Article: Interstate Hotels & Resorts to Cease Operations at 33 Winston Hotels on July 1.

Business Editors

WASHINGTON, D.C.--(BUSINESS WIRE)--April 25, 2003

Interstate Hotels & Resorts (NYSE: IHR), the nation's largest independent hotel management company, today announced that under the terms of its management agreement with Winston Hotels (NYSE: WXH), a real estate investment trust, Interstate will cease operating 33 hotels owned by Winston, effective July 1, 2003.

On July 1, 2002, Interstate assigned the leases of 47 hotels for $17 million to a subsidiary of Winston under a provision of the REIT Modernization Act that allows REITs to own their hotels' leases. Interstate recorded a gain of $7.2 million on the transaction.

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