**EXHIBIT 12**

 

**HILTON HOTELS CORPORATION AND SUBSIDIARIES**

**Computation Of Ratio Of Earnings To Fixed Charges**

(dollars in millions)(unaudited)

 
| ** **                                                                                                                    | ** ** | **2001** | ** ** | **2002** | ** ** | **2003**  | ** ** | **2004** | ** ** | **2005** | ** ** |
|-------------------------------------------------------------------------------------------------------------------------------|------------|----------|------------|----------|------------|-----------|------------|----------|------------|----------|------------|
| Income from continuing operations before income  taxes and minority interest (1) |       | $        |  227  |     | $          |  278 |       | $        |  212  |     | $          |  359 |   | $ |  619 |   |
|                                                                                                                          |       |     |       |     |       |      |       |     |       |     |       |
| Add:                                                                                                                          |       |     |       |     |       |      |       |     |       |     |       |
| Interest expense (1)                                                                                                          |       | 394      |       | 337      |       | 304       |       | 282      |       | 266      |       |
|                                                                                                                          |       |     |       |     |       |      |       |     |       |     |       |
| Distributions from less than 50% owned  companies                                                                             |       | 10       |       | 4        |       | 4         |       | 11       |       | 7        |       |
|                                                                                                                          |       |     |       |     |       |      |       |     |       |     |       |
| Interest component of rent expense (1)(2)                                                                                     |       | 17       |       | 20       |       | 14        |       | 15       |       | 14       |       |
|                                                                                                                          |       |     |       |     |       |      |       |     |       |     |       |
| Earnings available for fixed charges                                                                                          |       | $        | 648        |     | $          | 639       |       | $        | 534        |     | $          | 667 |   | $ | 906 |   |
|                                                                                                                          |       |     |       |     |       |      |       |     |       |     |       |
| Fixed charges:                                                                                                                |       |     |       |     |       |      |       |     |       |     |       |
| Interest expense (1)                                                                                                          |       | $        | 394        |     | $          | 337       |       | $        | 304        |     | $          | 282 |   | $ | 266 |   |
|                                                                                                                          |       |     |       |     |       |      |       |     |       |     |       |
| Capitalized interest                                                                                                          |       | 10       |       | 5        |       | 7         |       | 3        |       | 8        |       |
|                                                                                                                          |       |     |       |     |       |      |       |     |       |     |       |
| Interest component of rent expense (1)(2)                                                                                     |       | 17       |       | 20       |       | 14        |       | 15       |       | 14       |       |
|                                                                                                                          |       |     |       |     |       |      |       |     |       |     |       |
| Total fixed charges                                                                                                           |       | $        | 421        |     | $          | 362       |       | $        | 325        |     | $          | 300 |   | $ | 288 |   |
|                                                                                                                          |       |     |       |     |       |      |       |     |       |     |       |
| Ratio of earnings to fixed charges                                                                                            |       | 1.5      | x          | 1.8      | x          | 1.6       | x          | 2.2      | x          | 3.1      | x          |

 

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(1) Includes 50% owned companies.

(2) Assumed interest component to beone-third of rent expense.

 

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