GERMANTOWN, TN Equity Inns, a hotel REIT, has signed an agreement with Hilton Hotels Corp. under which Hilton will manage 16 of the REITs hotels for a term of two years. All 16 hotels are Hilton-branded properties 15 are Hampton Inns and one is a Homewood Suites by Hilton. The properties previously were leased and managed by Interstate Hotels Corp.
The reassignment was precipitated by the REIT Modernization Act (RMA), which allows REITs greater control of their properties by establishing taxable REIT subsidiaries which function as lessees, with hotel management provided by independent companies. With the completion of the Hilton agreement, Equity Inns has two remaining management contracts currently under negotiation, both of which are expected to be announced on January 9. (1/8/01)