Hilton, UNITE HERE Reach Tentative Agreement in Hawaii

. October 14, 2008

BEVERLY HILLS, CA, October 10, 2006. Hilton Hotels Corporation (NYSE:HLT) today announced a tentative agreement with UNITE HERE on a new contract covering 1,550 employees at the Hilton Hawaiian Village Beach Resort & Spa, Hawaii's biggest resort.

The agreement is subject to ratification by Hilton's employees who are members of UNITE HERE Local 5. The agreement features improved pay, pension and health care provisions. Specific details will be released after the ratification vote, which is expected later this week.

"We are the first hotel operator in Hawaii to reach agreement with the union on a new contract. This agreement rewards our team members at the Hilton Hawaiian Village, while allowing the resort to remain competitive and a valued destination for our guests," said Matthew J. Hart, president and chief operating officer of Hilton Hotels Corporation.

"Reaching agreement in Hawaii reflects the positive relationship Hilton has established with UNITE HERE," Mr. Hart said.

Hawaii is the fifth major collective bargaining agreement that Hilton and UNITE HERE successfully negotiated this year. Along with Chicago, New York, Puerto Rico and San Francisco, the agreement for Hawaii recognizes Hilton as a hotel management company of choice for the Union and is another positive development since Hilton and UNITE HERE announced their "Partnership for Future Growth" in July.

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