Press Release: Winston Hotels, Inc.
February 23, 2001
RALEIGH, NC -- Winston Hotels, Inc., (NYSE: WXH), a real estate investment trust and owner of premium limited service,
high-end extended stay, and full-service hotels, yesterday announced that it has completed $2.2 million in mezzanine
financing for the 150-room Hilton Garden Inn in Tampa, Florida. The project currently is under construction and
is scheduled to open during the spring of 2002.
The Tampa Hilton Garden Inn is being constructed in the Highland Oaks, Duke-Weeks 88-acre class ``A'' office park,
which is conveniently located 15 minutes from the Tampa International Airport and is two miles from Brandon Town
Center Mall. Other amenities in the immediate area include more than 60 restaurants within a two-mile radius and
Hillsborough Community College.
The Tampa project is being developed as part of a strategic alliance with Noble Investment Group, Ltd., whereby
Winston provides mezzanine financing and its development expertise and Noble affiliates will own and operate the
developed hotels. The first hotel being developed under the alliance is a 122-room Hilton Garden Inn in Atlanta
(Sugarloaf), GA, for which Winston provided $1.1 million in mezzanine financing last July. The hotel is expected
to open in the spring of this year. Winston is co-developing the Sugarloaf project with Noble and will provide
all development services for the Tampa project and receive fees for its services.
``This unique business strategy allows Winston to leverage the Company's core strengths -- primarily the Company's
in-house capability to develop hotels,'' said Winston Hotels' President and Chief Operating Officer, James D. Rosenberg.
``In addition, by providing mezzanine funds for the Sugarloaf and Tampa projects, Winston is at the forefront of
addressing the difficulty of mortgage financing by filling the gap often left between senior financing and equity
requirements. We continue to seek additional mezzanine financing opportunities in affiliation with leading upscale
brands.''
The estimated total cost for both hotels is $26.0 million. The Noble Investment Group is responsible for providing
the remainder of the funding and will own and operate both hotels.
About the Company
Raleigh, North Carolina-based Winston Hotels, Inc., is a real estate investment trust specializing in the development,
acquisition and rehabilitation of premium limited-service, high-end extended-stay and full-service hotel properties,
with a portfolio increasingly weighted toward the leading brands in the lodging industry's upscale segment. The
Company currently owns 49 operating hotels with 6,723 rooms in 12 states, as well as a 49 percent ownership interest
in two operating hotels and a third joint venture hotel under development.
About Noble Investment Group, Ltd.
Noble Investment Group, Ltd. is an Atlanta, Georgia based leading private hotel management, ownership, and acquisition
company. Since 1979, Noble has managed well-known hotel brands pursuant to franchise agreements primarily from
Marriott International, Inc., Hilton Hotels, and Bass Hotels and Resorts. Noble currently owns and operates 20
hotels throughout the Eastern United States.
Forward-Looking Statements
The press release contains ``forward-looking'' statements within the meaning of Section 27A of the Securities Act
of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited
to, statements referring to estimated FFO per share in 2001 for the year and by quarter, expected RevPar growth
for 2001, estimated development fees, interest income from mezzanine loans, other fee income and earnings from
joint ventures, and the anticipated benefits and development plans of the joint ventures and alliances. You can
identify these statements by use of words like ``may,'' ``will,'' ``expect,'' ``project,'' ``anticipate,'' ``estimate,''
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, 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, and the risk of non-payment
of mezzanine loans. Other risks are discussed in the Company's filings with the Securities and Exchange Commission,
including but not limited to its Form S-3 Registration Statement filed on September 2, 1999 as amended on September
29, 1999 and its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its other periodic reports.
For more information, call Patti Bell, Investor Relations Manager
Of Winston Hotels, Inc., at (919) 510-8003.
For more information on Winston Hotels visit the company's web site at
http://www.winstonhotels.com
SOURCE: Winston Hotels, Inc.