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Sunburst Hospitality Sold for $116.5 Million

SILVER SPRING, MD-Managers and shareholders buy a company spun off as a real estate operator for Choice Hotels' franchises.

By Mike Cleary | Updated on September 22, 2000

SILVER SPRING, MD-Sunburst Hospitality Corp., essentially the former real estate arm of Choice Hotels International, on Wednesday agreed to sell itself to a group of managers and shareholders led by the company’s chairman, Steward Bainum Jr.

The group will buy the owner and manager of hotels for $7.375 a share, or $116.5 million. Bainum and his family already hold 46% of Sunburst. The buyout group also includes James A. MacCutcheon, Sunburst’s chief financial officer, other Sunburst managers and members of the Bainum family.

Sunburst’s chief executive, Donald Landry, said he will step down once the sale is completed. MacCutcheon becomes co-chief executive and will become president and chief executive after Landry’s resignation.

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