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					     Hilton Hotels
European Development
   Strategy Briefing
     London 12th June 2007
          Hilton Today
                 Ian Carter
Chief Executive, Hilton International Company
Global Again After 40 Years
 Acquisition of Hilton International by Hilton Hotels Corporation created
 the largest and most geographically diverse lodging company in the
 world, with over 2,800 hotels in 76 countries.


 Hilton Today
   Bigger
   Stronger
   More focused
   A global leader




                                                                            3
Hilton Fast Facts

  Operating in 76 countries


  Over 50 different languages
  spoken


  Operating in 13 time zones


  Strong Hilton pipeline




                                4
Hilton fast facts – Global – 2,838



              Doubletree by Hilton                         Hampton by Hilton

                Waldorf=Astoria


             Hilton Garden Inn




                             Hilton
                                                       Embassy Suites
                                       Conrad
                                                Homewood Suites
                             Oth /Ti      h

March 2007
                                                                               5
International Credentials

      World’s most recognised hotel
      brand1


      Management team includes
      eight different nationalities


      Number of years operating in
      international regions:
         Spain – 50+ years
         Germany – 50+ years
         U.K. – 40+ years
         Italy – 40+ years

1
    Source: BDRC
                                      6
International Market Dynamics
 Growth in international travel and short breaks
 Spending power of “silver” market
 Changing demographic profile of ‘‘typical’’ traveller
 Discount air carrier growth



                         The Hilton Mission:

               To be the first choice
              of the world’s travelers


                                                         7
A Global Travel Boom
 Worldwide population growth
    6.6 billion today
    8.3 billion projected in 2030




 World Population Density as of May 2004.
 (Map Source: Center for International Earth Science Information Network)



                                                                            8
Structured for Growth
 Five geographic areas:            International Operations
   UK & Ireland                    Centre based in London
   Europe & Africa                 International offices in
   Middle East & Africa            Singapore and Dubai
   Asia Pacific
   The Americas


                          London




                                     Dubai

                                       Singapore




                                                              9
Structured for Growth
 European Operational centres:
   London
   Madrid
   Frankfurt
   Paris
   Vienna
   Brussels
 Regional Development Offices:
   London                   Amsterdam
                                        Moscow
   Madrid                   London
   Frankfurt                            Frankfurt

   Paris
                            Paris       Vienna
   Moscow
   Rome                                 Rome
                            Madrid
   Istanbul (To Open)
                                        Istanbul



                                                   10
Europe & Africa
   162 hotels
      44,000 rooms
      35 countries
      154 Hilton, 5 Conrad, 3 Hilton Garden Inn

   Presence in key European markets
      UK & Ireland – 74 hotels
      Germany - 18 hotels
      Italy – 18 hotels
      Spain – 4 hotels

   13 hotels opened in 2006 – first 3 Hilton Garden Inns
   15 hotels opening in 2007

   Pipeline of 27 hotels to open in 13 countries (majority Hilton)
March 2007
                                                                     11
   Hilton Dominates the Up-Scale Sector in Europe

               40,000
                             8.8%
               35,000
                                         7.4%
               30,000
Number Rooms




               25,000
                                                    4.9%
               20,000
                                                            3.8%
               15,000                                                  3.3%        3.2%   3.0%      2.8%         2.4%
               10,000                                                                                                      2.3%

                5,000

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                                                                                                             In
    Source: OTUS Survey, 02/06
                                                                                                                                  12
Hilton is Rated #1 in Europe

Hilton (Europe & Africa)

                   Hyatt

                 De Vere

                Sheraton

                  Westin

             Le Meridien

           Steigenberger

           Crow ne Plaza

         Intercontinental

         Hotels Hesperia

                 Marriott

                         720           730           740           750   760   770   780


Source: JD Power European Hotel Guest Satisfaction Index Study, 05/06
                                                                                           13
Continued Growth
                   Hilton Warsaw Hotel And Conference Centre, Poland – Opened March 2007




                                                                                      14
Continued Growth
                   Hilton Valencia, Spain – Opened May 2007




                                                         15
Continued Growth
                   Hilton Molino Stucky Venice, Italy – Opened June 2007




                                                                      16
Continued Growth
                   Hilton Vilamoura As Cascatas Golf Resort & Spa, Portugal – Opening July 2007




                                                                                             17
Continued Growth

                   Hilton Helsinki-Vantaa Airport – Opening August 2007




                                                                    18
Continued Growth
                   Hilton Garden Inn Matera, Italy – Opening Q4 2007




                                                                 19
Continued Growth
        Hilton Moscow Leningradskaya, Russia
                           – Opening Q1 2008   Hilton Kampala, Uganda – Opening Q4 2008




                                                                                    20
Continued Growth
                   Hilton and Hilton Garden Inn Frankfurt Airport, Germany – Opening Q2 2009




                                                                                         21
Hilton Growth
Global Lodging Market


                 Number of Rooms    % of Worldwide   % of Supply
                    (millions)          Supply        Branded

USA & Canada            4.9              31%            66%

Europe                  6.6              41%            23%


                   Great Brand Opportunities




                                                                   23
New Growth Opportunities for Our Family of Brands

 Europe is the largest hotel region in the world with 6.6 million rooms


 Only 23% today affiliated to major brands


 In the next 10 years strong hotel demand


 Conversion and new-build opportunities


 Entry into mid- and economy market




                                                                          24
Global Growth: Development Strategy

 Fast
   Add resources
   Share strengths
   Developing prototypes


 Focused
   Five Strategic Growth
   Markets in Europe




                                      25
Focused: Five Strategic Growth Markets in Europe
 UK & Ireland
 Russia
 Germany
 Italy
 Iberian Peninsula




                                                   26
    The Power of the
Hilton Family of Brands
Strategy for Performance & Growth




                 Unit                                 Strong
                Growth                                Brands




                                  The First Choice         Passionate
          Enthusiastic             of the World’s            Team
            Owners                    Travelers             Members



                         Market                 Happy
                         Share                 Customers
                         Gains



                                                                        28
International Strengths
  Hilton brand recognition & record


  Dynamic, growing markets


  International management team


  Consumer appeal of brand range ─ great potential for “focused” service
  brands


  The Hilton Engine




                                                                      29
The Hilton Engine



                               Hilton Hotels
                               Corporation




       Sales        HHonors       Reservations      Technology         Performance
                                                                       Measurement

                   Cross-Brand Shared Resources



               Shared resources between all Hilton Family of Hotels.

                                                                                     30
        Family of Brands
               Patrick Fitzgibbon
Senior Vice President, Development, Hilton Hotels
The Hilton family – over 2,800 hotels




                                        32
Brand Strategy – Focused: Right Product




                                          33
Hotel Classifications
     Luxury          Up-Scale          Mid-Market        Economy




  Four Seasons     Crown Plaza        Country Inn by   Campanile
  Mandarin         Grand Hyatt        Carlson          Comfort
  Oriental         Hyatt Regency      Courtyard by     Days Inn
  Maybourne        Intercontinental   Marriott         Express by
  Orient Express   Le Meridien        Four Points      Holiday Inn
  Park Hyatt       Maritim            Holiday Inn      Ibis
  Raffles          Marriott           Holiday Inn      Innkeeper’s
  Ritz Carlton     Melia              Garden Court     Lodge
  St. Regis        Millennium         Howard           Kyriad
                   Radisson           Johnson          Premier Travel
                   Renaissance        Novotel          Inn
                   Sheraton           Park Inn         Sleep Inn
                   Sofitel            Quality          Travelodge
                   Swissotel          Ramada
                   Westin             Sol

                                                                        34
Waldorf=Astoria




    Discovery
   and Unique
   Experiences


                  35
Global Portfolio


                    Open    Pipeline   Total

 Number of hotels    5         2        7

 Number of rooms    3,669     620      4,289




                                               36
Conrad Hotels & Resorts




    The luxury
     of being
     yourself


                          37
Global Portfolio


                    Open    Pipeline   Total

 Number of hotels    15        8        23

 Number of rooms    5,151    2,899     8,050




                                               38
Doubletree by Hilton




      Warm
    Welcoming
     Friendly


                       39
Portfolio


                    Open     Pipeline   Total

 Number of hotels    173        24       197

 Number of rooms    44,951    5,945     50,896




                                                 40
Doubletree by Hilton
 Upscale


 Icons
   Warm chocolate cookie provided at check-in
   Warm, personal and inviting


 Brand Promise/Strategy
   To provide exceptionally warm and caring service where guests feel
   welcomed & appreciated


 Fundamentally a conversion brand




                                                                        41
How customers view each brand…




       Contemporary                Traditional
      Business casual            Business formal
        Value driven             Service Driven




                                                   42
Hilton Garden Inn




    Everything.
    Right Where
    You Need It.
Portfolio


                    Open     Pipeline   Total

 Number of hotels    309       188       497

 Number of rooms    42,745   24,829     67,574




                                                 44
Hilton Garden Inn
 Mid-Market


 Icons
   Herman Miller Mirra chair
   Garden Sleep System Bed
   Hospitality Centre
   Pavilion Pantry


 Brand Promise/Strategy
   Warm and inviting, yet functional
   Everything. Right Where You Need It.




                                          45
Product
 150 Bedrooms

 Three meal a day grill style restaurant

 Complimentary 24 hour business centre

 Meeting facilities for small to mid-scale groups

 Workout facility and in-room Stay Fit Kit

 Complimentary secure remote printing




                                                    46
Development Specifications
 Bedroom: 24sqm


 Gross Area per Key: 46sqm


 Target Build cost: £85-95k per key (inc air con)


 Primarily urban and suburban major markets. Designed for commercial,
 airport and destination markets


 Mostly new-builds




                                                                   47
International Prototype – Lobby Visual




                                         48
International Prototype – Restaurant Visual




                                              49
International Prototype – Bar Visual




                                       50
International Prototype – Bedroom




                                    51
International Prototype – Bedroom




                                    52
Hilton Garden Inn Stuttgart NeckarPark (155)
Opened Sept 2006




                                               53
Hilton Garden Inn Rome Airport (260)
Opened December 2006




                                       54
Hilton Garden Inn Luton North (155)
Opening Q2 2008




                                      55
Hampton by Hilton




   We Love Having
      You Here



                    56
Global Portfolio


                    Open      Pipeline    Total

 Number of hotels    1,409      368       1,777

 Number of rooms    139,946   34,696     174,642




                                                   57
Hampton by Hilton
 Economy


 Icons
   100% Satisfaction Guarantee – “If you’re not completely satisfied, we don’t
   expect you to pay”,
   Hampton/Cloud 9 Bed
   High Speed Internet Access


 Brand Promise/Strategy
   Value, Quality, Consistency and Service




                                                                                 58
Development Specifications
 Bedroom: 21sqm


 Gross Area per Key: 35sqm


 Target Build cost: £50-55k per key (inc air con)


 Vast distribution across major, secondary and tertiary markets

 Primarily new-builds




                                                                  59
International Prototype – Welcome Zone




                                         60
International Prototype – Gathering Zone




                                           61
International Prototype – Living Zone




                                        62
International Prototype – Work Zone




                                      63
International Prototype - Guestroom and Bathroom




                                                   64
International Prototype - Guestroom Rendering




                                                65
International Prototype - Guestroom Rendering




                                                66
Hilton Family of Brands
Services P`rovided




                     40
                      0   50   60         70          80   90   100
                                    Price Index (%)

                                                                      67
Hilton Family of Brands – Gross Internal Floor Area per Key


                80

                70

                60
                                                  70
                50
Square Metres




                                     65
                40

                30        46
                20
                     34
                10

                 0
                                                              68
      UK & Ireland
           Simon Vincent
President, UK & Ireland, Hilton Hotels
Hilton in the UK & Ireland
  75 hotels
  Over 16,200 hotel bedrooms
  Over 2.1 million room nights a year
  Turnover of over £700m p.a.
  Occupancy of 76.4% year round
  5 hotels opened in the last year, a
  further 4 to follow
  Two significant partnership deals
  established




                                        70
Awards and Accolades: Hilton in the UK & Ireland
consistently outperforms its competition…
 BDRC
   Leading Choice UK Hotel Brand for the eighth year in a row


 Business Traveller Awards 2006
   Best Business Hotel Chain in the UK
   Best Airport Hotel – The Hilton London Heathrow


 British Travel Awards 2006
   Hotel Chain of the Year


 Buying Business Travel Awards 2006
   Best UK Hotel Group & Best Hotel Group for Meetings & Conferences


 Visit London Awards 2006
   Large Hotel of the Year – The London Hilton on Park Lane



                                                                       71
  BDRC British Hotel Guest Survey 2007 - Business




In terms of customer awareness, choice and use.   Maximum possible score: 60 points
                                                                              72
  BDRC British Hotel Guest Survey 2007 - Leisure




In terms of customer awareness, choice and use.   Maximum possible score: 60 points
                                                                              73
Hilton London Canary Wharf – Opened June 2006




                                                74
Hilton London Tower Bridge – Opened September 2006




                                                     75
Hilton Manchester Deansgate – Opened October 2006




                                                    76
Hilton Dublin Kilmainham – Opened May 2007




                                             77
Hilton Limerick – Opened May 2007




                                    78
Hilton Garden Inn Luton North – Opening Q2 2008




                                                  79
Hilton Reading – Opening Q1 2009




                                   80
Hilton Liverpool – Opening Q2 2009




                                     81
Hilton Wembley – Opening Q4 2010




                                   82
Heathrow: Not 1 Market….. But 6!




      Hilton    Hilton Garden Inn   Hampton by Hilton   83
Hilton UK & Ireland – Future Development Plans
                           Today




                         75
                          By 2016




                    175+                         84
           Development Strategy
                        Jan Hazelton
Vice President Development, Relationships & Funding, Hilton Hotels
Development Strategy - United Kingdom




                                                              Aberdeen


                      Belfast
                                                          Edinburgh
                                                         Glasgow
                                                                   Newcastle

                                                            Liverpool
                                                              Manchester
                                                                    Leeds

                                                                      Nottingham
                                                                     Derby
                                                                         Birmingham
                        West Midlands
                                                                         Cambridge
                           Bristol                                          Stansted
             Dublin
                                                                           Luton
                                Cardiff                                   London
                                                                   Gatwick
                                          Oxford
                                                                     South Coast
                                              Reading   Heathrow
                                                                                       86
Growth Vehicles
                 Luxury        Up-scale           Mid-market       Economy
New Build
Conversions




              Management Agreements       Franchise Agreements   Selective JV
                                                                                87
Creating a Profitable Future Together

 Form strategic relationships

   Bankers


   Consultants


   Developers


   Equity Providers


   Owners




                                        88
          Hilton Today
                 Ian Carter
Chief Executive, Hilton International Company
The Hilton Engine



                               Hilton Hotels
                               Corporation




       Sales        HHonors       Reservations      Technology         Performance
                                                                       Measurement

                   Cross-Brand Shared Resources



               Shared resources between all Hilton Family of Hotels.

                                                                                     90
Strategy for Performance & Growth




                 Unit                                 Strong
                Growth                                Brands




                                  The First Choice         Passionate
          Enthusiastic             of the World’s            Team
            Owners                    Travelers             Members



                         Market                 Happy
                         Share                 Customers
                         Gains



                                                                        91
Thank you
Meet the team




Ian Carter             Simon Vincent   Patrick           Jan Hazelton      Nick Smart        Andy Potter
                                       Fitzgibbon
Chief Executive,       President,                        VP Development    VP Development,   Development
Hilton International   UK & Ireland    SVP Development   Relationships &   UK & Ireland      Director, UK &
Company                                Europe & Africa   Funding                             Ireland




                          www.hiltondevelopment.com



                                                                                                              93

				
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