ENN Equity Inns

Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate investment trust (REIT), today announced that the Company has signed agreements to purchase five Marriott branded hotels for a total price of $114.2 million from partnership�s controlled by the principals of Huntington Hotels. The properties are being purchased at an average capitalization rate of 8.6% based upon trailing twelve months net operating income. The proposed purchase includes the assumption of $56.5 million debt at a blended cost of 6.1%. Huntington Hotels, which currently manages the Carlsbad Courtyard in San Diego for Equity Inns, will retain management of the properties under performance based contracts. The five properties, with an average age of seven years, include a 150-suite Residence Inn at the Los Angeles International Airport; a 95-suite Residence Inn and 137-suite SpringHill Suites in San Diego; a 184-room Courtyard and 116-room Fairfield Inn & Suites located directly across from the Dallas Market Center. Upon closing, the purchase will extend Equity Inns� investment in the Southern California and Dallas metropolitan areas. Mr. Howard A. Silver, President and Chief Executive Officer, commented, �We are pleased to build on our relationship with Huntington Hotel Group, a strong manager with an active development pipeline of premium, select service projects. Additionally, we are excited about increasing our presence in the high barrier markets of Los Angeles and San Diego.� 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 132 hotels with 15,731 rooms located in 35 states. For more information about Equity Inns, visit the Company's Web site at www.equityinns.com. 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 2007. 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 2006 Annual Report on Form 10-K filed on February 28, 2007, 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. 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).