Prime Hospitality Corp.
(NYSE: PDQ) announced today that it has acquired the leasehold interests in
27 Sumner Suites hotels from Sholodge, Inc. (“Sholodge”) for purposes of
converting them to its AmeriSuites brand. As part of the transaction,
Sholodge will also construct three additional AmeriSuites, two of which will
be funded by Sholodge and one by Prime.
Prime intends to convert the leased hotels to AmeriSuites over the next
several months. The hotels will be operated by Prime as Sumner Suites until
the conversion process is complete. Prime currently has 101 AmeriSuites in
operation and 60 executed franchise agreements for new AmeriSuites to be built
including 10 hotels under construction.
“We are very excited to be able to increase the AmeriSuites chain by 30%
with minimal capital investment,” said A.F. Petrocelli, chairman and chief
executive officer of Prime. “These hotels are substantially identical to our
existing AmeriSuites and we anticipate a smooth conversion process. This
transaction, combined with our strong franchise pipeline, positions
AmeriSuites to be a major player in the industry.”
The hotels are located in 12 states primarily in the Southeast, Midwest
and Southwest regions of the country. The hotels were all recently
constructed by Sholodge with an average age of approximately 3 years.
Sholodge also has prior experience developing AmeriSuites hotels as 15 current
AmeriSuites were constructed by Sholodge.