Arlington Hospitality Inc., a hotel development and management company based in Arlington Heights, Ill., has announced the execution of an asset purchase agreement to sell substantially all its assets to Sunburst Hospitality Development Inc., Silver Spring, Md., for approximately $21.3 million.The purchase price will include cash of $6.25 million and the assumption of the mortgage debt on the hotel assets to be purchased, said Arlington, which has filed for Chapter 11 bankruptcy protection. Under the agreement, Sunburst will buy Arlington's rights in certain contracts, leases, and agreements, including the development agreement, royalty-sharing agreement, and the individual hotel franchise agreements between certain debtors and affiliates of the Cendant Corp. The asset purchase agreement is subject to the bidding procedures of a bankruptcy proceeding for Arlington and its subsidiaries that is pending in the U.S. Bankruptcy Court for the Northern District of Illinois.

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