Hilton Annual Report 2006

For an organization with the long and storied history of Hilton Hotels Corporation, 10 years is but
a blink of an eye. It is remarkable, then, to refl ect on our company’s last decade and the transformation
that has taken place in that relatively short time span. This period has seen a level of activity,
accomplishment, growth and value creation unsurpassed in Hilton’s history.
Consider: Acquisitions of Bally’s (and the subsequent spin-off of our gaming business),
Promus, Hilton International and individual hotel properties that fundamentally changed the
complexion of our company. The transformation from a company focused on a few hotel-casinos
and big hotels in the US to a worldwide enterprise encompassing approximately 80 countries.
Moving from 275 hotels to more than 2,900 around the world. Expanding from a single brand
(albeit the most renowned in the world) to a collection of nine respected brand names serving a
broad range of travelers. An emphasis on asset ownership that has given way to a focus on management
and franchise fees. The development of a thriving vacation ownership business. And, perhaps
most important, the building of the fi nancial and human resource strength that has enabled Hilton
to emerge as the world’s premier lodging company.
Consider this one last fact in thinking about the bottom line…shareholder value: in 1995,
Hilton’s market capitalization was $3.5 billion; at year-end 2006, it was $13.5 billion. Adjusting for
spin-offs and stock splits, the value of the company’s stock increased 240 percent during this period.