GERMANTOWN, Tenn. -- Equity Inns, Inc., a hotel real estate investment trust (REIT), announced that it has finalized its purchase of a 93-room Marriott Courtyard in Dalton, Georgia and a 112-room Hilton Garden Inn in Louisville, Kentucky, for approximately $14.4 million. The Company funded the purchase with proceeds from its common stock offering of October 18, 2004. The purchase price represents a capitalization rate of approximately 10.0% on trailing 12 months' net operating income. Equity Inns' expects the hotels to have a positive impact to its 2005 funds from operations.
As previously disclosed, the properties were purchased below their replacement values. Both properties are ideally located, with great visibility from major Interstate highways. The hotel in Dalton, the carpet industry capital of the world, is considered the premier upscale property in that area of the city, while the Louisville property is located in the heart of a major office and industrial park.
