FAIRFIELD, NJ? Prime Hospitality Corp. is entering the new year with a number of goals: to grow its third-party management business; to reduce its number of real estate holdings and focus on expanding its AmeriSuites and Wellesley Inn & Suites brands; and to investigate a full-service brand for acquisition. At year-end 1999, Prime had 44 third-party management contracts with full-service properties plus some AmeriSuites properties it manages but does not own. By the end of 2000, Prime President/ Chairman/CEO A.F. Petrocelli expects Prime to have an additional 15 third-party management contracts. ?We intend to pursue management contracts and will invest the capital necessary to obtain new agreements,? Petrocelli said. ?Similar to franchising, we believe we can generate significant returns with minimal capital investment through our full-service management business.? Petrocelli added Prime?s management strength in both the full-service and limited service areas ?comes from our people and our systems.? Prime?s adherence to a number of principles ensures profitability for its owners, according to Petrocelli. ?Superior guest service and product quality are the basic tenets which are instilled in all associates. We recruit cordial associates who understand we are in the hospitality industry, with the primary focus of serving our guests. Specific skills can be taught, but the right attitude is key,? he said. ?Emphasis is placed on clean, attractive properties where everything works,? he added. ?All hotels exercise expense control efficiency and high productivity.? District and regional sales professionals ensure that all hotels are marketed to their full potential, utilizing local and national advertising, promotions, web marketing direct response efforts and database and relationship marketing, according to Petrocelli. In addition, a nationwide network of sales offices solicits business from major corporations, tour and travel specialists, government agencies and group markets, he said. There were several developments in 1999 that will help shape the future of Prime which manages, owns and and franchises a total of 209 hotels in the United States and U.S. Virgin Islands. The company moved ahead with its plan to shift away from being a developer/owner of hotels in order to concentrate on its AmeriSuites (all suites) and Wellesley (limited service and extended stay) brands. ?We are a company in transition,? Petrocelli said. ?We sold nine properties [in 1999]and will sell 10 to 15 this year.? One of the properties sold was Frenchman?s Reef Marriott Resort Hotel in St. Thomas, U.S. Virgin Islands. Prime, which had operated the 504-room resort since 1984, sold the property to Marriott International. ?We are not a resort company; we only had that one resort,? Petrocelli said in explaining the reason for the move. Prime also merged two of its brands in 1999. The HomeGate Studios & Suites was combined with the Wellesley Inn chain to form the new mid-market Wellesley Inn & Suites. The brand is targeted at both transient business as well as extended-stay guests. ?We?re quite pleased with the transition and we?re getting more interest from potential franchisees now that we have 66 Wellesley properties,? as opposed to 28 Wellesley Inns and 42 HomeGate Studios prior to the merger, Petrocelli said. Petrocelli said Prime will expand the newly merged Wellesley brand primarily through franchising efforts. Prime currently has 100% ownership of the majority of the hotels in its portfolio including all 66 of the Wellesley Inn & Suites and 70 of the 97 AmeriSuites now operating. It also owns and/or manages hotels operated under franchise agreements with Hilton, Radisson, Sheraton, Crowne Plaza, Holiday Inn, Ramada, Marriott, Country Inn, Comfort Inn and Days Inn. Another important development in 1999 for Prime was teaming up with CAIS Internet in an arrangement that will provide high-speed Internet access to all guestrooms by this summer. In ad
