GERMANTOWN, TN— Equity Inns (EI) has acquired one Marriott Courtyard and sold a Hampton Inn and Hampton Inn & Suites. The Company acquired a 176 room Marriott Courtyard located in the Katy Freeway sub-market of Houston, TX for approximately $16.3 million (or $92,000 per room). The hotel is strategically located directly across from Interstate 10, the corporate offices of Royal Dutch Shell Inc. and ConocoPhilips Inc., and within a two-mile radius of more than 12 million square feet of office space. Wright Investment Properties, the former owner, completed a full renovation and repositioning of the property in late 2001, with the hotel going live on the Marriott reservation system in January 2002. During the past three months the hotel’s average daily room rate was approximately $95.00 with occupancy in the 73% to 75% range. This transaction represents the first investment by EI in the Houston market. As part of the acquisition, EI has awarded a three-year management contract to Wright Hospitality Management. Wright currently manages 38 hotels, primarily Marriott Courtyards, Comfort Inns, and Holiday Inns. EI also announced the sale of a 125-room Hampton Inn in Fort Worth, TX for $3.2 million and a 125-room Hampton Inn & Suites in Memphis (Bartlett), TN for $7.5 million. The sales are part of the firm’s long-term strategy of maximizing hotels performance over time, and disposing of assets when management perceives the long-term cash flow of the property will no longer increase shareholder value.
