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                                                                  EXHIBIT 99.1

March 7, 1997 -- Prime Hospitality Corp. (NYSE-PDQ), a Delaware corporation
(the "Company") announced today that it plans to offer $200 million aggregate
principal amount of Senior Subordinated Notes due 2007 in a private transaction
under Rule 144A of the Securities Act of 1933, as amended (the "Securities
Act").                                                        

The net proceeds from the sale of the Notes are estimated to be approximately
$193.5 million after deducting the initial purchasers' discount and estimated
expenses related to the Offering. The Company intends to use the net proceeds
as part of the financing of the Company's AmeriSuites hotels expansion, to
repay amounts outstanding under a revolving credit facility and to repay
certain other secured indebtedness.

The Notes will not be registered under the Securities Act and may not be
offered or sold in the United States absent registration thereunder or an
applicable exemption from the registration requirements thereof.  The Company
will agree, for the benefit of all holders of the Notes, to file, after the
issuance of the Notes, a registration statement relating to an exchange offer
for the Notes under the Securities Act. If such registration is not effected
within certain prescribed time periods, the holders of the Notes will be
entitled to liquidated damages until such registration is effected.
                                                                               

Prime is a leading national hotel company, with a portfolio of 108 hotels
containing 15,479 rooms located in 25 states and the U.S. Virgin Islands.