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 Integration Process Underway at Hilton and Promus; Initial Executive Appointments Named
 
BEVERLY HILLS, Calif. - Nov. 2, 1999 - Hilton Hotels Corp. (NYSE:HLT) Tuesday announced plans for a new senior management organizational structure reflecting the company’s pending acquisition of Promus Hotel Corp. (NYSE:PRH).

The new structure will take effect immediately upon closing of the acquisition, scheduled for Nov. 30 subject to shareholder approval. The following corporate appointments and titles were announced by Hilton President and Chief Executive Officer Stephen F. Bollenbach.

Reporting directly to Bollenbach will be the following executives:

  • Thomas E. Gallagher, Hilton’s current executive vice president and chief administrative officer and chief counsel. Gallagher, 54, oversees the company’s legal, human resources and strategic planning functions.
  • Matthew J. Hart, Hilton’s current executive vice president and chief financial officer. Hart, 47, will continue to direct Hilton’s finance, treasury, full-service hotel development and architecture/construction areas, as well as its asset-management function.
  • Dieter H. Huckestein, executive vice president, hotel operations. Huckestein, 55, continues to oversee the company’s full-service hotel business including operations, sales and marketing, reservations, purchasing and operations finance.
  • Thomas L. Keltner, who will join Hilton from Promus as executive vice president - franchise hotel group. Keltner, 53, will have brand management responsibilities for the Embassy Suites, Hampton Inn and Homewood Suites brands, as well as directing franchising efforts across all of the company’s brands. Additionally, he will oversee company-managed Hampton Inns, Homewood Suites and RFS. He will remain based in Memphis, Tenn.
  • Marc A. Grossman, 43, Hilton’s current senior vice president for corporate affairs, who will continue directing the company’s corporate communications, investor relations, public affairs, community relations and internal-communications efforts.
  • James T. Harvey, who will join Hilton from Promus as senior vice president and chief information officer. Harvey, 41, will oversee Hilton’s technology systems and emerging e-commerce initiatives and remain based in Memphis.
  • Dorothy Hayden-Watkins, Hilton’s current senior vice president - diversity. Hayden-Watkins, 54, will continue to direct all of the company’s diversity efforts.
Within full-service hotel operations, the following executive appointments were announced:
  • Stevan D. Porter joins Hilton from Promus as senior vice president of hotel operations. Porter, 45, will have specific operational responsibility for full-service, owned and managed Embassy Suites, Doubletree, Red Lion and selected Hilton hotels, as well as Harrison Conference Centers and University hotels. Porter will relocate from Memphis to Hilton corporate headquarters in Beverly Hills and will report to Huckestein.
  • Hilmar A. Rosenast, 61, senior vice president of hotel operations, who will have operational responsibility for major full-service owned Hilton hotels, reporting to Huckestein.
Within the franchise hotel group, James R. Abrahamson, 44, senior vice president - franchising, will have responsibility for franchising efforts for all of the branded products. He will continue to be based in Beverly Hills, and will report to Keltner.

“When we began the integration process, it was our goal to create the best organization possible utilizing the talents of executives from both Hilton and Promus, and we are well on our way to accomplishing that goal through this initial set of executive appointments,” Bollenbach said. “We are pleased to have these outstanding Promus managers and several of their colleagues join the Hilton team. I am confident that we have put a team in place that has skills and experience that are second to none in our industry.” 
 

Stephen F. Bollenbach was named president and chief executive officer of Hilton Hotels in February 1996.  He also serves as chairman of Park Place Entertainment Corp., the company created in January 1999 with the completion of the spin-off of Hilton’s gaming operations. He sits on the board of directors for both companies.  Previously, Bollenbach was senior executive vice president and chief financial officer of the Walt Disney Co., where he was instrumental in the execution of that company’s $19 billion acquisition of ABC/Capital Cities. Prior to joining Disney, he was president and chief executive officer of Host Marriott Corp., an organization he helped create in 1993 by leading an innovative restructuring of the Marriott Corp. resulting in two companies: Host Marriott and Marriott International.

Bollenbach has also held key financial positions at the Trump Organization, Holiday Corp. and Southwest Savings and Loan Association. Bollenbach also sits on the boards of Catellus Corp., Kmart Corp., Time Warner Inc. and Hilton Group PLC, the parent company of Hilton International, owner of the Hilton name outside the United States.

Thomas E. Gallagher became executive vice president and general counsel for Hilton Hotels in July 1997 and was named chief administrative officer in May 1999. Prior to joining Hilton, Gallagher was president and chief executive officer of The Griffin Group Inc., the investment and management firm for all of Merv Griffin’s business activities, including hotel, entertainment, media and gaming operations and investments.  Gallagher also supervised the company’s ownership interests in two publicly traded gaming companies. During 1995-1996, he served as president and chief executive officer of Griffin Gaming Entertainment Inc. (formerly Resorts International Inc.) and was a member of the board of directors and chairman of its executive committee.

Prior to joining the Griffin organization, Gallagher practiced law with the law firm Gibson, Dunn Crutcher, specializing in corporate finance, mergers, acquisitions, restructurings and international transactions. 

Matthew J. Hart was named executive vice president and chief financial officer of Hilton Hotels in May 1996. Prior to joining Hilton, Hart was senior vice president and treasurer for the Walt Disney Co., where he was responsible for the company’s corporate and project financing activities.  Before joining Disney, he was executive vice president and chief financial officer for Host Marriott Corp. He also held various financial positions at Marriott Corp. including senior vice president and treasurer. Hart has also been a lending officer with Bankers Trust Co. in New York. He is on the board of directors of First Washington Realty Trust and Kilroy Realty Corp.
Dieter H. Huckestein was named executive vice president and president - hotel operations in May 1994. He also serves as a member of the board of directors for the company. A 30-year veteran of the hospitality industry, Huckestein has extensive experience in all aspects of hotel operations both within the United States and internationally.

Before joining Hilton in 1988, he served in various management roles with Hilton International, Americana Hotels, Intercontinental Hotels and leading hotels in Europe. Huckestein is a member of the board of directors for the USA National Tourism Organization and the American Hotel Motel Association Educational Institute. He is also a member of the Travel Business Roundtable and World Tourism Organization. 

Thomas L. Keltner is currently president - Brand Performance and Development Group at Promus Hotel Corp., where he is responsible for all aspects of brand management for the Doubletree Hotels and Suites, Embassy Suites, Hampton Inn, Hampton Inn Suites and Homewood Suites including performance, quality standards, marketing, sales, reservations and franchise support.

He also directs all development activities for both company-owned and franchised properties for all company brands. Previously, Keltner served as executive vice president and chief development officer for the company.  Before joining Promus, he was senior vice president and chief operating officer of the franchise division of Holiday Inn Worldwide. He also served as president and managing director of Holiday Inns International in Brussels, Belgium.

Marc A. Grossman was named senior vice president - corporate affairs at Hilton Hotels in September 1994.  Previously he served as the company’s vice president - corporate communications and vice president - communications for Hilton’s gaming division.

Prior to joining Hilton, Grossman was senior vice president with the public relations firm of Burson-Marsteller, where he directed corporate and public affairs programs for the agency’s West Coast clients.  He was previously a vice president with Fleishman-Hillard Inc. in New York and was vice president - communications for the 1982 World’s Fair in Knoxville, Tenn. He serves on the board of directors of Special Olympics of Southern California and on the liaison committee of the Los Angeles Business Advisors. 

James T. "Tim" Harvey currently serves as chief information officer and executive vice president for Promus Hotel Corp. A 19-year employee, Harvey has extensive experience in providing technology solutions that support owned, managed and franchised hotels.

Harvey first joined Holiday Inns in 1980 as an intern. He later worked as senior programmer/analyst, project manager, manager - Systems Development and as director - Business Systems Development. After Holiday Inns were sold to Bass PLC, Harvey joined the newly created Promus Companies and soon was named corporate director - Hotel and Corporate Information Systems. He was named vice president and chief information officer for Promus Hotel Corp. in 1995 and assumed his current position in February 1999.

Dorothy Hayden-Watkins joined Hilton Hotels as senior vice president - diversity in November 1998. Prior to joining Hilton, Hayden-Watkins served as director, U.S. Equal Employment Opportunity Commission for the Cleveland District Office in Ohio.

She also served in the same capacity at the Los Angeles District Office. She has also served as the director of the Colorado Civil Rights Commission and as an educator and administrator in public school districts in Colorado and Nebraska. Hayden-Watkins’s work in education, civil rights and equal opportunity spans more than 25 years.  Most recently she was part of President Clinton’s Government Reinvention Initiative leading The Cleveland district in implementing the U.S. Equal Employment Opportunity Commission’s initiatives which reflect Vice President Al Gore’s National Performance Review Recommendations. She also participated on the White House Conference on the President’s Welfare to Work Initiative.

Stevan D. Porter is currently executive vice president, operations for Promus Hotel Corp., where he oversees the management of more than 40,000 employees and nearly 350 hotels. Previously he served as senior vice president - operations for the company’s full-service managed properties. He also served as vice president - operations and vice president - marketing for Embassy Suites Inc.

He has held various other senior marketing positions with Embassy Suites. Porter began his hospitality career with Stouffer Hotels, where he served in a number of wide-ranging positions including chef de partie, rooms executive, assistant general manager. He also worked as a product manager and hospital administrator for Healthcare International in Austin, Texas.

Hilmar A. Rosenast first joined Hilton Hotels Corp. in 1965 serving in numerous finance positions. He has since held several operational positions, being named senior vice president in 1982. Prior to joining Hilton, Rosenast was a business owner in Africa. Before relocating to Africa, Rosenast served in various financial positions at major corporations including Siemens AG and Unilever NV in his native Switzerland. 
James R. Abrahamson was named senior vice president - franchising and select hotels for Hilton Hotels Corp. and executive vice president Hilton Inns Inc. in December 1994. He is responsible for Hilton’s franchise operations, consisting of more than 230 hotels nationwide. He has also supervised the widespread roll-out of the company’s mid-scale product line of Hilton Garden Inn hotels which was introduced in 1996. 

Abrahamson joined Hilton in 1988 as director - operations for Hilton Suites and was promoted to vice president - operations in 1990. From 1991-1994, he served as vice president - hotels. A 20-year veteran of the hospitality industry, Abrahamson began his career with Embassy Suites and Holiday Inns.

 
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Contact:

Hilton Hotels Corp., Beverly Hills
Marc Grossman, 310/205-4030
Kathy Shepard, 310/205-7676
http://www.hilton.com
 
Also See Comparable 2nd Qtr EBITDA Declines 1.9% at Hilton's U.S. Owned Hotels / Weak Conditions at Hawaiian Hotels Continue / July 1999 
Hilton Acquires Promus for $4 Billion / Sept 1999 

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