|MEMPHIS, Tenn., July 9, 1998 - Equity Inns, Inc. (NYSE:
ENN) today announced that it has agreed to purchase two hotels to be developed
in Chicago, IL.
The first hotel is located in downtown Chicago just off of Michigan Avenue while the second is located at O'Hare Airport in the Rosemont area. The hotels, which are both premium extended stay properties, will contain a total of 535 suites.
The downtown Chicago hotel will be part of a new entertainment, retail and office complex anchored by an interactive family entertainment component by The Walt Disney Company. The 91,000 square foot "DisneyQuest" will be the largest Disney facility outside of Orlando and Anaheim.
The hotel, proposed to be a Homewood Suites, will include 235 rooms and be part of a 19-story building containing DisneyQuest, an ESPN Grill and a Bally Total Fitness Center. A Nordstrom's department store will be constructed across the street from the hotel. Equity Inns is acquiring the hotel from RN 120 Company, LLC, an affiliate of The John Buck Company of Chicago and Morgan Stanley Real Estate Funds, for approximately $30.4 million. The Company expects to open the hotel in late spring 1999.
The second hotel Equity Inns is purchasing is located at O'Hare Airport in the Rosemont area of Chicago and will contain a 300 room Hawthorn Suites and a Harry Caray restaurant. The 11-story building, whose completion is scheduled for late 1999 or early 2000, will be acquired from The Harp Group for $33 million.
Phillip H. McNeill, Sr., Chairman and Chief Executive Officer, commented, "These latest additions to Equity Inns' portfolio clearly illustrate our strategy of acquiring sizable properties in large metropolitan areas with major barriers to entry. Each of these hotels is located in a vibrant area of Chicago and adds significant long-term growth potential to our portfolio."
John Iberle, Principal of The John Buck Company, the developer of the downtown Chicago project, stated, "We are pleased to be undertaking such an exciting project with Equity Inns. The hotel will be an important element in an outstanding new development of Chicago's Magnificent Mile."
Howard Silver, Equity Inns' President and Chief Operating Officer, commented, "These transactions have great significance for Equity Inns. Both acquisitions demonstrate our commitment to continue diversifying the Company's portfolio into the premium extended stay and all suite market."
Memphis-based Equity Inns, Inc. is a self-advised REIT that focuses
on the upscale extended stay, all suite and premium limited-service segments
of the hotel industry. With the settlement of these and previously announced
acquisitions and its planned merger with RFS Hotel Investors, Inc., the
Company will own 172 hotels with over 22,000 rooms located in 37 states.
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. From time to time,
these risks are discussed in the Company's filings with the Securities
and Exchange Commission. To receive Equity Inns' latest news and other
corporate developments via fax at no cost, please call
|Equity Inns, RFS Agree to Stock Merger to Create $1.8 Billion Hotel REIT / April 1998|
|Equity Inns Completes Acquisition of Nine AmeriSuites / June 1998|