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 its Board of Directors has declared the Company's regular quarterly cash dividend distributions on its common and preferred shares. The Board declared a cash dividend of $0.15 per common share for the first quarter of 2006. The cash dividend is payable on April 13, 2006, to common shareholders of record on March 31, 2006. Based on today's closing price of $10.65 per common share, the annualized dividend yield is 5.6%. The Board also declared a cash dividend of $0.50 per Series B Cumulative Preferred share for the first quarter of 2006. The cash dividend is payable on April 13, 2006, to preferred shareholders of record on March 31, 2006. About the Company Raleigh, North Carolina-based Winston Hotels, Inc. is a real estate investment trust specializing in the development, acquisition, and repositioning of, and provision of subordinated financing to, 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 56 hotel properties in 17 states having an aggregate of 7,667 rooms. This includes 49 wholly owned properties with an aggregate of 6,719 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, and a 13.05 percent ownership interest in a joint venture that owns four hotels with an aggregate of 545 rooms. The Company also currently has loans outstanding to owners of 14 hotels with an aggregate of 3,337 rooms. These loans total $38.1 million. The company does not hold an ownership interest in any of the hotels for which it has provided financing. For more information about Winston Hotels, Inc. visit the company's Web site at www.winstonhotels.com.