|
|
|
Contracts Will Transfer to Noble Investment Group, Ltd |
RALEIGH, N.C. April 25, 2003 -- 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 intends to terminate its 33 management contracts with Interstate
Hotels & Resorts, Inc. (NYSE:IHR), effective July 1, 2003. These properties
along with the hotels' management and employees will transfer to Alliance
Hospitality Management, LLC, a newly created hotel management company that
is owned by Atlanta-based Noble Investment Group, Ltd., a nationally respected
hospitality company and hotel industry veteran Dale M. Turner, CHA.
"Alliance's management team has in-depth experience in both of Winston's market types and hotel segments," Turner said. "We fully expect the transition to be transparent to guests and associates." Noble Investment Group, Ltd., founded in 1979, currently owns and operates 17 upscale hotels throughout the Southeastern United States, under prominent brands such as Marriott Hotels, Crowne Plaza, Courtyard by Marriott, Hilton Garden Inns, Homewood Suites and SpringHill Suites. Noble maintains strategic relationships with the franchisors of those brands including Marriott International, Hilton Hotels Corporation and InterContinental Hotels Group. Noble's President, Mit Shah, is Chairman of the Board of Alliance and will continue to oversee the management of Noble Investment Group as well. "We look forward to the opportunity to further expand our strong relationship with Winston Hotels, Inc. Winston's hotels match up well with our portfolio and give us added economies of scale in management, marketing and purchasing," Shah said. "We believe this will benefit both companies' portfolios." It is anticipated that Alliance will operate 33 of Winston's 49 hotels initially. The remainder of Winston's portfolio will continue to be managed by existing independent management companies like Noble and other such companies in the future, as Winston expands its relationships with regional operators in conjunction with its venture with Charlesbank Capital Partners. The Charlesbank venture focuses on acquiring hotel assets to which Winston can add significant value. Upon termination of the contracts, it is anticipated that substantially all of Interstate's employees who operate the 33 Winston Hotels and a core group of employees responsible for back office accounting and related functions will affiliate with Alliance. "We believe that the transition of management responsibilities will be relatively seamless with no ramp-up time required or disruption to the operations at the properties," Winston said. "We are working with Noble Investment Group and Mr. Turner on the final management contract agreement, and then will seek approvals from franchisors, lenders and other related parties," he added. "We do not expect the new hotel management configuration to have any immediate impact on our results of operations, but over the long term, with closer oversight of our properties, we hope to achieve higher returns from our hotels," said Joe Green, chief financial officer. 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 52 hotels with 7,200 rooms in 17 states, which includes: 44 wholly-owned properties with 6,141 rooms; a 49 percent ownership interest in three joint venture hotels with 453 rooms; a 13.05 percent ownership interest in two joint venture hotels with 215 rooms; and a mezzanine financing interest in three hotels with 391 rooms. For more information about Winston Hotels, visit the Winston Hotels web site, www.winstonhotels.com. In addition to historical information, this press release contains forward-looking statements including, but not limited to statements referring to the anticipated termination of its 33 management contracts with Interstate Hotels and Resorts, Inc. and anticipated relationship with Alliance. |
Winston Hotels, Inc., Raleigh Patti L. Bell, 919/510-8003 [email protected] www.winstonhotels.com |