Winston Hotels Purchase Second Property in Joint Venture with Concord Hospitality

RALEIGH, N.C.–(BUSINESS WIRE)–July 1, 2002–Winston Hotels, Inc. (NYSE: WXH), a real estate investment trust (REIT) that owns premium limited-service, upscale extended-stay and full-service hotels, today announced the purchase of a vacant building located in an upscale suburb of Cleveland, Ohio known as Beachwood, for $3.05 million through a 50-50 joint venture with Cleveland-based Concord Hospitality Enterprises Company.
The company and its joint venture partner believe the $3.05 million purchase price is significantly less than the replacement value of the property. The building will undergo an extensive renovation and become a 113-room Courtyard by Marriott, with an expected opening in early 2003. Concord, a well-regarded, prominent Marriott franchisee, also has been engaged by the joint venture to manage the hotel.
The acquisition is the second property purchased by the joint venture. Earlier this year the joint venture purchased a 103-room Wingate Inn in West Des Moines, Iowa, which will be converted to a Fairfield Inn & Suites.
Our joint venture with Concord brings together a unique combination of talents that will enable us to enhance our shareholders' value, said Jim Rosenberg, President & COO of Winston Hotels. This property is one of an increasing number of attractively priced opportunities we are seeing that we believe can benefit from aggressive asset management, which often includes renovating, repositioning and rebranding. We are stepping up our efforts to acquire premium limited-service, upscale extended-stay and mid-market full-service hotels, especially those with turn-around and upside potential. We believe these segments have performed very well, compared to the industry, over the past 12 months and will continue to do so for the foreseeable future.
Our alliance with Winston Hotels is based on creating solid economic returns, said Mark Laport, CEO of Concord Hospitality Enterprises. The purchase of the Wingate Inn and the Cleveland property exemplifies our commitment to this successful business partnership. We will continue to seek opportunities to expand our relationship.
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 54 hotels with 7,399 rooms in 16 states, which includes: 47 wholly-owned properties with 6,456 rooms; a 49 percent ownership interest in three joint venture hotels with 453 rooms; a 50 percent ownership interest in two joint venture hotels with 215 rooms; and a mezzanine financing interest in two hotels with 275 rooms.