BEVERLY HILLS, Calif.-Jan. 20, 1998--Hilton Hotels Corp. (NYSE:HLT) Tuesday reported results for both the fourth quarter and the year ended Dec. 31, 1997.

The company reported a fourth quarter net loss of $5 million, or 3 cents per share, compared with a net loss of $68 million, or 33 cents per share, for the same period a year ago. Before non-recurring charges in both periods and an extraordinary loss (related to debt extinguishment) in the 1996 period, basic income per share was 25 cents in the
1997 quarter, up 4 percent from 24 cents last year.

Non-recurring charges in the 1997 fourth quarter, which resulted in a pre-tax charge to earnings of $119 million, or
28 cents per share on an after-tax basis, included recognition of an impairment loss relating to the company's
Flamingo Casino-Kansas City; recognition of an impairment loss and other costs associated with the closing of the company's Flamingo Casino in New Orleans on Oct. 1, 1997, and the write-off of expenses related to the company's efforts to acquire ITT Corp., net of the gain recognized on the sale of ITT stock previously purchased by the company.

For the year, Hilton reported net income of $250 million, or basic income per share of 95 cents, vs. $82 million, or
41 cents per share, in 1996. Excluding non-recurring charges in both periods and the extraordinary loss in the 1996 period, 1997 basic income per share was $1.23, up 22 percent from $1.01 last year.

During the fourth quarter, the company issued $400 million of senior unsecured notes in tranches of 12 and 20
years, continuing to implement its strategy of accessing favorable capital markets. The 12-year tranche of $200
million carries a coupon of 7.20 percent, with the 20-year $200 million tranche at 7.50 percent.

For the fourth quarter, the company's total earnings before interest, taxes, depreciation, amortization and
non-cash items (EBITDA) were $224 million, compared with $144 million for the same period a year ago. For the
year, EBITDA showed a 75 percent increase to $1.0 billion from $577 million in 1996.

Hilton's lodging operations reported a strong fourth quarter, fueled by a favorable supply-demand environment
and higher room rates, resulting in a double-digit increase in EBITDA. The company's gaming operations
benefited from EBITDA contributions from Bally properties in Las Vegas; Atlantic City, N.J.; New Orleans; and
Tunica, Miss.; and despite sluggish conditions in the major gaming markets, most of the company's large casino
properties posted comparable or increased quarter-over-quarter results.

Lodging Operations

EBITDA for Hilton's lodging division in the fourth quarter was $138 million, a 23 percent increase from $112
million last year.

In the fourth quarter, the company's "Top 10" owned and equity hotels contributed $99 million in EBITDA, an
increase of 22 percent over the 1996 quarter. This group of hotels showed a combined EBITDA margin of 36
percent, up 2 points from the prior-year quarter.

Average daily rate (ADR) at the "Top 10" properties -- located in New York, Chicago, Washington D.C., New
Orleans, San Francisco and Honolulu -- was $181.90 in the fourth quarter, compared with $164.07, an increase of
nearly 11 percent, while occupancy declined three points to 75.8 percent.

The Waldorf-Astoria and New York, Capital, San Francisco and Washington D.C. Hiltons posted particularly
strong results during the period. The Hilton Hawaiian Village was adversely impacted by the current economic
conditions in Asia, while the New Orleans Hilton was affected by the closure of the company's riverboat casino.

Revenue per available room (REVPAR) growth was 6.3 percent in the quarter for the Top 10 properties. Excluding Hawaii and New Orleans, however, REVPAR growth for the Top 10 properties was 9.8 percent for the quarter.
Overall fourth quarter occupancy for Hilton's lodging division -- including all owned, equity and managed
properties -- was 70.3 percent vs. 71.7 percent during the same period last year, with ADR improving 7.8 percent,
resulting in a REVPAR gain of 5.8 percent.

The company's franchising efforts, particularly the mid-priced Hilton Garden Inn program, continued to exceed
expectations. At year-end, the company had some 100 Garden Inn properties open, under construction or in
design development. During the fourth quarter, Hilton signed an agreement with Chartwell Leisure Inc. for 20
Gardin Inn properties throughout Mexico.

For the year, EBITDA from the company's lodging operations was $548 million, a 40 percent increase from $392
million in 1996. At the Top 10 hotels, EBITDA for the year increased 40 percent to $345 million. Occupancy at
these properties was up slightly for the year at 79.3 percent, with ADR rising 8.9 percent to $165.98, resulting in a
REVPAR increase for 1997 of 9.5 percent. Overall lodging division REVPAR -- including all owned, equity and
managed properties -- was up 8.2 percent over 1996.

Gaming Operations

Gaming EBITDA for the fourth quarter was $117 million, compared with $47 million for the same period in 1996.
The increase was primarily attributable to the addition of Bally properties acquired in the fourth quarter of 1996,
the opening of "The Wild Wild West" casino in Atlantic City, improved international results and a return to a
strong baccarat hold percentage at the Las Vegas Hilton.

Gaming division results were affected, however, by generally sluggish market conditions in Las Vegas and
Atlantic City, a continuing difficult operating environment in Kansas City, and the absence of Hilton's riverboat
casino in New Orleans, which ceased operations Oct. 1.

The Flamingo Hilton-Las Vegas reported fourth quarter EBITDA of $28 million, comparable with last year's $29
million. Occupancy declined to 89.2 percent from 93.7 percent, and ADR rose 3.4 percent to $84.17.
At Bally's Las Vegas, strong slot win and average rate enabled that property to show EBITDA of $24 million,
which, while not included in the company's 1996 results, was up 14 percent from last year's $21 million.

Occupancy of 90.6 percent was up from last year's 90.0 percent, while ADR was up 4 percent to $95.94.
The Las Vegas Hilton benefited from a baccarat hold percentage of 29 percent, but was impacted by delays in the
opening of the "Star Trek" attraction. EBITDA was $10 million vs. $4 million in the 1996 period. Occupancy
declined three points to 81 percent, while ADR increased 4 percent from $102.68 to $106.42. The property's
futuristic-themed "SpaceQuest" casino opened in November, while "Star Trek: The Experience" opened Jan. 4,
1998, to expected levels of visitation.

In Atlantic City, Bally's Park Place and The Atlantic City Hilton generated EBITDA of $31 million and $5 million,
respectively. While not included in the company's consolidated results last year, EBITDA at these properties
totaled $16 million at Park Place and a loss of $3 million at the Atlantic City Hilton. The results at Bally's Park Place reflect continuing strong operating margins and the success of "The Wild Wild West" casino, which opened July 1. The Atlantic City Hilton began in the fourth quarter to realize the benefits of the new 300-room guest tower, which opened on July 31.

Gaming division results were further bolstered by strong international results at the company's hotel-casino in
the Gold Coast, Australia, and its operation in Punta del Este, Uruguay, which brought its 300 guest rooms on line in November.

For the year, Hilton's gaming operations reported EBITDA of $539 million, compared with last year's $233 million.
"Our lodging business continued to perform well in the fourth quarter and throughout 1997, and our key gaming
properties managed to hold their own in difficult market conditions," said Stephen F. Bollenbach, president and
chief executive officer of Hilton Hotels.

"We are excited about our hotel business entering 1998 due to an environment that enables us to continue raising room rates at our full-service hotels, our emphasis on achieving operating efficiencies and strategic acquisition of hotel assets. "In gaming, we look forward to a full year of results from `The Wild Wild West,' `Star Trek' and Punta del Este, as well as stable conditions in Las Vegas and Atlantic City."
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Hilton Hotels Corp.
Summary Statements of Income
(dollars in millions, except per-share and average-rate amounts)

                         Three Months Ended    12 Months Ended
                              Dec. 31              Dec. 31

                                      % / pt                  % / pt
                          1997  1996  Change   1997    1996   Change

Revenue
 Hospitals                $689   $658    5 %   $2,732  $2,517    9 %
 Gaming                    650    378   72      2,584   1,423   82
Total                   $1,339 $1,036   29 %   $5,316  $3,940   35 %

EBITDA (a)
 Hotels                   $138   $112   23 %     $548    $392   40 %
 Gaming                    117     47  149        539     233  131
 Corporate expense, net    (31)   (15) 107        (78)    (48)  63
Total                     $224   $144   56 %   $1,009    $577   75 %

Operating Income
 Hotels                   $110    $62   77 %     $448    $272   65 %
 Gaming                    (41)   (11) 273        228     109  109
 Corporate expense, net    (31)   (15) 107        (80)    (52)  54
Total operating income      38     36    6        596     329   81

Interest and dividend
 income                      8     13  (38)        42      38   11
Interest expense           (41)   (33)  24       (172)    (88)  95
Net interest from equity
 investments                (5)    (3)  67        (18)    (12)  50
Net interest expense       (38)   (23)  65       (148)    (62) 139

Income before taxes and
 minority interest           0     13   --        448     267   68
Provision for taxes         (3)    (6) (50)      (187)   (106)  76
Minority interest, net      (2)    (1) 100        (11)     (5) 120
Income before
 extraordinary loss         (5)     6   --        250     156   60

Extraordinary loss on
 extinguishment of debt,
 net of tax benefit         --    (74)  --         --     (74)  --
Net income (loss)          $(5)  $(68) (93) %    $250     $82  205 %

Income (loss) per share
Basic:
Before extraordinary loss $(.03)  $.03  -- %     $.95     $.79  20 %
Extraordinary loss           --   (.36) --         --     (.38) --
Net income (loss)
 per share                $(.03) $(.33) -- %     $.95     $.41 132 %

Diluted:
Before extraordinary loss $(.03)  $.03  -- %     $.94     $.79  19 %
Extraordinary loss           --   (.36) --         --     (.38) --
Net income (loss)
 per share                $(.03) $(.33) -- %     $.94     $.41 129 %

Occupancy (owned or
 managed)
 Hotels                  70.3%  71.7% (1.4) pts. 74.6%  74.3% .3 pts.
 Gaming                  82.0%  84.0% (2.0) pts. 85.8%  88.1% (2.3) pts.

Average rate (owned or
 managed)
 Hotels                 $152.60 $141.50  8 %    $145.33 $134.92 8 %
 Gaming                  $80.93 $74.95   8 %     $78.81  $72.63 9 %

(a)  EBITDA is earnings before interest, taxes, depreciation,

amortization and non-cash items.

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                           Hilton Hotels Corp.
                 Supplementary Statistical Information
 

Three Months Ended 12 Months Ended
Dec. 31 Dec. 31

                                      % / pt                  % / pt
                          1997  1996  Change    1997   1996   Change

                                       Hotel Statistics

Owned and Equity (a)
 Occupancy              73.4%    76.2% (2.8) pts  77.8%   77.6%  .2 pts
 Average Rate         $161.85  $147.48   10%    $152.55 $140.33   9%
 REVPAR               $118.87  $112.35    6%    $118.61 $108.89   9%
 Number of hotels          --       --               32      31
 Number of rooms           --       --           23,799  23,092

Managed (a)
 Occupancy              65.6%    65.0%  .6 pts    70.0%   69.6%  .4 pts
 Average Rate         $137.18  $127.67   7%     $133.58 $124.90   7%
 REVPAR                $89.99   $82.97   8%      $93.48  $86.88   8%
 Number of Hotels          --       --               26      28
 Number of Rooms           --       --           15,428  16,776

Franchised
 Occupancy              64.5%    65.2% (.7) pts    70.0%  69.9%  .1 pts
 Average Rate          $90.35   $82.62   9%      $90.91  $83.90   8%
 REVPAR                $58.31   $53.89   8%      $63.67  $58.68   9%
 Number of hotels          --       --              180     172
 Number of rooms           --       --           45,092  43,694

                                  Gaming Statistics

Number of owned, partially
 owned and managed casinos
 and hotel-casinos         --       --               15       16
Number of rooms            --       --           17,590   17,612
Casino square footage      --       --        1,040,000  937,000

EBITDA (in millions) (b)
Las Vegas
 Flamingo Hilton          $28      $29             $109     $114
 Las Vegas Hilton          10        4               45       29
 Bally's Las Vegas         24       21               93       87

Atlantic City
 Bally's Park Place        31       16              155      131
 Atlantic City Hilton       5       (3)              29       38

Other Gaming               19        8              108      108

Total                    $117      $75             $539     $507

Nevada Statistics (b)
Occupancy               82.7%  86.4%  (3.7) pts  86.5%  90.5% (4.0) pts
Average Rate           $79.19  $76.13    4%     $76.53 $73.57   4%
REVPAR                 $65.50  $65.78  -- %     $66.20 $66.59  (1)%
Table Win %(excl. LVH
 baccarat)               15%      18%              17%   17%
Table Win % -- LVH
 baccarat                29%       3%              24%   16%

Atlantic City Statistics (b)
Occupancy               86.6%  89.0%  (2.4) pts  91.3%  92.7% (1.4) pts
Average Rate           $84.89  $87.17   (3)%     $90.35 $91.33  (1)%
REVPAR                 $73.51  $77.62   (5)%     $82.47 $84.68  (3)%
Table Win %              15%      16%              15%   16%

(a) 1996 statistical data has been adjusted to reflect a comparable
hotel mix.
(b) The 1996 period includes full year to date Bally results and
statistical information.