ENN Equity Inns

Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate investment trust (REIT), announced today the purchase of a 246-suite Embassy Suites/International Drive in Orlando from a partnership controlled by Mississippi Management for $28 million or $113,000 per suite. The Hilton branded hotel is located approximately one mile north of the Orlando Convention Center, which just completed a 1.5 million square foot addition. Mississippi Management will continue to operate the property under a two-year performance based contract. The hotel recently completed a significant renovation of its public areas and guestrooms. Equity Inns expects to invest additional capital to complete new Embassy brand upgrades. Mr. Howard Silver, President and Chief Executive Officer, commented, "We are particularly excited to be acquiring our first Embassy Suite hotel in one of the country's most dynamic lodging markets. The recent doubling in size of the Convention Center coupled with ongoing investment and improvements at Universal and Sea World enhances the long-term viability of this submarket. Further, we believe the per room purchase price represents a discount to replacement cost to acquire one of the premier, full service all-suite hotels serving the International Drive/Convention Center area." The Company expects this transaction to close by the end of the third quarter of 2006. 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 125 hotels with 14,845 rooms located in 36 states. For more information about Equity Inns, visit the Company's Web site at www.equityinns.com.