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HILTON HOTELS POSTS 23 PERCENT INCREASE IN 1992 PROFITS

 BEVERLY HILLS, Calif., Jan. 14 /PRNewswire/ -- Hilton Hotels Corp. (NYSE: HLT) recorded a 23 percent improvement in net income in 1992. Reflecting continued strength in gaming operations, net income for 1992 totaled $103.9 million, equal to $2.17 per share, compared with $84.3 million, or $1.76 per share, a year ago.
 Total operating income for the year was $219.9 million, an increase of 19 percent from $184.8 million in 1991. Operating income for the gaming division climbed 33 percent to $153.4 million from $115.0 million last year. Hotel division operating income was $91.5 million, compared to $92.9 million in the prior year.
 Hotel occupancy for 1992 increased to 66 percent from 64 percent, and Nevada occupancy improved to 87 percent from 85 percent a year earlier.
 Barron Hilton, chairman and president, commented: "Despite the continuing challenges of a slow economy and overbuilt conditions, we had a successful year in 1992. Operating income improved at all of our Nevada properties, and we benefited from the purchase of the Reno Hilton at the end of July."
 For the fourth quarter, net income was $26.5 million, equal to 55 cents per share, compared with $29.6 million, or 62 cents per share last year.
 Total operating income for the quarter was $56.4 million, up from $55.8 million in the corresponding quarter of 1991. Operating income from the Nevada gaming division advanced 33 percent to $35.2 million from $26.4 million. Hotel division income was $29.7 million, 6 percent less than $31.7 million a year ago.
 Hotel occupancy was 64 percent, compared with 63 percent in the fourth quarter of 1991, and Nevada occupancy improved to 86 percent from 81 percent.
 Hilton said: "Trends for the quarter were consistent with those for the year as a whole. On the hotel side, we continue to see weak conditions in certain key markets. Average room rates for our hotels were lower than last year due to competitive conditions.
 "We are continuing to invest in our Nevada gaming operations with a planned outlay of $246 million over the next two years for expansion and renovation of our five properties there. We are investing $72 million at the Reno Hilton to refurbish the property and develop an exciting Western theme. In Las Vegas, we are adding a 908-guest room tower at the Flamingo Hilton as part of a $105 million project which also includes additional casino space.
 "We are pleased to announce that Hilton was just named the exclusive developer of a gaming riverboat on the Missouri River in Kansas City, Mo. The project is subject to approval by Kansas City residents on Feb. 2. The estimated cost of the riverboat is $75 million, and the project will be developed by a joint venture in which Hilton will own a 90 percent interest and local minority interests will own 10 percent.
 "In November, we announced that the government of Uruguay had selected Conrad Hotels and an Argentina-led group to develop a 300-room beach-front hotel and casino in Punta Del Este, that country's premier resort area. This $75 million project will be the first privately operated casino in Uruguay in 30 years and is scheduled for completion in 1995. We were also pleased to win approval to operate a new $265 million hotel and casino project in Brisbane, Australia, our second such venture in the state of Queensland.
 "On the hotel side, we opened the 816-room Minneapolis Hilton & Towers on Nov. 1, and further, through a joint venture, we are reviewing opportunities for time-share resorts in Las Vegas, Honolulu, San Diego and Hilton Head Island, S.C.
 "We intend to continue our strategy of expanding in key gaming, resort and international markets. The continuing growth of gaming, coupled with rising international business and leisure travel, provide us with many attractive growth opportunities. Our corporation has the financial strength and operating expertise to take advantage of such opportunities."
 HILTON HOTELS CORP.
 Consolidated Statement of Income
 (In millions, except per share amounts)
 (Unaudited)
 Three Months Ended
 Dec. 31, Percent
 1992 1991 Change
 Total revenue $336.0 283.5 19
 Operating income
 Hotels $29.7 31.7 -6
 Gaming 35.2 26.4 33
 Corporate expense (8.5) (2.3) 270
 Total operating income 56.4 55.8 1
 Net interest expense (17.8) (16.3) 9
 Property transaction .9 .5 80
 Provision for income taxes (13.0) (10.4) 25
 Net income $26.5 29.6 -10
 Net income per share:
 From operations $.55 .62 -11
 Average number of shares 47.9 47.8
 Percentage of occupancy
 Hotels owned or managed 64 63 2
 Gaming (Nevada) 86 81 6
 Twelve Months Ended
 Dec. 31, Percent
 1992 1991 Change
 Total revenue $1,230.1 1,112.7 11
 Operating income
 Hotels $91.5 92.9 -2
 Gaming 153.4 115.0 33
 Corporate expense (25.0) (23.1) 8
 Total operating income 219.9 184.8 19
 Net interest expense (61.7) (62.4) -1
 Property transaction .9 .5 80
 Provision for income taxes (55.2) (38.6) 43
 Net income $103.9 84.3 23
 Net income per share:
 From operations $2.17 1.76 23
 Average number of shares 47.9 47.8
 Percentage of occupancy
 Hotels owned or managed 66 64 3
 Gaming (Nevada) 87 85 2
 -0- 1/14/93
 /CONTACT: Maurice J. Scanlon, senior VP-finance of Hilton Hotels, 310-278-4321/
 (HLT)


CO: Hilton Hotels Corp. ST: California, Nevada IN: LEI CNO SU: ERN

MS-JL -- LA006 -- 4695 01/14/93 08:01 EST
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