1 EXHIBIT 11 PROMUS HOTEL CORPORATION COMPUTATIONS OF PER SHARE EARNINGS (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------- --------------------- 1998 1999 1998 1999 ------- ------- -------- -------- Net income ............................ $51,830 $63,083 $140,034 $142,808 ======= ======= ======== ======== Basic Earnings per Share: Weighted average outstanding shares 86,552 78,673 86,631 81,156 ======= ======= ======== ======== Net income per basic share ........ $ 0.60 $ 0.80 $ 1.62 $ 1.76 ======= ======= ======== ======== Diluted Earnings per Share: Weighted average outstanding shares 86,552 78,673 86,631 81,156 Effect of dilutive securities: Stock options and warrants ..... 447 233 721 272 ------- ------- -------- -------- Weighted average shares assuming Conversion ..................... 86,999 78,906 87,352 81,428 ======= ======= ======== ======== Net income per diluted share ...... $ 0.60 $ 0.80 $ 1.60 $ 1.75 ======= ======= ======== ========