Equity Inns, Inc. (NYSE: ENN), a hotel real estate investment trust (REIT), today announced that it has sold a 101-room Holiday Inn Express in Wilkesboro, North Carolina for $3.4 million. The sale was part of Equity Inn`s long- term strategy of maximizing hotels performance while disposing of assets when management perceives the long-term cash flow of the property no longer increases shareholder value.
Equity Inns estimates that the impact of the sale will be neutral to its 2003 funds from operations.
Management also announced today that on August 19, 2003 it obtained a $10.75 million five-year secured loan from AmSouth Bank related to its Marriott Courtyard property in Houston, Texas.
The proceeds from both transactions will be used to reduce the outstanding balance on the Company`s line of credit. According to management, this will provide additional capacity for future investments.
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 owns 94 hotels with 12,100 rooms located in 34 states. For more information about Equity Inns, visit the company`s Web site at www.equityinns.com.
Forward Looking Statements: Certain matters within this press release are discussed using forward-looking language as specified in the 1995 Private Securities Litigation Reform Law, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. Such risks and uncertainties include, but are not limited to, the following: the ability of the company to cope with domestic economic and political disruption and Federal and state governmental regulation of war, terrorism, states of emergency or similar activities resulting from the terrorist attacks occurring on September 11, 2001; the ability of the company to successfully implement its operating strategy; changes in economic cycles; competition from other hospitality companies; and changes in the laws and government regulations applicable to the company. From time to time, these and other risks are discussed in the company`s filings with the Securities and Exchange Commission.