Winston Hotels Buys Land Parcel in Downtown Raleigh, Plans to Build Two Hotels in Mixed-use Development

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.