Hotel Online Press Releases 
Hilton Hotels Corp. Aggressively Expanding
Mid-Priced Hilton Garden Inn Product
Beverly Hills, Calif.-Jan. 12, 1998
   100 Hilton Garden Inn Hotels Open or Under Development As of Year-End 1997; 200 Open by Year-End 2000

Hilton Hotels Corp. is quickly earning a leadership position in the mid-priced segment of the hospitality industry,
with more than 100 Hilton Garden Inn properties open or under development as of year-end 1997.
The company exceeded its original goal of having 100 properties open by the year 2000, and now projects that it
will have 200 Hilton Garden Inn properties open or under development in the United States, Canada and Mexico
by year-end 2000.

"With the lodging industry thriving and strong forecasts for the future, we see an incredible opportunity to build
our market leadership worldwide," said Dieter H. Huckestein, president - hotel division, Hilton Hotels Corp.

"Aggressive expansion is the core of our marketing strategy and will be fueled by the growth of our highly
successful mid-priced product, Hilton Garden Inn."

Throughout more than 75 years, Hilton has evolved into a company that balances business and leisure offerings
with a strong mix of properties and marketing programs targeted to all types of travelers. The company has
adopted a single-brand, multi-product line development and marketing strategy with commercial, international,
convention, resort, gaming resort, airport, all-suite and mid-priced products.

"Each product line is developed to meet market demand," said Huckestein. "In every instance, we want Hilton to
be the first choice of the world's business, convention and leisure travelers."

While product lines will be expanded, the focus for new construction will be on the Hilton Garden Inn concept
throughout the United States, Canada and Mexico.

Development Focus on Focused-Service

With Hilton Garden Inn as the cornerstone of the company's growth strategy in the franchising division, Hilton
virtually is redefining the mid-priced category with a product that offers "four-star lodging at a three-star price."
From the launch of Hilton Garden Inn in 1996 through year-end 1997, more than 100 new Hilton Garden Inn hotels
have opened or are under development.

"Consumer demand in the mid-priced segment is growing faster than any other segment in the lodging industry,"
said Jim Abrahamson, senior vice president - franchising for Hilton Hotels Corp. "Throughout North America,
value-conscious travelers are looking for first-class accommodations at an affordable price. Nobody is better
qualified to answer this need than Hilton."

Designed to serve both work-week business travelers and weekend vacationers, Hilton Garden Inn hotels offer
top-quality services and amenities at room rates that average between $75 to $95 per night, depending on the
market. Guests are treated to gracious hospitality and spacious rooms designed with both comfort and
functionality in mind.

The welcoming signature glass-walled pavilion, housing reception and lounge areas, offers guests a business
center with IBM-compatible computers, a retail market known as the Pavilion Pantry and dining options. Each
hotel also offers an outdoor or indoor swimming pool, whirlpool spa, exercise room and a self-service guest
laundry. Business-oriented guest rooms feature specially designed work areas and hospitality centers that
include a microwave, refrigerator and coffee maker with complimentary coffee.

Hilton Garden Inn properties range in size from 90 to 250 guest rooms and are targeted for secondary markets
where operating a traditional full-service Hilton hotel may not be appropriate. All Hilton Garden Inn hotels will be
newly constructed, as conversion of existing properties would require extensive reconstruction to meet prototype

Quality First

"While growth is our goal, we will not accept it at the sacrifice of quality," said Huckestein. "Understanding
guest expectations and developing specific products to meet those expectations are the strategies behind our
growth objective."

During the past five years, Hilton has demonstrated a commitment to improving consistency in accommodations
and service throughout its system of hotels, adding first-class properties in rebounding markets while either
repositioning or terminating franchise agreements of hotels that do not meet the company's standards.

"Achieving our goals will depend on the participation of franchise owners and investors who share our vision,"
said Huckestein. "We will be seeking the best hotel owners and developers we can find, both in our own industry
and in others that offer us opportunities to leverage the strength of the Hilton brand."

Hilton offers one of the best known and respected brand names in the world backed by a global sales force, a
centralizedreservations service -- Hilton Reservations Worldwide, and powerful marketing programs, including theindustry's top-rated frequent guest-reward program, Hilton HHonors Worldwide.

"We are launching our expansion program from the best position possible -- leadership," said Huckestein.
"Hilton's name has been synonymous with hotel for more than 75 years and we consider that just the beginning."

Hilton Hotels is recognized internationally as the preeminent gaming and hospitality company. The company
develops, owns, manages or franchises hotel-casinos, resorts, vacation ownership and hotel properties.
Reservations can be made at more than 400 Hilton, Flamingo, Bally's, Conrad International and Vista hotels
worldwide online at or through a professional travel agent, or by contacting Hilton Reservations
Worldwide at 800-HILTONS in the United States. Outside the United States, reservations can be made by calling
the nearest Hilton Reservations Worldwide office.

Hilton Hotels Corp., Beverly Hills
Jeanne Datz or Iga Gaj, 310/205-4545

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