Hilton Hotels and American Express launch cobranded credit card; first hotel company to team up with American Express to introduce rewards card

Business Wire, Sept 11, 1995

and American Express have teamed up to offer a no-fee cobranded credit card that features what many frequent travelers value most: one of the richest reward structures of any leading travel rewards card program, no annual fee and a low introductory interest rate.

The new revolving credit card, which is called the Hilton Optima Card, offers Cardmembers automatic enrollment in the award-winning Hilton HHonors guest reward program and provides numerous rewards for using the Card, including:

o 2 HHonors points for every dollar charged to the Card for all

types of purchases; or

o 3 HHonors points for every dollar charged to the Card at more

than 220 U.S. Hilton hotels and Conrad International hotels

abroad (in addition to the regular HHonors points members earn

as a result of their stays.)

The Hilton Optima Card, which is issued by American Express Centurion Bank, is a no-fee revolving credit card with an 8.9 percent introductory interest rate for the first six months. After the first six months, the interest rate for purchases is prime (8.75 percent) plus 9.9 percent, which today is 18.65 percent.

Individuals who want to apply for the Hilton Optima Card can call 800/4-OPTIMA.

"The new Hilton Optima Card reinforces the reputations of Hilton Hotels and American Express as clear leaders in the business of serving customers," said Robert E. Dirks, senior vice president, marketing, for Hilton Hotels Corp.

"We selected American Express as our cobranded partner because of their strong heritage in the card and travel markets, commitment to customer value and the solid relationship we've built with them through years of successful joint promotions targeted to our frequent guests."

"We know the value of rewards in increasing customer loyalty and we expect that the Hilton Optima Card will stand out in a competitive market," said Mary Miller, senior vice president of partnership products for American Express.

"Hilton and American Express are two of the most recognized, well-respected brand names in the world and so it is logical to put them together on a cobranded credit card that offers great value for customers."

How the Card Works

The HHonors points earned on the Hilton Optima Card are deposited directly into a Cardmember's Hilton HHonors account at the time of billing, and can be used in the same way as any other HHonors points earned by the member.

For example, members need only 25,000 points (with Point Stretcher rewards) to earn two free weekend nights at selected HHonors hotels during selected time periods, valued at between $200 and $500.

Other benefits include:

o 5,000 HHonors bonus points upon approval for the Card;

o 2,500 HHonors bonus points upon first use of the Card;

o a certificate for 50 percent off a three-night HHonors stay

upon receipt of the Card (and every year thereafter on the

membership anniversary).

The Hilton Optima Card also offers customers the opportunity to take advantage of special offers that are provided only to Cardmembers. Upon approval of their Card application, HHonors members who currently are not VIP members will automatically achieve HHonors Silver VIP status for one year, a special Hilton designation that normally requires four Hilton stays.

Silver VIP status entitles customers to additional bonus points for hotel stays, VIP-only rewards and other special privileges, including Confirmable Room Upgrade Certificates after every five stays, complimentary use of hotel health club facilities and $200 check-cashing services in participating HHonors hotels.

Providing more flexibility than many other rewards cards, the Hilton Optima Card does not place an expiration date on HHonors points earned by using the Hilton Optima Card, as long as at least one charge is made or one stay at a U.S. Hilton hotel or Conrad International hotel abroad takes place each year.

Hilton Optima Cardmembers can take advantage of American Express' outstanding 24-hour customer service, plus key American Express Card benefits such as Car Rental Loss and Damage Insurance, Travel Accident Insurance and Global Assist.

The new Card will be supported by a print advertising campaign, with ads appearing in USA Today, The Wall Street Journal and The New York Times, starting Sept. 12.

Hilton Hotels will continue its participation in the American Express Membership Miles program, which allows American Express Cardmembers to earn one program mile for every dollar charged. Enrolled Cardmembers can redeem program miles with the frequent guest programs of participating hotels and the frequent flier programs of participating airlines.

Hilton HHonors is a guest reward program that gives frequent travelers a faster way to earn the travel rewards they want most. Enrolled members receive special privileges and can accumulate HHonors points and airline miles virtually every time they stay at any of the more than 220 U.S. Hilton hotels. HHonors points can also be earned and redeemed at Conrad International Hotels abroad.

HHonors is the largest hotel program that allows its members to Double Dip, or jointly accumulate both airline miles and hotel points with each stay. In addition, HHonors is the only hotel program that allows its members to trade airline miles for hotel points and vice versa through a benefit called HHonors Reward Exchange.