Press Release: Equity Inns, Inc.
October 4, 2001
GERMANTOWN, TN -- Equity Inns, Inc. (NYSE: ENN), a hotel real estate investment trust (REIT), yesterday announced
that it does not expect to reach consensus analysts' earnings estimates for the third and fourth quarters of 2001,
due to the impact of the September 11 tragedies on the travel industry.
Consensus funds from operations (FFO) per share estimates, prior to September 11, were $0.40 and $0.21 for the
2001 third quarter and fourth quarter, respectively. Separately, the company said that Equity Inns chairman, Phillip
H. McNeill, Sr., purchased 30,000 shares of stock on the open market last week.
``Until the travel industry stabilizes it is difficult to provide meaningful guidance,'' said Howard Silver, Equity
Inns president and chief operating officer. ``These are unprecedented times, which makes forecasting extremely
difficult. Nonetheless, we believe that our portfolio will out-perform the industry as a whole, given the current
economic environment.''
Silver added that Equity Inns, like the rest of the industry, has seen a dramatic drop in occupancy as a result
of the terrorist attacks. ``However, the vast majority of our hotels are in the upscale extended-stay and premium
limited service segments, which to date and historically have been less impacted by economic downturns. In addition,
a substantial portion of our hotels are 'drive-to' properties, which are more insulated from severe declines in
air travel.''
Silver noted that, according to Smith Travel Research data for the weeks of September 15 and 22, hotel industry
revenue per available room (RevPAR) declined 20.2 percent and 37.3 percent, respectively, compared to the same
periods a year earlier. Equity Inns RevPAR during the same periods declined 15.7 percent 23.4 percent, respectively.
``Generally speaking, our portfolio is well positioned in the current environment. The properties are in excellent
physical condition, and we are actively asset managing our properties and working closely with our management companies
to aggressively capture market share and lower operating expenses.'' Chairman Buys Stock
Equity Inns chairman Phillip McNeill purchased 30,000 shares of stock during the week of September 17th at prices
ranging from $6.20 to $7.80. ``The long-term health of the hotel industry in general and our company remains quite
positive,'' McNeill said. ``While I have no specific plans, I will continue to purchase stock from time to time
as I would any investment that is a good value with upside potential.''
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, 901/754-7774
or
Daly Gray
Media:
Jerry Daly or Carol McCune, 703/435-6293
or
Financial Relations Board
Analyst Info:
Claire Koeneman, 617/369-9243