Prime Hospitality Announces Agreement to Sell Frenchman's Reef Resort Hotel

Press Release: Prime Hospitality Corp.

September 16, 1999
FAIRFIELD, NJ -- Prime Hospitality Corp. (NYSE: PDQ) announced yesterday that it has entered into an agreement to sell its Frenchman's Reef Marriott Resort Hotel located in St. Thomas U.S.V.I. to Marriott International, Inc. (NYSE: MAR). The closing of the transaction is subject to certain conditions which are required to be satisfied within the next 120 days. Marriott International will operate the property upon closing.

The Frenchman's Reef Marriott Hotel is a 504-room resort hotel which consists of a 408-room eight-story building and 96 rooms in the adjacent Morningstar Beach Resort. The hotel has been operated by Prime since 1984. The proposed sale is part of Prime's ongoing strategy to reduce its real estate holdings and focus its resources on the growth of its proprietary AmeriSuites and Wellesley Inn & Suites brands.

Prime Hospitality Corp., one of the nation's premiere lodging companies, is an owner, manager and franchisor of over 200 hotels throughout the United States. The Company operates three proprietary brands, AmeriSuites® (all-suites), HomeGate Studios & Suites® (extended-stay) and Wellesley Inns® (limited service). The Company previously announced that effective November 1, 1999, it will merge its Wellesley and HomeGate chains into the new Wellesley Inn & Suites® chain. Also within Prime's portfolio are owned and/or managed hotels operated under franchise agreements with national chains including Hilton, Sheraton, Radisson, Holiday Inn, Ramada, Country Inns and Howard Johnson.

SOURCE: Prime Hospitality Corp.