Case Analysis of Hilton Hotel

Hilton's Customer-information System, Called OnQ,

Rolling Out Across 8 Hotel Brands; Seeking Guest

Loyalty and Competitive Advantage

with Proprietary Technology

BEVERLY HILLS, Calif. - Aug. 31, 2004 -- Hilton Hotels Corporation (NYSE:HLT) announced today that having completed deployment of its proprietary technology platform called OnQ(TM) across all of its more than 2,200 Hilton Family Hotels, including Hilton(R), Conrad(R), Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations Club(R) and Homewood Suites by Hilton(R), the company continues to utilize technology to enhance guest recognition and efficiency, rolling out or expanding the following cutting-edge programs:

Remote, Web-based check-in 24 hours prior to arrival enables guests with password-protected online account to select their room type and features based on preferences and history and print their confirmation document;

Electronic folio access enables individual business travelers to review online and print their hotel folios (hotel receipts) following their stays at any of the 2,200+ Hilton Family of Hotels; for all guests with password-protected online preferences, a first for a multi-brand hotel company;

Expansion of automated check-in kiosks to 100 kiosks within 45 Hilton Family hotels by year-end with an emphasis on metro and airport markets, enabling self-service check-in, room selection, check-out and a variety of other automated services; and

High-Speed Internet Access now is available to guests at more than 1,995 of its 2,200 hotels, bringing the Hilton Family closer to 100 percent completion than its top competitors.

"We are passionate about taking care of our guests, providing them with more choices and flexibility through effective use of technology. Being the only hospitality company utilizing a single, common technology platform across all brands and sharing real-time information across every guest touch point -- the hotel front desk, reservations, the HHonors Service Center and our brand websites -- enables us to take better care of guests at every single point of contact while ensuring their privacy," said Tom Keltner, president - brand performance and franchise development group. "Through better inventory management and enhanced recognition of returning guests at all points of interaction, we've achieved a rare feat in our industry of dramatically increasing guest recognition and loyalty scores within the past year across all brands."

>>"The name, OnQ (pronounced "On Cue"), supports the Hilton Hotels Corporation 'Customer Really Matters' (CRM) strategy and represents information that is available