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 Sunburst Hospitality Awards Top-Performing Hotels; 
The Peabody Court Hotel, Baltimore, Maryland, 
Named Full-Service Hotel of the Year

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Silver Spring, MD – October 18, 2004 –Sunburst Hospitality announced today that the company honored top performing hotels and staff in its system at the company’s recently concluded Annual Meeting for General Managers and Director of Sales held in Hot Springs, Arkansas.

“The company’s depth of talent and skills is made clear by the diverse recipients of these awards,” said Sunburst CEO James MacCutcheon in making the announcement. 

“This year Sunburst, like the majority of the hotel industry, has benefited from rising occupancies and rates. The fact that we weathered the past three years as well as we did is largely attributable to our excellent General Managers and sales force. We are pleased to reward the hard work and excellent results which has paid off at the property level and for the entire company.”

The Peabody Court Hotel, Baltimore, Maryland, was awarded Full-Service Hotel of the Year. An upscale boutique hotel, the Peabody Court is managed by Jason Curtis, who took over management and guided the restoration following 9/11. The hotel is a member of the Historic Hotels of America and is a Clarion Hotel. The Peabody Court also recently received the Choice Hotels Gold Choice Award for 2004.

Limited-Service Hotel of the Year was awarded to the Best Western JTB/Southpoint, Jacksonville, Florida. Keith Green is General Manager of the six-story, 183-room multiple-award winning hotel, which is set in Jacksonville’s Southpoint Business District.

Sunburst Hospitality’s Full-Service Sales Team of the Year was awarded to the staff of the Clarion Anaheim Resort located two blocks south of Disneyland Park and adjacent to the Anaheim Convention Center. A seven-time Gold Award Winner, the hotel completed a renovation in 2003 and was converted to the Clarion brand. Jeff Heath, General Manager, and Stephanie Westberg, Director of Sales, confirm that their staff has hustled to make the most of the competitive southern California market.

Limited-Service Sales Team of the Year was awarded to the Comfort Inn – Hall of Fame, Canton, Ohio.  Proximate to the NFL Hall of Fame, the hotel has expanded its customer base to include Canton's top corporate and business travelers, according to Susi Albiez, General Manager, and Chris Menegay, Director of Sales.  The Comfort Inn – Hall of Fame also recently received the prestigious Choice Hotels Gold Award for 2004.

"Our properties have experienced excellent operating improvement in 2004," said Kevin Hanley, Executive Vice President and Chief Operating Officer. "RevPAR is up nearly 10%. We have benefited system-wide from a dedicated, experienced staff. It was a pleasure to honor some of our leading performers and acknowledge their outstanding achievement."

About Sunburst Hospitality

Sunburst Hospitality Corporation is a leading hotel owner and manager of nationally recognized hotels and operates in 16 states. Sunburst's hotels are branded as Comfort Inns and Suites, Best Western, Clarion Hotels, Holiday Inn Express, 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. Sunburst grew from a portfolio of 11 hotels to 89 hotels, and achieved $210 million annual revenue at its peak.

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 January 2001, management completed a leveraged buy-out of the Company, which formerly traded on the New York Stock Exchange. Sunburst Hospitality remains one of the largest private owners and operators of hotel properties in the U.S.


 
Contact:
Sunburst Hospitality Corporation
10770 Columbia Pike
Silver Spring, MD 20901-4448
301.592.3800
www.sunbursthospitality.com
Also See: Sunburst Hospitality Completes $6.5 million Renovation on the Former Quality Hotel MainGate; Converts Property to Clarion Anaheim Resort / Mar 2003
Sunburst Hospitality Completes Long-Term Disposition Plan, Reduces Debt, Improves Year-Over-Year RevPAR / June 2004


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