Prime Hospitality Corp. Reports First Quarter Results

Apr 26, 2001, 01:00 ET from Prime Hospitality Corp.

    FAIRFIELD, N.J., April 26 /PRNewswire/ -- Prime Hospitality Corp.
 (NYSE:   PDQ), a leading hotel owner, operator and franchisor, reported its
 results for the first quarter ended March 31, 2001.
     Net income for the first quarter of 2001 was $9.6 million, or $.21 per
 share, compared to net income of $10.5 million, or $.22 per share, for the
 first quarter last year.  Prior year results included the operations of the
 Frenchman's Reef Resort Hotel which contributed a net additional $.03 per
 share before its sale in March 2000.
     "Our results for the first quarter were impacted by the slowdown in the
 economy," said A.F. Petrocelli, Chairman and Chief Executive Officer of Prime.
 "A significant number of key customers reduced their travel budgets which
 affected occupancy at our upscale AmeriSuites and full-service hotels.  Our
 mid-priced Wellesley Inn & Suites brand, however, performed well in this
 environment with REVPAR rising by 7.1% during the quarter.
     "We are responding to this challenging economic environment by
 implementing a number of new initiatives designed to increase the visibility
 of our brands," continued Petrocelli.  "Beginning next month, we will be
 running advertisements on national cable television for AmeriSuites and on
 national radio for our Wellesley brand.  In addition, we are expanding our
 rewards program for our brands to include both rooms and airline miles and
 intend to roll out the new program in the third quarter.
     "Our efforts over the past two years to divest real estate, reduce debt
 and retire shares have put us in a strong financial position," commented
 Petrocelli.  "With our leverage at just 34% of capitalization, we are in an
 excellent position to withstand a continued softening of the economy."
 
     Operating Results
     For the quarter, revenues were $131.7 million and earnings before
 interest, taxes, depreciation and amortization (EBITDA) were $33.4 million.
 Excluding the impact of hotels divested in the past year, revenue grew by
 10.9% and EBITDA before lease expense grew by 13.3% over the same quarter in
 2000.
     For the quarter, Prime's comparable owned hotels achieved a 1.5% revenue
 per available room (REVPAR) growth rate over the same quarter in 2000.
 Average daily rate ("ADR") increased by 5.0% to $81.97 and occupancy declined
 by 2.1 percentage points to 61.7%.
     Interest expense declined by 30.0%, or $3.8 million, to $8.9 million for
 the quarter ended March 31, 2001 as compared to the same period in the prior
 year primarily due to significant debt reductions in the past year as a result
 of asset divestitures and strong operating cash flow.
 
     System-Wide Performance
     For the quarter, Prime reported a 0.1% REVPAR growth rate at its
 comparable AmeriSuites hotels, as occupancy decreased by 3.4 percentage points
 to 63.0% and ADR increased by 5.5% to $86.52.  The results for the first
 quarter were affected by cutbacks in travel by major customers such as Lucent,
 Nortel, Proctor & Gamble and Chrysler, which limited occupancy, particularly
 in the North Atlanta, Cincinnati and Detroit markets.
     For the quarter, Prime reported 7.1% REVPAR growth at its comparable
 Wellesley Inn & Suites hotels, as occupancy increased by 0.6 percentage points
 to 63.9% and ADR increased by 6.2% to $68.56.  The growth was driven by a 9.3%
 REVPAR increase at the 38 Wellesley Inn & Suites hotels converted to the brand
 in 1999 and by strong results at the original Wellesley hotels in Florida
 where REVPAR rose by 6.7%.
     Prime's comparable non-proprietary brand hotels achieved a 4.0% REVPAR
 increase for the first quarter of 2001 as occupancy increased by 0.3
 percentage points to 61.5% and ADR increased by 3.5% to $99.45.  However, for
 the non-proprietary hotels owned by Prime, which are primarily upscale
 full-service hotels located in the Northeast, REVPAR decreased by 0.9% due to
 occupancy declines.
 
     Brand Development
     Prime currently has 133 AmeriSuites and 70 Wellesley Inn & Suites hotels
 in operation and intends to further expand its brands, primarily through
 franchising.
     There are currently eight AmeriSuites hotels under construction (two by
 Prime), including a 245-room franchised hotel located near the Chicago/O'Hare
 Airport which is scheduled to open in May.  In addition, Prime has a pipeline
 of another 61 executed franchise agreements for new AmeriSuites to be built,
 nine of which are scheduled to begin construction in the next 120 days.
     Prime currently has a pipeline of nine executed Wellesley Inn & Suites
 franchise agreements for new hotels, including six new agreements signed in
 the first quarter.  Given the successful conversion of 38 hotels to the
 Wellesley Inn & Suites brand in 1999, Prime also intends to further grow the
 brand through conversions from other hotel brands.  During the quarter, Prime
 completed the conversion of a Howard Johnson hotel in Wayne, NJ to a Wellesley
 Inn.  Prime is currently converting another of its owned hotels in Whippany,
 NJ to the Wellesley chain and will begin converting two additional hotels
 owned by third parties in the next 120 days.
 
     Financial Condition/Asset Sales
     During the quarter, Prime sold an underdeveloped land parcel in Pleasant
 Hill, CA for $4.9 million.  In April, Prime sold a Wellesley Inn hotel in
 Fairfax, VA for $5.0 million, retaining the franchise rights under a 20-year
 franchise agreement.  Prime has several other Wellesley Inns currently under
 contract.
     Prime will utilize the proceeds from asset sales to repay debt, retire
 shares or invest in its brands.  In April, Prime repurchased 377,000 shares of
 its common stock at an average price of $9.82.  Based on its bank covenants,
 Prime currently has capacity to repurchase $45.6 million of its shares.
     As of March 31, 2001, Prime's debt to EBITDA ratio was 2.2 times, and its
 debt to book capitalization percentage was 34%.  This represents a significant
 improvement in the ratios from a year ago.
 
     Other
     Meristar Hospitality Corp. ("Meristar") has notified Prime that it intends
 to exercise its termination rights on four hotels it leases to Prime effective
 April 30, 2001.  The impact of the lease termination on Prime's financial
 condition will be immaterial.  Under the terms of the lease agreement,
 Meristar is obligated to pay Prime a termination fee estimated at $3.5 million
 based on a multiple of cash flow for the twelve months prior to the
 termination date.  In addition, the Company will record the unamortized
 portion of the gain on the initial sale of the hotels of approximately
 $22.0 million as income in the second quarter of 2001.  The deferred gain was
 being amortized into income as a reduction of rent expense of $3.4 million per
 year over the life of the lease.
 
     2001 Outlook
     Given the slower than anticipated economic growth, Prime currently expects
 REVPAR growth at its comparable hotels to be in the 1-2% range for the
 remainder of 2001, down from the 3-4% range previously forecasted.  The impact
 of adjusting the projected REVPAR growth rates down by two percentage points
 is approximately $.10 per share.  In addition, Prime will also incur an
 additional $.02 per share cost associated with its expanded rewards program.
     Prime believes its diluted EPS before asset transactions will be in the
 $1.10 range for 2001, which is even with the prior year.  These estimates are
 after adjusting in both years for the termination of the Meristar lease, which
 contributed $.07 per share in both 2000 and the 2001 projection primarily due
 to the non-cash amortization of the deferred gain into income.  Prime
 currently expects its 2001 quarterly diluted EPS before asset transactions to
 be $.35 per share in the second quarter, $.33 per share in the third quarter
 and $.22 per share in the fourth quarter.
     For 2001, Prime anticipates generating approximately $35 - $40 million of
 free operating cash flow, which reflects approximately $30 million of
 development spending and $20 million of maintenance capital.  These estimates
 are before asset sales which are approximately $10 million thus far in 2001.
 
     Prime Hospitality Corp., one of the nation's premiere lodging companies,
 owns, manages, develops and franchises nearly 240 hotels throughout the United
 States.  The Company owns and operates two proprietary brands that compete in
 different segments: AmeriSuites(R) (all-suites) and Wellesley Inn & Suites(R)
 (limited-service).  Also within its portfolio are owned and/or managed hotels
 operated under franchise agreements with national hotel chains including
 Hilton, Radisson, Sheraton, Crowne Plaza, Holiday Inn and Ramada.  Prime can
 be accessed over the internet at http://www.primehospitality.com.
 
     Statements in this press release, other than statements of historical
 information, may constitute forward-looking statements pursuant to the safe
 harbor provisions of the Private Securities Litigation Reform Act of 1995.
 The words "believe," "anticipate," "project," "expect," "intends," "may
 result," "will continue," and words of similar impact identify forward-looking
 statements.  Forward-looking statements involve known and unknown risks which
 may cause the Company's actual results in future periods to differ materially
 from expected results.  These risks include but are not limited to changes in
 economic conditions, supply and demand changes for hotel rooms, competition
 within the lodging industry, relationships with owners, franchisees and
 suppliers, the impact of government regulations, the availability of capital,
 the ability to attract and retain personnel and the impact of emerging
 technologies.  Prime undertakes no obligation to update the information set
 forth herein.  For further information regarding forward-looking statements
 and to some of the factors and uncertainties affecting us, please refer to the
 Company's filings with the Securities and Exchange Commission (SEC) copies of
 which are available from the SEC or may be obtained upon request from the
 Company.
 
                      PRIME HOSPITALITY CORP. AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF INCOME
                                    (Unaudited)
                     THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                      (In Thousands, Except Per Share Amounts)
 
                                                          Three Months Ended
                                                               March 31,
                                                           2001         2000
     Revenues:
        Hotel revenues                                   127,169       134,132
        Management, franchise and other fees               3,675         2,849
        Rental and other                                     898           910
              Total revenues                             131,742       137,891
 
     Costs and expenses:
        Hotel operating expenses                          67,643        70,687
        Rent and other occupancy                          23,387        18,587
        General and administrative                         7,334         8,146
        Depreciation and amortization                      9,427        10,699
        Other charges                                         --            --
              Total costs and expenses                   107,791       108,119
 
     Operating income                                     23,951        29,772
 
     Investment income                                       576           240
     Interest expense                                     (8,908)      (12,730)
     Other income, net                                        --           353
 
     Income before income taxes and
      extraordinary items.                                15,619        17,635
     Provision for income taxes                            6,013         6,878
 
     Income before extraordinary items                     9,606        10,757
     Extraordinary items - loss on discharge
        of indebtedness, net of income taxes                  --          (302)
     Net income                                           $9,606       $10,455
 
     Earnings per common share:
     Basic:
 
        Income before extraordinary items                  $0.21         $0.22
        Extraordinary items - loss on
         discharge of indebtedness                            --            --
     Net earnings                                          $0.21         $0.22
 
     Diluted:
 
        Income before extraordinary items                  $0.21         $0.22
        Extraordinary items - loss on
         discharge of indebtedness                            --            --
     Net earnings                                          $0.21         $0.22
 
 
                            Prime Hospitality Corp.
                           Balance Sheet Information
                                  (Unaudited)
                    (In Thousands, Except per share amounts)
 
                                                               March 31,
                                                                 2001
 
     Cash and marketable securities                             $16,588
     Fixed assets                                             1,041,666
     Total assets                                             1,167,538
 
     Revolving credit facility                                    9,000
     Other debt                                                 339,856
     Total debt                                                 348,856
 
     Stockholders' equity                                      $679,557
 
     Weighted average basic shares outstanding                   44,902
     Weighted average diluted shares outstanding                 46,321
     Book value per weighted average diluted share               $14.67
 
 
                            Prime Hospitality Corp.
                      Comparable Hotel Performance Summary
                                 March 31, 2001
 
                                         Three Months
                                             Ended
                                           March 31,
                                       2001           2000         Variance
 
     Owned Hotels:
     Occupancy                         61.7%           63.8%     (2.1 pts.)
     ADR                              $81.97          $78.03          5.0%
     REVPAR                           $50.57          $49.81          1.5%
 
 
     System-Wide Hotels:
     AmeriSuites
     Occupancy                         63.0%           66.4%     (3.4 pts.)
     ADR                              $86.52          $81.98          5.5%
     REVPAR                           $54.49          $54.44          0.1%
 
     Wellesley Inn & Suites
     Occupancy                         63.9%           63.3%      0.6 pts.
     ADR                              $68.56          $64.58          6.2%
     REVPAR                           $43.79          $40.88          7.1%
 
     Non-Proprietary Brands
     Occupancy                         61.5%           61.2%      0.3 pts.
     ADR                              $99.45          $96.12          3.5%
     REVPAR                           $61.14          $58.79          4.0%
 
 
                            Prime Hospitality Corp.
                                Hotel Statistics
                                 March 31, 2001
 
                             March 2001       March 2000          Change
                             Number of        Number of         Number of
                        Hotels      Rooms  Hotels    Rooms     Hotels   Rooms
 
     AmeriSuites
     Owned                 65      8,409      68     8,786       (3)    (377)
     Leased                46      5,710      19     2,403       27    3,307
     Managed                4        542       1       128        3      414
     Franchised            18      2,205      11     1,404        7      801
     Total                133     16,866      99    12,721       34    4,145
 
     Wellesley Inn & Suites
     Owned                 58      6,747      66     7,475       (8)    (728)
     Leased                 -          -       -         -        -        -
     Managed                5        463       -         -        5      463
     Franchised             7        673       -         -        7      673
     Total                 70      7,883      66     7,475        4      408
 
     Non-Proprietary Brands
     Owned                 12      2,303      15     2,772       (3)    (469)
     Leased                 9      1,464       9     1,464        -        -
     Managed               15      2,234      16     2,604       (1)    (370)
     Franchised             -          -       -         -        -        -
     Total                 36      6,001      40     6,840       (4)    (839)
 
     Total Portfolio
     Owned                135     17,459     149    19,033      (14)  (1,574)
     Leased                55      7,174      28     3,867       27    3,307
     Managed               24      3,239      17     2,732        7      507
     Franchised            25      2,878      11     1,404       14    1,474
     Total                239     30,750     205    27,036       34    3,714
 
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SOURCE Prime Hospitality Corp.
    FAIRFIELD, N.J., April 26 /PRNewswire/ -- Prime Hospitality Corp.
 (NYSE:   PDQ), a leading hotel owner, operator and franchisor, reported its
 results for the first quarter ended March 31, 2001.
     Net income for the first quarter of 2001 was $9.6 million, or $.21 per
 share, compared to net income of $10.5 million, or $.22 per share, for the
 first quarter last year.  Prior year results included the operations of the
 Frenchman's Reef Resort Hotel which contributed a net additional $.03 per
 share before its sale in March 2000.
     "Our results for the first quarter were impacted by the slowdown in the
 economy," said A.F. Petrocelli, Chairman and Chief Executive Officer of Prime.
 "A significant number of key customers reduced their travel budgets which
 affected occupancy at our upscale AmeriSuites and full-service hotels.  Our
 mid-priced Wellesley Inn & Suites brand, however, performed well in this
 environment with REVPAR rising by 7.1% during the quarter.
     "We are responding to this challenging economic environment by
 implementing a number of new initiatives designed to increase the visibility
 of our brands," continued Petrocelli.  "Beginning next month, we will be
 running advertisements on national cable television for AmeriSuites and on
 national radio for our Wellesley brand.  In addition, we are expanding our
 rewards program for our brands to include both rooms and airline miles and
 intend to roll out the new program in the third quarter.
     "Our efforts over the past two years to divest real estate, reduce debt
 and retire shares have put us in a strong financial position," commented
 Petrocelli.  "With our leverage at just 34% of capitalization, we are in an
 excellent position to withstand a continued softening of the economy."
 
     Operating Results
     For the quarter, revenues were $131.7 million and earnings before
 interest, taxes, depreciation and amortization (EBITDA) were $33.4 million.
 Excluding the impact of hotels divested in the past year, revenue grew by
 10.9% and EBITDA before lease expense grew by 13.3% over the same quarter in
 2000.
     For the quarter, Prime's comparable owned hotels achieved a 1.5% revenue
 per available room (REVPAR) growth rate over the same quarter in 2000.
 Average daily rate ("ADR") increased by 5.0% to $81.97 and occupancy declined
 by 2.1 percentage points to 61.7%.
     Interest expense declined by 30.0%, or $3.8 million, to $8.9 million for
 the quarter ended March 31, 2001 as compared to the same period in the prior
 year primarily due to significant debt reductions in the past year as a result
 of asset divestitures and strong operating cash flow.
 
     System-Wide Performance
     For the quarter, Prime reported a 0.1% REVPAR growth rate at its
 comparable AmeriSuites hotels, as occupancy decreased by 3.4 percentage points
 to 63.0% and ADR increased by 5.5% to $86.52.  The results for the first
 quarter were affected by cutbacks in travel by major customers such as Lucent,
 Nortel, Proctor & Gamble and Chrysler, which limited occupancy, particularly
 in the North Atlanta, Cincinnati and Detroit markets.
     For the quarter, Prime reported 7.1% REVPAR growth at its comparable
 Wellesley Inn & Suites hotels, as occupancy increased by 0.6 percentage points
 to 63.9% and ADR increased by 6.2% to $68.56.  The growth was driven by a 9.3%
 REVPAR increase at the 38 Wellesley Inn & Suites hotels converted to the brand
 in 1999 and by strong results at the original Wellesley hotels in Florida
 where REVPAR rose by 6.7%.
     Prime's comparable non-proprietary brand hotels achieved a 4.0% REVPAR
 increase for the first quarter of 2001 as occupancy increased by 0.3
 percentage points to 61.5% and ADR increased by 3.5% to $99.45.  However, for
 the non-proprietary hotels owned by Prime, which are primarily upscale
 full-service hotels located in the Northeast, REVPAR decreased by 0.9% due to
 occupancy declines.
 
     Brand Development
     Prime currently has 133 AmeriSuites and 70 Wellesley Inn & Suites hotels
 in operation and intends to further expand its brands, primarily through
 franchising.
     There are currently eight AmeriSuites hotels under construction (two by
 Prime), including a 245-room franchised hotel located near the Chicago/O'Hare
 Airport which is scheduled to open in May.  In addition, Prime has a pipeline
 of another 61 executed franchise agreements for new AmeriSuites to be built,
 nine of which are scheduled to begin construction in the next 120 days.
     Prime currently has a pipeline of nine executed Wellesley Inn & Suites
 franchise agreements for new hotels, including six new agreements signed in
 the first quarter.  Given the successful conversion of 38 hotels to the
 Wellesley Inn & Suites brand in 1999, Prime also intends to further grow the
 brand through conversions from other hotel brands.  During the quarter, Prime
 completed the conversion of a Howard Johnson hotel in Wayne, NJ to a Wellesley
 Inn.  Prime is currently converting another of its owned hotels in Whippany,
 NJ to the Wellesley chain and will begin converting two additional hotels
 owned by third parties in the next 120 days.
 
     Financial Condition/Asset Sales
     During the quarter, Prime sold an underdeveloped land parcel in Pleasant
 Hill, CA for $4.9 million.  In April, Prime sold a Wellesley Inn hotel in
 Fairfax, VA for $5.0 million, retaining the franchise rights under a 20-year
 franchise agreement.  Prime has several other Wellesley Inns currently under
 contract.
     Prime will utilize the proceeds from asset sales to repay debt, retire
 shares or invest in its brands.  In April, Prime repurchased 377,000 shares of
 its common stock at an average price of $9.82.  Based on its bank covenants,
 Prime currently has capacity to repurchase $45.6 million of its shares.
     As of March 31, 2001, Prime's debt to EBITDA ratio was 2.2 times, and its
 debt to book capitalization percentage was 34%.  This represents a significant
 improvement in the ratios from a year ago.
 
     Other
     Meristar Hospitality Corp. ("Meristar") has notified Prime that it intends
 to exercise its termination rights on four hotels it leases to Prime effective
 April 30, 2001.  The impact of the lease termination on Prime's financial
 condition will be immaterial.  Under the terms of the lease agreement,
 Meristar is obligated to pay Prime a termination fee estimated at $3.5 million
 based on a multiple of cash flow for the twelve months prior to the
 termination date.  In addition, the Company will record the unamortized
 portion of the gain on the initial sale of the hotels of approximately
 $22.0 million as income in the second quarter of 2001.  The deferred gain was
 being amortized into income as a reduction of rent expense of $3.4 million per
 year over the life of the lease.
 
     2001 Outlook
     Given the slower than anticipated economic growth, Prime currently expects
 REVPAR growth at its comparable hotels to be in the 1-2% range for the
 remainder of 2001, down from the 3-4% range previously forecasted.  The impact
 of adjusting the projected REVPAR growth rates down by two percentage points
 is approximately $.10 per share.  In addition, Prime will also incur an
 additional $.02 per share cost associated with its expanded rewards program.
     Prime believes its diluted EPS before asset transactions will be in the
 $1.10 range for 2001, which is even with the prior year.  These estimates are
 after adjusting in both years for the termination of the Meristar lease, which
 contributed $.07 per share in both 2000 and the 2001 projection primarily due
 to the non-cash amortization of the deferred gain into income.  Prime
 currently expects its 2001 quarterly diluted EPS before asset transactions to
 be $.35 per share in the second quarter, $.33 per share in the third quarter
 and $.22 per share in the fourth quarter.
     For 2001, Prime anticipates generating approximately $35 - $40 million of
 free operating cash flow, which reflects approximately $30 million of
 development spending and $20 million of maintenance capital.  These estimates
 are before asset sales which are approximately $10 million thus far in 2001.
 
     Prime Hospitality Corp., one of the nation's premiere lodging companies,
 owns, manages, develops and franchises nearly 240 hotels throughout the United
 States.  The Company owns and operates two proprietary brands that compete in
 different segments: AmeriSuites(R) (all-suites) and Wellesley Inn & Suites(R)
 (limited-service).  Also within its portfolio are owned and/or managed hotels
 operated under franchise agreements with national hotel chains including
 Hilton, Radisson, Sheraton, Crowne Plaza, Holiday Inn and Ramada.  Prime can
 be accessed over the internet at http://www.primehospitality.com.
 
     Statements in this press release, other than statements of historical
 information, may constitute forward-looking statements pursuant to the safe
 harbor provisions of the Private Securities Litigation Reform Act of 1995.
 The words "believe," "anticipate," "project," "expect," "intends," "may
 result," "will continue," and words of similar impact identify forward-looking
 statements.  Forward-looking statements involve known and unknown risks which
 may cause the Company's actual results in future periods to differ materially
 from expected results.  These risks include but are not limited to changes in
 economic conditions, supply and demand changes for hotel rooms, competition
 within the lodging industry, relationships with owners, franchisees and
 suppliers, the impact of government regulations, the availability of capital,
 the ability to attract and retain personnel and the impact of emerging
 technologies.  Prime undertakes no obligation to update the information set
 forth herein.  For further information regarding forward-looking statements
 and to some of the factors and uncertainties affecting us, please refer to the
 Company's filings with the Securities and Exchange Commission (SEC) copies of
 which are available from the SEC or may be obtained upon request from the
 Company.
 
                      PRIME HOSPITALITY CORP. AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF INCOME
                                    (Unaudited)
                     THREE MONTHS ENDED MARCH 31, 2001 AND 2000
                      (In Thousands, Except Per Share Amounts)
 
                                                          Three Months Ended
                                                               March 31,
                                                           2001         2000
     Revenues:
        Hotel revenues                                   127,169       134,132
        Management, franchise and other fees               3,675         2,849
        Rental and other                                     898           910
              Total revenues                             131,742       137,891
 
     Costs and expenses:
        Hotel operating expenses                          67,643        70,687
        Rent and other occupancy                          23,387        18,587
        General and administrative                         7,334         8,146
        Depreciation and amortization                      9,427        10,699
        Other charges                                         --            --
              Total costs and expenses                   107,791       108,119
 
     Operating income                                     23,951        29,772
 
     Investment income                                       576           240
     Interest expense                                     (8,908)      (12,730)
     Other income, net                                        --           353
 
     Income before income taxes and
      extraordinary items.                                15,619        17,635
     Provision for income taxes                            6,013         6,878
 
     Income before extraordinary items                     9,606        10,757
     Extraordinary items - loss on discharge
        of indebtedness, net of income taxes                  --          (302)
     Net income                                           $9,606       $10,455
 
     Earnings per common share:
     Basic:
 
        Income before extraordinary items                  $0.21         $0.22
        Extraordinary items - loss on
         discharge of indebtedness                            --            --
     Net earnings                                          $0.21         $0.22
 
     Diluted:
 
        Income before extraordinary items                  $0.21         $0.22
        Extraordinary items - loss on
         discharge of indebtedness                            --            --
     Net earnings                                          $0.21         $0.22
 
 
                            Prime Hospitality Corp.
                           Balance Sheet Information
                                  (Unaudited)
                    (In Thousands, Except per share amounts)
 
                                                               March 31,
                                                                 2001
 
     Cash and marketable securities                             $16,588
     Fixed assets                                             1,041,666
     Total assets                                             1,167,538
 
     Revolving credit facility                                    9,000
     Other debt                                                 339,856
     Total debt                                                 348,856
 
     Stockholders' equity                                      $679,557
 
     Weighted average basic shares outstanding                   44,902
     Weighted average diluted shares outstanding                 46,321
     Book value per weighted average diluted share               $14.67
 
 
                            Prime Hospitality Corp.
                      Comparable Hotel Performance Summary
                                 March 31, 2001
 
                                         Three Months
                                             Ended
                                           March 31,
                                       2001           2000         Variance
 
     Owned Hotels:
     Occupancy                         61.7%           63.8%     (2.1 pts.)
     ADR                              $81.97          $78.03          5.0%
     REVPAR                           $50.57          $49.81          1.5%
 
 
     System-Wide Hotels:
     AmeriSuites
     Occupancy                         63.0%           66.4%     (3.4 pts.)
     ADR                              $86.52          $81.98          5.5%
     REVPAR                           $54.49          $54.44          0.1%
 
     Wellesley Inn & Suites
     Occupancy                         63.9%           63.3%      0.6 pts.
     ADR                              $68.56          $64.58          6.2%
     REVPAR                           $43.79          $40.88          7.1%
 
     Non-Proprietary Brands
     Occupancy                         61.5%           61.2%      0.3 pts.
     ADR                              $99.45          $96.12          3.5%
     REVPAR                           $61.14          $58.79          4.0%
 
 
                            Prime Hospitality Corp.
                                Hotel Statistics
                                 March 31, 2001
 
                             March 2001       March 2000          Change
                             Number of        Number of         Number of
                        Hotels      Rooms  Hotels    Rooms     Hotels   Rooms
 
     AmeriSuites
     Owned                 65      8,409      68     8,786       (3)    (377)
     Leased                46      5,710      19     2,403       27    3,307
     Managed                4        542       1       128        3      414
     Franchised            18      2,205      11     1,404        7      801
     Total                133     16,866      99    12,721       34    4,145
 
     Wellesley Inn & Suites
     Owned                 58      6,747      66     7,475       (8)    (728)
     Leased                 -          -       -         -        -        -
     Managed                5        463       -         -        5      463
     Franchised             7        673       -         -        7      673
     Total                 70      7,883      66     7,475        4      408
 
     Non-Proprietary Brands
     Owned                 12      2,303      15     2,772       (3)    (469)
     Leased                 9      1,464       9     1,464        -        -
     Managed               15      2,234      16     2,604       (1)    (370)
     Franchised             -          -       -         -        -        -
     Total                 36      6,001      40     6,840       (4)    (839)
 
     Total Portfolio
     Owned                135     17,459     149    19,033      (14)  (1,574)
     Leased                55      7,174      28     3,867       27    3,307
     Managed               24      3,239      17     2,732        7      507
     Franchised            25      2,878      11     1,404       14    1,474
     Total                239     30,750     205    27,036       34    3,714
 
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 SOURCE  Prime Hospitality Corp.