Prime Hospitality Corp. , a leading hotel owner, operator and franchisor, announced today the re-licensing of three AmeriSuites hotels in Texas. The three hotels located in Houston, Dallas and San Antonio are owned by ShoLodge Inc. and were leased by May-Ridge, LP., a special purpose entity of Prime Hospitality. May-Ridge terminated the lease agreement on April 3, 2003 due to projected operating shortfalls of $1.5 - $2.0 million per year.
In accordance with the lease termination, May-Ridge will forfeit its rights to receive a $3 million payment in 2011 which was due at the end of the lease as compensation for executing the lease agreement. ShoLodge has assumed management of the hotels and is operating the hotels under new ten-year franchise agreements with Prime, under the AmeriSuites flag. These franchise agreements permit ShoLodge to terminate the agreement without termination fees upon proper notice. The financial impact to Prime of the lease termination will result in an increase in EPS of $.01 - $.02 in 2003.
Prime Hospitality Corp., one of the nation`s premiere lodging companies, owns, manages, develops and franchises more than 240 hotels throughout North America. The Company owns and operates three proprietary brands, Prime Hotels & Resorts(SM) (full-service), AmeriSuites(R) (all-suites), and Wellesley Inns & Suites(R) (limited service). Also within Prime`s portfolio are owned and/or managed hotels operated under franchise agreements with national hotel chains including Hilton, Radisson, Sheraton and Holiday Inn.
Prime can be accessed over the Internet at http://www.primehospitality.com/ and its brands can be accessed at http://www.amersuites.com/, >http://www.primehotelsandresorts.com/ and http://www.wellesleyonline.com/.