RALEIGH, NC— Lodging REIT Winston Hotels Inc. has posted results for its fourth quarter, which ended Dec. 31, showing funds from operations (FFO) increased 27.4% to $4.8 million for the quarter, compared to $3.7 million in the fourth quarter of 2001. On a per share basis, FFO increased 4.8% to $0.22 per share for the quarter on 21.3 million weighted average shares of common stock outstanding, compared to $0.21 on 18.2 million weighted average shares outstanding for the same quarter a year ago. “Occupancy improved more than two percentage points for the fourth quarter, offset partially by a 3.2% decline in room rate from the same period in 2001,” said CEO Bob Winston. “We experienced a number of positive developments during 2002, which we believe have set the stage for positive long-term growth in the future.” These include acquisition of 47 leasehold interests from MeriStar Hotels & Resorts (now Interstate Hotels & Resorts); formation of an acquisition venture with Charlesbank Capital Partners, LLC to acquire in excess of $100 million of hotel assets; continued its mezzanine loan program and issued, through a 50/50 joint venture with Hall Financial Group, a $3.5 million loan for conversion of an historic office building in Baltimores Inner Harbor to a Hampton Inn & Suites; upgraded its portfolio, selling four hotels for aggregate gross proceeds of $13.8 million; and strengthened its balance sheet, completing a 3.2 million share common stock offering at $9 per share, generating net proceeds of approximately $26.9 million, which were used to pay down debt and to purchase leasehold interests from Interstate.
