EXHIBIT 11
HILTON HOTELS CORPORATION AND SUBSIDIARIES
Computation of Per Share Earnings
1998 1997 1996
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BASIC
Income (in millions)
Continuing operations $188 $183 $120
Deduct dividends on preferred shares (10) (13) -
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Income applicable to common stock
from continuing operations 178 170 120
Discontinued gaming operations 109 67 (38)
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Income applicable to common stock $287 $237 $ 82
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Shares
Weighted average common shares 250,306,000 249,723,000 197,338,000
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Basic earnings per common share
Continuing operations $0.71 $0.68 $ 0.61
Discontinued gaming operations 0.44 0.27 (0.20)
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Net income $1.15 $0.95 $0.41
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DILUTED
Income (in millions)
Continuing operations $188 $183 $120
Add after tax interest applicable to
5% convertible notes 15 15 9
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Before extraordinary item, as adjusted 203 198 129
Discontinued gaming operations 109 67 (38)
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Net income $312 $265 $91
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SHARES
Weighted average common shares -- basic 250,306,000 249,723,000 197,338,000
Assuming conversion of preferred stock 9,845,000 13,645,000 477,000
Assuming conversion of 5% convertible notes 15,489,000 15,489,000 9,785,000
Dilutive effect of assumed option exercises
(as determined by the application of the
treasury stock method) 1,909,000 2,374,000 1,756,000
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Common and common equivalent shares
as adjusted 277,549,000 281,231,000 209,356,000
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Diluted earnings per common share
Continuing operations $0.73(1) $0.70(1) $ 0.62 (1)
Discontinued gaming operations 0.39(1) 0.24(1) (0.18)
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Net income $1.12 $0.94 $ 0.44 (1)
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(1) This calculation is submitted in accordance with Regulation S-K
item 601(b)(11) although it is contrary to paragraph 13 of Statement
of Financial Accounting Standards No. 128 because it produces an
anti-dilutive result for continuing operations in all periods and for
net income in the 1996 period.