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 and successfully implementing strategies to maximize the value of its operating hotels. Mr. MacCutcheon and the executive management team have a successful record of managing ahead of industry cycles. Prior to the last industry downturn in the late 1980s, 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. These hotels benefited from significant investments of renovation capital. The hotels also benefited from the installation of professional management and aggressive sales and marketing systems. In 1995, the Company responded to changing industry cycles by shifting its growth strategy to construction of mid-market, limited service and extended stay hotels.

On January 4, 2001, the shareholders approved a management buyout of the Company. Sunburst is now controlled by Stewart Bainum, Jr., James A. MacCutcheon, certain members of the management team and certain other members of the Bainum family. Since that time, the Company has opportunistically sold a number of hotels in order to reduce debt incurred in the buyout.

Sunburst remains committed to developing opportunities for the career advancement of its associates while maximizing the value of assets in its portfolio.