Equity Inns (NYSE:ENN)
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From Jul 2019 to Jul 2024
Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate
investment trust (REIT), today announced that the Company has signed a
contract to purchase a seven year old 129-room Hilton Garden Inn in the
Albuquerque suburb of Rio Rancho, New Mexico from a partnership
controlled by LinGate Hospitality for $11.5 million or $89,000 per key.
The purchase price represents a capitalization rate of approximately 10%
based upon trailing twelve-month net operating income. The Company also
expects to invest about $1.0 million for renovations to the hotel.
LinGate Hospitality will retain management under a three year,
performance based management contract.
Rio Rancho, which is the state’s third largest
city with over 75,000 residents, possesses an expanding economic base
with such companies as Intel, US Cotton, Sprint/Nextel and Nikon. The
City is also within easy driving distance to Santa Fe, New Mexico’s
largest tourist destination and state capital.
Mr. Howard Silver, President and CEO, commented, “We
are excited about our second investment in one of the more dynamic and
growing markets of the Western United States. The Rio Rancho area
continues to attract business and residents due to its excellent
location and infrastructure. We believe we are purchasing a strong asset
at an attractive price. Upon completion of the hotel’s
renovation, the asset will be in nearly new condition.”
The Company expects to close the transaction by the end of the fourth
quarter of this year.
Forward Looking Statements
Certain matters discussed in this press release which are not historical
facts 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 result 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.
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.
Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate
investment trust (REIT), today announced that the Company has signed a
contract to purchase a seven year old 129-room Hilton Garden Inn in
the Albuquerque suburb of Rio Rancho, New Mexico from a partnership
controlled by LinGate Hospitality for $11.5 million or $89,000 per
key. The purchase price represents a capitalization rate of
approximately 10% based upon trailing twelve-month net operating
income. The Company also expects to invest about $1.0 million for
renovations to the hotel. LinGate Hospitality will retain management
under a three year, performance based management contract.
Rio Rancho, which is the state's third largest city with over
75,000 residents, possesses an expanding economic base with such
companies as Intel, US Cotton, Sprint/Nextel and Nikon. The City is
also within easy driving distance to Santa Fe, New Mexico's largest
tourist destination and state capital.
Mr. Howard Silver, President and CEO, commented, "We are excited
about our second investment in one of the more dynamic and growing
markets of the Western United States. The Rio Rancho area continues to
attract business and residents due to its excellent location and
infrastructure. We believe we are purchasing a strong asset at an
attractive price. Upon completion of the hotel's renovation, the asset
will be in nearly new condition."
The Company expects to close the transaction by the end of the
fourth quarter of this year.
Forward Looking Statements
Certain matters discussed in this press release which are not
historical facts 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
result 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.
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.