Prime Hospitality Corp.
(NYSE: PDQ) announced today that it has completed the sale of its
Chicago/Warrenville AmeriSuites hotel to First WRN, LLC, an affiliate of First
Hospitality Corp., a hotel owner and operator based in Des Plaines, IL. for
$10.8 million. The hotel will be managed by First Hospitality Corp. and
operated as an AmeriSuites under a 20 year franchise agreement.
The sale represents Prime`s tenth AmeriSuites hotel disposition in the
past 15 months and reflects its ongoing strategic initiative to divest its
hotel real estate while maintaining franchise rights. Prime intends to
utilize the proceeds to repurchase stock, retie debt and/or invest in the
growth of its brands. Prime recently sold its Frenchman`s Reef Marriott
Resort Hotel in St. Thomas, U.S.V.I. and has several other asset sales under
contract or in negotiation.
In addition to the Chicago/Warrenville AmeriSuites, First Hospitality
recently opened a 128-room AmeriSuites in Peoria, IL and is currently
constructing a 245-room AmeriSuites near Chicago O`Hare Airport, which will be
the largest AmeriSuites hotel in the system. Prime and First Hospitality also
have a number of other AmeriSuites projects under discussion.