Homewood Suites By Hilton® Improves Customer Satisfaction And Loyalty Ratings With "distinctly Homewood" Brand Enhancements

First year of five-year program successfully completed and Phase II is underway across portfolio

(Monday, March 27, 2006) - Homewood Suites by Hilton®, a leading brand of upscale, all-suite residential-style hotels introduced in 1989, reported significant improvements in customer satisfaction and loyalty in 2005 as a result of Distinctly Homewood™, the four-year product enhancement program launched last year. Distinctly Homewood™ involves a total of 25 changes designed to make the hotels more residential and home-like for guests, while keeping the brand relevant, consistent and distinct. Homewood Suites by Hilton's proprietary Satisfaction and Loyalty Tracking (SALT) survey conducted in January 2005 and again in December 2005, showed favorable responses to completed upgrades in exercise facilities, guest bathrooms and bedding.

"Product enhancement is a popular topic in the industry right now with several brands talking about plans but we are excited to show actual results," said Rebecca Wyatt, senior vice president, brand management, Homewood Suites by Hilton. "Our goal is keeping the brand as fresh and relevant today as it was when it first started. We are introducing innovative changes that reinforce the upscale second home ambiance for our guests while helping our owners remain competitive and profitable."

Highlights from the SALT survey include an 11% increase in customer satisfaction with fitness facilities at Homewood Suites by Hilton properties and increased satisfaction with guest bathroom cleanliness. Fitness facility improvements in 2005 included "A-frame" and dumbbell equipment installation in all hotel gyms. SALT scores for guest bathroom upgrades increased almost 5% in response to such enhancements as rounded shower rods, larger white terry towels, and upgraded personal care amenities designed to create fresher, cleaner-looking bathrooms. The new bedding package, featuring the Serta Suite Dreams® mattresses and box springs, cozier cotton blend duvet covers, Down Dreams pillows with 250-thread-count pillowcases, a chenille throw blanket and a signature Homewood Suites wood duck pillow, also received strong guest approval. Approximately 35% of the brand portfolio added the new bedding package last year, pushing up SALT scores for bed comfort nearly 7% and bed condition scores increased by almost 6%.

Homewood Suites by Hilton conducts SALT surveys throughout the year and data is compiled at the end of the year. The surveys are sent to guests via regular mail or email. Guests respond to a series of questions about the hotel experience on a 10-point scale. These findings are based on responses from a total of 68,000 guests surveyed last year.

Customer Satisfaction and Loyalty Ratings 2-2-2-2

Phase II implementation of "Distinctly Homewood" is underway and should be completed by the end of the year. The changes are expected to continue affecting top line performance, further enhancing the brand's image, and also protecting and growing operating margins. Included in this phase is the completion of bedding upgrades across remaining hotels, the addition of Dual Massage showerheads by WaterPik and new van wraps for

Homewood vehicles, showcasing the brand's wood duck icon conveying comfort. Homewood Suites by Hilton also will enhance food and beverage offerings in 2006, creating a more consistent presentation of the complimentary Suite Start® breakfast and Welcome Home® receptions across the brand. Final completion of "Distinctly Homewood" is scheduled to coincide with the Homewood Suites brand's 20th anniversary in 2009.

Launched in 1989, the Homewood Suites by Hilton brand today has more than 170 hotels open with another 95 in the pipeline. Beyond its spacious suites and home-like amenities, Homewood Suites guests can find at each hotel an on-site Suite Shop convenience store, exercise facility and guest laundry at most locations. Guests can also enjoy a daily complimentary Suite Start hot breakfast and a Welcome Home reception featuring a complimentary light meal and beverages Monday-Thursday evenings. † Additional guest services at Homewood Suites by Hilton hotels include a complimentary grocery shopping service* and a complete business center at most locations.

To make reservations at a Homewood Suites by Hilton hotel, travelers can visit the Homewood Suites Web site at homewoodsuites.com or call 1-800-CALL-HOME. Homewood Suites participates in the Hilton HHonors guest reward program, which allows its members to Double Dip by simultaneously accumulating both hotel points and airline miles with each qualifying stay.

Homewood Suites by Hilton is part of Hilton Hotels Corporation, which is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises more than 2,300 hotels, resorts, and vacation ownership properties. Its portfolio includes many of the industry'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™, Homewood Suites by Hilton™ and The Waldorf=Astoria Collection™.

†Subject to state and local laws. Must be of legal drinking age.
*Guest pays for groceries. Other restrictions apply.

HHonors®, Double Dip® and Double Dipping® are trademarks owned by Hilton HHonors Worldwide, L.L.C. Hilton HHonors membership, earning of Points & Miles®, and redemption of points are subject to HHonors Terms and Conditions. ©2006 Hilton HHonors Worldwide. ©2006 Hilton Hospitality, Inc.

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