RALEIGH, N.C.—(BUSINESS WIRE)—July 1, 2003—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 wholly owned taxable REIT subsidiary, Barclay Hospitality Services, Inc., has terminated the management contracts on six hotels operated by Interstate Management and Investment Corp. (IMIC), a privately held hotel investment and management company based in Columbia, S.C. Barclay paid IMIC $1.3 million in consideration for the termination of the contracts and has engaged Alliance Hospitality Management, LLC, to operate the six hotels, effective today. Alliance now operates approximately 85 percent of the hotels in which Winston has an ownership interest.
“Our goal is to closely align ownership and management interests to help achieve the highest possible return for our shareholders,” said Bob Winston, chief executive officer. “Placing these hotels under a centralized system with Alliance Hospitality will help us more closely asset manage these properties. We believe that shifting these hotels to Alliance will help us generate higher returns to our shareholders.”
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 52 hotels with 7,200 rooms in 17 states, which includes: 44 wholly-owned properties with 6,141 rooms; a 49 percent ownership interest in three joint venture hotels with 453 rooms; a 13.05 percent ownership interest in two joint venture hotels with 215 rooms; and a mezzanine financing interest in three hotels with 391 rooms. For more information about Winston Hotels, visit the Winston Hotels web site www.winstonhotels.com.
In addition to historical information, this press release contains forward-looking statements. The reader can identify these statements by use of words like “may,” “will,” “expect,” “project,” “anticipate,” “estimate,” “target,” “believe,” or “continue” or similar expressions. These statements represent the company`s judgment and are subject to risks and uncertainties that could cause actual operating results to differ materially from those expressed or implied in the forward looking statements including, but not limited to, changes in general economic conditions, lower occupancy rates, lower average daily rates, acquisition risks, development risks including risk of construction delay, cost overruns, occupancy and other governmental permits, zoning, the increase of development costs in connection with projects that are not pursued to completion, the risk of non-payment of mezzanine loans, or the failure to make additional mezzanine debt investments and investments in distressed hotel opportunities. Other risks are discussed in the company`s filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the year ended December 31, 2002, Quarterly Reports on Form 10-Q and its other periodic reports.