By SUZANNE THOMPSON Equity Inns will stay on acquisition path By SUZANNE THOMPSON The Daily News Equity Inns will continue on an aggressive acquisition course in the coming year through purchasing more properties such as Residence Inns and Courtyard Marriotts. "The niche we like is the premium, limited-service, extended-stay hotels," said chief financial officer Howard Silver, who said Equity Inns has increased its property ownership by 77 percent so far this year. Equity Inns officials announced Thursday that the company had purchased a Homewood Suites in Germantown and a Hampton Inn in Destin, Fla., for $14.5 million in a combination of cash and partnership units. Company officials also announced the REIT had closed on the previously announced purchase of 27 Hampton Inn hotels with an aggregate of 3,348 rooms for $160 million. Equity Inns currently owns 65 Hampton Inn hotels. "Were looking to even that out a little with some Residence Inns," Silver said. Equity Inns, a real estate investment trust, now owns eight Residence Inns and four Homewood Suites. "In our niche, we think the two best brand names are Marriott and Promus. Residence is owned by Marriott, and Homewood is owned by Promus. We think its very important to stay with good brands in our niche," Silver said. He said Equity Inns has alliances with Promus through which Equity will be offered the purchase of some Homewood Suite properties now under construction. "We have a pipeline coming from them," Silver said. Equity also has an alliance with Interstate Hotels, an independent management company and Marriott franchiser. The REIT has first right of refusal on properties that Interstate is developing in Equity Inns niche. "Both these groups are building hotels that we like. We dont have to compete in price with anybody," to purchase the properties, Silver said. Mike Stein, senior vice president at Prudential Securities, said the low interest rates and low inflation rates of todays economy have contributed to the success of REITs. "The hotel industry, which had very gloomy prospects 10 years ago, has turned everything around. That is where returns have surpassed expectations by a wide margin," he said. "That should continue as long as interest rates stay relatively low." Stein said REITs make a good investment choice for many people. "For the average investor, someone whos looking for a return a dividend these REITs do provide some nice returns. Thats something people should look for," he said.