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PRIME HOSPITALITY CORP.
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THIS FILING CONSISTS OF A MEMORANDUM PREPARED BY PRIME HOSPITALITY CORP. TO ITS
FRANCHISEES.
I imagine that this week's announcement of our acquisition by The Blackstone
Group ("Blackstone") raises a few questions. First, franchising is a very
important part of our business and Blackstone intends to support and expand the
franchise customer base. That being said, we simply don't have all the answers.
During the next several weeks, senior management of Blackstone and our
management team will be reviewing all aspects of the business and begin making
decisions about how we operate the company going forward. Answers will be
provided in due course. Hopefully, the info below answers some of your
questions.
Blackstone is a New York based private investment firm that has a successful
history of buying companies, making additional investments in the companies they
buy, and growing those companies. In the recent past, Blackstone has purchased
other hotel companies such as Extended Stay America, Homestead Studio Suites,
and the Savoy Group of luxury European hotels. In all three cases, the
headquarters of these businesses remained largely intact. Please visit
WWW.BLACKSTONE.COM to learn more about Blackstone.
Blackstone intends to invest a significant amount of capital in our brands. For
example, part of their investment will support an extensive refurbishment plan
for AmeriSuites, designed to improve the competitiveness of the brand. While
thirty-seven (37) Wellesley Inns and Suites (former Homegate Hotels) will be
converted to an Extended Stay America brand, Prime Hospitality Corp. will
continue to operate and franchise the remaining Wellesley Inns. In addition, we
will continue to operate the Prime Hotel brand and other full service hotels. In
summary, we believe Blackstone's overall strategy will be to operate our brands
in a manner that will accelerate opportunities for their growth.
Thank you for your attention and, as always, please do not hesitate to contact
me with any questions or concerns.
Sincerely,
Phil Harvey - VP, Brand Support
Prime Hospitality Corp.
700 Route 46 East Fairfield, NJ 07007
Phone: (973) 882-7670 Fax: (973) 808-7752
