2000

1999

1998

   Net (loss) income

$

(20,255)

$

887

$

595

   Adjustments to reconcile net (loss) income to net cash

      used in provided by operating activities:

         Depreciation and amortization

1,047

1,052

1,050

         Other

11

--

3

         Loss on asset impairment

21,658

--

--

   Change in operating assets and liabilities:

         Accounts receivable, net

498

456

(1,616)

         Due from Winston Hospitality, Inc.

--

--

1,636

         Due from affiliates

(2,338)

(3,275)

(5,008)

         Deposits and other assets

(659)

(100)

(157)

         Restricted cash

(23)

166

(204)

         Accounts payable and accrued expenses

243

54

617

         Percentage lease payable to Winston Hotels, Inc.

(444)

(28)

1,919

         Advance deposits

27

(32)

49

Net cash used in provided by operating activities

(235)

(820)

(1,116)

Cash flows from investing activities:

         Additions of furniture, fixtures and equipment

(54)

(21)

(131)

         Proceeds from sale of fixed assets

--

3

16

         Additions to intangible assets

--

(107)

(87)

         Additions to deferred franchise costs

--

(79)

--

Net cash used in investing activities

(54)

(204)

(202)

Net decrease in cash and cash equivalents

(289)

(1,024)

(1,318)

Cash and cash equivalents, beginning of period

1,051

2,075

3,393

Cash and cash equivalents, end of period

$

762

$

1,051

$

2,075