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  Hilton Selling the 1,054-room Hilton London Metropole and the
794-room Hilton Birmingham Metropole - to Tonstate Property
Group for £417 million (approx US $785 million)
.BEVERLY HILLS, Calif. - Hilton Hotels Corporation, (NYSE:HLT) today announced it has exchanged contracts to sell two major UK hotels - the 1054 room Hilton London Metropole and the 794 room Hilton Birmingham Metropole - to Dr. Edward Wojakovski's family owned Tonstate for the cash sum of GBP 417 million. The transaction is expected to complete before year end 2006.

Hilton will retain long-term management contracts on both hotels. These contracts will ensure the representation of the Hilton brand in two of the largest and most impressive hotels in Europe. As part of the deal negotiated by Dr. Wojakovski and the Hilton International real estate team, it was agreed that Tonstate would dedicate the resources necessary to continue renovation programs at each of the properties.

Robert M. La Forgia, Executive Vice President and Chief Financial Officer of Hilton Hotels Corporation, commented on the sale: "We are very pleased to have reached an agreement to sell these key meeting and convention properties to Tonstate, an outstanding owner and partner. We are also pleased that Hilton will continue to manage these properties and be associated with the hotels' dedicated team members, who deliver superior service to our guests.

"With the expected completion of the sale of the two Metropole properties, our very successful asset sale program will have delivered more than $2 billion in proceeds since early 2005. The hotel transaction market continues to be vibrant, with a high level of market interest and enthusiasm being shown for quality hotel assets. Consistent with our strategy to grow the managed and franchised business and reduce hotel ownership, we intend to place further hotels on the market; for example, we have recently listed 11 properties across Europe and also announced that we are evaluating alternatives for the Scandic brand", La Forgia added.

Hilton London Metropole is the largest business hotel in the UK and the second largest in Europe, with 1054 rooms and 46,000 sqft (4300 sqm) of purpose-built, state- of-the-art conference and convention space.

Hilton Birmingham Metropole is the largest UK hotel outside London with 794 rooms and 63,000 sqft (5900 sqm) of purpose-built, conference and convention space.

Hilton will use the proceeds from the sale of these hotels to pay down debt.

Hilton was advised by Christie & Co and SJ Berwin. Tonstate was advised by CBRE Hotels and DLA Piper.

About Hilton Hotels Corporation:
Hilton Hotels Corporation (NYSE:HLT - News) is the leading global hospitality company, with more than 2,800 hotels and 490,000 rooms in more than 80 countries, including 150,000 team members worldwide. Hilton UK & Ireland currently operates 73 hotels with over 15,300 bedrooms and 15,200 staff throughout the country.


Hilton International Operations
Linda Bain, +44 (0)207 856 8293

Hilton Hotels Corporation
Kathy Shepard, +1 310 205-7676

Also See: Dubai International Capital Acquires Travelodge, Operator of 291 Hotels in the UK, Ireland and Spain, for £675 million / August 2006
Hilton Hotels Corporation Sells Five Canadian Hilton Properties to Westmont Hospitality Group for Approximately CAD $243 million / September 2006

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