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HILTON REPORTS LOWER OPERATING RESULTS FOR FOURTH QUARTER

 HILTON REPORTS LOWER OPERATING RESULTS FOR FOURTH QUARTER
 BEVERLY HILLS, Calif., Jan. 14 /PRNewswire/ -- Reflecting continuing difficulty in its principal markets, Hilton Hotels Corp. (NYSE: HLT) experienced lower operating income in the fourth quarter of 1991. Results for the year 1991 were also below prior year levels.
 For the three months ended Dec. 31, 1991, net income totaled $29.6 million, equal to 62 cents per share. In the 1990 quarter, an after-tax reserve of $6.5 million for potential losses on real estate transactions reduced net income to $27.3 million or 57 cents per share.
 Total operating income for the quarter was $56.3 million, a decrease of 18 percent from $68.7 million a year ago. Operating income from hotels improved 16 percent to $31.7 million from $27.3 million a year ago. The gaming division experienced a 45 percent decline to $26.4 million from last year's record $48.4 million.
 The effective tax rate for the 1991 quarter was 26 percent, reflecting the favorable resolution of a local tax matter. The effective rate for the 1990 quarter was 34.2 percent.
 Hotel occupancy in the current quarter was 63 percent against 65 percent last year while Nevada gaming occupancy declined to 81 percent from 87 percent a year earlier.
 Net income for 1991 totaled $84.3 million, equal to $1.76 per share, compared with $112.5 million, or $2.34 per share a year ago.
 Total operating income for the current year was $185.3 million, a decrease of 16 percent from $221.8 million last year. Operating income from gaming decreased 12 percent to $115.0 million, while hotels segment operating income declined 23 percent percent to $92.9 million.
 Hotel occupancy for the past year was 64 percent, compared with 68 percent in 1990, and Nevada gaming occupancy was 85 percent against 86 percent.
 Barron Hilton, chairman and president, said: "In 1991, we encountered numerous difficult business conditions. In addition to the Persian Gulf crisis, the continuing recession and an overbuilt industry have had a severe impact on our operations. Occupancy levels were lower than in the prior year, and average room rates remained unchanged.
 "Results at the company's key downtown properties in New York City and Chicago continued to be sluggish in 1991, primarily due to a reduced level of business-related travel. Operating results at the Hilton Hawaiian Village declined from the prior year due to a curtailment in international travel.
 "The gaming segment was down 12 percent for the year. Major increases in Laughlin and Reno were more than offset by a reduction in volume and profits at the Las Vegas Hilton. The later reflects a reduced level of premium play and a lower win percentage as well as an increase in bad debt expense.
 "As to new programs, Hilton is taking steps to expand its participation in the appealing resorts market. We have entered into a management agreement whereby Hilton will manage The Pointe Resorts in Phoenix, Ariz. The three existing all-suite resort properties will operate as The Pointe Hilton Resorts.
 "In addition, we expect shortly to finalize an agreement with Grand Vacations Inc. to form Hilton Grand Vacations. Our plan is to establish and operate a nationwide system of high quality vacation ownership resorts and a related club membership program for resort owners to be known as the Hilton Grand Vacations Club. We have researched the vacation ownership industry in detail, have participated in it through our Conrad subsidiary in Mexico and are enthusiastic concerning its long-term potential.
 "While the timing of economic recovery remains uncertain, it is our belief that Hilton will emerge from this recession in a strengthened competitive position."
 HILTON HOTELS CORP.
 Consolidated Statement of Income
 (In Millions, Except Per Share Amounts)
 (Unaudited)
 Three Months Ended 12 Months Ended
 Dec. 31, Pct Dec. 31, Pct
 1991 1990 Change 1991 1990 Change
 Total revenue $283.5 325.6 -13 $1,112.7 1,124.8 -1
 Operating
 income
 Hotels $31.7 27.3 16 $92.9 120.6 -23
 Gaming 26.4 48.4 -45 115.0 130.4 -12
 Corporate
 expense (1.8) (7.0) -74 (22.6) (29.2) -23
 Total operating
 income 56.3 68.7 -18 185.3 221.8 -16
 Net interest
 expense (16.3) (17.2) -5 (62.4) (54.7) 14
 Property
 transactions --- (10.0) --- --- --- ---
 Provision for
 income taxes (10.4) (14.2) -27 (38.6) (54.6) -29
 Net income $29.6 27.3 8 $84.3 112.5 -25
 Net income per
 share:
 From
 operations $0.62 0.71 -13 $1.76 2.34 -25
 From property
 transactions --- (0.14) --- --- --- ---
 Average number
 of shares 47.8 47.6 47.8 48.1
 Percentage of
 occupancy
 Hotels owned
 or managed 63 65 -3 64 68 -6
 Gaming (Nevada) 81 87 -7 85 86 -1
 Gaming
 (Australia) 76 64 19 67 69 -3
 -0- 1/14/92
 /CONTACT: Maurice J. Scanlon, senior VP-finance, Hilton Hotels, 310-278-4321; or The Foristall Co., 213-626-4524/
 (HLT) CO: Hilton Hotels Corp. ST: California IN: LEI SU: ERN


JL-EH -- LA006 -- 9372 01/14/92 08:31 EST
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