Equity Inns Forecasts Stronger Than Expected Fourth Quarter

Company Projects FFO Per Share Will Exceed Consensus Estimates By 19 Percent

Press Release
December 15, 2000
MEMPHIS, TN -- Equity Inns, Inc. (NYSE:ENN), a hotel real estate investment trust (REIT), yesterday announced that the company expects fourth quarter and full-year 2000 earnings will be greater than current consensus analysts' estimates.

``Our hotels performed extremely well in October and November, as revenue per available room (RevPAR) increased an average of approximately 5 percent for the two months,'' said Howard Silver, Equity Inns' president and COO. ``As a result of our higher-than-expected RevPAR, we are revising upward our funds from operations (FFO) estimates for the fourth quarter and full-year 2000.''

``Analysts currently are estimating that our fourth quarter FFO per share will be $0.21, with full-year 2000 FFO per share projected at $1.39,'' Silver added. ``Based on higher-than-anticipated RevPAR increases at our properties in October and November, we are raising our FFO estimates for the fourth quarter and full-year to $0.25 and $1.42, respectively. Analysts currently are projecting FFO per share of $1.32 in 2001, and we remain comfortable with that number at the present time.''

``The broad-based RevPAR increases in October and November were our highest since 1997,'' said Donald H. Dempsey, Equity Inns' chief financial officer. ``In addition to a positive economic climate, we believe these increases also reflect a number of other factors, including our increased asset management activities, the continuing absorption of new supply in some markets and the gradual, strategic repositioning of our portfolio toward upscale all-suite and extended stay hotels from smaller, limited service properties in tertiary markets.''

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: 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. From time to time, these risks are discussed in the company's filings with the Securities and Exchange Commission.

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Contact: 

     Equity Inns, Inc. (Company)
     Howard Silver, President, 901/754-7774
        or
     Daly Gray (Media)
     Jerry Daly or Carol McCune, 703/435-6293
        or
     Financial Relations Board (Analyst Info)
     Claire Koeneman, 312/640-6784