Winston Hotels Q2 Shows Income Up

RALEIGH, NC— Lodging REIT Winston Hotels, Inc. has posted results for the second quarter showing net income available to common shareholders was $3.7 million or $0.14 per share, compared to $1.7 million, or $0.08 per share, for the same period a year earlier. Funds from operations increased 32.3% to $8.6 million, or $0.31 per common share based on 27.5 million fully diluted weighted average common shares outstanding, compared to $6.5 million, or $0.31 per common share, for the second quarter of 2003, based on 21.4 million comparable shares “We currently have approximately $82 million available under our $125 million corporate line of credit,” said Joe Green, president/CFO. “We believe the availability gives us excellent flexibility and positions us to take advantage of future opportunities that may arise.” During second quarter, the company continued its construction of a 147-room Courtyard by Marriott in Chapel Hill, NC. The company owns a 48.78% interest in the joint venture that owns the property, which is expected to open in September. The company sold a 128-room Hampton Inn in Las Vegas for $7.2 million, net of closing costs, in Jun. The sale is part of the companys ongoing efforts to recycle its capital into higher yielding investments. Operating margins dipped slightly to 43.1% in the quarter, compared to 43.6% in the 2003 quarter. For the 47 hotels that were open during the quarters ended June 30, 2004 and 2003 (excluding sold hotels), RevPAR improved 6.3% in second-quarter 2004, with a 4.7% increase in occupancy and a 1.6% improvement in ADR, compared to the year-ago period. Total revenues increased from $32.9 million in the 2003 quarter to $36.7 million in 2004. FFO available to common shareholders payout ratio was 73.2% on a trailing 12-month basis.