PRIME HOSPITALITY CORP. SIGNS NEW CREDIT
                    AGREEMENT AND ANNOUNCES REDEMPTION OF ITS
                      9 1/4% FIRST MORTGAGE NOTES DUE 2006

FAIRFIELD, N.J., July 23 /PRNewswire-FirstCall/ -- Prime Hospitality Corp.
(NYSE: PDQ) announced today the execution of a $125,000,000 senior revolving
credit facility with a syndicate of financial institutions. The credit facility
consists of a four-year, $125,000,000 revolving line of credit, which under
certain circumstances may be increased by an aggregate principal amount not to
exceed $125,000,000 and is secured by the equity interests of certain of Prime
Hospitality's subsidiaries.

     The credit agreement contains loan covenants customary for a credit
facility of this size and nature, including but not limited to, limitations on
making capital expenditures, selling or transferring assets, making certain
investments (including acquisitions) and incurring additional indebtedness and
liens. In addition, the credit agreement provides for the redemption of Prime
Hospitality's 9-1/4% First Mortgage Notes Due 2006 on or before September 5,
2002. Proceeds from the credit facility will be used to redeem the 9-1/4% First
Mortgage Notes, to pay associated transaction costs and to provide financing for
working capital and other general corporate purposes.

     "We, at Prime, are pleased that our new revolving credit facility has been
successfully completed," said Douglas Vicari, Senior Vice President and Chief
Financial Officer. "The new facility will be put to use immediately by redeeming
our existing 9-1/4% First Mortgage Notes due 2006, which will result in
significant interest savings for our company. The new senior structure fits well
into our capital structure and will be an important component in helping the
company achieve its objectives over the next four years."

     CIBC World Markets acted as lead arranger and is administrative agent for
the new facility.

     In connection with the execution of the credit agreement, Prime Hospitality
also announced today that it has notified the trustee that it is calling for
redemption on August 21, 2002 of all of its outstanding 9-1/4% First Mortgage
Notes. The redemption price shall be 103.083% of the principal amount of the
9-1/4% First Mortgage Notes, plus accrued and unpaid interest, to, but not
including, the date of redemption.

     Wells Fargo Bank Minnesota, N.A. will act as the paying agent and trustee
in connection with the redemption. Questions concerning the redemption may be
directed to Wells Fargo Bank Minnesota, N.A., Bondholder Communications, at
(800) 344-5128.






     Prime Hospitality has instructed the trustee to mail the redemption notice
to the registered holders of the 9-1/4% First Mortgage Notes. This press release
does not constitute a call for redemption.

     Prime Hospitality Corp., one of the nation's premiere lodging companies,
owns, manages, develops and franchises 238 hotels throughout the United States.
Prime Hospitality owns and operates two proprietary brands, AmeriSuites(R)
(all-suites) and Wellesley Inns & Suites(R) (limited-service). Also within Prime
Hospitality's portfolio are owned and/or managed hotels operated under franchise
agreements with national hotel chains including Hilton, Radisson, Sheraton,
Holiday Inn and Ramada.

     Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements involve known and unknown risks,
uncertainties and other important factors that could cause Prime Hospitality's
actual results, performance or achievements, or industry results, to differ
materially from any future results, performance or achievements expressed or
implied by such forward-looking statements. Forward-looking statements include
the information about Prime Hospitality's possible or assumed future results of
operations and statements preceded by, followed by or that include the words
"expect," "intend," "plan," or similar expressions, or the negative thereof.
Actual results may differ materially from those expressed in these
forward-looking statements. Readers of this press release are cautioned not to
unduly rely on any forward-looking statements.