Article: Equity Inns Enters Into Strategic Alliance With U.S. Franchise Systems; Receives Right of First Offer to Purchase a Minimum of 36 Hawthorn Suites

MEMPHIS, Tenn., Jan. 20 /PRNewswire/ -- Equity Inns, Inc. (NYSE: ENN) today announced it has entered into a strategic alliance with U.S. Franchise Systems, Inc. (Nasdaq: USFS), which owns the franchise system rights for Hawthorn Suites, a chain of upscale extended-stay hotels.

Under the terms of the agreement, Equity Inns will have the right of first offer through December 31, 2000 to purchase Hawthorn Suites located in 19 eastern and mid-western states and Washington, D.C. in which U.S. Franchise has a 51% or more ownership interest. During the alliance's three year period, U.S. Franchise will offer to sell to Equity Inns not fewer than 12 hotels each ...

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