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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.

Sunburst is the largest franchisee of Choice Hotels International Inc., which runs the Comfort Inn, Clarion Hotels, MainsStay Suites, Sleep Inn and Quality Inn hotel brands. In 1997, Choice spun off Sunburst to operate its branded hotels. Choice is also 39% owned by Bainum, who is chairman of the company.

Choice agreed to restructure the $136 million in debt that Sunburst owes Choice. Choice will receive $76 million plus interest in cash upon completion of the acquisition. Then it will receive a newly issued seven-year senior subordinated note worth $60 million.

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