ITEM 5    ITEM 6    ITEM 7    ITEM 7A    ITEM 8    ITEM 9

ITEM 6.           SELECTED FINANCIAL DATA

    The following table sets forth selected financial information for the Company for the years ended December 31, 2000, 1999, 1998, 1997, and 1996, and selected historical balance sheet data as of December 31, 2000, 1999, 1998, 1997, and 1996.  This information should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and notes thereto included elsewhere in this report.

WINSTON HOTELS, INC.

Selected Historical Financial and Other Data

For the years ended December 31, 2000, 1999, 1998, 1997 and 1996

(in thousands, except per share amounts)

(1) Funds from operations ("FFO"), as defined by the National Association of Real Estate Investment Trusts, is income (loss) before minority interest (determined in accordance with generally accepted accounting principles), excluding extraordinary items and gains (losses) from debt restructuring and sales of operating properties, plus real estate-related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. The Company further adjusts FFO by subtracting preferred share distributions and adding the change in deferred revenue during the period to eliminate the impact of Staff Accounting Bulletin No. 101 (see Note 2 to the Consolidated Financial Statements). The calculation of FFO may vary from entity to entity and as such the presentation of FFO by the Company may not be comparable to other similarly titled measures of other reporting companies. FFO is not intended to represent cash flows for the period. FFO has not been presented as an alternative to operating income, but as an indicator of operating performance, and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with generally accepted accounting principles.

   The following table sets forth selected financial information for CapStar Winston for the years ended December 31, 2000, 1999 and 1998. This information should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included elsewhere in this report.