**EXHIBIT 12**

**HILTON HOTELS CORPORATION AND SUBSIDIARIES**

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

(dollars in millions)(unaudited)
| ** **                                                                       | ** ** | **2002** | ** ** | **2003** | ** ** | **2004** | ** ** | **2005** | ** ** | **2006** | ** ** |
|----------------------------------------------------------------------------------|------------|----------|------------|----------|------------|----------|------------|----------|------------|----------|------------|
| Income from continuing  operations before income taxes and minority interest (1) |       | $        | 278        |     | $          | 212      |       | $        | 359        |     | $          | 619 |   | $ | 818 |   |
|                                                                             |       |     |       |     |       |     |       |     |       |     |       |
| Add:                                                                             |       |     |       |     |       |     |       |     |       |     |       |
| Interest expense  (1)                                                            |       | 337      |       | 304      |       | 282      |       | 266      |       | 532      |       |
|                                                                             |       |     |       |     |       |     |       |     |       |     |       |
| Distributions  from less than 50% owned companies                                |       | 4        |       | 4        |       | 11       |       | 7        |       | 28       |       |
|                                                                             |       |     |       |     |       |     |       |     |       |     |       |
| Interest  component of rent expense (1)(2)                                       |       | 20       |       | 14       |       | 15       |       | 14       |       | 94       |       |
|                                                                             |       |     |       |     |       |     |       |     |       |     |       |
| Earnings available for  fixed charges                                            |       | $        | 639        |     | $          | 534      |       | $        | 667        |     | $          | 906 |   | $ | 1,472 |   |
|                                                                             |       |     |       |     |       |     |       |     |       |     |       |
| Fixed charges:                                                                   |       |     |       |     |       |     |       |     |       |     |       |
| Interest expense  (1)                                                            |       | $        | 337        |     | $          | 304      |       | $        | 282        |     | $          | 266 |   | $ | 532 |   |
|                                                                             |       |     |       |     |       |     |       |     |       |     |       |
| Capitalized  interest                                                            |       | 5        |       | 7        |       | 3        |       | 8        |       | 13       |       |
|                                                                             |       |     |       |     |       |     |       |     |       |     |       |
| Interest  component of rent expense (1)(2)                                       |       | 20       |       | 14       |       | 15       |       | 14       |       | 94       |       |
|                                                                             |       |     |       |     |       |     |       |     |       |     |       |
| Total fixed charges                                                              |       | $        | 362        |     | $          | 325      |       | $        | 300        |     | $          | 288 |   | $ | 639 |   |
|                                                                             |       |     |       |     |       |     |       |     |       |     |       |
| Ratio of earnings to  fixed charges                                              |       | 1.8      | x          | 1.6      | x          | 2.2      | x          | 3.1      | x          | 2.3      | x          |

 

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(1)  Includes 50% owned companies.

(2)      Assumed interest component to be one-third ofrent expense.

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