Hampton Inn, the national brand of mid-priced hotels, today announced the grand opening of its first Manhattan hotel: the 144-room Hampton Inn - Chelsea located between Midtown and Lower Manhattan in the Chelsea neighborhood. Owned and operated by Hersha Hospitality Management, the hotel represents the brand's first entry in New York City. It is the second of five Hampton Inn hotels announced to be open by 2005 for the New York City area, illustrating the Hampton brand's movement into larger urban markets.

Located at 108 W. 24th Street (between Sixth and Seventh Avenue), the 144-room high-rise hotel combines the quality features of the nationally recognized Hampton Inn brand with the design elements of a classic New York-style hotel. The hotel includes an intimate outdoor patio, state-of-the-art guestroom furnishings, and refined common areas for relaxation. Other amenities include high-speed Internet access in guest rooms and public areas, an enhanced fitness center with the latest cardiovascular equipment, complimentary local telephone calls, complimentary breakfast daily with locally baked goods, and a laundry/dry cleaning service for guests. All guest rooms feature coffee makers, irons and ironing boards and a comfortable night's stay that is backed by the brand's unconditional 100% Satisfaction Guarantee. Opening rates will start at $159 per night.*

"This is an exciting day for Hampton Inn, marking a very important milestone for the national brand," said Phil Cordell, senior vice president, Hampton. "New York City is the epicenter of business and leisure travel in the U.S., and Hampton Inn is proud to now bring New York City travelers the great value and services they have experienced for years in our other 1,200 locations."

At 20 stories, the hotel is now the tallest in the Hampton system. In more recent years, the Hampton brand has seen almost 10 percent of its construction occur in downtown, urban markets – a growing trend in the mid-priced segment today, as developers realize the benefits of developing popular limited service brands outside the traditional highway and suburban location.

"We have had great success with Hampton Inn in urban markets," said Neil H. Shah, Corp. Director of Development, Hersha Hospitality (located in Hershey, Penn.) which operates the new Hampton Inn Philadelphia Convention Center hotel. The Hampton Inn - Chelsea hotel's opening room rate will be starting at $159*, compared to nearby Midtown West hotel rates averaging $172+ or the Financial District at $194+. "The price value is a very real attraction," added Shah. "When you add the Hampton complimentary breakfast and no charge for local telephone calls, guests can certainly enjoy additional savings staying at Hampton Inn."

The Hampton Inn is one of the newest businesses in the growing New York Chelsea neighborhood, which has become the heart of the city's burgeoning fashion and toy industry, and a new "hot spot" for the New York art community. A prime location for business and tourists, the hotel is located near many of New York City's premier theatres, art galleries, museums and shopping areas and is minutes away from Jacob Javits Convention Center, Macy's, Madison Square Garden, and the Theatre District. The hotel is also three blocks from the global headquarters of Credit Suisse First Boston and convenient to Citi Group and other financial institutions in lower Manhattan.

Hampton Inn - Chelsea is the second of five Hampton Inn hotels to open by 2005 in the New York Metropolitan market. In addition to the Hampton Inn - Chelsea, Hersha Hospitality is developing two other Hampton Inn hotels in Manhattan: the 65-room Hampton Inn-Seaport Financial District, which is expected to open this winter, and the 136-room Hampton Inn-Herald Square expected to open in 2005. Field Hotel Associates, another Hampton Inn franchisee, was the first to enter the greater New York metropolitan area with the opening of the Hampton Inn at JFK Airport in 2001, and has a second Hampton Inn planned in Elmhurst, NY at LaGuardia with 220 rooms, expected to open in 2005.

"With the costs of new construction and other factors, Manhattan historically has been a challenging market for limited-service brands to break into," said Phil Cordell. "Even in today's travel environment, consumer demand for mid-priced lodging is still strong, and that has led to financing opportunities for hotel developers to build in urban centers like New York, where before, travelers had only a choice of either upscale hotels or generally older, less modern properties."

"It can take five to seven years to build a hotel in Manhattan. We have been fortunate to move the Chelsea Hampton Inn from conception to completion in only 20 months," added Shah.

While bringing to New York City hotel stayers complimentary breakfast and local calls, as well as AAA and AARP/Senior discounts, Hampton also brings its 100% Satisfaction Guarantee introduced more than 10 years ago as the hotel industry's first service guarantee, promising if the hotel cannot make a guest satisfied with their stay, then the night's stay is free.

Hampton is part of Hilton Hotels Corporation, which owns and manages The Waldorf-Astoria® and Hilton New York, jointly owns and manages the Hilton Times Square and Embassy Suites Hotel New York City, and manages, the Doubletree Times Square and Millennium Hilton in Manhattan.

Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises more than 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®, Conrad®, Doubletree®, Embassy Suites Hotels®, Hampton Inn®, Hampton Inn & Suites®, Hilton Garden Inn®, Hilton Grand Vacations Company® and Homewood Suites by Hilton®.

* Rates are subject to availability and do not include taxes, gratuities and other incidental charges.
+ Q2 2003 average rates as quoted in Price Water House Coopers' Manhattan Lodging Index.

This press 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. The forward-looking statements in this press release are subject to numerous risks and uncertainties, including the effects of economic conditions; supply and demand changes for hotel rooms; competitive conditions in the lodging industry, relationships with clients and property owners; the impact of government regulations; and the availability of capital to finance growth, which could cause actual results to differ materially from those expressed in or implied by the statements herein.

Kendra Walker
Hilton Hotels Corporation Brand Communications
310/205-4545
Hilton