Homewood Suites by Hilton Awarded ``Highest Guest Satisfaction Among Extended Stay Hotel Chains'' by J.D. Power and Associates

Business Wire, Sept 4, 2001

Business & Travel Editors

MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 4, 2001

Homewood Suites(R) by Hilton, the national brand of all-suite residential-style hotels, today announced that it has received the "Highest Guest Satisfaction Among Extended Stay Hotel Chains" award in the J.D. Power and Associates 2001 Domestic Hotel Guest Satisfaction Study(SM).

This marks the first year that J.D. Power and Associates has recognized extended-stay hotels as a market segment in its annual study.

According to the study, Homewood Suites by Hilton ranks high in the arrival, guest room and hotel services aspects of the hotel experience.

The 2001 Hotel Guest Satisfaction Study is based on 13,335 individual evaluations from a national representative sample of business and leisure hotel guests. Fifty-two hotel chains in six market segments are included in the study. J.D. Power and Associates added the extended-stay market segment to the Domestic Hotel Guest Satisfaction Study in 2001 because of the growing number of hotels in this category.

"Knowing how to anticipate our guests' needs is extremely important to Homewood Suites by Hilton hotels, as most of our guests stay for more than a few days at a time," said Jim Holthouser, senior vice president, brand management for Homewood Suites by Hilton.

"Before the first Homewood Suites opened in 1989, we spent considerable research and time making sure we understood our extended-stay target customer, which ultimately resulted in a quality product offering."

Recently surpassing its 100th opening milestone, Holthouser said, the company is especially pleased to achieve this distinction because it demonstrates that the brand's unwavering focus on quality and guest satisfaction translates into broad customer appeal and recognition.

"While Homewood Suites by Hilton has earned a reputation as a customer satisfaction leader, we're constantly looking for ways to fine-tune both the product and service sides of the Homewood experience to maintain the relevance of the brand and protect our customer satisfaction edge," added Holthouser.

In the past year, Homewood Suites by Hilton has continued to take market share from its competitors, as reflected in the June year-to- date RevPAR Index figures provided by Smith Travel Research. The brand achieved a 112.2 RevPAR Index as of year-to-date June 2001, up 4.2 percent from a 107.7 RevPAR Index for the first six months of 2000.

Holthouser added, "Where RevPAR Index of 100 represents a brand's `fair share' of the market, Homewood Suites by Hilton commands significant RevPAR premiums over its respective competitive set, reflecting not only the inherent strength of the brand but also its participation since April 2000 in the popular Hilton HHonors(R) guest reward program and cross-selling among the Hilton family of brands since the merger of Hilton Hotels Corp. and Promus Hotel Corp. in December 1999."

In addition to the J.D. Power and Associates 2001 Domestic Hotel Guest Satisfaction Study, recent research conducted by Homewood Suites by Hilton shows the brand's "intent to return" ratings from guests are among the highest in the industry.

Homewood Suites by Hilton's brand management team attributes this success to the brand's mission of "knowing its guests" through its state-of-the-art proprietary guest satisfaction tracking system, called Guest Satisfaction Rating System (GSRS). GSRS provides a statistically valid assessment of guest satisfaction every month. Guests may rate the hotels on every aspect of their stay from the point of reservation to checkout.

Each year, the brand surveys approximately 200,000 of its guests using GSRS, U.S. Lodger Panel and numerous other custom research projects to understand customer needs, expectations and satisfaction levels.

Introduced in 1989, Homewood Suites by Hilton has continually been recognized as one of the nation's leading brands of upscale, residential-style hotels, with more than 100 properties nationwide.

Known for its genuine hospitality and comfortable accommodations, Homewood Suites by Hilton was the first upscale extended-stay hotel brand to offer its guests an unconditional 100% Satisfaction Guarantee. If guests are not completely satisfied with their stay at any Homewood Suites by Hilton hotel, their night's stay is free. The guarantee was introduced in 1990, and remains unmatched in the upscale extended-stay segment.

All Homewood Suites by Hilton hotels participate in the Hilton HHonors guest reward program that allows its members to DoubleDip(R) by simultaneously earning both hotel points and airline miles with each qualifying stay.

Homewood Suites by Hilton is part of Hilton Hotels Corp., recognized internationally as a pre-eminent hospitality company. The company develops, owns, manages or franchises more than 1,900 hotels, resorts and vacation-ownership properties. Its portfolio includes many of the world's best-known and most highly regarded hotel brands, including Hilton(R), Conrad(TM), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Harrison Conference Centers(R), Hilton Garden Inn(R), Hilton Grand Vacations Company(R), Homewood Suites(R) by Hilton and Red Lion Hotels & Inns(R).