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 Hampton® on Pace to Open 90 - 100 Hotels in 2006; Western, 
Urban and International Development Lead Expansion Efforts 
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MEMPHIS, Tenn., March 23, 2006—Hampton, the national brand of more than 1,300 mid-priced Hampton Inn® and Hampton Inn & Suites® hotels, today announced that it is on pace to open between 90 and 100 hotels during 2006 and possibly set a record for openings in 2007.  
Leading the expansion will be development in the western U.S., urban and international locations.  Currently, Hampton expects to open its landmark 1,400th hotel during the 4th quarter of 2006, with Hampton Inn & Suites comprising roughly 80 percent of new product this year.
Guests have weighed in positively with the new development, too.  The brand has received overwhelmingly positive customer feedback, including purchase requests for a number of items that have been implemented during its “Make It Hampton” improvement program, from Hampton Moment Mints to Cloud Nine, the new Hampton Bed Experience.  

“Based on the number of projects underway, we are close to achieving record growth this year, and, if the pace continues, expect during 2007 to surpass our brand record of 127 openings, set in 1998,” said Phil Cordell, senior vice-president, Hampton Brand Management.  “Urban markets remain extremely attractive, as do western locations, where we have less distribution.  Both types of locations have multiple projects underway.”

• Western U.S. development--Hampton has multiple openings scheduled for 2006 in California, Texas, Colorado, Nevada and New Mexico.  “A mid-market property affiliated with the Hilton Family of Brands has become an attractive alternative for West Coast hotel developers,” Cordell said.  “The combination of Hampton’s brand recognition and strong guest loyalty, coupled with Hilton’s marketing and reservations systems, has created a true demand in a part of the nation that has seen increased growth over the past few years.”

• Urban development—The brand expects to open properties in the following major, urban markets in 2006:  Manhattan/Seaport and a new property in SoHo, scheduled to open in 2007; Chicago Theater District; Knoxville; Milwaukee; Savannah; Reno; Boise; Los Angeles/Orange County; Greenville, S.C.; and St. Louis/Forest Park.  “Urban centers are very hot for Hampton right now, as travelers seek more affordable options when traveling to major destinations,” Cordell added.  “We have developers looking in nearly every major city center where Hampton currently doesn’t already have an active presence.”

• International Growth--With the recently completed merger between Hilton and Hilton International, international development is expected to rise sharply.  “We currently are working with our international team members to identify regions, countries and cities where we want to focus our initial attention for Hampton development,” Cordell said.  “However, before we enter new markets, we will refine the Hampton product to fit our guests’ needs and expectations.  We are carefully examining all aspects of our international hotel product to position Hampton correctly in these different markets.”

Hilton Hotels Corporation (NYSE:HLT) is the leading global hospitality company, with nearly 2,700 hotels and 475,000 rooms in more than 80 countries, with 150,000 team members worldwide.  More than 2,300 hotels are owned, managed or franchised in the USA with a portfolio of some of the best known and highly regarded hotel brands including Hilton®, Conrad®, Doubletree®, Embassy Suites Hotels®, Hampton Inn®, Hampton Inn & Suites®, Hilton Garden Inn®, Hilton Grand Vacations™, Homewood Suites by Hilton® and The Waldorf=Astoria Collection™. Outside the USA, the company operates 262 hotels branded Hilton and 131 under the mid-market Scandic brand.   For more information about our company, please visit www.hiltonfamily.com.

Note: 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.  The forward-looking statements in this press release are subject to numerous risks and uncertainties, including the effects of economic conditions; supply and demand changes for hotel rooms; competitive conditions in the lodging industry, relationships with clients and property owners; the impact of government regulations; and the availability of capital to finance growth, which could cause actual results to differ materially from those expressed in or implied by the statements herein.

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Contact:

Tori Walsh
  Hampton Brand Communications
  (901) 374-5534

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Also See: Hampton® Completes First Stage of Make it Hampton, Upgrades Entire Hotels Portfolio / May 2005
Hampton Inn Averaging 100 Hotel Openings Per Year; Opens 1000th in Hayward, Calif / April 2000

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