�In a tightening development climate, major hotel brands are at an even greater competitive development advantage due to their historic ability to more easily attract developers, obtain financing and get projects completed,� said Tom Keltner, executive vice president - Hilton Hotels Corp. and president - franchise hotel group. �Today, lenders want the extra confidence of well-known brands with high consumer acceptance to help support a more stable investment.�

The company added 10,438 new hotel rooms (excluding conversions and room additions to existing hotels) during the first half of 2000, equivalent to 18.1 percent of total new industry construction and 23.5 percent of the upscale and mid-scale segments. Combined, the two top hotel companies in the industry were responsible for 45.9 percent of the upscale- and mid-scale-segment supply.

�The strength of our brands truly is in their ability to provide the best guest service in each of their competitive segments,� Keltner commented. �Our vast distribution across the country also gives us a competitive marketing advantage through Hilton HHonors®. Each of our brands continues to attract strong development interest from new and existing franchisees because we have the right hotel segments with the right programs in all the locations our customers desire.�

Hilton Hotels Corp. opened a number of major urban projects, including the Hilton Times Square in New York City, as well as its largest Embassy Suites Hotel, also in Manhattan. The Hilton Garden Inn product line is on track to have 200 properties open or under development by year-end 2000.

Homewood Suites by Hilton is enjoying its strongest development surge ever, having added 18 new properties to its development pipeline in the first half of 2000, compared to 11 total for all of 1999. Hampton Inn opened its 1,000th property, in Hayward, Calif., and continues to develop aggressively west of the Mississippi, as well as in the Southeast, Northeast and Midwest. Also, the company has seen renewed interest in development of its Doubletree Hotels & Guest Suites.

�Our philosophy of �strong brands win� continues to bear fruit in all phases of the real estate cycle of our hotels, as well as its internal service programs,� Keltner commented. �Hilton Hotels Corporation recently was awarded the top distinction in the American Customer Satisfaction Index (ACSI), Embassy Suites Hotels received the �Highest Guest Satisfaction Among All-Suite Hotel Chains� and Hampton Inn received the �Highest Guest Satisfaction Among Mid-Price Hotel Chains with Limited Service� award in the J.D. Power and Associates 2000 Domestic Hotel Guest Satisfaction Study(SM).

�We continue to see substantial growth opportunities for six of our major brands in various regions throughout the U.S., Canada and Mexico. We foresee eight to ten percent growth for the next three to four years,� said Keltner.

Hilton Hotels Corp. is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises more than 1,800 hotels, resorts, and vacation ownership properties. Its portfolio includes many of the industry�s best known and most highly regarded hotel brands, including Hilton, Doubletree, Embassy Suites Hotels, Hampton Inn, Hampton Inn & Suites, Harrison Conference Centers, Hilton Garden Inn, Homewood Suites by Hilton, Red Lion Hotels & Inns, and Conrad International.

This news 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.