RALEIGH, N.C., Aug 23, 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 it has sold the 126-room Hampton Inn in Southern Pines, N.C., to privately held McPeake Hotels, Inc. for $3.8 million in cash.
“We continue to refine our portfolio mix in terms of segment and location,” said Jim Rosenberg, President and Chief Operating Officer. “Our ongoing strategy is to reinvest sale proceeds in more upscale, extended stay and mid-market full service properties in markets with high barriers to new competition, especially properties with turnaround or upside potential where we can significantly improve returns.”

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 54 hotels with 7,399 rooms in 16 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 two joint venture hotels with 215 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, 919/510-8003 [email protected] or Daly Gray Public Relations Jerry Daly or Carol McCune, 703/435-6293 [email protected] or [email protected]

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