
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, May 24, 1990                   TAG: 9005240297
SECTION: BUSINESS                    PAGE: C-6   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

PRIME MOTOR INNS SELLS CHAIN INTERESTS

Prime Motor Inns Inc. said Wednesday that it had agreed to sell a 65 percent interest in its Ramada and Howard Johnson franchises to Blackstone Capital Partners LP.

If completed, the agreement, which leaves room for other bids to be considered, is expected to ease Prime's financial problems by giving it cash that can reduce its bank debt.

Blackstone said it would pay Prime $133 million in cash, $7 million in notes and other unspecified payments for the 65 percent controlling interest.

The two companies will form a joint venture to manage and develop the franchises, Blackstone said.

Prime is the former owner of a Roanoke-based motel chain formerly called American Motor Inns. It also had a controlling interest in Roanoke's BellSouth Communications.

Analysts generally praised the Blackstone agreement as a significant step for Prime, the nation's second-largest hotel franchiser, after Holiday Inns Inc.

- The New York Times

by CNB