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Sunburst Hospitality Converts Quality Hotel Southpoint
to the Best Western Hotel JTB/Southpoint,
Jacksonville, Florida
Silver Spring, MD � October 24, 2002 � Sunburst Hospitality announced today the reflagging of the Quality Hotel Southpoint to the Best Western Hotel JTB/Southpoint, Jacksonville, Florida. The 183-room full-service hotel is owned by Sunburst Hospitality and was converted to optimally serve the Northeastern Florida market. 

The Best Western Hotel JTB/Southpoint, set in the heart of Jacksonville�s Southpoint business district, features six stories, extensive meeting facilities, and distinctively appointed guest rooms and suites. The property is perfectly equipped to serve both business and leisure travelers.

�This award-winning hotel has consistently been a strong perfomer in the market but we believe there is upside for both the property and the business and leisure markets of the area with a new Best Western destination,� said CEO Jim MacCutcheon. 

�The distribution of the Jacksonville hotel market is such that the Best Western flag is underrepresented in the region. This factor, combined with the hotel�s unique features, makes the property an excellent candidate for the Best Western system.�

Strategically located at the intersection of Interstate I-95 and J. Turner Butler Blvd., the hotel is 7 miles south of downtown Jacksonville, 12 miles west of the beaches and 2 miles north of Baymeadows.

�We believe the Jacksonville area will benefit from this addition of a Best Western property. Due to significant demand in the Jacksonville market, the Best Western reservation system was frequently challenged to locate sufficient rooms, previous to this property�s conversion,� said Mr. MacCutcheon. �During the conversion, the hotel�s existing, highly trained staff has all been retained. We believe this will allow the property to continue to offer signature service and comfort.�

The General Manager of the Best Western Hotel JTB/Southpoint is Keith Green.

About Sunburst Hospitality Corporation
Sunburst Hospitality Corporation is a leading hotel owner and manager of nationally recognized hotels and operates in 24 states. Sunburst's hotels are branded as Best Western, Clarion Hotels, Comfort Inns and Suites, Holiday Inn Express, MainStay Suites, Quality Inn, and Sleep Inn. 

James A. MacCutcheon, the company's president and CEO, has been with the company and its predecessor organizations since 1987. Since that time, Sunburst has grown from a small portfolio of 11 hotels to 52 hotels. Annual revenues in 2001 approximated $150 million.

Sunburst is committed to developing and successfully implementing strategies to maximize the value of its operating hotels. Mr. MacCutcheon and the executive management team have a successful record of managing ahead of industry cycles.
Prior to the most recent hospitality industry downturn, the Company was able to liquidate a substantial portion of its existing hotel portfolio. The Company capitalized on the distressed real estate and capital markets in the early 1990s by opportunistically acquiring hotels at significant discounts to replacement cost. In 1995, the Company responded to changing industry cycles by shifting its growth strategy to construction of mid-market, all-suite extended-stay MainStay Suites hotels. In January 2001, management completed a leveraged buy-out of the Company, which formerly traded on the New York Stock Exchange. Sunburst Hospitality is currently one of the largest owners and operators of hotel properties in the U.S. today.

Sunburst recognizes that its best investments are those that it makes in its people. The Company is a recognized industry leader in developing and implementing best practices in the human resources area. Innovative compensation and benefit programs are in place at all levels of the company. Sunburst remains committed to developing opportunities for the career advancement of its associates while maximizing the value of assets in its portfolio. 

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Contact:
Sharon Lemon
816.769.6604

Sunburst Hospitality
10770 Columbia Pike
Silver Spring, MD 20901-4448
301.592.3800 
www.sunbursthospitality.com

Also See: Sunburst Hospitality Amends Bank Credit Facility, Pays Down Debt Early in Wake of Leveraged Buy-out / Sept 2002
Choice Hotels, Sunburst Hospitality, Agree to Enhance Strategic Alliance / Dec 1998

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