Winston Hotels Announces Dividends for Second Quarter

Business Wire, June 13, 2005

RALEIGH, N.C. -- 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 2005. The cash dividend is payable on July 15, 2005, to common shareholders of record on June 30, 2005. Based on today's closing price of $11.21 per common share, the annualized dividend yield is 5.4%.

The Board also declared a cash dividend of $0.50 per Series B Cumulative Preferred share for the second quarter of 2005. The cash dividend is payable on July 15, 2005, to preferred shareholders of record on June 30, 2005.

About the Company

Raleigh, North Carolina-based Winston Hotels, Inc. is a real estate investment trust specializing in the development, acquisition, and repositioning of, and provision of subordinated financing to, 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 49 hotels with an aggregate of 6,886 rooms in 15 states, which includes: 42 wholly owned properties with an aggregate of 5,963 rooms; a 49 percent ownership interest in one joint-venture hotel with 118 rooms; a 48.8 percent ownership interest in one joint venture hotel with 147 rooms; and a 13.05 percent ownership interest in five joint-venture hotels with 658 rooms. For more information about Winston Hotels, visit the Winston Hotels Web site at www.winstonhotels.com.