EXHIBIT 99.1


FOR IMMEDIATE RELEASE                  http://www.promus-hotel.com

Contact:       Bill Perocchi, Executive Vice President/Chief Financial Officer
               (801) 374-6051

               Gregg Swearingen, Vice President, Investor Relations
               (901) 374-5468

               Ruth Pachman or Mark Semer, Kekst and Company
               (212) 521-4891 or (212) 521-4802


                    SCHULTZ AND KELLEHER TO LEAVE PROMUS UPON
                ELECTION OF NEW CHAIRMAN AND CHIEF EXECUTIVE OFFICER

  --  Two Board Members, Ferris and Rose, Also to Depart
  --  Search for New Chairman and CEO Underway
  --  Merger Integration Process Ahead of Schedule

MEMPHIS, TN, AUGUST 4, 1998 -- The Board of Directors of Promus Hotel 
Corporation (NYSE:PRH) announced today that it has unanimously decided to 
seek an individual from outside both the former Doubletree and Promus 
organizations who would be better suited to move the company to its next 
stage of profitable growth and to capitalize on the strengths of the Company 
without reference to past affiliations or corporate philosophies. As a 
result, Raymond E. Schultz, chairman and chief executive officer of the 
Company, and Richard M. Kelleher, president and chief executive officer of 
the Company, have jointly decided to leave Promus as soon as a new chairman 
and chief operating officer has been named. Mr. Schultz will retire from the 
Company and Mr. Kelleher will depart to pursue other business opportunities.

The Board also announced that Richard J. Ferris, co-chairman of the former 
Doubletree Corporation, and Michael D. Rose, former chairman of Promus Hotel 
Corporation, also would resign from the Board of Directors of the Company at 
the time that a new chairman and chief executive officer is named.

The Board has formed a search committee to oversee the recruiting process and 
has initiated steps to retain a professional search firm.

Dale Frey, chairman of the research committee, said, "Although the merger has 
proceeded extremely well on the operating level, as we looked ahead we agreed 
that fresh leadership would move us more quickly into the future. We accept 
the decisions of these four individuals with regret, gratitude and 
admiration. They have each

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contributed enormously to the creation of a primier lodging company with a 
portfolio of powerful brands. Their decision to step aside at a time when the 
company is performing superbly in order to let new leadership build on their 
accomplishments, and to do so through an orderly and thoughtful transition 
process, is a tribute to the high regard with which they hold the company, 
its employees and franchisees, and its shareholders."

Mr. Schultz said, "The merger of Promus and Doubletree is progressing very 
smoothly at the operating and corporate staff levels, is ahead of schedule, 
and clearly has been a success. I look forward to a smooth passing of the 
baton to a strong new leader who shares both Rick's and my enthusiasm for the 
industry and the outlook for Promus. While I have accelerated my original 
retirement plans by a year, I do so knowing that Promus is well positioned 
and its future filled with opportunity."

Mr. Kelleher said, "After much consideration, both Ray and I decided that 
these steps were necessary for our company to make the most of the merger and 
capitalize upon future opportunities. These management changes will ensure 
that Promus is able to continue to forge ahead without looking at the past. I 
am very proud of our accomplishments over the past year and believe the 
future of the company is very bright."

Promus Hotel Corporation (NYSE:PRH) is one of the world's premier lodging 
companies, with system-wide annual revenues of over $5 billion. The company 
operates, franchises or owns hotels throughout the United States and in 
Canada, Mexico and Latin America. It is the franchisor and operator of the 
Doubletree Hotels and Guest Suites, Embassy Suites, Homewood Suites, Club 
Hotels by Doubletree, Hampton Inn, Hampton Inn & Suites, Embassy Vacation 
Resort and Hampton Vacation Resort brands. The company also manages 
non-Promus branded hotels and facilities in the University Hotel & Conference 
Center division.

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