News for the Hospitality Executive
Sunburst Hospitality Sells Vista on Courthouse Apartments
for $85 Million, Intends to Invest Proceeds in Hotels
Silver Spring, MD – March 9, 2010– Sunburst Hospitality announced today that the firm recently sold its Vista on Courthouse apartments in Arlington, Virginia, to Equity Residential for $85 million. This disposition provides Sunburst increased capacity with which to execute hotel acquisitions. Sunburst Hospitality is distinguished for their expertise in timing the market well and optimizing the value of the company’s hotel and resort properties.
“We built the Vista project with the intent to bring it to the market after leasing and sales were completed. As a result, we are very pleased with the outcome of the Vista sale. It concludes our foray into real estate sectors other than hospitality at this point in time,” said Kevin Hanley, president and CEO of Sunburst, which owns more than 30 hotels around the U.S., including the 187-room full-service Arlington Court Suites hotel located adjacent to the Courthouse development.
“Now Sunburst is actively looking for opportunistic investment opportunities in the hospitality sector,” Mr. Hanley announced. “Because we are not constrained by brand, we are exploring a variety of acquisitions in midscale and upscale hotels, both limited and full-service.”
The current market provides an opportune time for hotel acquisitions, according to Mr. Hanley.
“The investment side of our industry has been challenged to transact during the past two years as a result of the drying up of the capital markets and a severe shortage of both debt and equity,” commented Mr. Hanley. “We are now in a fortunate position with access to capital and plan to use it to acquire properties.
“Sunburst sees an opportunity on the horizon to acquire quality hotel
assets at attractive yields. Similar to the early 1990’s, many
hotels will trade below replacement cost. As an owner and operator
Sunburst is in a unique position to able to acquire hotels on an all-cash
basis and leverage their well-established management expertise.”
Sunburst has a proven capacity to optimize intrinsic worth of the hotels it acquires through renovation, re-branding and distinctive upgrading combined with operational acumen. This combination allows the company’s hotels to achieve their highest profit potential.
In 2005, Sunburst expanded its real estate interests to include sectors other than hotels, capitalizing on economies of scale and skilled management in place in specific markets of interest. One of these opportunities was the Vista development on the site of the company’s former Quality Inn, located at Courthouse Metro stop and within minutes of the Pentagon and Washington, DC. Sunburst initiated construction in 2007 after demolishing a portion of the existing hotel complex.
The Vista on Courthouse project was completed in late 2008 with 220 apartments and 32 townhomes. With the apartments leased and sold to an investor, Sunburst continues to complete sales of the remaining 15 luxury townhomes. The four-story brick townhomes within walking distance to a Metro station sell for $850,000 to $1.1 million (www.vistaoncourthouse.com).
About Sunburst Hospitality
Kevin Hanley, President and Chief Executive Officer of Sunburst Hospitality Corporation leads the Company’s direction and growth through exceptional real estate asset management and hospitality operations. Mr. Hanley is credited as having “unparalleled experience and gifts in the area of real estate transactions and development,” by his predecessor former CEO James A. MacCutcheon who led the company from 2000 through 2007 when he retired and Mr. Hanley was named president and elected to the company’s Board of Directors.
Sunburst is committed to developing and successfully implementing strategies to maximize the value of its operating properties. The firm’s executive management team has a successful record of managing ahead of industry cycles.
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.
SUNBURST HOSPITALITY CORPORATION
|Also See:||Sunburst Hospitality Corporation Reports Significant Accomplishments in 2006 / December 2006|