Prime Hospitality Corp. Reports Third Quarter Results

Prime Hospitality Corp.
(NYSE: PDQ) today reported net income of $15.7 million, or $.34 per share, in
the third quarter of 2000 compared to net income of $1.4 million, or $.03 per
share, in the same period of 1999.  Earnings per share before asset
transactions and special charges grew by 21% to $.34 per share for the 2000
quarter versus $.28 per share in the prior year`s quarter.

quarter versus $.28 per share in the prior year`s quarter.
  “Our results for the quarter reflect continued strong operating
performance,” said A.F. Petrocelli, chairman and CEO of Prime.  “Our
comparable REVPAR grew by 5.6% over the prior year.  In addition, the 38
hotels which were converted to the Wellesley Inn & Suites brand in November
1999, continue to show impressive results with REVPAR increasing by 22.4%.
During the quarter, we also took a significant step in growing our AmeriSuites
brand.  We acquired the leasehold interests on 27 Sumner Suites and their
conversion to AmeriSuites is on target to be completed by November 1, 2000.”
 
For the quarter, revenues were $146.8 million and earnings before
interest, taxes, depreciation and amortization (EBITDA) were $44.5 million.
Excluding the impact of the Sumner Suites acquisition and the hotels divested
in the past year, revenues and EBITDA each grew by approximately 8% over the
same quarter in 1999.

“We continue to strengthen our balance sheet,” said Petrocelli.  “During
the quarter, we repaid another $18 million of debt and we have now reduced our
debt to capitalization ratio to 37%, among the lowest in the industry.  With
significant operating cash flow, additional asset divestitures and a focus on
brand growth we believe our financial picture will continue to improve.”
 
For the nine months ended September 30, 2000, net income was
$50.5 million, or $1.08 per share, as compared to $23.9 million, or $.45 per
share, in the same period of the prior year.  Income before property
transactions and special charges was $.91 per share for the nine months ended
September 30, 2000 versus $.81 per share for the same period in 1999.
Non-recurring charges for the first nine months of 2000 were comprised of
gains on asset sales of $.17 per share.  For the first nine months of 1999,
non-recurring items were comprised primarily of a loss of $.29 per share
related to valuation reserves, a loss of $.10 per share due to a change in
accounting principle related to the write-off of start-up costs and gains on
asset sales of $.03 per share.

——-