EXHIBIT 99.1
THE BLACKSTONE GROUP COMPLETES ACQUISITION OF
PRIME HOSPITALITY CORP.
Fairfield, New Jersey - October 8, 2004 - Prime Hospitality Corp. (NYSE: PDQ)
(the "Company") announced today that it has completed its merger with an
affiliate of The Blackstone Group. Under the terms of the merger agreement, the
Company's stockholders will receive $12.25 per share in cash, without interest.
The Company also announced that as of 8:00 A.M. New York City Time on Friday,
October 8, 2004, the expiration time of the tender offer, approximately
$173,183,000 aggregate principal amount of the Company's 8-3/8% Senior
Subordinated Notes due 2012 (the "Notes"), constituting approximately 96.9% of
the Notes, had been tendered and not withdrawn in connection with the previously
announced cash tender offer for the Notes. All Notes validly tendered and not
withdrawn in the offer have been accepted for payment. In addition, the Company
announced that in connection with the receipt of the requisite consents to the
proposed amendments, the First Supplemental Indenture governing the Notes has
been executed and the amendments are operative.
About Prime Hospitality Corp.
Prime Hospitality Corp., one of the nation's premiere lodging companies, owns,
manages, develops and franchises more than 250 hotels throughout North America.
The Company owns and operates three proprietary brands, AmeriSuites(R) (all
suites), PRIME Hotels & Resorts(R) (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,
Sheraton, Hampton, and Holiday Inn. Prime can be accessed over the Internet at
http://www.primehospitality.com.
About The Blackstone Group
The Blackstone Group, a private investment firm with offices in New York, London
and Hamburg, was founded in 1985. Blackstone's Real Estate Group has raised five
funds, representing over $6 billion in total equity, and has a long track record
of investing in hotels and other commercial properties. In addition to Real
Estate, The Blackstone Group's core businesses include, Private Equity,
Corporate Debt Investing, Marketable Alternative Asset Management, Mergers and
Acquisitions Advisory, and Restructuring and Reorganization Advisory. The
Blackstone Group can be accessed on the Internet at http://www.blackstone.com.
Certain statements and information included in this press release constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which may cause
the actual results, performance, or achievements of the Company to be materially
different from any future results, performance or achievements expressed or
implied in such forward-looking statements. Additional discussion of factors
that could cause actual results to differ materially from management's
projections, forecasts, estimates and expectations is contained in the Company's
SEC filings.
CONTACTS:
Rich Szymanski
Chief Financial Officer
Prime Hospitality Corp.
Tel: (973) 882-1010
rts@primehospitality.com
John Ford
VP Corporate Communications
The Blackstone Group
Tel: 212 583-5559
ford@blackstone.com
