Sunburst Names CEO as Chief Exec Jim MacCutcheon Retires

. October 14, 2008

JUNE 1, 2007. Sunburst Hospitality announced today that Jim MacCutcheon, CEO since 2000, is retiring and that the role of Chief Executive will be filled by veteran senior executive Kevin Hanley. MacCutcheon will remain a member of Sunburst's Board of Directors and will be involved with Sunburst on a consulting basis in retirement.

Currently Sunburst's President and Chief Operating Officer, Hanley has worked closely with MacCutcheon over many years, directing the company's asset management, capital deployment and operations. As a result of their combined skills Sunburst Hospitality is distinguished for their expertise in optimizing the value of hotel and resort properties.

"It is with mixed emotions that I declare my retirement," commented Mr. MacCutcheon in making the announcement. "I assumed the CEO position in 2000; an exciting time as we recapitalized the Company and went private in early 2001. We subsequently weathered a severe industry downturn fueled by 9/11 and an economic recession. During the past seven years, we made a number of important strategic decisions and the Company is stronger, by any measurement, today as a result.

"I could not have possibly be more proud of the people on our team at all levels. I am particularly proud of the senior management team with whom I have worked at Sunburst, and believe that my most important accomplishment will ultimately prove to be ensuring an orderly CEO succession.

"I am delighted that the full Sunburst Board of Directors shares my confidence in Kevin Hanley. With the recent addition of our third party management business, our aggressive asset redevelopment initiatives and recent hotel acquisitions, we have clearly demonstrated the Company's transition back to a growth mode. Most of Kevin's career has been devoted to successfully growing lodging-oriented enterprises, and nobody is more qualified to lead our growth-oriented company," concluded Mr. MacCutcheon.

As he steps into the role of CEO of Sunburst Hospitality, Hanley brings more than 25 years of hotel operational and real estate expertise to the position. Prior to joining Sunburst in 1994, Hanley held senior positions with Motel 6/Accor, Victor Management, ITT/Sheraton, Laventhal Horwath and Hyatt Hotels. He earned a Bachelor of Science degree in Business Administration with an emphasis in Hotel Administration from the University of New Hampshire and may well have handled more hotel transactions than any other executive active in the industry today.

Hanley's direction for the company is to continue the trajectory that he and MacCutcheon charted seven years ago. His leadership style, which emphasizes consistency, standards and driving empowerment, has flattened the organization and significantly decreased decision making time.

"We seek to continue to capitalize on our people and assets and are well-positioned to do so," remarked Hanley. "I am pleased that the Board recognizes that in recent years I have successfully transitioned from a highly effective, transaction-oriented executive to an equally effective operations executive. I am excited to take on this key leadership role. As I do so, Jim's expertise and direction on the Board and in a consulting role will be a great help."

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