(WINSTON HOTELS, INC. LOGO)

WINSTON HOTELS, INC.
2626 Glenwood Avenue o Suite 200
RALEIGH, NORTH CAROLINA 27608
www.winstonhotels.com
NYSE: WXH


FOR FURTHER INFORMATION:

AT WINSTON HOTELS:
Patti L. Bell                           Contact: Jerry Daly or Carol McCune
Director of Investor Relations          (703) 435-6293
& Administration                        (jerry@dalygray.com, carol@dalygray.com)
(919) 510-8003
pbell@winstonhotels.com

FOR IMMEDIATE RELEASE


  WINSTON HOTELS ANNOUNCES 3.2 MILLION SHARE SERIES B PREFERRED STOCK OFFERING

RALEIGH, N.C., January 22, 2004 -- Winston Hotels, Inc. (NYSE:WXH), a real
estate investment trust and owner of premium limited-service, upscale
extended-stay and full-service hotels, announced today that it has priced 3.2
million shares of its 8% Series B Cumulative Preferred Stock at $25.00 per
share. Bear, Stearns & Co. Inc. and Wachovia Capital Markets, LLC acted as
co-lead managers of the offering with Friedman, Billings, Ramsey & Co., Inc.,
Raymond James & Associates, Inc. and BB&T Capital Markets, a division of Scott &
Stringfellow, Inc., acting as co-managers.

The net proceeds to the company from the offering are estimated to be $77.3
million, which the company intends to use to pay the aggregate redemption price
for all of its outstanding 9.25% Series A Cumulative Preferred Stock, to reduce
borrowings under its line of credit and for general corporate purposes.

The company has granted the underwriters an option, exercisable within 30 days
after the date of delivery of the shares, to purchase up to 480,000 additional
shares of Series B preferred stock to cover over-allotments, if any. The company
intends to list the Series B preferred stock on the New York Stock Exchange
under the symbol "WXH PrB."

This press release shall not constitute an offer to sell or the solicitation of
an offer to buy, nor will there be any sale of these securities in any state in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such state. The offering of
these securities will be made only by means of a prospectus, copies of which may
be obtained from Bear, Stearns & Co. Inc. at 383 Madison Avenue, New York, New
York 10179.




ABOUT THE COMPANY

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 50 hotels with an aggregate of 6,997 rooms in 16 states, which
includes: 44 wholly-owned properties with an aggregate of 6,139 rooms; a 49
percent ownership interest in two joint venture hotels with an aggregate of 296
rooms; a 57.65 percent ownership interest in one joint venture hotel with 157
rooms; and a 13.05 percent ownership interest in three joint venture hotels with
an aggregate of 405 rooms. In addition, the company owns a 48.78 percent
ownership interest in one joint venture that is developing a hotel which we
expect to open this Summer. The company also has issued mezzanine loans to
owners of three hotels with an aggregate of 391 rooms. The company does not hold
an ownership interest in any of the hotels for which it has provided mezzanine
financing.

In addition to historical information, this press release contains
forward-looking statements. The statements are based on current expectations,
estimates and projections about the industry and markets in which Winston Hotels
operates, as well as management's beliefs and assumptions. Forward-looking
statements are not guarantees of future performance and involve certain risks
and uncertainties, including prevailing conditions in the public capital markets
and general risks in the hospitality and real estate businesses, which may cause
the company's actual results, performance, and its other activities to be
materially different from the results, plans or expectations expressed or
implied by such statements. For more details, please refer to the prospectus
relating to this offering and the company's SEC filings, including its most
recent annual report on Form 10-K.

For more information, please call Patti Bell, Director of Administration &
Investor Relations of Winston Hotels, Inc., at (919) 510-8003.