Hilton and Hillcrest (Samui) Ltd Sign Management Agreement

Conrad Koh Samui Resort and Spa in Thailand

. October 14, 2008

BEVERLY HILLS, CA, December 29, 2006. Hilton Hotels Corporation (NYSE:HLT) announced it has signed an agreement with Thailand-based developer, Hillcrest Development (Samui) Ltd., to manage the Conrad Koh Samui Resort and Spa. Scheduled to open in late 2008, the Conrad Koh Samui Resort and Spa will be the newest luxury villa property on the popular Thai island.

Koos Klein, President, Hilton Hotels Middle East and Asia Pacific, commented, "Hilton is proud to announce a new addition to our highly reputed portfolio of Conrad Hotels in Asia, in line with our commitment to grow our presence in the luxury segment. This property will set new standards for spa resorts on the ever popular island of Koh Samui. It will also offer our guests a new location in which to experience the Conrad brand promise to indulge in the 'luxury of being yourself.'"

Lyon Lau, Director of Hillcrest Development (Samui) Ltd, said, "Luxury Travel is booming thanks to the increasing sophistication and demands of today's international travelers. Today we are delighted to announce our partnership with Conrad - one of the world's finest hotel brands and together we are introducing the new breed of luxury travel to market. We believe under the Conrad name, the resort will set a new standard for Samui, leveraging on Hilton's renowned hotel management skills as well as its vast global sales network. Travelers will be allured to this secluded gem on the island."

Comprising 79 villas and 39 Conrad Residential villas, the Conrad Koh Samui Resort and Spa will be located on a secluded hill, overlooking Aow Thai Beach at the South West tip of the island. Spread over 25 acres, the luxurious Conrad Koh Samui Resort and Spa will offer panoramic views of the Gulf of Thailand, outlying islands and the surrounding landscape of lush coconut plantations. It is also a perfect western-facing vantage point where guests will take in the stunning Koh Samui sunsets.

Each of the villas will have a minimum of 200 square meters of space, complete with a private plunge pool and a generous outdoor sundeck area that enables panoramic vistas. To complement the high-end luxury experience synonymous with the Conrad name, there will be a variety of all-day dining and fine-dining restaurants, bars and lounges. The resort's spa will combine international treatments with a uniquely Thai spa philosophy and design accents.

Meeting and business center facilities will also offer first class service and amenities for business travelers and the meetings business segment (MICE) looking to experience smaller-scale, exclusive events.

The Conrad Koh Samui Resort and Spa will be a 45-minute drive from the international airport on the island.

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