Winston Hotels Announces Dividends for First Quarter

    Business Editors/Real Estate Writers

    RALEIGH, N.C.--(BUSINESS WIRE)--March 10, 2005--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 first quarter of 2005. The cash dividend is payable on April 15, 2005, to common shareholders of record on March 31, 2005. Based on today's closing price of $11.60 per common share, the annualized dividend yield is 5.2%.
    The Board also declared a cash dividend of $0.50 per Series B Cumulative Preferred share for the first quarter of 2005. The cash dividend is payable on April 15, 2005, to preferred shareholders of record on March 31, 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 50 hotels with an aggregate of 7,011 rooms in 15 states, which includes: 43 wholly owned properties with an aggregate of 6,088 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.

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CONTACT: Winston Hotels Patti L. Bell, 919-510-8003 pbell@winstonhotels.com or DalyGray Jerry Daly, 703-435-6293 jerry@dalygray.com Carol McCune, 703-435-6293

KEYWORD: NORTH CAROLINA INDUSTRY KEYWORD: REAL ESTATE BUILDING/CONSTRUCTION DIVIDEND SOURCE: Winston Hotels, Inc.

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