Equity Inns Closes Mortgage Debt Offering; Net Proceeds Used to Reduce Variable Rate Debt

Equity Inns, Inc. (NYSE: ENN), the third largest hotel
real estate investment trust (REIT), announced that the Company
completed a $73.5 million offering of Senior Mortgage Debt. The
Company used seven hotels as collateral for the loan. The 10-year loan
bears interest at a fixed rate of 5.44% per annum. The net proceeds of
the offering were used pay off existing variable rate long-term debt
and to pay down the Company's line of credit.
   Mr. Howard Silver, President and Chief Executive Officer,
commented, "We are extremely pleased to have completed this
transaction, as it serves to reduce our average interest rate cost and
increase the Company's already high proportion of balance sheet fixed
rate debt to 97%."
   GE Real Estate acted as sole underwriter in the deal.

   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 123 hotels with
14,788 rooms located in 36 states. For more information about Equity
Inns, visit the Company's Web site at www.equityinns.com.