Hilton Hotels Corp. On Target to Have More Than 200 Hilton Garden Inn Hotels Open or Under Contract by Year-End 2000

Company Announces Growth Goals for Product Line in 2001

Press Release
December 19, 2000
BEVERLY HILLS, CA -- Hilton Hotels Corp. announced yesterday that the company will achieve its goal of having more than 200 Hilton Garden Inn® hotels representing 28,965 guest rooms open or under contract by year-end 2000.

By Dec. 31, 2000, the company will have 90 Hilton Garden Inn hotels with 12,765 guest rooms in operation and 114 hotels representing approximately 16,200 guest rooms under contract throughout the United States, Canada and Mexico.

Additionally, the company plans to add more than 50 Hilton Garden Inn hotels with approximately 7,100 rooms to its pipeline in 2001, bringing the total number of Hilton Garden Inn properties open or under contract to more than 250, representing approximately 35,500 rooms.

``Following the launch in 1996 of a new prototype design for Hilton Garden Inn, we challenged ourselves to reach a goal of having more than 200 Hilton Garden Inn hotels open or under contract by year-end 2000, and we are delighted to have achieved that goal,'' said William Fortier, senior vice president -- franchise development for Hilton Hotels Corp. ``We continue to leverage our 80-plus years of expertise, the strength of our brand name, the superior value offered by the product and the power of our marketing programs. Hilton Garden Inn continues to meet the needs of the upper-end of the middle market and appeals greatly to developers.''

Hilton Garden Inn developments have represented one of the cornerstones of Hilton's franchise growth strategy in the past four years. The hotels generally are located in suburban areas of larger cities, although there are Hilton Garden Inn hotels located in downtown areas where market conditions are suitable for an upper-mid-priced hotel, such as in Chicago; Washington, D.C.; and Philadelphia.

Typically ranging from two to six stories, Hilton Garden Inn hotels feature: a signature glass-walled Pavilion housing the reception desk; a Pavilion Pantry® with a selection of refrigerated, frozen and microwaveable packaged items, and sundries; the Great American Grill(TM) restaurant, offering freshly prepared breakfast and, in most locations, lunch and dinner, with room service during dinner hours; a comfortable lounge area with a television and fireplace; a bar area where guests can relax and enjoy beverages during the afternoon and evening hours; meeting facilities that meet the needs of their respective markets; a 24-hour, complimentary business center; and a laundry facility.

Guest room accommodations and features include: a hospitality center with a microwave oven, coffee maker and mini refrigerator; a sitting area with an easy chair and ottoman; a hairdryer; an iron and ironing board; and in-room entertainment and information services, including on-demand movies, satellite cable television, video games and interactive Hilton guest services.

Business-oriented features of the guest rooms include: a spacious work desk with a pull-out shelf for a portable computer; high-speed Internet access in many rooms; adjustable lighting; an ergonomic chair; electrical outlets at desk height; and two telephones equipped with two lines, data ports and voice mail.

Recreational facilities consist of a fitness room, indoor or outdoor swimming pool and a whirlpool.

``The hotels' residential feel appeals greatly to business travelers seeking a home-like atmosphere featuring warm decor and appointments, as well as leisure travelers visiting friends and relatives in the cities where our hotels are located,'' added Fortier.

Members of the Hilton HHonors® guest reward program can earn Points & Miles(TM) for every qualifying stay at Hilton Garden Inn hotels. ``HHonors is the only hotel program that allows any of its members to Double Dip®, simultaneously accumulating both hotel points and airline miles with each qualifying stay, which gives Hilton Garden Inn hotels an added advantage over the competition in their respective markets,'' said Fortier.

For more information about franchise opportunities for the Hilton family of brands, contact 800/286-0645, or www.hiltonfranchise.com.

Hilton Hotels Corp. is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises 1,900 hotels, resorts and vacation ownership properties. Its portfolio includes many of the world's best known and most highly regarded hotel brands, including Hilton®, Doubletree®, Embassy Suites Hotels®, Hampton Inn®, Hampton Inn & Suites®, Harrison Conference Centers®, Hilton Garden Inn®, Hilton Grand Vacations Company®, Homewood Suites® by Hilton, Red Lion Hotels & Inns® and Conrad(TM).

Reservations can be made for any hotel or resort in the new family of Hilton brands through a professional travel agent or by contacting the following:

Brand Name                Web Site Address             Phone (USA/CAN)

Hilton®                 www.hilton.com               800/HILTONS
Hilton Garden Inn®      www.hiltongardeninn.com      800/HILTONS
Doubletree®             www.doubletreehotels.com     800/222-TREE
Embassy Suites Hotels®  www.embassy-suites.com       800/EMBASSY
Hampton Inn®/Hampton
 Inn & Suites             www.hampton-inn.com          800/HAMPTON
Harrison Conference
 Centers®               www.harrisonconference.com   800/HCC-MEET
Homewood Suites®
 by Hilton                www.homewood-suites.com      800/CALL-HOME
Red Lion Hotels
 & Inns®                www.redlion.com              800/RED-LION
Conrad(TM)                www.conradinternational.com  800/HILTONS

Outside the United States and Canada, reservations can be made by calling the nearest Hilton Reservations Worldwide office.

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Contact:

     Hilton Brand Communications
     Kendra Walker, 310/205-4545
     Homepage: http://www.hilton.com