We are more than just a business. We AreHILTON. We Are HOSPITALITY. DIVERSITY AND INCLUSION AT HILTON

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1 We are more than just a business. We AreHILTON. We Are HOSPITALITY. DIVERSITY AND INCLUSION AT HILTON

2 OUR DIVERSITY & INCLUSION STATEMENT Conrad Hilton set out to ill the earth with the light and warmth of hospitality. Today, our instinct is the same: to look outward and create heartfelt experiences for Guests, meaningful opportunities for Team Members, high value for Owners and a positive impact in our Communities. We are more than just a business. We AreHILTON. We Are HOSPITALITY. Diversity is at the core of our Vision, Mission, and Values. We are committed to an inclusive workforce that fully represents many diferent cultures, backgrounds and viewpoints. Our global brands provide meeting places for people from all walks of life to connect, creating a welcoming environment for all. Understanding our Team Members unique perspectives, along with those of our Guests, Owners, Suppliers, and Partners, is essential to driving our competitive performance. Our company will always strive to relect the global communities where we live and work. OUR VISION To ill the earth with the light and warmth of hospitality - by delivering exceptional experiences - every hotel, every guest, every time. OUR MISSION To be the most hospitable company in the world - by creating heartfelt experiences for Guests, meaningful opportunities for Team Members, high value for Owners and a positive impact in our Communities. OUR VALUES HOSPITALITY INTEGRITY LEADERSHIP TEAMWORK OWNERSHIP NOW 1

3 DIVERSITY & INCLUSION STARTS AT THE TOP Accountability starts with our executive leadership. Our senior leaders demonstrate ongoing support and commitment to diversity and inclusion through a variety of channels: Our President and CEO Chris Nassetta chairs the Hilton Executive Diversity Council (EDC). The EDC is is comprised of the company s most senior leaders and provides oversight of our diversity and inclusion programs and initiatives. A Quarterly Diversity Dashboard, including updates on key diversity metrics and progress related to our culture, talent and marketplace initiatives, is reviewed by EDC members. Our leaders are committed to our diversity and inclusion eforts, and we hold them accountable through Organizational Objectives that measure their performance against our diversity goals. We also monitor feedback directly provided by our Team Members on our leaders diversity focus. Through our Executive Committee (EC) Networking Program, Chris Nassetta and all EC members have at least two women mentees whom they meet with on a regular basis. The emerging leaders are diverse in background, functional area, geographic location and experience. Diversity initiatives, programs and metrics are reviewed annually with our Board of Directors, of which, 25% are female. Diversity is our future, is part of our legacy, and is fundamental to our success. CHRIS NASSETTA President & Chief Executive Oicer Our Team Member Resource Groups (TMRGs) are all sponsored by our most senior leaders. 2

4 WE HAVE COME A LONG WAY IN OUR DIVERSITY & INCLUSION JOURNEY Created Hilton Executive Diversity Council Established a global framework for Diversity and Inclusion under Culture, Talent & Marketplace initiatives Launched irst Team Member Resource Groups (TMRGs) Initiated Executive Networking Program Created partnerships with Black, Hispanic, Asian and Paciic Islander-serving colleges and universities Established Travel with Purpose global corporate responsibility commitment Established relationships with diverse nonproit strategic partners (i.e. NAACP) Appointed two women to the Board of Directors Launched Multicultural Marketing Advisory Board Expanded TMRGs: Virtual TMRGs Women s TMRG in UK TMRGs in Call Centers Launched Operation: Opportunity, our veteran hiring intiative 2013 Pledged commitment to women through Women s Empowerment Principles Updated Global Employment policies to relect best practices in diversity & inclusion Launched Darden Women s Leadership Development Program Partnered with U.S. State Department in support of Global Equality Fund Pledged to Open Doors for One Million Young People by 2019 Achieved 100% on the Human Rights Campaign Corporate Equality Index Recognized as DiversityInc Top 10 Company for Supplier Diversity and Top 10 Company for Veterans 2014 Launched irst annual Global Team Member Appreciation Week Rolled out U.S. GED Assistance program Recognized as DiversityInc Top 50 Companies for Diversity (#47) and Top 10 Company for Supplier Diversity 2015 Signed White House s Equal Pay Pledge Launched best-in-class parental leave policies and adoption assistance Developing Regional Diversity Councils Established Global Apprentice Network for our youth Recognized as DiversityInc Top 50 Companies for Diversity (#42) #3 Mentoring #4 Supplier Diversity #11 Employee Resource Groups Recognized as a Great Place to Work winner in 13 countries Awarded Fortune 100: Best Companies to Work For (#56) Best Workplaces for Millennials (#60) Best Workplaces for Women (#56) Best Multinational Workplaces

5 Defining DIVERSITY & INCLUSION AT HILTON OUR COMPREHENSIVE DEFINITION SPANS GLOBAL CULTURES, PERSPECTIVES, AND LIFESTYLES DEMOGRAPHICS BACKGROUND SKILLS & COMPETENCIES CORE ATTRIBUTES ADVANCED ATTRIBUTES FULL INCLUSION ATTRIBUTES Age Ethnicity Life experiences Gender Citizenship Educational background Race Geographic location Professional experience Gender identity Language(s) Thinking style Maritial status National origin Communication style Physical ability Religion Industry knowledge Sexual orientation Technical skills & expertise Veteran status More than 100 countries and territories Over 40 languages spoken 43% of global Managers are women 41% of global Team Members are Millennials 69% of all U.S. Team Members are ethnically diverse Diversity data points represent Team Members at Owned & Managed hotels and Corporate oices. Data based on voluntary, self-identify questions collected in human capital management system as of 3/31/16 and 2015 internal survey. 4

6 OUR DIVERSITY & INCLUSION STRATEGY Our strategy is to leverage and promote diversity and inclusion through a framework of Culture, Talent and Marketplace initiatives to foster innovation and create a globally competitive business. Culture We create an engaging, innovative environment that promotes global inclusiveness. Team Member Resource Groups celebrate our uniqueness Team Member beneits that support personal and professional growth An Executive Diversity Council provides oversight of our diversity and inclusion programs and initiatives Talent We attract, develop, and retain the best and brightest talent in hospitality. Focused development and representation of diverse workplace segments, including women Innovative recruitment, learning, and leadership development programs Quarterly reporting of Team Member diversity metrics to improve visibility of diverse Team Members, including a diferentiated investment in our global women Marketplace We engage, support, and create business opportunities in our communities. Strategic partnerships with nonproit organizations and marketing campaigns to diverse customer segments Property ownership opportunities for women and people of color A supplier program that procures products and services from diversely owned businesses LEADERSHIP SPOTLIGHT Our teams are truly inspirational in the purpose-driven work they do to create welcoming and inclusive work environments, and amazing experiences for our guests. MATT SCHUYLER Chief Human Resources Oicer Executive Sponsor of Millennial TMRG 5

7 TMRGs IN ACTION Culture WE CREATE AN ENGAGING, INNOVATIVE ENVIRONMENT THAT PROMOTES GLOBAL INCLUSIVENESS TMRGs foster an inclusive and innovative business culture, promote professional growth through networking and development, provide market insights, and give back to our communities. Our TMRGs are all sponsored by senior leaders. WOMEN S TMRG Leadership networking session at Capital Hilton The success of these groups is relected in the substantial growth in membership and in the number of chapters. Membership has increased more than 150% since 2012, and the number of chapters has jumped from 20 to 41. Hilton was recognized as #11 on DiversityInc s Top 12 Companies for Employee Resource Groups list in ASIAN AND PACIFIC ISLANDER TMRG Showcase of cultural contributions to the hospitality industry WOMEN LGBT & FRIENDS AFRICAN AMERICAN ASIAN & PACIFIC ISLANDER HISPANIC/LATINO VETERANS ABILITIES MILLENNIAL HISPANIC/LATINO TMRG Partnership with Children s National Health System s Milagros para Niños ( Miracles for Kids) 6

8 Talent WE ATTRACT, DEVELOP, AND RETAIN THE BEST AND BRIGHTEST TALENT IN HOSPITALITY DEVELOPING RECRUITING LEADING Sourcing & hiring diverse talent Focusing on professional development Committing to diversity at the top Across all manager levels, we have established 30% diverse hire targets for all non-hourly job openings, in addition to one third diverse candidates for all Director and above positions. We ofer opportunities for Team Members at every level of the organization: We have set three-year diversity goals for our corporate leadership, targeting at least 35% females and 20% ethnically diverse leaders. Additionally, we have set regional goals for female representation of our global General Manager population. Our sourcing eforts and scholarship support are targeted across a broad set of talent pools, including Black, Hispanic, Asian and Paciic Islanderserving colleges and universities. External Development Programs with top universities (e.g., Harvard, Cornell, Darden) VP and GM Excellence Programs Leadership events & publications Team Member Resource Groups Diferential programs for women in leadership Our senior leaders are committed to increasing diversity: Increased focus on accountability Aligned compensation goals to demonstrated progress Measured feedback and performance on a quarterly and annual basis LEADERSHIP SPOTLIGHT As a global hospitality company, it is increasingly important for us to attract, develop and retain the best and brightest female talent. From the front desk at one of our properties to our corporate oices around the world, Hilton is committed to recruiting and developing emerging women leaders through meaningful career experiences, training and coaching. KRISTIN CAMPBELL Executive Vice President & General Counsel Executive Sponsor of Women s TMRG 7

9 WE ARE DELIBERATE IN OUR APPROACH 100 Best Places to Work for Women TO DEVELOPING WOMEN LEADERS WOMEN S LEADERSHIP PROGRAM AT UNIVERSITY OF VIRGINIA DARDEN SCHOOL OF BUSINESS Engaging our leaders to successfully navigate their careers as female executives PAX ELLEVATE GLOBAL WOMEN S INDEX FUND Achieving recognition as a highly rated company for advancing women s leadership WOMEN S EXECUTIVE NETWORKING PROGRAM WOMEN IN LEADERSHIP CONFERENCE, CHINA Providing opportunities to network and gain exposure directly from Executive Committee mentors Inspiring, empowering, and developing future hotel leaders in China and Japan 8

10 Marketplace MULTICULTURAL MARKETING IN ACTION WE ENGAGE, SUPPORT, AND CREATE BUSINESS OPPORTUNITIES IN OUR COMMUNITIES Diversity is continually promoted within our marketplace through our supplier diversity program, multicultural marketing to diverse customer segments, partnerships with numerous diverse nonproit organizations, and development of property ownership opportunities for women and minorities. We partner with key stakeholders to create opportunity in the marketplace: Suppliers Guests Communities Owners LEADERSHIP SPOTLIGHT ANDRÉA RICHARDSON Through our award-winning Supplier Diversity Program, which began nearly a decade ago, we have cultivated relationships with MORE THAN 3,400 women-, minority-, Veteran-, and LGBT-owned businesses, by developing strategic alliances with companies whose culture and values are consistent with ours. Women and minority groups account for OVER $315 MILLION, 25% of our supplier spend. Recognized as #4 on DiversityInc Top 13 Companies for Supplier Diversity, 2016 Director, Multicultural & Diversity Marketing Named one of the Top Women Executives in Advertising and Marketing by Black Enterprise Magazine -February MARCOM PLATINUM AWARD WINNER Hilton s Black Family Reunions Campaign LEADERSHIP SPOTLIGHT The diversity of our suppliers is built into Hilton s DNA, woven into the fabric of our culture and driven by the passion of our global Team Members. My team takes great pride in aligning minority owned businesses with Hilton and our suppliers. BILL KORNEGAY Senior Vice President, Hilton Supply Management Executive Sponsor of African American TMRG National Minority Supplier Development Council (NMSDC) Board of Directors member Ranked 10th among Financial Times UPstanding s Top 100 Leading Ethnic Minority Executives - May

11 WE HAVE LAUNCHED GAME-CHANGING PROGRAMS TO SUPPORT OUR DIVERSITY & INCLUSION EFFORTS ProvidinG BEST-IN-CLASS BENEFITS TO NEW PARENTS Being a part of a company that believes in family is important to our Team Members. Our industry-groundbreaking U.S. parental leave policy (launched January 2016) and adoption assistance program (launching January 2017) are great examples of delivering programs to help Team Members care for their families. HelpinG ONE MILLION YOUNG PEOPLE: OUR OPEN DOORS COMMITMENT We prepare young people for success in the world of work and beyond by developing their life and professional skills with university partnerships and career readiness programs, including mentorships, apprenticeships, and internships, and exposing them to the diversity of opportunities in hospitality through Careers@HiltonLive: Youth in Hospitality Month. HirinG 10,000 VETERANS IN THE UNITED STATES In 2013, we launched Operation: Opportunity, our company s major initiative to hire 10,000 military veterans and military spouses by In just three years, we hit our goal of 10,000 hires in SupportinG THE EDUCATION OF OUR WORKFORCE In 2015, we rolled out our industry-leading GED Assistance program, ofering thousands of Team Members in the United States the opportunity to earn their high school diploma. CelebratinG OUR COMMITMENT TO THE LGBT COMMUNITY We introduced our Stay Hilton. Go Out. signature program in 2012 to engage LGBT travelers by celebrating the rich history, culture and nightlife of top gay destinations around the world. From tailored packages to sponsoring major events, we look to connect with the LGBT community in authentic ways and ind touch points that matter most. CreatinG OPPORTUNITIES, STRENGTHENING COMMUNITIES & LIVING SUSTAINABLY At the heart of our corporate responsibility strategy, Travel with Purpose, is the fundamental belief that any Team Member can make a diference, and that we as individuals, teams, hotels, and a company can positively impact the communities where we live, work, and travel. 10

12 WE ARE RECOGNIZED FOR OUR INCLUSIVE CULTURE, PROGRAMS AND PARTNERSHIPS 10 Best Workplaces in the Fortune 500, 2016 Best Companies to Work For (#56), 2016 Best Workplaces for Women (#56), 2016 Best Workplaces for Millennials (#60), 2016 Best Multinational Workplaces, 2016 World s Most Admired Companies, 2015 & 2016 Learning Elite Award, 2015 Chief Learning Oicer Most Valuable Employer, 2016 CivilianJobs.com Fortune Magazine Best Large Workplaces Award, 2016: China (#1) Mexico Turkey (#1) Colombia Netherlands United Arab Emirates India Peru United Kingdom Italy Sri Lanka United States Regional Winner in Europe and Latin America, Best Workplaces for Women, 2016 World s 25 Best Multinational Workplaces, 2016 Top 50 Organizations for Multicultural Business Opportunities (#38), 2016 DiversityBusiness.com USA Top 100 Most Attractive Employers Ranking for Business, 2016 APAC Top 50 Most Attractive Employers, 2016 Universum USA & Universum China Great Place To Work Top 50 Companies for Latinas to Work, 2016 Latina Style 50 America s Best Employers, 2016 Forbes LATINO Companies Providing the Most Opportunities for Latinos, 2016 Top 50 Companies for Diversity (#42), 2016 Top 15 Companies for Mentoring (#3), 2016 Top 13 Companies for Supplier Diversity (#4), 2016 Top 12 Companies for Employee Resource Groups (#11), 2016 LATINO Magazine DiversityInc Workplace Magazine Corporate Equality Index Rating of 100 Percent, 2017 Top 100 Military Friendly Employers, 2016 Top 100 Military Spouse Friendly Employers, 2016 Best for Vets: Employers, 2016 Human Rights Campaign Workforce 100: Ranking the World s Top Companies for HR, 2016 Military Times Magazine Corporate Leadership Award, 2016 National LGBTQ Task Force Top Supplier Diversity Program, 2016 Top Diversity Employer of Women, 2016 Top 72 Most Transgender Friendly Companies, 2015 The 25 Most LGBT-Friendly Brands, Trailblazing Company (#7), 2015 Professional Woman s Magazine LOGO Top Supplier Diversity Program, 2016 Top Diversity Employer, 2016 Black EOE Journal Gold Award for Best Impact of Corporate University on Implementation of Business Strategies of the Organization, Out Front Companies for Diversity Leadership (#26), 2016 GlobalCCU Diversity MBA 11

13 LE RSHIP TEAMW A DE HO SP ITY INTEGR IT Y AL IT Diversity is our future, is part of our legacy, and is fundamental to our success. W OR K OW NERSHIP N O