Prime Announces Financing for Joint Venture

FAIRFIELD, N.J., July 17 /PRNewswire-FirstCall/—Prime Hospitality Corp. (NYSE: PDQ), announced that the Quebec Venture has obtained an $8.2 million (CDN) non-recourse mortgage on the Holiday Inn Select Hotel in Quebec City, Quebec, Canada from Centre Financier aux enterprises Desjardins de Quebec-Center in collaboration with La Caisse Populaire Quebes-Est. The Quebec Venture is an investment group in which Prime has a 40% interest. The other partners include United Capital Corp., with a 40% share and Ark Investment Partners, with a 20% share.
The 238-room hotel, which was built in 1975, has recently benefited from significant renovations focused on guestrooms, the front lobby and common areas. The 18-story hotel is located in Old Quebec City`s Saint-Roch District, which has been the subject of over $330 million (CDN) of investment since 1992 as the City continues its major urban renewal initiatives.
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.
United Capital Corp. (Amex: AFP) owns and manages real estate and through subsidiaries, provides engineered products to industrial and automotive markets worldwide. A.F. Petrocelli is the President, Chairman and CEO of United Capital Corp. and holds a controlling ownership interest.
Ark Investment Partners LP, led by Brad Reiss, CEO, is an institutionally funded and discretionary provider of capital for the acquisition, recapitalization, and expansion needs of companies in a variety of industries. Ark can be accessed over the Internet at http://www.arkfinance.com.
——-