ARLINGTON HEIGHTS, IL-Sunburst Hotel Holdings Inc. and SJB Equities, Inc. has agreed to pay $32.4 million for Arlington Hospitality Inc.'s holdings in a sale approved by the US Bankruptcy Court. The two buyers will put up $9.6 million in cash and assume debt totaling $22.8 million on its 10 wholly-owned hotels, four vacant land parcels and joint venture interests in five other hotels.
The wholly-owned properties are in Kentucky, Mississippi, Ohio and West Virginia. The vacant land parcels are in Missouri, Ohio and Wisconsin. Arlington Hospitality also has joint venture interests in hotels in Illinois, Indiana, Michigan, Ohio and Wisconsin.
Silver Spring, MD-based Sunburst Hotel Holdings offered $21.3 million for Arlington Hospitality's assets earlier this year. However, Chanin Capital Partners held an auction of Arlington Hospitality's assets, requiring Sunburst Hotel Holdings to up its initial offer by 54%. Sunburst Hotel Holdings offer was a "stalking horse" bid, entitling it to about $400,000 if it was the unsuccessful bidder. A closing is expected in 30 days.
Meanwhile, the sale means Stephen K. Miller steps down as interim president and chief executive officer Friday. Chief financial officer James B. Dale will take over as acting president and chief executive officer, overseeing the winding down of the company.
In addition, Chicago-based Cohen Financial is marketing Arlington Hospitality's 53,831-sf, 32-year-old corporate headquarters building at 2355 S. Arlington Heights Rd. The asking price for the five-story building, one-third of it leased to LaSalle Bank through February 2009, is $6.5 million.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.