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PROMUS TRANSFERS OWNERSHIP IN FIVE EMBASSY SUITES HOTELS TO LIMITED PARTNERSHIPS

 MEMPHIS, Tenn., June 1 /PRNewswire/ -- The Promus Companies Incorporated (NYSE: PRI) today announced that its Embassy Suites Hotel Division has reached agreement to transfer its ownership interest in five Embassy Suites hotels located in Jacksonville, Orlando and Altamonte Springs, Fla.; Nashville, Tenn.; and Dallas, Texas, for approximately $69.5 million. Embassy Suites will retain management and franchise agreements on the hotels.
 The transfer will be accomplished by means of the merger of two of Embassy Suites' subsidiary companies with two independently owned limited partnerships controlled by FelCor, Inc., of Dallas. FelCor is an owner of the general partner in the limited partnerships and is also an owner of the general partner in the Tulsa, Okla., Embassy Suites hotel.
 "Astute investors, aware that fundamentals are improving rapidly in the hotel industry, are now beginning to look at acquiring well- performing hotel assets," said Charles Ledsinger, senior vice president and chief financial officer of Promus. "We believe this transaction marks the beginning of the market recovery for high-quality hotel real estate and reaffirms Promus' industry leadership in this aspect of the hotel business."
 The five hotels were acquired by Embassy in October 1991. During 1992, in spite of interruptions due to refurbishment in all five hotels, average revenue per available suite of the properties increased by 14.4 percent.
 "We have been quite pleased with the performance of the hotels in the year and a half since we acquired them," said Clyde Culp, president of the Embassy Suites Hotel Division. "It is another testament to the value of the Embassy Suites brand name."
 "This transaction implements our strategy stated at that time of acquisition: to improve the operating performance of the hotels and then ultimately transfer ownership of the hotels to third parties while maintaining ongoing franchise and management fee income streams," Ledsinger added.
 Closing of the transactions should occur within 60 days and is subject to certain third party consents and usual legal requirements. Proceeds from the transactions will be used to reduce Promus' and Embassy Suites' debt.
 Embassy Suites is the nation's largest upscale all-suite hotel brand. The Embassy Suites system currently numbers 105 hotels with more than 26,000 suites in 85 markets.
 Other leading brands of The Promus Companies are: Harrah's, the premier name in casino entertainment, Hampton Inn hotels and Homewood Suites hotels.
 -0- 6/1/93
 /CONTACT: Ralph Berry, The Promus Companies, 901-762-8629/
 (PRI)


CO: The Promus Companies; Embassy Suites ST: Tennessee IN: CNO LEI SU:

SB -- CH008 -- 3983 06/01/93 12:55 EDT
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Publication:PR Newswire
Date:Jun 1, 1993
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