ENN Equity Inns

Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate investment trust (REIT), today announced that the Company has signed a contract to purchase a seven year old 129-room Hilton Garden Inn in the Albuquerque suburb of Rio Rancho, New Mexico from a partnership controlled by LinGate Hospitality for $11.5 million or $89,000 per key. The purchase price represents a capitalization rate of approximately 10% based upon trailing twelve-month net operating income. The Company also expects to invest about $1.0 million for renovations to the hotel. LinGate Hospitality will retain management under a three year, performance based management contract. Rio Rancho, which is the state�s third largest city with over 75,000 residents, possesses an expanding economic base with such companies as Intel, US Cotton, Sprint/Nextel and Nikon. The City is also within easy driving distance to Santa Fe, New Mexico�s largest tourist destination and state capital. Mr. Howard Silver, President and CEO, commented, �We are excited about our second investment in one of the more dynamic and growing markets of the Western United States. The Rio Rancho area continues to attract business and residents due to its excellent location and infrastructure. We believe we are purchasing a strong asset at an attractive price. Upon completion of the hotel�s renovation, the asset will be in nearly new condition.� The Company expects to close the transaction by the end of the fourth quarter of this year. Forward Looking Statements Certain matters discussed in this press release which are not historical facts 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 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. 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 14,924 rooms located in 35 states. For more information about Equity Inns, visit the Company's Web site at www.equityinns.com. Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate investment trust (REIT), today announced that the Company has signed a contract to purchase a seven year old 129-room Hilton Garden Inn in the Albuquerque suburb of Rio Rancho, New Mexico from a partnership controlled by LinGate Hospitality for $11.5 million or $89,000 per key. The purchase price represents a capitalization rate of approximately 10% based upon trailing twelve-month net operating income. The Company also expects to invest about $1.0 million for renovations to the hotel. LinGate Hospitality will retain management under a three year, performance based management contract. Rio Rancho, which is the state's third largest city with over 75,000 residents, possesses an expanding economic base with such companies as Intel, US Cotton, Sprint/Nextel and Nikon. The City is also within easy driving distance to Santa Fe, New Mexico's largest tourist destination and state capital. Mr. Howard Silver, President and CEO, commented, "We are excited about our second investment in one of the more dynamic and growing markets of the Western United States. The Rio Rancho area continues to attract business and residents due to its excellent location and infrastructure. We believe we are purchasing a strong asset at an attractive price. Upon completion of the hotel's renovation, the asset will be in nearly new condition." The Company expects to close the transaction by the end of the fourth quarter of this year. Forward Looking Statements Certain matters discussed in this press release which are not historical facts 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 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. 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 14,924 rooms located in 35 states. For more information about Equity Inns, visit the Company's Web site at www.equityinns.com.