The sale is part of Prime�s strategic initiative to focus on the growth of its proprietary AmeriSuites and Wellesley Inn Suites brands.  Prime utilized $40 million of the proceeds to retire debt encumbering the hotel with the remainder available for the repurchase of its stock and/or retirement of debt.

�The sale of the Frenchman�s Reef is a key component of our asset divestiture plan and significantly strengthens our balance sheet,� said A.F. Petrocelli, chairman and CEO of Prime. �With strong cash flow and proceeds from asset sales, we will continue to pursue our strategy of growing our brands, lowering our leverage and reducing our outstanding shares.� Prime Hospitality Corp., one of the nation�s premiere lodging companies, owns, manages, develops and franchises 210 hotels throughout the United States and the U.S Virgin Islands. The Company owns and operates two proprietary brands that compete in different segments: AmeriSuites® (all-suites) and Wellesley Inns Suites® (limited-service). Also within its portfolio are owned and/or managed hotels operated under franchised agreements with national hotels chains including Hilton, Marriott, Radisson, Sheraton, Crowne Plaza, Holiday Inn, Ramada, Comfort Inn and Howard Johnson.