Hello,
Yes, the Hotmail service is now Outlook.com
I am in the United States and still have the option to create a Hotmail account.
Go to Hotmail.com and click the sign up link on the landing page.
On the create account page click the link "Get a new email address" :
Then you will have the option to pick Hotmail.com from the drop down menu:
Continue with the setup process to finish creating the new Hotmail email address.