WXH Winston Hotels

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 purchased a 0.73-acre vacant site in downtown Raleigh, N.C. located at the corner of Hillsborough and West Street on which it plans to build a high-rise, mixed-use development that will include a 120-room Hampton Inn and Suites, an 80-room aloft hotel and approximately 5,000 square feet of retail and restaurant space. The high-rise may also include up to 250 residential condominiums. Plans are expected to be finalized this summer. Pending city planning, permitting and other required government approvals, construction is expected to begin in the 2008 first quarter. Currently, Winston Hotels, Inc. owns or is invested in 51 hotel properties in 18 states, having an aggregate of 6,911 rooms. This includes 43 wholly owned properties with an aggregate of 5,877 rooms, a 41.7 percent ownership interest in a joint venture that owns one hotel with 121 rooms, a 60 percent ownership interest in a joint venture that owns one hotel with 138 rooms, a 49 percent ownership interest in a joint venture that owns one hotel with 118 rooms, a 48.78 percent ownership interest in a joint venture that owns one hotel with 147 rooms, a 13.05 percent ownership interest in a joint venture that owns three hotels with an aggregate of 387 rooms, and a 0.21 percent ownership interest in a joint venture that owns one hotel with 123 rooms for which substantially all of the profit or loss generated by the joint venture is allocated to the company. For more information about Winston Hotels, Inc, visit the company's web site at www.winstonhotels.com.