Press Release: Prime Hospitality Corp.
November 2, 1999
FAIRFIELD, NJ -- Prime Hospitality Corp. (NYSE: PDQ) has announced the official merger of its HomeGate Studios
& Suites and Wellesley Inns chains to the new mid-market Wellesley Inn & Suites. Plans to combine the chains
were originally announced in June, 1999 and the merger has proceeded on schedule.
The limited-service brand has 66 properties in 21 states, primarily in Texas, Florida and the Northeast, and has
several under development. Prime expects to expand the brand primarily through franchising efforts. Wellesley Inn
& Suites will predominately be targeted to transient business but will also appeal to extended-stay guests
that made up the majority of the HomeGate customer base. The chain's spacious, well-appointed guest rooms and suites,
many with fully-equipped kitchens, and separate cooking, living and sleeping areas will attract both short and
long-term guests. Breakfast areas have been added to all former HomeGate hotels to allow guests to enjoy a complimentary
expanded continental breakfast typically offered at all Wellesley properties. New signage has also been installed
at all former HomeGate properties.
``We're very enthusiastic about our decision to merge our Wellesley and HomeGate brands and believe the new Wellesley
Inn & Suites chain has great potential to be a leading limited-service brand,'' noted Prime Chairman and CEO
A.F. Petrocelli. ``We have already begun aggressive franchising initiatives on behalf of the chain and have received
positive feedback for both conversions and new construction development.''
The chain will feature interior-corridor properties averaging 100-150 rooms. It will provide free local calls,
free USA Today, 25`` televisions with free in-room movie channels, in-room coffee makers, and two-line phones with
dataports. Other amenities include on-site laundry facilities, same day valet service, an exercise room and an
indoor or outdoor pool (at most locations). Guests are also entitled to join the Wellesley Club, a frequent guest
program which rewards members with their tenth night free (or a $25 American Express® Gift Cheque), Budget
Car Rental discounts, late check out and other special promotional items.
To introduce guests to the new chain, a $5 discount coupon will appear in USA Today in November and December. As
a joint promotion with American Express, guests must use their American Express cards to receive the discount.
In addition, all properties are hosting Open House festivities the week of November 1 - 5 to encourage the community
to visit their local hotel. Visitors will receive property tours, refreshments and an opportunity to win certificates
for free night stays at any Wellesley Inn & Suites systemwide. An internet web site -- http://www.wellesleyinnandsuites.com
-- is also available and allows users to get hotel information, book rooms online and access special promotional
rates for properties systemwide. Effective today, the former HomeGate's have been completely transferred to the
Wellesley central reservation system; reservations can be made by calling 1-800-444-8888; through the airline global
distribution systems (GDS) using the code: WL or via the Internet web site.
Wellesley Inn & Suites is a proprietary brand of Prime Hospitality Corp., (NYSE: PDQ - news), based in Fairfield,
NJ. Prime owns, manages and franchises over 200 hotels across the United States and the U.S. Virgin Islands, including
its AmeriSuites all-suite chain. Also within its portfolio are owned and/or managed hotels operated under franchise
agreements with national hotel chains including Hilton, Radisson, Ramada, Crowne Plaza and Sheraton.
SOURCE: Prime Hospitality Corp.