Blackstone Will Buy Prime Hospitality for $790M

FAIRFIELD, NJ-Prime Hospitality Corp., based here, has agreed to be acquired by affiliates of the New York City-based Blackstone Group. The deal is worth $12.25 per share, which represents a 42% premium on Prime’s closing price on Aug. 18. The total value of the transaction, including debt, is in the $790-million range.

Prime, which controls the AmeriSuites, Wellesley Inns & Suites and Prime Hotels and Resorts brands and has a number of properties under other brands, has a total portfolio of 256 owned and franchised hotels, amounting to more than 33,600 rooms. Of that total, the company owns 112 properties with nearly 14,200 rooms outright.

Blackstone officials say they will convert 37 of Prime-owned Wellesley Inns, built as moderate-price, extended-stay properties, to one of their own Extended Stay America brands. Company officials also say they will keep Prime’s headquarters here.