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Press Release: Equity Inns, Inc.
September 24, 2002
GERMANTOWN, TN -- Equity Inns, Inc. (NYSE: ENN), a premier hotel real estate investment trust (REIT), yesterday
announced that it is updating third quarter earnings guidance.
Based on current information, the Company now estimates that third quarter Funds From Operations (FFO) per share
will range from $0.29 to $0.30, compared to prior guidance of $0.33 to $0.34 per share. The majority of this estimate
revision is related to a non-cash adjustment of the Company's deferred tax benefit asset.
EBITDA will range from $20.0 million to $21.0 million compared to prior guidance of $21 million to $22 million.
Equity Inns also confirmed its third quarter flat Revenue per Available Room (RevPAR) guidance. The Company's RevPAR
for July 2002 was up 0.1% compared to the same period in 2001, August was down 3.7% and for the first seventeen
days of September the trend improved to an increase of 0.5%. Equity Inns' RevPAR compares favorably to the industry's
RevPAR, which was down 2.0% in July and 5.0% in August. The Company's occupancy rate for July was approximately
73.8% as compared to 71.8% for the prior year, while August occupancy was 72.0% compared to 73.3% last year.
The Company is now providing fourth quarter guidance for FFO per share to be within the range of $0.13 to $0.17
per share, which includes a $0.04 per share income tax benefit, and EBITDA to be within the range of $13.0 million
to $17.0 million. Implicit in the Company's guidance is a RevPAR range of (2.0)% to 3.0%, which is based on the
unpredictable business environment.
Phillip H. McNeill, Sr., Chief Executive Officer and Chairman of the Board stated, "The business climate remains
uncertain and inconsistent to the point we believe it is prudent to provide conservative fourth quarter guidance.
Regarding our quarter to date REVPAR performance, we believe the location and composition of our assets are helping
to mitigate some of the downward pressure that is being experienced throughout the industry."
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 owns 96 hotels with approximately 12,300 rooms located in 34 states.
For more information about Equity Inns, visit the company's Web site at www.equityinns.com
Certain matters within this press release are discussed using forward-looking language as specified in the 1995
Private Securities Litigation Reform Law, and, as such, may involve known and unknown risks, uncertainties and
other factors that may cause the actual results or performance to differ from those projected in the forward-looking
statement. Such risks and uncertainties include, but are not limited to, the following: the ability of the company
to cope with domestic economic and political disruption and Federal and state governmental regulation of war, terrorism,
states of emergency or similar activities resulting from the terrorist attacks occurring on September 11, 2001;
the ability of the company to successfully implement its operating strategy; changes in economic cycles; competition
from other hospitality companies; and changes in the laws and government regulations applicable to the company.
From time to time, these and other risks are discussed in the company's filings with the Securities and Exchange
Commission.
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Contact:
Equity Inns, Inc.
Don Dempsey, 901/754-7774
or
Integrated Corporate Relations, Inc.
Brad Cohen, 203/222-9013
Source: Equity Inns, Inc.