**EXHIBIT 11**

**HILTON HOTELS CORPORATION AND SUBSIDIARIES**

**Computation of Per Share Earnings**
| ** **                                                                                                    | ** ** | **YEARS ENDED DECEMBER 31,** | ** ** |
|---------------------------------------------------------------------------------------------------------------|------------|---------------------------------------------|------------|
| ** **                                                                                                    | ** ** | **2004**                                    | ** ** | **2005** | ** ** | **2006** | ** ** |
| **Basic**                                                                                                     |       |                                        |       |   |   |   |   |
| Net income (in  millions)                                                                                     |       | 238                                         |       | 460 |   | 572 |   |
|                                                                                                          |       |                                        |       |   |   |   |   |
| Weighted average  common shares                                                                               |       | 384,362,000                                 |       | 382,790,000 |   | 385,196,000 |   |
|                                                                                                          |       |                                        |       |   |   |   |   |
| Basic earnings  per common share                                                                              |       | 0.62                                        |       | 1.20 |   | 1.49 |   |
|                                                                                                          |       |                                        |       |   |   |   |   |
| **Diluted**                                                                                                   |       |                                        |       |   |   |   |   |
| Income (in  millions)                                                                                         |       |                                        |       |   |   |   |   |
| Net income                                                                                                    |       | 238                                         |       | 460 |   | 572 |   |
| Add after tax  interest applicable to convertible notes                                                       |       | 12                                          |       | 12 |   | 12 |   |
| Net income, as  adjusted                                                                                      |       | 250                                         |       | 472 |   | 584 |   |
|                                                                                                          |       |                                        |       |   |   |   |   |
| Shares                                                                                                        |       |                                        |       |   |   |   |   |
| Weighted average  common shares—basic                                                                    |       | 384,362,000                                 |       | 382,790,000 |   | 385,196,000 |   |
| Assuming  conversion of convertible notes                                                                     |       | 25,556,000                                  |       | 25,556,000 |   | 25,556,000 |   |
| Dilutive effect  of assumed option exercises (as determined by the application of the treasury  stock method) |       | 8,024,000                                   |       | 8,479,000 |   | 8,816,000 |   |
| Common and  common equivalent shares as adjusted                                                              |       | 417,942,000                                 |       | 416,825,000 |   | 419,568,000 |   |
|                                                                                                          |       |                                        |       |   |   |   |   |
| Diluted earnings per  common share                                                                            |       | 0.60                                        |       | 1.13 |   | 1.39 |   |

 

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