Prime Hospitality Closes Sale of Vernon Hills, IL AmeriSuites Hotel

Press Release: Prime Hospitality Corp.
September 12, 2002
FAIRFIELD, NJ -- Prime Hospitality Corp. (NYSE: PDQ) announced yesterday that it has completed the sale of its Chicago/Vernon Hills AmeriSuites hotel to FCLC Vernon Hills, LLC. The hotel will continue to be operated as an AmeriSuites under a 20-year franchise agreement. Prime Hospitality will also continue to manage the hotel.

The 128-suite hotel, which opened in 1997, is located at 450 N. Milwaukee Avenue in Vernon Hills, IL, just off Route 21 in suburban Chicago. It is situated near large corporate demand generators such as Allstate and Tenneco. Attractions in the area include the Six Flags Amusement Park and the Gurnee Mills Outlet Shopping Center.

The sale reflects Prime's ongoing strategic initiative to divest its hotel real estate while maintaining franchise rights. Since January 1999, Prime has sold approximately $385 million of assets including approximately $48 million in 2002.

Prime Hospitality Corp., one of the nation's premiere lodging companies, owns, manages, develops and franchises 240 hotels throughout the United States. The Company owns and operates two proprietary brands, AmeriSuites® (all-suites) and Wellesley Inns & Suites® (limited-service). Also within Prime's portfolio are owned and/or managed hotels operated under franchise agreements with national hotel chains including Hilton, Radisson, Sheraton, Holiday Inn and Ramada. Prime can be accessed over the internet at http://www.primehospitality.com and its brands can be accessed at http://www.amerisuites.com and http://www.wellesleyonline.com

Source: Prime Hospitality Corp.