Prime Hospitality Corp.
(NYSE: PDQ) announced today that it has completed the sale of its Wellesley
Inn hotel in Chesapeake, VA to The Tidewater Lodging Group, LLC for
$3.2 million. The hotel will be managed by the buyer and operated as
Wellesley Inn under a 20 year franchise agreement. In addition, Prime sold a
land parcel in Springettsbury, PA for $750,000.
The hotel sale represents Prime`s first Wellesley Inn hotel disposition
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, retire debt and/or invest in the growth of its brands.
Prime currently has several other asset sales under contract or in
negotiation, including three additional Wellesley Inns and one AmeriSuites
scheduled to close in May.