Hotel Online Special Report Winston Hotels Forms Joint Venture to Develop Upscale Hotels With Regent Partners, Inc. RALEIGH, N.C., June 28, 1999 – Winston Hotels, Inc., (NYSE: WXH), a lodging real estate investment trust (REIT) and owner of premium limited- service, high-end extended-stay and full-service hotels, today announced a joint venture agreement between Winston and Regent Partners, Inc., a leading real estate development, investment and services firm.
The joint venture will focus on the construction of upscale hotels such as Hilton Garden Inn, Courtyard by Marriott, Residence Inn, and Homewood Suites. Winston anticipates initiating at least three new projects with Regent Partners, a wholly owned subsidiary of J.A. Jones, Inc., an affiliate of Philipp Holzmann AG.
The initial project under the joint venture will feature a $16.5 million, full-service 158-room Hilton Garden Inn built on a prime site in Windsor, Conn. Upon its completion, the hotel will be leased to and operated by Bristol Hotels Resorts, Inc. (NYSE: BH). Development of this upscale hotel is expected to take approximately one year to complete, with grand opening targeted for the second half of 2000. Two additional sites are currently under contract. Under the terms of the joint venture, Winston will earn fees by providing development management advisory consulting; capital design and purchasing capabilities; and ongoing asset management assistance to Regent. Winston will have an ownership level of up to 49 percent in each project. Winston has the ability to acquire Regent’s and other parties’ ownership interest in each project subject to the provisions of the agreement.
The Windsor Hilton Garden Inn will be situated on a 9.5-acre site adjacent to a major regional corporate and industrial park which includes Konica, Emhart Bank of Boston, Aetna Life, CIGNA, and Asea Brown Boveri. The hotel will also be located just minutes south of Bradley International Airport, which has been ranked as one of New England’s busiest airports.
“We are excited about teaming up with Regent Partners because it creates a mutually beneficial relationship which offers a variety of advantages to both parties,” said Winston Hotels President and COO James D. Rosenberg. “From Winston’s perspective, Regent’s involvement allows us to continue to grow the Company by jointly leveraging both our management teams’ development expertise. Specifically, this joint venture enables us to capitalize on our internal capabilities to generate fee income, thus enhancing Winston’s FFO.”
Rosenberg added: “Moreover, we will be able not only to expand our affiliations with upscale leading brands but also to complement the young asset age of our portfolio with more new hotels, which tend to outperform older properties in ADR and occupancy rate. We view this joint venture as a means of broadening our hotel acquisition and development pipeline while continuing our selective growth strategy, despite the external capital constraints still prevalent in the real estate sector.”
Reid Freeman, Vice President of Regent Partners, commented: “We are enthusiastic about joining forces with Winston Hotels given the synergies between Winston management’s expertise in new hotel acquisition and development and Regents’ own unique strengths. We appreciate the value of Winston’s highly selective, quality-oriented approach to building new hotels in strong markets which offer the potential for attractive financial returns. Lodging industry trends also favor Winston’s emphasis on the leading brands in the top-performing upscale segment, and we are therefore excited about the significant business opportunities this joint venture provides to both our organizations.”
About Regent Partners Regent Partners, Inc., a wholly owned subsidiary of J.A. Jones, Inc., an affiliate of Philipp Holzmann AG, is dedicated to creating and enhancing value for its national and international real estate client base. Established in 1983 and headquartered in Atlanta, Regent Partners is regarded as one of the most versatile and experienced firms in the U.S. Its comprehensive set of industry disciplines includes development and investment as well as a wide range of real estate services. Guided by a group of respected professionals whose industry experience is complemented by their market knowledge, Regent Partners strives to build profitable long-term relationships with investors, owners, brokers and those seeking equity sources by providing solutions to a wide range of needs and opportunities.
About Bristol Hotels Resorts Dallas-based Bristol Hotels Resorts (NYSE: BH) is the largest independent hotel operator in the United States with 115 hotels including more than 30,000 rooms in 26 states and Canada. The company’s hotels operate primarily in the mid-priced to upscale segments of the industry and are located in 19 of the top 25 lodging markets in the United States.
About Winston Hotels Raleigh, North Carolina-based Winston Hotels, Inc., is a lodging real estate investment trust specializing in the development, acquisition, and rehabilitation of premium limited-service, high-end extended-stay and full-service hotel properties. With an increasingly strong emphasis on affiliations with the industry’s leading upscale brands, Winston Hotels currently owns 51 operating hotels with 6,904 rooms in 13 states.
Forward Looking Statements The press release contains “forward looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to, statements referring to the anticipated benefits and development plans of the new joint venture. You can identify these statements by use of words like “may,” “will,” “expect,” “anticipate,” “estimate,” or “continue” or similar expressions. These statements represent the Company’s judgment and are subject to risks and uncertainties that could cause actual operating results to differ materially from those expressed or implied in the forward looking statements including, but not limited to, development risks including risk of construction delay, cost overruns, occupancy and other governmental permits, zoning and the increase of development costs in connection with projects that are not pursued to completion. In addition, from time to time, these and other risks are discussed in the Company’s filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and its other periodic reports.
Contact: Pat Peruso, Investor Relations Manager of Winston Hotels, Inc., at 919-510-8003. www.winstonhotels.com Also See: Winston Hotels Announces Proposed Acquisitions and Developments of $109 Million / April 1998