Hilton Hotels Corporation Reports Status of Hotels Affected by Hurricane Katrina; Hilton Family of Hotels Establishes Employee Relief Fund

Business Wire, Sept 2, 2005

BEVERLY HILLS, Calif. -- Hilton Hotels Corporation (NYSE:HLT) continues to monitor the status of Hilton, Doubletree, Embassy Suites Hotels, Hampton, Hilton Garden Inn and Homewood Suites by Hilton hotels in the wake of Hurricane Katrina.

"Our thoughts and prayers continue to be with those impacted by the tragic events of the past week," said Stephen Bollenbach, co-chairman and chief executive officer, Hilton Hotels Corporation. "The outpouring of offers of assistance and aid from our employees company-wide has been overwhelming; as such, we have established a Fund that we hope will enable our employees to assist displaced fellow employees at this critical time."

As a mechanism by which our employees can help with financial assistance, goods and services for Hilton Hotels Corporation employees who have been directly impacted by the effects of Hurricane Katrina, Hilton Hotels Corporation has established the Hurricane Katrina Employee Relief Fund. The Hilton Family of Hotels also is working on developing a similar fund that would facilitate contributions to employees of franchised hotels.

Additionally, employees of our closed owned and managed hotels in the New Orleans area are being compensated at their normal rate of pay for at least 30 days. Every effort is being made to assist employees evacuated from the Hurricane-ravaged areas with resources to find housing and transportation.

The company also has established a team member job network, whereby hotels throughout the country that have open positions, as well as Hilton Family team members needing jobs, can communicate to: open_jobs@hilton.com.

For families of guests trying to locate current and evacuated guests, the Hilton Family Hurricane Emergency Guest Assistance number is: 1-888-240-6152.

Evacuation Effort

In an effort to assist guests and team members being evacuated from four of its downtown New Orleans hotels, 45 buses picked up approximately 1,600 evacuees, one-third of which were team members and two-thirds of which were guests. The buses transported them to the Embassy Suites Hotel Baton Rouge, a staging ground for those who were picked up by family members and friends either from the hotel or the Baton Rouge Airport. Those still in need of accommodations were transported to Hilton Family hotels in Austin, Dallas, Houston and San Antonio.

HHonors Point Donation to American Red Cross

Effective September 1, members of the Hilton HHonors guest reward program who wish to contribute to the American Red Cross hurricane relief effort may do so by sending an email to americanredcrossHH@hilton.com or calling their area HHonors Customer Service Center, detailing the number of points to be donated (must be in increments of 10,000; each donation of 10,000 Hilton HHonors points represents a $25 donation to the American Red Cross).

Reservations and Group Bookings

Guests with reservations whose travel plans have been disrupted directly by the storm, or who are planning to travel to nearby areas where evacuees are being relocated, are encouraged to contact Hilton Family toll-free reservations at 1-800-HILTONS to determine hotel availability. Cancellation fees for transient business at hotels directly affected by the storm (New Orleans area and the Gulf Coast of Mississippi) are being waived for arrivals through November 30, 2005.

The Hilton Family of Hotels also is waiving group cancellation damages for meetings through November 30, 2005 at hotels in the New Orleans area and Gulf Coast of Mississippi. The company has established a Hurricane Group Bookings Hotline for inquiries: 1-866-973-8030.

Status of Hilton Family Hotels in Hurricane-Affected Areas

No major guest or team member injuries have been reported at the Hilton Family of Hotels. Most hotels have reported water leaks, broken windows and minor stucco damage in various areas. Some hotels will be closed longer-term due to cleanup efforts and water damage, particularly in New Orleans.

As of 9:00 a.m. Pacific Time on September 2, 2005, following is the status of Hilton Family Hotels in Hurricane-Affected areas:

Louisiana
Hilton New Orleans Riverside - Closed for undetermined time based on
direction from local officials
Hilton New Orleans Airport - Closed for undetermined time based on
direction from local officials
Doubletree Hotel New Orleans - Closed for undetermined time based on
direction from local officials
Embassy Suites Hotel New Orleans - Closed for undetermined time based
on direction from local officials
New Orleans Lakeside Hotel - Closed for undetermined time based on
direction from local officials
Embassy Suites Hotel Baton Rouge - Closed to arrivals through
10/15/05; accommodating evacuees
Hampton Inn Baton Rouge - Closed to arrivals through 12/31/05;
currently accommodating evacuees
Hampton Inn Houma - Closed to arrivals through 9/30/05; currently
accommodating emergency crews
Hampton Inn LaPlace - Closed to arrivals through 9/30/05; currently
accommodating emergency crews
Hampton Inn New Orleans Convention Center - Closed for undetermined
time based on direction from local officials
Hampton Inn New Orleans Downtown French Quarter - Closed for
undetermined time based on direction from local officials
Hampton Inn & Suites New Orleans Elmwood - Closed to arrivals through
12/31/05
Hampton Inn New Orleans Metairie - Closed completely through 12/31/05
Hampton Inn Six Flags Area - Closed to arrivals through 12/31/05
Hampton Inn Slidell - Closed to arrivals through 4/30/06
Hilton Garden Inn New Orleans French Quarter - Closed for undetermined
time based on direction from local officials
Hilton Garden Inn New Orleans Convention Center - Closed for
undetermined time based on direction from local officials
Hilton Garden Inn New Orleans Airport - Closed for undetermined time
based on direction from local officials
Homewood Suites by Hilton Baton Rouge - Closed to new arrivals through
10/31; currently housing emergency crews and evacuees
Homewood Suites by Hilton New Orleans - Closed for undetermined time
based on direction from local officials

Alabama
Hilton Garden Inn Orange Beach - Closed to arrivals through 9/16/05

Florida
Doubletree Coconut Grove, Miami - Closed until 9/10/05 due to water
damage

Mississippi
Hampton Inn Biloxi - Closed to arrivals through 12/31/05
Hampton Inn Gulfport - Closed to arrivals through 12/31/05;
accommodating guests, evacuees and emergency crews
Hampton Inn Ocean Springs/Biloxi - Closed to arrivals through 10/1/05;
accommodating guests and evacuees
Hilton Jackson - Closed to arrivals through 9/9/05; hotel is
accommodating evacuees and emergency personnel