HILTON HOTELS ACQUIRES HILTON BACK BAY IN BOSTON

Press Release: Hilton Hotels Corp.

May 1, 1999
Hilton Hotels Corp. Friday announced that it has completed the acquisition of the 385-room Hilton Back Bay in Boston from DHM Associates. The purchase price is $70 million.

A Hilton franchised property since 1982, the Hilton Back Bay is located in the vibrant Back Bay business district of Boston. The 25-story hotel is located directly across the street from the Hynes Convention Center and the Prudential Center, and is within walking distance of first-class retail, dining and entertainment facilities at Copley Place, Boylston Street and Newberry Street.

The property features more than 11,000 square feet of meeting space, a restaurant, a lounge, a fitness room and an indoor pool.

"The acquisition of this hotel, along with the opening later this year of the new 600-room Hilton Boston Logan Airport property, gives Hilton a strong ownership presence in one of the nation's most important markets,'' said Matthew J. Hart, executive vice president and chief financial officer, Hilton Hotels.

"With its close proximity to the Hynes Convention Center and first-class retail and entertainment establishments, the Hilton Back Bay remains a favorite lodging choice for both business and leisure travelers.

"Including the planned $11.7 million renovation of the guest rooms, meeting rooms, lobby and health club, the purchase price is 8.5 times 1999 EBITDA with a projected 10.5 percent cash-on-cash return, making this acquisition yet another excellent investment for our shareholders.''

Earlier this year, Hilton purchased the Hilton Alexandria Mark Center and the Pointe Hilton Resort at Squaw Peak, which along with this acquisition brings the company's total investment in hotel real estate property to $214 million year to date.

Hilton Hotels Corp. is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises hotels, resorts and vacation ownership properties.