Prime Hospitality Launches New Hotel Brand

Interestingly, the new brand, Prime Hotels & Resorts, is taking dead aim at Hilton, Sheraton and Radisson, as well as Marriott, putting it in a position to compete directly with its franchisers. Indeed, when Prime announced late last month that it was teaming up with United Capital Corp. to buy the 425-room Sheraton Meadowlands in East Rutherford, NJ, company officials said they would continue to manage the property under the Sheraton banner (see earlier story).

"Introducing a new proprietary hotel brand is the strategic next step for Prime," explains A.F. Petrocelli, the company's chairman and CEO. "We've had a successful track record as owners and operators of both upscale, full-service and limited service properties. The Prime brand will allow us to explore innovative service strategies in the competitive upscale lodging industry."

The company is officially launching the brand with the re-packaging of the Sheraton Saratoga Springs in upstate New York as the Prime Hotel and Conference Center. According to company officials, acquisitions from other chains or ownership groups will provide the basis for the brand's expansion. Names and locations of additional properties, mostly in suburban locations, are expected to be announced late in the first quarter of this year, and potential CBD locations are also said to be under consideration.

The prototype for the Prime brand includes a package of 200-500 guest rooms and suites, a selection of dining venues, concierge-level services, a swimming pool and fitness center, a business center and 10,000-50,000 sf of meeting space. The properties are also likely to include Internet and telecom-related upgrades, and the brand will have a frequent guest rewards program.

"Our key target is the business traveler," says Steve Kronick, Prime's SVP of operations. "The travel trade, particularly meeting planners, along with major corporations, will provide our business base. The Prime brand will compete with the major national brands for travel commerce."

Altogether, Prime Hospitality Corp. currently owns, manages and/or franchises more than 240 hotel properties under its existing proprietary brands and its franchise agreements. Other national chains it has agreements with include Holiday Inn and Ramada.