Winston, Charlesbank Form Hotel Venture

Winston Hotels Inc., Raleigh, N.C., has formed a joint venture with Charlesbank Capital Partners LLC, Boston, to acquire more than $100 million of hotel assets.Winston, a real estate investment trust, will act as the managing member of the venture, which will focus on acquisitions of limited-service, upscale extended-stay, and small full-service branded hotels in secondary and primary markets, the REIT said. It will target acquisitions with turnaround or upside potential that can benefits from additional capital and aggressive asset management, Winston said. Charlesbank will provide 85%, and Winston 15%, of the total equity for each approved acquisition, and the former will have the option to expand the venture by committing additional equity. Joe Green, Winston's chief financial officer, said the new entity is looking at major brands in strong locations, not necessarily in major markets. "We like secondary markets where we think there is a lot of potential, such as suburban office parks, university areas, and small suburbs of larger markets," he said. The REIT can be found online at http://www.winstonhotels.com.