Winston (NYSE:WXH)
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From Jul 2019 to Jul 2024
Winston Hotels, Inc. (NYSE: WXH), a real estate
investment trust and owner of premium limited-service, upscale
extended-stay and full-service hotels, today announced that it has
acquired the 121-room Courtyard by Marriott in St. Charles, Ill. for
$9.2 million from a private investment group. "Built in 2000, this
well-located property is surrounded by a diversified mix of demand
generators that attract both corporate and leisure travelers," said
Joe Green, president and chief financial officer. "The hotel adds to
our growing list of properties located in or near major urban markets,
and we were able to acquire it at an attractive valuation."
Located about 35 miles west of downtown Chicago, the hotel
features about 1,000 square feet of meeting space, an indoor pool, a
fitness center, and complimentary high-speed wireless internet access.
Hotel Sale
Winston also announced the sale of its Homewood Suites in
Alpharetta, Ga. that closed on August 28, 2006 for net sales proceeds
of $9.7 million, resulting in a gain of approximately $3.4 million.
"We will continue to selectively sell those assets where we believe we
can better enhance shareholders in the long term by reinvesting net
sale proceeds", Green noted.
Dividend
Winston's board of directors declared the company's regular
quarterly cash dividend for the 2006 third quarter on its common and
preferred shares. The cash dividend of $0.15 per common share is
payable on October 16, 2006 to common shareholders of record on
September 30, 2006. Based on yesterday's closing price of $11.91 per
common share, the annualized dividend yield is 5.0 percent.
The board also declared a cash dividend of $0.50 per Series B
Cumulative Preferred share for the third quarter of 2006. The cash
dividend is payable on October 16, 2006, to preferred shareholders of
record on September 30, 2006.
About the Company
The company currently owns or is invested in 52 hotel properties
in 17 states having an aggregate of 7,064 rooms. This includes 44
wholly owned properties with an aggregate of 5,993 rooms and eight
hotels in joint ventures totaling 1,071 rooms. The company's joint
venture hotels include a 60% ownership interest in a joint venture
that owns one hotel with 138 rooms, a 49% ownership interest in a
joint venture that owns one hotel with 118 rooms, a 48.78% ownership
interest in a joint venture that owns one hotel with 147 rooms, a
13.05% ownership interest in a joint venture that owns four hotels
with an aggregate of 545 rooms and a 0.21% ownership interest in a
joint venture that owns one hotel with 123 rooms, for which
substantially all of the profit or loss generated by the joint venture
is allocated to the company. As of June 30, 2006, the company also had
approximately $59.7 million of outstanding loans in its loan portfolio
that it originated or purchased. The company does not hold an
ownership interest in any of the hotels for which it has provided
financing.
In addition to historical information, this press release contains
forward-looking statements. The reader can identify these statements
by use of words like "may," "will," "expect," "project," "anticipate,"
"estimate," "target," "believe," "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, changes in general
economic conditions, lower occupancy rates, lower average daily rates,
acquisition risks, development and redevelopment risks including risk
of construction delay, cost overruns, occupancy, governmental permits,
zoning, the increase of development costs in connection with projects
that are not pursued to completion, lender consent rights in making
loans, the risk of non-payment of loans, or the failure to make
additional debt investments and investments in hotels. 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 for the year ended December 31, 2005, Quarterly Reports on Form
10-Q and its other periodic reports.