ENN Equity Inns

Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate investment trust (REIT), announced today that the Company executed an agreement to purchase the 104-room SpringHill Suites by Marriott and the 122-room Hilton Garden Inn in the Austin, Texas suburb of Round Rock for a total of $16.3 million, or $72,000 per key from partnerships controlled by LinGate Hospitality. The total purchase price equates to an average cap rate of 9.7%, based upon trailing twelve months net operating income. The hotels, which are six years old and not encumbered with any existing debt, are well located to a variety of major demand sources including Dell Computer�s World Headquarters. The hotels will continue to be managed by LinGate Hospitality under a performance based contract. Mr. Howard A. Silver, President and Chief Executive Officer commented, �We continue to purchase younger upscale hotels in good locations with multiple demand drivers. Our ability to acquire each of the hotels at a meaningful discount to estimated replacement cost contributes to the ongoing value creation we have produced for our shareholders. Additionally, we are pleased to be furthering our relationship with LinGate Hospitality.� About Equity Inns Equity Inns, Inc. is a self-advised REIT that focuses on the upscale extended stay, all-suite and midscale limited-service segments of the hotel industry. The Company, which ranks as the third largest hotel REIT based on number of hotels, currently owns 125 hotels with 14,924 rooms located in 35 states. For more information about Equity Inns, visit the Company's Web site at www.equityinns.com. Non-GAAP Financial Measures Included in this press release is the term Capitalization Rate, a "non-GAAP financial measure", common in the hotel industry, used by the Company to help discuss its underwriting of acquired or disposed hotel assets. Capitalization rate, for this discussion, is defined as the percentage derived by dividing the net operating income of the hotel asset(s), less a management fee and an allowance for recurring capital expenditures, by the purchase price paid or received for the hotel asset(s). Forward Looking Statements Certain matters discussed in this press release which are not historical fact are �forward-looking statements� within the meaning of the federal securities laws and involve risks and uncertainties. The words �may,� �plan,� �project,� �anticipate,� �believe,� �estimate,� �forecast,� �expect,� �intend,� �will,� and similar terms are intended to identify forward-looking statements, which include, without limitation, statements concerning our outlook for the hotel industry, acquisition and disposition plans for our hotels and assumptions and forecasts of future results for fiscal year 2006. Forward-looking statements are not guarantees of future performance and involve numerous risks and uncertainties which may cause our actual financial condition, results of operations and performance to be materially different from the results of expectations expressed or implied by such statements. General economic conditions, future acts of terrorism or war, risks associated with the hotel and hospitality business, the availability of capital, risks associated with our debt financing, hotel operating risks and numerous other factors, may affect our future results and performance and achievements. These risks and uncertainties are described in greater detail in our 2005 Annual Report on Form 10-K filed on March 15, 2006, and our other periodic filings with the United States Securities and Exchange Commission (SEC). We undertake no obligation and do not intend to publicly update or revise any forward-looking statement, whether as a results of new information, future events or otherwise. Although we believe our current expectations to be based upon reasonable assumptions, we can give no assurance that our expectations will be attained or that actual results will not differ materially.