08.26.2003
HILTON HOTELS CORPORATION BOOKS DIVERSITY AS A PRIORITY

Top-Down Commitment is Bottom-Line Focus at Company

Beverly Hills, Calif., August 26, 2003 – At Hilton Hotels Corporation diversity is serious business. It is not just a component of the company, but a commitment that is folded into its corporate philosophy, practices and performance measurements.

From its president and chief executive officer, Stephen F. Bollenbach, to all the team members at Hilton Family hotels nationwide, Hilton invests key resources to ensure that its employees and suppliers reflect the composition of the communities in which they serve. Using a top-down approach spearheaded by its Diversity Council, Hilton employees at every level are held accountable for meeting diversity goals. In addition, the bonuses of hotel and corporate management are directly tied to meeting such goals.

“It’s my objective to maintain a company that’s committed to breaking down gender, racial, and ethnic walls,” Bollenbach said.

The Hilton Diversity Council, headed by Bollenbach, consists of senior management from all areas of the company. Its diversity principles, developed by the corporation’s board of directors, are incorporated into all aspects of the business including employment, training and mentoring, purchasing, franchising/hotel ownership, advertising, marketing, community support and management performance measurements. Some initiative areas include the Diversity Programs Advertising Campaign, Formal Supplier Diversity Mission Statement and Program Implementation, Franchise Development Diversity Outreach, and Diversity Training Programs.

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“At Hilton, we strive everyday to prove that diversity works – it creates an enhanced atmosphere for our employees, and a broader mix of suppliers who can provide goods and services for our hotels – which in turn, cultivates a more well-rounded experience for our customers,” said Bollenbach.

Some of Hilton Hotels Corporation Diversity Programs Include:

Human Resources/Training

• Through its comprehensive in-house training program, Hilton employees are introduced to its “Diversity Works” philosophy upon joining the company. From initial awareness training and maximizing ways to transfer diversity principles into everyday work to identifying innovative approaches to implement diversity goals at the highest level of the company, Hilton is committed to ensuring that employees are prepared to succeed.

• Hilton maintains approximately 60% minority workforce, 50% of which are female. In addition, nearly 30% of those employees are in management positions, with 40% of them being women.

• The Hilton Management Development Program (HHMDP) selects women and minority employees with proven skill sets and trains them for management positions through a rigorous 18-week program.

• In conjunction with the National Society of Minorities in Hospitality, a student-operated organization, Hilton recruits minorities and women graduates from colleges and universities with hospitality programs. In addition, Hilton maintains strategic partnerships with various colleges and universities that have comprehensive hospitality programs including Florida’s Bethune-Cookman College, Webber International University, and Northern Arizona University.

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• Along with Mid-south universities with top-level IT departments such as Delta State University in Mississippi, Mississippi State University, and Xavier University in New Orleans, the Hilton IT division administers an internship program, offering students an opportunity to gain practical experience.

Supplier Diversity at Hilton

• In 2002, Hilton launched an online supplier diversity program for women-owned and minority-owned enterprises (WMBEs). Its web-based software, developed by CVM Solutions, allows for easy WMBE registration, manages diversity certifications, provides navigable directories for buyers, and enables accurate monitoring and measurement of diversity spending across all Hilton brands, supply management regions, purchasing functions and commodities.

• In 2002, Hilton selected a minority-owned fund management company to manage $30 million of its pension fund assets. Also in 2002 – the company’s first effort to quantify diversity spending - Hilton reported more than $89M of its total business expenditures were with WMBEs.

• The Hilton Diversity unit hosts monthly conferences with the Hilton Supply Management Directors of Strategic Sourcing to identify procurement opportunities for WMBEs. Additionally, Hilton’s Senior Director of Diversity Programs sits on the Board of Directors of the National Minority Supplier Development Council.

• Hilton has established relationships with organizations such as the Asian Business Association, National Minority Supplier Development Council, U.S. Hispanic Chamber of Commerce, and the Women’s Business National Council to foster procurement opportunities with women-owned and minority-owned businesses.

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Franchise Development

• Through its franchise development initiative, Hilton reaches out to minority entrepreneurs to gauge interest and educate this community on hotel ownership opportunities within the Hilton Family of Hotels.

• Hilton has developed and maintained relationships with a variety of organizations including the National Association of Black Hotel Owners, Operators and Developers (NABHOOD), and Tribal Nation organizations to advance its Franchise Development outreach efforts.

Advertising

• With the support of a minority-owned advertising agency, Hilton uses advertising to educate minority audiences about the various diversity initiatives at Hilton. Since the campaign launched, advertisements have been placed in national publications including Hispanic Business, Black Enterprise, La Opinion and Savoy.

Hilton Hotels is a committed leader in advancing diversity principles. For more information about Hilton, visit www.hiltonworldwide.com

Hilton Hotels Corporation is recognized internationally as a preeminent hospitality company. The company develops, owns, manages or franchises approximately 2,000 hotels, resorts and vacation ownership properties. Its portfolio includes many of the world’s best known and most highly regarded hotel brands, including Hilton®, Conrad®, Doubletree®, Embassy Suites Hotels®, Hampton Inn®, Hampton Inn & Suites®, Hilton Garden Inn®, Hilton Grand Vacations Company®, and Homewood Suites by Hilton®.

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