As a line extension of the Doubletree brand, Doubletree Club hotels are designed to compete in the focused-service hotel category.  While the guest room finish and standards are intended to be identical to an upscale Doubletree hotel, typically these hotels are smaller (150-250 rooms), have less than 5,000 square feet of meeting space, offer limited F&B facilities, and are located in airport, suburban and secondary markets.  The distinctive feature of these hotels is the signature Club Room, which is designed for today�s business traveler, is a combination office, den and restaurant/lounge.  The atmosphere in the Club Room blends the business features of an airline club room with the comfort of a residential den.

�Mid-market hotels that are more than 10 years old and have not been recently renovated tend to lose their distinctiveness and identity,� said Dave Horton, senior vice president � brand management for Doubletree.  �Today's business and leisure travelers clearly show a preference in staying at newer hotel products that offer the amenities and services geared to their needs. Our Doubletree Club growth strategy has been created to give these older properties in great locations a second life.  Our Doubletree Club prototype offers owners an excellent opportunity to renovate and rejuvenate the economic viability of these hotels with a minimal investment.�

There are nearly 25 Doubletree Club hotels currently open in city center and suburban markets across the U.S.  Two Doubletree Club properties expected to open by year end 2001 include a newly constructed 110-room hotel near JFK International Airport in Jamaica, N.Y. and a 125-room hotel upgrade and conversion project in Livermore, Calif.

�Our Doubletree Club concept is a fresh and innovative approach to the focused service segment.  Owners think it is a great opportunity for the brand to grow with a unique product," said William Fortier, senior vice president � franchise development for Hilton Hotels Corporation.  �Conversions will certainly be the key growth vehicle behind this brand's expansion, although we expect some of our growth to come from new construction.�

As part of the new development thrust, Doubletree Club has revamped the initial design of its unique Club Room, which combines full business services, food service and relaxation area into a single, communal environment. The Club Room is the focal point of each Doubletree Club property designed to make maximum use of available space and combines an upscale, TV-equipped bar and grill with a retail operation, complimentary meeting rooms, workstations and lounge areas featuring big-screen video entertainment. A total of 28 phone lines throughout the Club Room provide telecommunication and Internet access. A 24-hour, self-service business center accommodates photocopying, faxing and other out-of-office business needs.

Food and beverage outlet options have been expanded to include popular regional restaurant themes, in addition to the newly developed Club Grille concept.

Doubletree Club Hotels, Doubletree Guest Suites, Doubletree Hotels and Doubletree Resorts are part of Hilton Hotels Corporation, recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises more than 2,000 hotels, resorts and vacation ownership properties.

This press release contains �forward-looking statements� within the meaning of federal securities law, including statements concerning business strategies and their intended results, and similar statements concerning anticipated future events and expectations that are not historical facts.