Prime Hospitality Corp.
(NYSE: PDQ) announced today that it has completed the sale of three Wellesley
Inns for $17.0 million. The hotels will continue to be operated as Wellesley
Inns under 20 year franchise agreements and will also be managed by Prime.
The hotels are located in Edison and Hazlet, NJ and Reading, PA.
Prime has now sold four Wellesley Inns in 2000 as part of 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 $150 million from the sales of
hotels which, in addition to the four Wellesley Inns, includes three
AmeriSuites, the Frenchman`s Reef Marriott hotel in St. Thomas U.S.V.I. and
five HomeGate hotels. Prime currently has several other asset sales under
contract or in negotiation.