RALEIGH, N.C., Jun 12, 2002 (BUSINESS WIRE)—Winston Hotels, Inc. (NYSE: WXH), a real estate investment trust (REIT) and owner of premium limited-service, upscale extended-stay and full-service hotels, today announced that its Board of Directors has declared the company`s regular quarterly cash dividend distributions on its common and preferred shares.
The Board declared a cash dividend of $0.15 per common share for the second quarter of 2002. The cash dividend is payable on July 16, 2002, to shareholders of record on June 28, 2002. The Company currently has approximately 21.4 million common shares outstanding. Based on today`s closing price of $8.88 per common share, the annualized dividend yield is 6.8%.

The Board also declared a cash dividend of $0.578125 per preferred share for the second quarter of 2002. The cash dividend is payable on July 16, 2002, to preferred shareholders of record on June 28, 2002. The Company currently has 3.0 million preferred shares outstanding.

Raleigh, North Carolina-based Winston Hotels, Inc., is a real estate investment trust specializing in the development, acquisition, repositioning and active asset management of premium limited-service, upscale extended-stay and full-service hotels, with a portfolio increasingly weighted toward the leading brands in the lodging industry`s upscale segment. The company currently owns or is invested in 53 hotels with 7,286 rooms in 15 states, which includes: 47 wholly-owned properties with 6,456 rooms; a 49 percent ownership interest in three joint venture hotels with 453 rooms; a 50 percent ownership interest in one joint venture hotel with 102 rooms; and a mezzanine financing interest in two hotels with 275 rooms. For more information about Winston Hotels, visit the Winston Hotels Web site, www.winstonhotels.com.

CONTACT: Winston Hotels, Inc., Raleigh Patti L. Bell, Director of Investor Relations & Administration, 919/510-8003 [email protected] or Jerry Daly or Carol McCune, 703/435-6293 [email protected] or [email protected]

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