Prime Hospitality Sells Two Land Parcels

Press Release

May 29, 2000
FAIRFIELD, NJ -- Prime Hospitality Corp. (NYSE:PDQ) has announced that it has sold two land parcels in separate transactions for $2.5 million. The parcels are located in Las Vegas, NV and Butler, PA. The sales are part of Prime's ongoing strategic initiative to divest real estate and utilize the proceeds to repurchase stock, retire debt and/or invest in the growth of its brands. Prime has generated $158 million from asset sales thus far in 2000.

Prime Hospitality Corp., one of the nation's premiere lodging companies, owns, manages, develops and franchises over 200 hotels throughout the United States. The Company owns and operates two proprietary brands that compete in different segments: AmeriSuites(R) (all-suites) and Wellesley Inns & Suites(R) (limited-service). Also within its portfolio are owned and/or managed hotels operated under franchise agreements with national hotels chains including Hilton, Radisson, Sheraton, Crowne Plaza, Holiday Inn and Ramada.

Contact: Douglas Vicari, 973-808-7776, or Richard Szymanski, 973-808-7751, both for Prime Hospitality Corp.