Construction Begins On New Kalia Tower At the Hilton Hawaiian Village in Honolulu.

BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Aug. 5, 1999--

Hilton Hotels Corporation announced today that construction will begin on the new 453-room Kalia Tower at the Hilton Hawaiian Village in Honolulu, Hawaii. Construction on the $95 million project is scheduled to be completed in Spring 2001.

"This project represents the highest and best use of land at an irreplaceable location, and is an investment that will enable us to maximize the performance and attraction of one of the world's great destinations -- the Hilton Hawaiian Village," said Stephen F. Bollenbach, president and CEO of Hilton Hotels Corporation. "Cooperation and support from state and local government, an exclusive window of opportunity in which to begin development, and the future business outlook make this in our view the right time to prepare for the future of this unique property. Waikiki's position as a special worldwide destination, our location on the best beach, and the state's enhanced efforts to promote and market Hawaii are all reasons to be optimistic about the future of this fabulous area in general, and the Hawaiian Village in particular."

"We are excited about this terrific project that captures a unique sense of place by blending Hawaiian tradition with the latest in modern comforts," said Dieter Huckestein, president -- hotel operations for Hilton Hotels. "In close proximity to the new Hawaii Convention Center, the Kalia Tower will feature a world class health club and wellness spa; exciting retail shops as well as an interactive Hawaiian cultural center. These new amenities coupled with beautiful cascading waterfalls, lagoons and tropical landscaping at the entrance to the hotel all come together to complement and enhance the entire Village. As difficult as it is to imagine, the largest and most exciting resort beach destination in the world is going to get even better."

Honolulu-based Wimberly Allison Tong & Goo Inc., are the architects. Philpotts and Associates, Inc. are the interior designers of the public areas, Cole Martinez and Associates are the interior designers of the guestrooms, and Hawaiian Dredging Company is the contractor.

Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises hotels, resorts and vacation ownership properties.