Prime to Manage Shoreham Hotel

Prime Hospitality Corp. , today announced that effective January 26, 2004,
Prime has assumed management of The Shoreham hotel in New York City. The
Property was recently acquired by an affiliate of Ark Investment Partners
LP and will continue to carry The Shoreham name.

The Shoreham Hotel is located at 33 West 55th Street (off 5th Avenue). The
10 story hotel features 174 guest rooms with a significant retail
component. Renovated in 1999, this style-conscious boutique hotel is
modern, sleek and cozy. The Shoreham hotel is situated in the heart of it
all, convenient to New York`s famous Fifth Avenue shopping, Rockefeller
Center, Broadway, Central Park and the Museum of Modern Art. The Shoreham
Restaurant and Bar, open for breakfast, lunch and dinner daily, offers
seasonal American cuisine with an enticing wine list and signature
cocktail menu. The Shoreham hotel can be accessed over the internet at
Prime Hospitality Corp., one of the nation`s premiere lodging companies,
owns, manages, develops and franchises more than 260 hotels throughout
North America. The Company owns and operates three proprietary brands,
AmeriSuites(R) (all-suites), Prime Hotels & Resorts(SM) (full-service) 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
Ark Investment Partners LP 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