| ** **                                                                            | **EXHIBIT 12** | ** **                   |
|---------------------------------------------------------------------------------------|----------------|------------------------------|
| HILTON HOTELS CORPORATION                                                             |
| COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES                                     |
| (dollars in millions)(unaudited)                                                      |
| ** **                                                                            | ** **     | ** **                   | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** | ** ** |
| ** **                                                                            | ** **     | **YEARS ENDED DECEMBER 31,** | ** ** |
|                                                                                  |           | **2000**                     | ** ** | **2001** | ** ** | **2002** | ** ** | **2003** | ** ** | **2004** |   |
| Income from continuing operations before income taxes and minority  interest (1) |           | $                            | 461 |   | $ | 227 |   | $ | 278 |   | $ | 212 |   | $ | 359 |   |
|                                                                                  |           |                         |   |   |   |   |   |   |   |   |   |
| Add:                                                                                  |           |                         |   |   |   |   |   |   |   |   |   |
| Interest expense (1)                                                                  |           | 462                          |   | 394 |   | 337 |   | 304 |   | 282 |   |
|                                                                                  |           |                         |   |   |   |   |   |   |   |   |   |
| Distributions from less than 50% owned companies                                      |           | 15                           |   | 10 |   | 4 |   | 4 |   | 11 |   |
|                                                                                  |           |                         |   |   |   |   |   |   |   |   |   |
| Interest component of rent expense (1)(2)                                             |           | 41                           |   | 17 |   | 20 |   | 14 |   | 15 |   |
|                                                                                  |           |                         |   |   |   |   |   |   |   |   |   |
| Earnings available for fixed charges                                                  |           | $                            | 979 |   | $ | 648 |   | $ | 639 |   | $ | 534 |   | $ | 667 |   |
|                                                                                  |           |                         |   |   |   |   |   |   |   |   |   |
| Fixed charges:                                                                        |           |                         |   |   |   |   |   |   |   |   |   |
| Interest expense (1)                                                                  |           | $                            | 462 |   | $ | 394 |   | $ | 337 |   | $ | 304 |   | $ | 282 |   |
|                                                                                  |           |                         |   |   |   |   |   |   |   |   |   |
| Capitalized interest                                                                  |           | 9                            |   | 10 |   | 5 |   | 7 |   | 3 |   |
|                                                                                  |           |                         |   |   |   |   |   |   |   |   |   |
| Interest component of rent expense (1)(2)                                             |           | 41                           |   | 17 |   | 20 |   | 14 |   | 15 |   |
|                                                                                  |           |                         |   |   |   |   |   |   |   |   |   |
| Total fixed charges                                                                   |           | $                            | 512 |   | $ | 421 |   | $ | 362 |   | $ | 325 |   | $ | 300 |   |
|                                                                                  |           |                         |   |   |   |   |   |   |   |   |   |
| Ratio of earnings to fixed charges                                                    |           | 1.9x                         |   | 1.5x |   | 1.8x |   | 1.6x |   | 2.2x |   |
|                                                                                       |                |                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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(1) Includes 50% owned companies.

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

 

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