Company Press Release: Prime Hospitality Corp.
May 17, 2000
FAIRFIELD, NJ -- Prime Hospitality Corp. (NYSE: PDQ) announced yesterday that it has completed the sale of three
Wellesley Inns for $17.0 million. The hotels will continue to be operated as Wellesley Inns under 20 year franchise
agreements and will also be managed by Prime. The hotels are located in Edison and Hazlet, NJ and Reading, PA.
Prime has now sold four Wellesley Inns in 2000 as part of its ongoing strategic initiative to divest its hotel
real estate while maintaining franchise rights. Prime intends to utilize the proceeds to repurchase stock, retire
debt and/or invest in the growth of its brands. Since the beginning of the year, Prime has generated approximately
$150 million from the sales of hotels which, in addition to the four Wellesley Inns, includes three AmeriSuites,
the Frenchman's Reef Marriott hotel in St. Thomas U.S.V.I. and five HomeGate hotels. Prime currently has several
other asset sales under contract or in negotiation.
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® (all-suites) and Wellesley Inns & Suites® (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.
SOURCE: Prime Hospitality Corp.