Prime Hospitality Corp. Announces Completion of Cash Tender Offer

Prime Hospitality Corp.
(NYSE: PDQ) (“Prime”) announced today that its cash tender offer for all of
its outstanding 93/4% Senior Subordinated Notes due 2007 (the “Notes”) expired
last night as of 12:00 midnight, New York City time.  Prime received tenders
of Notes from holders of Notes representing approximately 99.8% of the
$190 million aggregate principal amount outstanding of the Notes, all of which
were accepted for payment on April 30, 2002.  In conjunction with the tender
offer, Prime solicited and obtained consents from registered holder of the
Notes to effect certain amendments to the indenture under which the Notes were
issued.

Prime has notified the trustee that it is calling for redemption on
June 14, 2002 (the “Redemption Date”) all Notes not tendered in the tender
offer at a redemption price of $1,048.75 per $1,000 principal amount of such
notes plus accrued and unpaid interest to, but not including, the Redemption
Date. Prime has instructed the trustee to mail the redemption notice to the
registered holders of all such Notes.

Bear, Stearns & Co. Inc. was the dealer manager for the tender offer and
solicitation agent for the consent solicitation. Questions or requests for
assistance may be directed to Bear Stearns at 877-696-BEAR (toll free).

Prime Hospitality Corp., one of the nation`s premiere lodging companies,
owns, manages, develops and franchises 236 hotels throughout the United
States.  Prime owns and operates two proprietary brands, AmeriSuites(R)
(all-suites) and Wellesley Inns & Suites(R) (limited-service).  Also within
Prime`s portfolio are owned and/or managed hotels operated under franchise
agreements with national hotel chains including Hilton, Radisson, Sheraton,
Holiday Inn and Ramada.

Certain statements in this press release constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act
of 1995.  These forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause our actual results,
performance or achievements, or industry results, to differ materially from
any future results, performance or achievements expressed or implied by such
forward-looking statements.  Forward-looking statements include the
information about our possible or assumed future results of operations and
statements preceded by, followed by or that include the words “expect,”
“intend,” “plan,” or similar expressions, or the negative thereof.  Actual
results may differ materially from those expressed in these forward-looking
statements.  Readers of this press release are cautioned not to unduly rely on
any forward-looking statements.

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