THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Saturday, November 4, 1995             TAG: 9511040309
SECTION: BUSINESS                 PAGE: D2   EDITION: FINAL 
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER 
                                             LENGTH: Short :   39 lines

HOTEL MANAGEMENT COMPANY SAID TO BE TAKING OVER CBN'S FOUNDERS INN

One of the nation's largest hotel management companies will take over the management of the Founders Inn & Conference Center from the Christian Broadcasting Network, sources said Friday.

The Christian Broadcasting Network, which owns and operates the Founders Inn, has called for a press conference on Monday. Gene Kapp, CBN's spokesman, said ``a major business decision regarding the management of Founders Inn'' will be addressed. He declined to comment further.

Pittsburgh-based Interstate Hotels, which operates about 140 properties in the United States, will be assuming the management of the Founders Inn, sources said. The Virginia Beach inn is one of few four-diamond hotels in the state and the only local one, according the American Automobile Association guide book.

``There's a transition taking place,'' said an Interstate representative who was staying at the Founders Inn Friday.

Privately owned Interstate assumed control of the Fort Magruder Inn in Williamsburg on Oct. 10, a spokesman for the hotel said.

Sources in the hotel and hospitality industry say that the Founders Inn's inability to serve drinks has hurt its ability to book conferences and meetings.

``That's the one piece of the equation that's been missing,'' a source said. ``They've tapped their market. I don't know how much more then can do without being more secular.''

Founders Inn's banquet menu now contains only nonalcoholic wines and beers. One ad touts its ``smoke-and-alcohol-free environment'' as conducive to getting meetings ``up to speed immediately.'' by CNB