Hilton Hotels Corporation is set to open its first hotel in Azerbaijan
through a management agreement with ISR Kapital Investments.The new 300-room Hilton
Baku is scheduled to open in December 2010.

Welcoming the announcement, Wolfgang M. Neumann, President of Hilton Hotels -
Europe, said: “This move illustrates Hilton’s commitment to expanding in key
emerging markets across Europe. Increasingly positive economic conditions in
Azerbaijan have provided us with a clear opportunity to introduce our full-service
Hilton brand to the city of Baku.”

Located on the Caspian Sea, Baku is the considered the country’s centre of
commerce, culture, education and tourism. Hilton believes that this combined with
its status as an UNESCO World Heritage Site, as well as a relative absence of
internationally branded accommodation, means that the country is ripe for hotel
development.

Neumann added: “Quality hotel supply in Baku is still incredibly low, so together
with ISR Kapital Investments, the introduction of Hilton Baku will ensure we are
ideally placed to capitalise on the anticipated increases in domestic and
international travellers to this exciting part of the world.”

The newly built 300-room Hilton Baku will form part of a multi-purpose development
situated in a prominent location close to the city centre, as well as its major
business and shopping areas. The hotel will offer leisure and business travellers a
health club and indoor pool, a choice of two restaurants as well as extensive
conference and meeting facilities supported by a business centre and complimentary
parking.

Zafer Tangil, Director of ISR Kapital Investments said: “Baku is a vibrant city
appealing to both business and leisure travellers. The introduction of a new Hilton
hotel will add real value to our city, not only offering outstanding accommodation,
but also providing guests with the high standards that you would associate with one
of the world’s leading hospitality companies. Thanks to our relationship with
Hilton we are confident that the hotel with its strategic position will be warmly
received by future guests.”

Hilton has recently announced plans to develop approximately 50 new hotels
encompassing selected brands within the Hilton Family of Hotels in neighbouring
Russia, as part of two multi-unit deals expected to be signed this year. Elsewhere
in Europe the company has opened seven new hotels across the region in 2007 and is
set to open a further eight properties in Reykjavik, Prague, Bari, Matera, Moscow,
Palermo, Mallorca and Madrid over the coming six months. 
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