1 Exhibit 11 PROMUS HOTEL CORPORATION COMPUTATIONS OF PER SHARE EARNINGS (in thousands, except per share amounts) Year Ended December 31, 1995 1996 1997 ------- -------- -------- Income before extraordinary items $61,551 $90,658 $95,436 Extraordinary items, net of tax 2,819 - - ------- ------- ------- Net income $64,370 $90,658 $95,436 ======= ======= ======= Basic Earnings per Share: Weighted average outstanding shares 69,351 72,581 86,573 ======= ======= ======= Income before extraordinary items $ 0.89 $ 1.25 $ 1.10 Extraordinary items, net 0.04 - - ------- ------- ------- Net income $ 0.93 $ 1.25 $ 1.10 ======= ======= ======= Diluted Earnings per Share: Weighted average outstanding shares 69,351 72,581 86,573 Effect of dilutive securities: Restricted stock 38 14 15 Stock options and warrants 531 984 1,316 ------- ------- ------- Weighted average shares assuming conversion 69,920 73,579 87,904 ======= ======= ======= Income before extraordinary items $ 0.88 $ 1.23 $ 1.09 Extraordinary items, net 0.04 - - ------- ------- ------- Net income $ 0.92 $ 1.23 $ 1.09 ======= ======= =======