Prime Hospitality Corp. (NYSE: PDQ)
announced today that it has completed the sale of its Boston/Medford
AmeriSuites hotel to James P. Koehler for $20.2 million. The hotel will be
operated as an AmeriSuites under a 20-year franchise agreement and will also
be managed by Prime under a ten-year management agreement. The hotel is the
second AmeriSuites purchased by Koehler who acquired the Tempe, AZ AmeriSuites
in December 1999.
The hotel sale represents Prime`s twelfth AmeriSuites hotel disposition
since December 1998 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. Since the beginning of the year, Prime has generated
approximately $133 million from the sales of hotels which includes three
AmeriSuites, one Wellesley Inn, the Frenchman`s Reef Marriott hotel in St.
Thomas U.S.V.I. and its remaining five HomeGate hotels. Prime currently has
several other asset sales under contract or in negotiation.