<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION OF WINSTON HOTELS, INC. EXTRACTED FROM THE UNAUDITED CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 1998 AND THE UNAUDITED CONSOLIDATED STATEMENT OF INCOME FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <RESTATED> <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> SEP-30-1998 <CASH> 136 <SECURITIES> 0 <RECEIVABLES> 10,564 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 0 <PP&E> 425,548 <DEPRECIATION> 33,145 <TOTAL-ASSETS> 405,907 <CURRENT-LIABILITIES> 10,412 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 30 <COMMON> 163 <OTHER-SE> 216,213 <TOTAL-LIABILITY-AND-EQUITY> 405,907 <SALES> 16,229 <TOTAL-REVENUES> 16,305 <CGS> 0 <TOTAL-COSTS> 7,343 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 2,861 <INCOME-PRETAX> 6,101 <INCOME-TAX> 0 <INCOME-CONTINUING> 6,101 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 5,681 <EPS-PRIMARY> 0.24 <EPS-DILUTED> 0.24