Hilton Hotels Corporation Announces Second Major UK Development Deal

    Deal Expected to Result in 25 New Properties and Launch HHC into the UK's
Economy Hotel Sector with Its Hampton by Hilton Brand

    LONDON & BEVERLY HILLS, CALIF., June 12 /CNW/ - Hilton Hotels Corporation
(NYSE:  HLT) today announced that the company has signed a letter of
understanding for a major development alliance with the experienced hotel
franchise owner and operator, Somerston Hotels UK Limited -- with the
intention to introduce an additional 25 new hotels comprising 3000 rooms
across the UK in the next five years.

    This represents the second major U.K. hotel franchise announcement with a
leading property partner in the last month for Hilton, as the company's
international development strategy gains significant momentum.

    The agreement is expected to result in the addition of at least 25
Hampton by Hilton properties -- Hilton's "new kind of economy hotel" brand
that focuses on consistency and comfort for business and leisure travellers

    Phil Cordell, Senior Vice President of Brand Management for Hampton by
Hilton said: "We look forward to debuting Hampton by Hilton in the UK and
establishing a "new kind of economy hotel" with our key brand attributes such
as complimentary high-speed Internet access, complimentary hot breakfast and
our 100% Satisfaction Guarantee, which have made Hampton by Hilton the
preferred economy hotel choice for business and leisure travellers throughout
the United States."

    Somerston, a privately owned company, is looking to expand its existing
interests in the economy hotel sector. It currently owns and operates 34 UK
hotels across three international brands and totals in excess of 4,000

    Chairman of Somerston Hotels, Christopher Budden, said: "There are still
tremendous growth opportunities within the economy hotel sector and we are
excited by the prospect of further developing our portfolio with Hilton. With
our UK franchise expertise and the new Hampton by Hilton brand, we are
confident that we can make a huge success of this alliance."

    Ian Carter, Chief Executive of Hilton's International Operations said:
"The deal with Somerston and the introduction of the Hampton by Hilton brand
into the UK represents a significant first move into the economy sector.

    In the last two weeks we have announced significant alliances with Shiva
and now with Somerston, and these alliances are indicative of our ambition for
growth and market leadership across a number of market segments.

    Specifically, we have a target of doubling our UK estate from 75 to 150
hotels in ten years and with the interest and support of leading property
developers and franchise operators we are well on the way to achieving this."

    About Somerston Hotels UK Ltd

    Somerston Hotels entered the UK hotel sector ten years ago and now owns a
portfolio of 34 purpose-built hotels, 33 of which are both owned and operated
by the Group. The portfolio extends to over 4,000 bedrooms and 32 of the
current properties are operated as "Express by Holiday Inn" hotels. 2005
proved to be a milestone in the company's development, with two major
acquisitions taking the portfolio from 15 hotels to 31. The first was the
purchase of three "Express by Holiday Inn" hotels in Scotland from the Saltire
group and the second was the purchase of 13 hotels located across the UK from
the BDL group. The portfolio is geographically diversified; from Inverness to
Swansea, from Cambridge to Exeter. October 2006 saw the group acquire two
further "Express by Holiday Inn" hotels, in Leeds and Dartford Bridge, further
consolidating the nationwide coverage. Somerston Hotels' strategy is to
continue to grow the size of the business through acquisition, new development
and the extension of existing hotels, adding properties and rooms in key
locations across the country. A number of new projects are currently underway.

    (a) Somerston's property in Poole is operated subject to an occupational
lease to a third party.

    About Hilton Hotels Corporation (HHC)

    Hilton Hotels Corporation (NYSE:  HLT) is the leading global hospitality
company, with more than 2,800 hotels and 480,000 rooms in 76 countries and
territories, including 100,000 team members worldwide. The company owns,
manages or franchises a hotel portfolio of some of the best known and highly
regarded brands, including Hilton(R), Conrad Hotels & Resorts(R),
Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn &
Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations(TM), Homewood Suites
by Hilton(R) and The Waldorf=Astoria Collection(R). The Hilton Family of
Hotels adheres to founder Conrad Hilton's philosophy that, "It has been, and
continues to be, our responsibility to fill the earth with the light and
warmth of hospitality." The company put a name to its unique brand of service
that has made it the best known and most highly regarded hotel company: be
hospitable(R). The philosophy is shared by all brands in the Hilton Family of
Hotels, and is the inspiration for its overarching message of kindness and
generosity. For more information about our company, please visit
www.hiltonworldwide.com, and to learn more about our 'be hospitable'
philosophy, please visit www.behospitable.com.

    About Hampton by Hilton

    Hampton by Hilton -- a new kind of economy hotel -- Hampton by Hilton is
an economy hotel brand with an upper mid-scale finish, offering quality
facilities, a focus on service and a unique guest experience. Founded in 1984,
the Hampton brand now has over 1,400 properties in five countries. Hampton by
Hilton offers the amenities that guests truly want and need, all included in
the price of the room: an expanded complimentary breakfast with hot food
items, high-speed Internet access, fitness facilities, evening beverages, 100%
satisfaction guarantee and a morning newspaper. Consistency is maintained via
strict adherence to quality standards, but still allows for local flavour and
flexibility. www.hampton.com

For further information:

For further information: Hampton Brand Communications Monica Gaston/Tori
Roberson, 901-374-5534 or Hilton Hotels Corporation Katrina Jones,
Communications Director, UK & Ireland +44 (0)207 856 8313
http://www.hiltonworldwide.com or Daly Gray Public Relations Chris Daly,

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