First Franchisee-Developed Wellesley Inn & Suites Opens; New Hotel Opens in St. Augustine, FL

Press Release: Prime Hospitality Corp.
January 4, 2001
ST. AUGUSTINE, FL -- Wellesley Inn & Suites has opened its first franchisee-developed hotel. The property, located at 331 A1A Beach Blvd, in St. Augustine, FL, represents the 22nd Wellesley Inn & Suites in the state and the 68th system wide. The hotel is owned and managed by Poonam Hospitality under a franchise agreement with Prime Hospitality Corp. (NYSE: PDQ).

The newly-constructed two-story property has 65 units, including five suites with whirlpools, refrigerators, microwaves and coffee makers. All rooms offer hairdryers, oversized work areas with high-speed Internet access and dataport phones equipped with dual lines. There are four ADA-approved suites, and 44 of the rooms are non-smoking. Special services and amenities include a complimentary expanded continental breakfast, an indoor pool and on-site laundry facilities.

``We believe Wellesley Inn & Suites has the potential to become a leading hotel chain and the development of this property represents a milestone in the chain's ongoing expansion,'' said A.F. Petrocelli, Chairman & CEO of Prime Hospitality.

Located across from the St. Augustine Pier and beach, the hotel is within five miles of historic downtown St. Augustine, the oldest city in the United States. The property is offering special rates, based on availability, of $49.00 a night until January 31, 2001. Reservations can be made by calling the hotel directly at 904-471-7700 or through Wellesley Inn & Suites toll-free central reservation number, 800-444-8888.

``We're pleased to represent the first Wellesley Inn & Suites in the great St. Augustine market,'' noted Champak Bhoja, President of Poonam Hospitality. ``Wellesley is a terrific brand and we are confident our property will prove very popular among both leisure and business travelers alike.''

Wellesley Inn & Suites is a proprietary brand of Prime Hospitality Corp. Prime, headquartered in Fairfield, NJ, is a hotel owner, operator and franchiser of nearly 240 hotels across the U.S. Prime's portfolio also includes its proprietary AmeriSuites chain, as well as hotels operated under franchise agreements with national chains including Hilton, Radisson, Holiday Inn, Ramada, Sheraton and Country Inn & Suites. Prime can be accessed via the Internet at: http://www.primehospitality.com.

SOURCE: Prime Hospitality Corp.