Rockett says that these deals are an outgrowth of the merger between Hilton Hotels Corp. and Hilton International that took place last year. "It took a year for the two companies to integrate," Rockett says. "The strategy [behind the merger] was to expand globally, and now we're seeing the fruits of that focus."

In planting its flag worldwide, Rockett says Hilton's plan is to partner with development entities that can do several deals at one time. "We want to create relationships that create multiple units," he says.

In these deals, Hilton will act as the manager, not an investor, Rockett says. It will be up the development partners to pick the sites and advance the projects, he says.

Hilton sees Russia as "an outstanding market in which to pursue hotel development, given the powerful combination of improving economics and favorable demographics," according to Ian Carter, chief executive of Hilton's international operations. "There is almost a total absence of internationally branded properties throughout the regional cities of Russia, Carter says.

The development focus in Russia will be in Moscow and St. Petersburg as well as key regional cities. The first hotel expected to be included in the deal will be in the center of Novosibirsk, Russia's third largest city, where L&R is already developing a mixed-use hotel and office project that features a 186-room Doubletree by Hilton. The hotel is expected to open in the second quarter of 2008.

In the UK and Ireland, Hilton will enter into a preferred development alliance with Shiva Hotels. Shiva, a privately owned company, is looking to expand its existing interests in the hotel sector and has four hotel sites under development that are expected to be included in the agreement with Hilton. The four sites under development are a 350-room Hilton near Heathrow Terminal 5, a 200-room Hilton and a 120-room Hampton Inn by Hilton in Leeds and a 120-room Hampton by Hilton in Derby.