GERMANTOWN, TN— Equity Inns, Inc. has signed a contract to acquire four Kentucky hotels from Musselman Hotels, LLC for $53.8 million. The hotels include a six-year-old, 90-room Courtyard by Marriott in Hamburg; a two-year-old, 91-room Residence Inn in Hamburg; a two-year-old, 108-suite SpringHill Suites in Lexington; and a six-year-old 140-room Courtyard by Marriott in Louisville. The purchase price will represent a capitalization rate of about 10% based on trailing 12-month net operating income. The acquisition will also involve Equity Inns’ assumption of $27 million in existing debt. Upon the deal’s closing, Musselman Hotels will remain as the hotels’ operator under a three-year, performance-based management contract.
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