Equity Inns Announces 2006 Dividend Allocation

  
    
  
  
    
      Equity Inns, Inc. (NYSE:ENN), the third largest hotel real estate 
      investment trust (REIT), today announced that the characterization of 
      its 2006 dividends for income tax reporting purposes are as follows:
    
    Common Stock
------------
                                                  2006
                                                 Taxable      2006
        Dividend  Date of     Record   Date of  Ordinary   Return of
        Per Share Declaration  Date    Payment  Dividends   Capital
        --------- ----------- -------- -------- ---------  ---------

          $0.19    3/6/06     3/31/06  5/1/06   $0.090151  $0.099849
          $0.19    6/15/06    6/30/06  8/1/06   $0.090151  $0.099849
          $0.23    9/15/06    9/29/06  11/1/06  $0.109131  $0.120869
          $0.23    12/14/06   12/29/06 1/31/07  $0.109131  $0.120869
          -----                                 ---------  ---------

Totals    $0.84                                 $0.398564  $0.441436
          =====                                 =========  =========

                                                47.4482%   52.5518%
                                                =========  =========


Preferred Stock - Series B
--------------------------
                                                  2006
                                                 Taxable
        Dividend  Date of     Record   Date of  Ordinary
        Per Share Declaration Date     Payment  Dividends
        --------- ----------- -------- -------- ---------

        $0.546875  3/6/06     3/31/06  4/28/06  $0.546875
        $0.546875  6/15/06    6/30/06  7/31/06  $0.546875
        $0.546875  9/15/06    9/29/06  10/31/06 $0.546875
        $0.546875  12/14/06   12/29/06 1/31/07  $0.546875
        ---------                               ---------

Totals  $2.187500                               $2.187500
        =========                               =========

                                                     100%
                                                     ====

Preferred Stock - Series C
--------------------------

                                                  2006
                                                 Taxable
        Dividend  Date of     Record   Date of  Ordinary
        Per Share Declaration Date     Payment  Dividends
        --------- ----------- -------- -------- ---------

        $0.411111  3/6/06     3/31/06  4/28/06  $0.411111
        $0.500000  6/15/06    6/30/06  7/31/06  $0.500000
        $0.500000  9/15/06    9/29/06  10/31/06 $0.500000
        $0.500000  12/14/06   12/29/06 1/31/07  $0.500000
        ---------                               ---------

Totals  $1.911111                               $1.911111
        =========                               =========

                                                     100%
                                                     ====
    
      Per a special provision in the Internal Revenue Code, the fourth quarter 
      dividend declared in December 2006 and paid in January 2007 is deemed to 
      have been paid by Equity Inns and received by shareholders on December 
      31, 2006. Therefore, this dividend will be included on Form 1099-DIV for 
      2006.
    
    
      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 129 hotels with 15,366 rooms 
      located in 35 states. For more information about Equity Inns, visit the 
      Company’s Web site at www.equityinns.com.