TownePlace Suites®, Protea Hotels® and MoxyHotels®. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 50 million members. For more information or reservations, please visit our website at 
