P. M. BRIEFING : Prime Motor Inns Sells Interest

Prime Motor Inns Inc. said today that it will sell about 65% of its Howard Johnson and Ramada franchise systems to Blackstone Capital Partners LP for about $140 million, and both have agreed to form a joint venture to manage and develop the franchises.

Prime, the nation’s second-largest hotel franchiser, owns or manages about 140 hotels and motels as well as the 450-lodge Howard Johnson franchise system.

As a franchisee, its main brands include Holiday Inn, Ramada, Sheraton, Days, Hilton and Marriott, making Prime, based in Fairfield, N.J., second only to Britain’s Bass PLC, a leading brewer that also owns the Holiday Inn system. However, Prime Motor has apparently stumbled in its recent aggressive growth.

Under the deal, Blackstone will manage the joint venture. The management team will include Henry Silverman, general partner of Blackstone and former chairman and chief executive of Days Inns of America.