GERMANTOWN, TN— Equity Inns, Inc. has inked an agreement to purchase for approximately $14 million two hotels from two limited partnerships that are managed by LinGate Hospitality Group of Owensboro, KY. Equity Inns will acquire a 93-room Marriott Courtyard in Dalton, GA, and acquire its first Hilton Garden Inn, a 112-room property located in Louisville, KY. Both hotels are five years old, and the total purchase price represents a capitalization rate of approximately 10% on trailing twelve months net operating income. Equity Inns estimates the impact of the hotels will be positive to its 2005 funds from operations. The transaction is expected to close during fourth-quarter 2004. LinGate will manage the acquired hotels for a minimum of three years under an incentive based management fee. When the transaction is complete, Equity Inns will own 106 hotels.
