Prime Hospitality Corp. (NYSE:
PDQ) announced today that it has sold its Frenchman`s Reef Marriott Resort
Hotel in St. Thomas, U.S.V.I. to Marriott International, Inc. for $73 million
in cash. Marriott International will also manage the operations of the hotel.
The sale is part of Prime`s strategic initiative to focus on the growth of
its proprietary AmeriSuites and Wellesley Inn & Suites brands. Prime utilized
$40 million of the proceeds to retire debt encumbering the hotel with the
remainder available for the repurchase of its stock and/or retirement of debt.
“The sale of the Frenchman`s Reef is a key component of our asset
divestiture plan and significantly strengthens our balance sheet,” said A.F.
Petrocelli, chairman and CEO of Prime. “With strong cash flow and proceeds
from asset sales, we will continue to pursue our strategy of growing our
brands, lowering our leverage and reducing our outstanding shares.”