Equity Inns to Purchase Fourth Chicago Hotel

. October 14, 2008

FEBRUARY 13, 2007. Equity Inns, Inc. (NYSE: ENN), the third largest hotel real estate investment trust (REIT), announced today that the Company signed an agreement to purchase a 140-room Marriott Courtyard in the western Chicago suburb of Elmhurst from a partnership controlled by First Hospitality Group for $13.9 million, or $98,000 per key. Exclusive of the estimated market value of an adjoining outparcel which is included in the purchase price, the total purchase price equates to an average cap rate of approximately 9.5%, based upon expected net operating income for the year-end 2006.

The hotel recently completed a $2 million dollar renovation and is not expected to require any significant additional capital investment. The hotel is located on Route 83, a major north-south artery serving Chicago's western suburbs. A significant portion of the hotel's business is concentrated in the numerous office and industrial parks located in the Elmhurst and Oak Brook areas. First Hospitality, which also manages Equity Inn's Homewood Suites in downtown Chicago, will continue to manage the hotel under a performance based contract.

Mr. Howard A. Silver, President and Chief Executive Officer commented, "We are excited to expand our existing relationship with First Hospitality on this proposed acquisition. With the recent completion of an extensive renovation, the hotel is well positioned to continue to outperform its primary competition. Additionally, the purchase price represents an attractive discount to estimated replacement costs in the Chicago market."

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