Hilton Announces European Development Deal

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. October 14, 2008

BEVERLY HILLS, CA, September 26, 2007. Hilton Hotels Corporation (NYSE:HLT) today announced that the company and Belgravia Asset Management Limited (Belgravia) have agreed upon the terms that Hilton will offer Belgravia for a Strategic Development Agreement (SDA) which, when signed, will provide the opportunity for Belgravia to introduce 25 new hotels (comprising 3,000 rooms) across Russia -- one of the company's key strategic development markets -- as well as other Central and Eastern European markets.

Over the next five years, Hilton and Belgravia expect to introduce both Hampton by HiltonTM and Hilton Garden InnTM hotels across Russia, Central and Eastern European markets, all of which Hilton expects to manage. The first property is expected to be a Hampton by Hilton hotel in St Petersburg, which is expected to open during the second quarter of 2008. This will be the second major Russian hotel development announcement with a leading property partner this year, as the company concentrates on multi-unit deals in key emerging markets. In June this year Hilton announced a SDA with London & Regional Properties Limited to develop 25 new hotels, encompassing selected brands within the Hilton Family of Hotels, including Conrad(R), Hilton(R), Doubletree by HiltonTM, Hilton Garden InnTM and Hampton by HiltonTM hotels.

Over the next ten years, Hilton plans to open 70 Hilton Family hotels across Russia, not only focussing on Moscow and St. Petersburg, but also actively looking at opportunities in key regional cities.

Separate from the anticipated SDA with Belgravia, Hilton's first hotel in Russia will be the 275-room Hilton Moscow Leningradskaya, which is scheduled to open early next year.

"With the limited number of internationally branded properties in Russia, this anticipated alliance with Belgravia Financial Services Group will help us accelerate our growth plans and make a significant impact on the Russian hotel market in a relatively short space of time, said Ian Carter, Chief Executive of Hilton's International Operations. "The introduction of additional brands from the Hilton Family of Hotels will also enable us to meet rising demands for quality accommodation, as well as providing a hotel product to suit all sectors and budgets."

Duncan Hickman, Belgravia Chairman said: "As a result of extensive research Belgravia has confirmed that the Russian economy hotel sector offers tremendous growth opportunities. The choice of partner for this sector was critical and the global presence and respect for Hilton sealed our choice of partner; giving us the confidence to be sure that this alliance will be a huge success."

Carter added: "We are believe that Russia represents some of the greatest potential for hotel growth in the world at the present time and are delighted to be partnering with Belgravia to capitalise on this potential."

Over the next five years, Hilton expects to offer travellers to Russia a choice of accommodation ranging from its well known hotel brand Hilton, which will be joined by Doubletree by Hilton in catering to demands for upscale accommodation. Today's announcement means that in the near future, Hilton expects travellers to soon be able to stay in Hilton Garden Inn properties, the company's ever-popular mid-market brand, as well as Hampton by Hilton, which is targeted at budget conscious travellers.

While initial projects will be in Russia, Hilton would also like to introduce its Hilton Garden Inn and Hampton by Hilton product in other Eastern and Central European countries where Belgravia currently has a significant number of projects underway.