Prime Hospitality Assumes Management of Two Hotels in Fishkill, N.Y.

Prime Hospitality
Corporation (NYSE: PDQ) has assumed the management of two hotels in Fishkill,
New York: The Holiday Inn Hotel & Conference Center and The Hampton Inn. The
hotels are owned by Stanley “Tom” Gatanis, Gary Joseph and Arthur DeDominicis.
The Holiday Inn Hotel & Conference Center is located at 542 Route 9, just
off Exit 13 of I-84. In addition to 157 newly-renovated guest rooms, the hotel
features 11 flexible banquet and meetings rooms totaling 10,000 square feet,
an outdoor pool, “Stanley`s Restaurant” and the high-energy “Brass Rail
Lounge”, featuring live entertainment on weekends. The Holiday Inn is part of
the global Six Continents Hotels, Inc., and reservations may be made at

The Hampton Inn, a limited service hotel, is situated off Exit 13 of I-84
at 544 Route 9, Fishkill.  The inn offers 99 guest rooms, and features free
continental breakfast buffet, dataport phones and voicemail, as well as an
indoor heated pool. The Hampton Inn is a member of The Hilton Family of
Hotels, and reservations may be made by calling 1-800-HAMPTON.
Set in the hills of the Hudson Valley, both hotels offer cable television
with free HBO, hair dryers, irons/ironing boards, coffee makers and same-day
valet dry cleaning services. Guests also can enjoy complimentary privileges at
the nearby Fishkill AllSports Health Club. Both hotels are located ten to
thirty minutes from West Point Academy, the Culinary Institute of America,
Vassar and Marist Colleges, and the cities of Poughkeepsie and Newburgh.

“We selected Prime Hospitality based on its successful track record, the
strength of its management team, and support services that the company can
provide to us,” stated owner Stanley “Tom” Gatanis. “Prime has demonstrated
time and again its ability to offer customers a quality hotel experience,
giving them terrific value and service, while keeping our key business
objectives in focus.”

Prime Hospitality Corporation, one of the nation`s premiere lodging
companies, owns, manages, develops and franchises 240 hotels throughout the
United States. The Company 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 and Holiday Inn. Prime can be accessed over the Internet at .