EXHIBIT 12
HILTON HOTELS CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(dollars in millions)(unaudited)
YEARS ENDED DECEMBER 31,
------------------------------------------------
1998 1997 1996 1995 1994
---- ---- ---- ---- ----
Income from continuing operations before income
taxes and minority interest (1) $332 $309 $179 $136 $60
Add:
Interest expense (1) 142 99 59 73 58
Distributions from less than 50% owned
companies 3 5 14 7 6
Interest component of rent expense (1)(2) 4 4 2 3 2
---- ---- ---- ---- ----
Earnings available for fixed charges $481 $417 $254 $219 $126
---- ---- ---- ---- ----
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Fixed charges:
Interest expense (1) $142 $ 99 $ 59 $ 73 $ 58
Capitalized interest 4 2 - 1 2
Interest component of rent expense (1)(2) 4 4 2 3 2
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Total fixed charges $150 $105 $ 61 $ 77 $ 62
---- ---- ---- ---- ----
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Ratio of earnings to fixed charges 3.2x 4.0x 4.2x 2.8x 2.0x
---- ---- ---- ---- ----
---- ---- ---- ---- ----
- - ----------------
(1) Includes 50% owned companies.
(2) Assumed interest component to be one-third of rent expense.
HILTON HOTELS CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO COMBINED
FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(dollars in millions)(unaudited)
YEARS ENDED DECEMBER 31,
----------------------------------------------------------
1998 1997 1996 1995 1994
---- ---- ---- ---- ----
Income from continuing operations before income
taxes and minority interest (1) $332 $309 $179 $136 $60
Add:
Interest expense (1) 142 99 59 73 58
Distributions from less than 50% owned
companies 3 5 14 7 6
Interest component of rent expense (1)(2) 4 4 2 3 2
---- ---- ---- ---- ----
Earnings available for combined fixed charges
and preferred stock dividends $481 $417 $254 $219 $126
---- ---- ---- ---- ----
---- ---- ---- ---- ----
Fixed charges and preferred stock dividends:
Interest expense (1) $142 $ 99 $ 59 $ 73 $ 58
Capitalized interest 4 2 - 1 2
Interest component of rent expense (1)(2) 4 4 2 3 2
Preferred stock dividends 17 22 1 - -
---- ---- ---- ---- ----
Total combined fixed charges
and preferred stock dividends $167 $127 $ 62 $ 77 $ 62
---- ---- ---- ---- ----
---- ---- ---- ---- ----
Ratio of earnings to combined fixed charges
and preferred stock dividends 2.9x 3.3x 4.1x 2.9x 2.0x
---- ---- ---- ---- ----
---- ---- ---- ---- ----
- - ----------------
(1) Includes 50% owned companies.
(2) Assumed interest component to be one-third of rent expense.