| FAIRFIELD, N.J., Dec. 16, 1998 - Prime Hospitality
Corp. (NYSE: PDQ) announced today that it has completed the sale of its
Los Angeles/Ontario Mills AmeriSuites for $10.8 million in cash to an affiliate
of FIT Investment Corporation. The hotel will continue to be operated as
an AmeriSuites hotel under a 10 year franchise agreement with the new owner.
The 128 room Los Angeles/Ontario Mills AmeriSuites is located at 4760 Mills Circle in Ontario, CA. The hotel was opened in February 1998 and is situated in the Ontario Mills Shopping Mall development, within close proximity to the Ontario Convention Center and the Ontario Motor Speedway. The sale is part of Prime's ongoing strategic initiative to divest hotel real estate. Prime's next scheduled sale is the Portland/Maine Mall AmeriSuites hotel for $10.2 million which is expected to close in January 1999. Prime plans to sell additional hotels in 1999 and will utilize the proceeds for debt repayments, stock repurchases and/or hotel development. Prime Hospitality Corp., one of the nation's premiere lodging companies,
is an owner, manager |
and
franchisor of 178 hotels throughout the United States and the U.S Virgin
Islands. The Company operates three proprietary brands, AmeriSuites(R)
(all-suites), HomeGate Studios Suites(R) (extended-stay) and Wellesley
Inns(R) (limited service). Also within its portfolio are owned and/or managed
hotels operated under franchise agreements with national chains.