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Equity Inns Buys Four Florida Hotels

GERMANTOWN, TN-The locally headquartered hotel REIT pays $42.6 million for 407 rooms in four hotels in the Florida cities of Sarasota, Fort Myers and Orlando.

By Brian K. Miller | Updated on June 20, 2005

GERMANTOWN, TN-Equity Inns Inc. has added to its portfolio 407 rooms in four Florida hotels. The hotels were acquired in two separate transactions totaling $46.2 million. The locally headquartered REIT paid McKibbon Hotel Group $30.3 million in cash and debt for three hotels comprised of 237 rooms. Two of the hotels are in Sarasota and the other is in Fort Myers. The Sarasota properties include one Residence Inn and one Marriott Courtyard. The Fort Myers property is a Residence Inn. The Residence Inn and Courtyard in Sarasota are located directly across from the main entrance to the Sarasota Bradenton International Airport. The Residence Inn in Fort Myers fronts Colonial Boulevard, a major thoroughfare in Fort Myers. Collectively, the three hotels have an average age of 7.5 years and an average cap rate of 10% based on trailing 12 month net operating income. McKibbon Hotel Management, Inc., will manage the properties for three years with a base fee plus incentive structured management agreement, according to SEC filings.In the other transaction, Equity Inns paid $12.3 million to Orlando Convention Partners LP for a 170-room Hampton Inn in Orlando. The company announced the Orlando deal as pending in late May. It was announced along with the pending acquisition of a 127-room Hampton Inn & Suites in Franklin, TN, which has not yet closed. The company said at that time that the average cap rate on the acquisition was 10% on trailing 12-month cash flow.An executive with Equity Inns was not immediately available Monday morning for further comment on the transactions. Equity Inns is a self-advised REIT that focuses on the upscale extended stay, all-suite and mid-scale limited-service segments of the hotel industry. The Company owns 117 hotels with 14,170 rooms located in 34 states.

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