BEVERLY HILLS, Calif | Hilton Hotels Corporation (NYSE:HLT - News) announced today plans to develop Phase II of the newest Hilton Grand Vacations Club® (HGVClub®) resort in Las Vegas, Nevada. Groundbreaking for the 431-unit addition is planned for July 2004, with construction of the $126 million expansion scheduled for completion in summer 2006. Pre-opening vacation ownership sales are projected to begin in the summer of 2005.

Located on a 10-acre site at the north end of the Las Vegas Strip, the first 283 units of HGVClub on the Las Vegas Strip, located in a 28 story tower offering spectacular views of the famous Strip and surrounding areas, opened for occupancy in November 2003, and are nearly one third sold. With the opening of Phase II, 714 units of the planned four phase 1,577-unit project will be opened.

"The response to our third vacation ownership resort in the Las Vegas market has been tremendous," said Antoine Dagot, president and CEO of Hilton Grand Vacations Company (HGVC). "Sales of the first phase of HGVClub on the Las Vegas Strip continue to exceed our projections. The superb quality and premier location of the resort have made it a property in high demand. The approval of a second phase of development strongly supports the Hilton commitment to continue delivering first-class accommodations for visitors to the Las Vegas community."

The 431 units in Phase II of the resort, housed in a 38 story tower, will include studio suites and one-two-and three bedroom villa accommodations, as well as upgraded penthouse villas. In keeping with the Hilton Grand Vacations Club standard of creating a "welcome home" environment, each villa will feature an extensive array of amenities including fully-equipped kitchens, washers and dryers, spacious living and dining areas, and private master suites. The resort also includes spectacular swimming pools, fountains and lush landscaping.