| SILVER SPRING, MD � September 21, 1999 -- Sunburst Hospitality
Corporation (NYSE: SNB), one of the country's leading hotel owners and
managers, announced the sale for $15 million of four hotels located in
Phoenix, Arizona. The all cash proceeds were used to repay borrowings
under the Company�s bank line of credit. The Company also reported
that it has opened four newly developed, extended-stay hotels so far this
year.
The sale of the four Arizona properties, a Rodeway Inn®, an EconoLodge®,
and two Comfort Inns®, is consistent with the Company�s plan to dispose
of assets that do not meet the Company�s criteria for long-term retention
and redeploy capital into higher yielding, extended-stay hotels.
The four properties reported revenue for the last twelve months of $6.6
million and EBITDA of $1.6 million. Since January 1, 1999, the Company
has sold 10 hotels resulting in cash proceeds of $32.7 million which has
been utilized for debt repayments, stock repurchases and hotel development.
The Company has an additional three hotels currently being marketed for
sale.
The Company also announced the opening, since January 1, 1999, of new
extended-stay hotels in Tempe, Arizona; Peabody, Massachusetts; Annapolis,
Maryland and North Charleston, South Carolina. The Company now operates
18 extended-stay hotels and has an additional six extended-stay hotels
under development. Sunburst�s extended-stay hotels offer a mid-priced
lodging alternative for guests who wish to have home-like amenities while
traveling.
 Don
Landry, Sunburst�s CEO, commented, �We continue to execute our game plan
of redeploying capital by selling mature hotels in markets with limited
upside and investing in fresh, new, mid-priced, extended-stay hotels in
vibrant markets. Our extended-stay hotels provide outstanding guest
satisfaction and generate impressive financial returns.� Sunburst Hospitality
Corporation operates 11,340 rooms in 82 hotels in 26 states. The
Company�s hotels are operated under various brand names including MainStay
Suites®, Comfort Inns®, Quality Inns and Suites®, Clarion®
and Sleep Inns®.
The references to improving yields and future development are forward-looking
statements. Such statements are subject to certain risks and uncertainties,
which may cause the actual performance of Sunburst to differ. Some
of these uncertainties are discussed under the heading �Risk Factors� in
Sunburst�s SEC filings. These forward-looking statements speak only
as of the date hereof, and Sunburst does not undertake any obligation to
publicly release the result of any changes in such forward-looking statements
which may be made to reflect events or circumstances after the date hereof. |
