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Press Release: Hilton Hotels Corporation
October 20, 2006
BEVERLY HILLS, CA -- Hilton Hotels Corporation, (NYSE:HLT) yesterday 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 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.
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.
About Hilton Hotels Corporation:
Hilton Hotels Corporation (NYSE:HLT) 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.
The company owns, manages or franchises a hotel portfolio of some of the best known and highly regarded brands,
including Hilton®, Conrad®, Coral by Hilton®, Doubletree®, Embassy Suites Hotels®, Hampton
Inn®, Hampton Inn & Suites®, Hilton Garden Inn®, Hilton Grand Vacations(TM), Homewood Suites by
Hilton®, Scandic and The Waldorf=Astoria Collection(TM).
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 10 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.
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Contact: Hilton International Operations Linda Bain, +44 (0)207 856 8293 or Hilton Hotels Corporation Kathy Shepard, +1 310 205-7676 http://www.hiltonworldwide.com
Source: Hilton Hotels Corporation