Hilton to Expand Croatia Portfolio

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. April 24, 2009

BEVERLY HILLS, CA, April 24, 2009 - Hilton Hotels Corporation today announced it has entered into a Franchise Licence Agreement with Adriatic d.d. to open a new Hilton branded property in the Croatian city of Split.

Scheduled to open towards the end of 2009, the full service hotel will become the company's second property in Croatia, joining the Hilton Imperial Dubrovnik, which opened in 2005.

Welcoming the announcement, Patrick Fitzgibbon, Senior Vice President Development, Europe & Africa, Hilton Hotels Corporation commented: "The introduction of an upscale Hilton to one of Croatia's major cities underscores our strategy to integrate and accelerate our successful Hilton Family of Hotels(R) brands into key markets throughout Europe - enabling us to provide an incredible range and choice of quality accommodation to suit all sectors and budgets."

As Croatia's second largest city, Split boasts a population of almost half a million and is an important transport centre for Dalmatia and the wider region. The historic centre was recognised by UNESCO as a World Heritage site in 1979 and is home to several important archaeological museums and numerous cultural events and activities.

"The Hilton Marjan Split represents a tremendous opportunity for Hilton to bring world-class hotel accommodations to this important region, filling a gap in both the business and leisure sectors," said Dave Horton, Global Head - Hilton Hotels & Resorts. "We are confident our flagship Hilton brand will prove to be a very successful fit for this market and we look forward to becoming members of the Split community."

Situated directly on a prime waterfront location, just a short walk from the city's historic centre, the 314-room Hilton Marjan Split - formerly known as the Hotel Marjan - is currently undergoing an extensive refurbishment program. When complete*, the hotel will offer a range of dining options, including several bars and restaurants complete with a promenade terrace, as well as 3,000m2 spa and wellness centre with indoor and outdoor pools. Meanwhile, for the conference and incentives market the property will provide one of the largest MICE facilities in the city with 2,500m2 of flexible meetings space complemented by a 24 hour Hilton business centre.

Zeljko Kerum, Developer and Managing Director, Adriatic d.d., said: "We are delighted to be teaming up with Hilton Hotels Corporation in our first major international hotel venture in Croatia. As one of the most prestigious names in the hospitality industry, Hilton brings instant international recognition and a strong brand image that can only strengthen our operation. We are confident that this alliance will be a huge success."

Hilton Hotels Corporation currently operates 171 Hilton Family hotels across 33 countries in Europe, with more than 25 properties signed and expected to open in the region this year.

• The hotel refurbishment will take place over three phases, with the first scheduled to complete Q4 2009 and consisting of 220 rooms, lobby, restaurant/bars, spa and wellness facilities as well as three smaller conference rooms. The remaining phases will complete in Q1 and Q3 2010, adding the main conference facilities and the final 94 guestrooms respectively.