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UK Budget Hotel Developer, Somerston, Alligns with Hilton Hotels
to Build 25 Hampton by Hiltons in the UK


LONDON & BEVERLY HILLS, Calif. - June 12, 2007 - 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 alike. 

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 rooms.(a) 

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®, Conrad Hotels & Resorts®, Doubletree®, Embassy Suites Hotels®, Hampton Inn®, Hampton Inn & Suites®, Hilton Garden Inn®, Hilton Grand Vacations™, Homewood Suites by Hilton® and The Waldorf=Astoria Collection®. 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®. 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 

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Contact:

Hampton Brand Communications
Monica Gaston/Tori Roberson, 
901-374-5534
http://www.hiltonworldwide.com

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Also See: Hampton Studies Guest Touchpoints; Results in New Product Standards and Technology to be Rolled Out Immediately in the 1,250-hotel Hampton System / January 2004
New Holiday Inn Express Prototype Based on Three Fundamental Design Concepts - Cleanliness, Timelessness and Cost-efficiency / Oct 2000
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