Hilton Updates Business Trends - ADR And Occupancy Trending Up To 1999 Levels

Additionally, the company noted that the pace of reservations has been accelerating since mid-September and that the rate of cancellations has significantly decreased during that time.

"We are encouraged by the fact that recent occupancy and average rate trends are validating our theory of a recovery that will get us back to the business levels we experienced in the late 1990s," said Stephen F. Bollenbach, president and chief executive officer of Hilton Hotels Corp.

"It is worth noting that while the occupancies at our owned full-service hotels, primarily in big cities -- those dependent on fly-in traffic -- are recovering rapidly from the lows of mid-September, our properties located primarily in suburban and smaller markets more focused on drive-in business have been seeing consistently good occupancy levels.

"Clearly, we have challenges ahead. We are continuing to watch our costs and operate our business efficiently and in line with our theory of managing for recovery. While we are prepared to face the challenges that remain, the trends we've seen are positive indicators not only for our hotels, but for the travel industry in general."

OCCUPANCY
                          Comparable Owned
                         Full-Service Hotels     Franchised Hotels (a)

Sept. 1 (Sat.)                   81%                     78%
Sept. 2 (Sun.)                   64%                     52%
Sept. 3 (Mon. - Labor Day)       41%                     29%
Sept. 4 (Tues.)                  60%                     58%
Sept. 5 (Wed.)                   75%                     70%
Sept. 6 (Thurs.)                 74%                     64%
Sept. 7 (Fri.)                   70%                     58%
Sept. 8 (Sat.)                   77%                     64%
Sept. 9 (Sun.)                   69%                     47%
Sept. 10 (Mon.)                  82%                     75%
Sept. 11 (Tues.)                 75%                     77%
Sept. 12 (Wed.)                  63%                     71%
Sept. 13 (Thurs.)                57%                     63%
Sept. 14 (Fri.)                  50%                     57%
Sept. 15 (Sat.)                  44%                     56%
Sept. 16 (Sun.)                  29%                     37%
Sept. 17 (Mon.)                  32%                     55%
Sept. 18 (Tues. - Rosh Hashana)  37%                     65%
Sept. 19 (Wed.)                  40%                     67%
Sept. 20 (Thurs.)                42%                     58%
Sept. 21 (Fri.)                  45%                     58%
Sept. 22 (Sat.)                  52%                     62%
Sept. 23 (Sun.)                  39%                     40%
Sept. 24 (Mon.)                  51%                     64%
Sept. 25 (Tues.)                 53%                     73%
Sept. 26 (Wed.)                  49%                     73%
Sept. 27 (Thurs. - Yom Kippur)   46%                     63%
Sept. 28 (Fri.)                  54%                     61%
Sept. 29 (Sat.)                  64%                     66%
Sept. 30 (Sun.)                  50%                     42%
Oct. 1 (Mon.)                    60%                     64%
Oct. 2 (Tues.)                   65%                     74%
Oct. 3 (Wed.)                    66%                     75%

(a) Hampton Inn, Embassy Suites, Homewood Suites by Hilton,
    Doubletree, Red Lion

For the month of September 2001, occupancy at the comparable owned hotels ran approximately 20-25 percentage points below September 2000. At the franchised hotels, occupancy for September 2001 ran approximately 10 points below September 2000.

Average Daily Rate (ADR)

From Sept. 12-30, ADR at the comparable owned hotels declined approximately 20 percent from the comparable 2000 period. From Oct. 1 to Oct. 3, ADR at the comparable owned hotels of approximately $160 was equal to the same period in 1999.

At the franchised hotels, ADR from Sept. 12-30 decreased 2 percent from the same period last year. From Oct. 1 to Oct. 3, ADR at the franchised hotels of approximately $84 was up 4 percent from the 1999 period.

Reservations/Cancellations

Reservations booked through Hilton Reservations Worldwide, the Global Distribution Systems and the Internet, were approximately 25 percent below last year's levels during the first week following the attacks. Since that time, reservation bookings have improved each week, and last week were approximately 12 percent below last year.

Of the roughly 2,600 group cancellations seen by the company, 76 percent were for the month of September 2001, and 17 percent for the month of October. The number of cancellations has decreased every week since the attacks. Approximately 40 percent of the cancellations have rebooked for later dates. Individual cancellations, more than 100 percent above normal in the first week following the attack, returned to normal levels by Sept. 25.

Hilton Hotels Corp. is recognized internationally as a pre-eminent hospitality company. The company develops, owns, manages or franchises 2,000 hotels, resorts and vacation-ownership properties. Its portfolio includes many of the world'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(TM).