Prime Hospitality Launches 'Prime Rewards' Loyalty Program

Electronic Program Offers Technological Efficiencies; Earn Points for Both Hotels and Airlines

Press Release: Prime Hospitality Corp.
September 6, 2001
FAIRFIELD, NJ -- Prime Hospitality Corp. (NYSE: PDQ) announced the launch of its new loyalty program for its AmeriSuites and Wellesley Inns & Suites chains. The new program, which went live on September 1st, offers enhanced member benefits and unique technological features. ``Prime Rewards'' will compete with the major hotel loyalty programs as it allows members to earn points towards hotel stays and American AAdvantage airmiles or Delta Skymiles simultaneously.

Prime Rewards replaces the company's former loyalty programs, The AmeriSuites Club and The Wellesley Club, whose members will automatically be enrolled in the new program. Members will accumulate ten points per every dollar spent, excluding taxes, at any AmeriSuites or Wellesley nationwide. A member is entitled to a free night's stay for every 10,000 points accumulated. In addition, AAdvantage and Delta Skymiles members will also receive one airmile for every dollar spent, excluding taxes.

Prime Rewards will consist of three member tiers classified by points accumulated during a calendar year; the greater the number of stays, the greater the point value per dollar spent. All members receive free local calls, express reservations and other hotel-level benefits as well as a newsletter and special promotional offers. Guests can enroll in Prime Rewards at any of the over 200 AmeriSuites or Wellesley hotels nationwide and online at: http://www.amerisuites.com or http://www.wellesleyinnandsuites.com.

``Prime Rewards will be completely electronic and will therefore lead the industry in eliminating paper vouchers and invoices,'' explained Vice President of Marketing Services Jim Gard. ``We are fully integrating the property management systems, central reservation system and guest database using web-based technology which will ensure outstanding speed, efficiency, simplicity and convenience for our members.''

Prime Reward members can access their point status online instantly. In addition, since vouchers are not used, hotels can accept room redemptions via reservations or walk-ins at any time (assuming availability) while technology safety checks and balances ensure accuracy. Central reservation agents can also access member guest preferences using the member's identification number, while technological functionality also allows the system to interface with airline partners.

``Due to the consistency of our brand technology in both brands, all properties can access Prime Rewards from the front desk through an interface with the Prime Rewards database. Each night the checkout folio information will be credited to the member's statement,'' noted Vice President of Technology Jim Crosby. ``The PMS is always online with the Prime Rewards database which allows for easier reservations because the member's profile information is readily accessed via the PMS through the interface. There are many technological features that will benefit the hotel as it relates to revenue, and the members as it relates to benefits.''

``This technology will enable us to personalize the club and interact with members on a more individual basis,'' added Gard. ``Since our front desk agents will have access to members' accounts, they can acknowledge their birthdays, eligibility for free nights, and so on.''

Prime Rewards will be promoted in advertisements in USA Today, inflight publications and Business Travel News, as well in radio and television ads and property collateral materials.

Prime Hospitality Corp., one of the nation's premiere lodging companies, owns, manages, develops and franchises nearly 240 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 franchised agreements with national hotels chains including Hilton, Radisson, Sheraton, Crowne Plaza, Holiday Inn, and Ramada. Prime can be accessed at: http://www.primehospitality.com.

SOURCE: Prime Hospitality Corp.