Equity Inns to Purchase Two Hotels in Texas
11 Dezembro 2006 - 7:01PM
Business Wire
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.� 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.
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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