LOS ANGELES — Hilton Hotels Corp. CEO Stephen Bollenbach will step down at the end of the year, but remain as co-chairman of the board through 2010, the hotel operator said yesterday.

The Beverly Hills-based company said it expects to name a successor to Bollenbach by this summer.

Bollenbach, 64, served as CEO for the past 11 years. On the board, he will assist with long-term planning, strategic oversight and other matters, the company said.

His employment agreement calls for him to serve as a consultant to the company for a year after vacating his position on the board.

"We are pleased that we — along with our shareholders, team members and hotel owners — will continue to have the benefit of Steve's business acumen, experience and insights as Hilton strengthens its position as the premier global lodging company," co-chairman Barron Hilton said in a prepared statement.

Hilton spokesman Marc Grossman said Bollenbach had made no secret that he intended to retire as CEO at the end of the year and remain on the board.

Wall Street analysts said the timing of Bollenbach's move made sense.

"This is pretty unsurprising news, especially now that he's succeeded in sort of reuniting Hilton into one global company," said Jeffrey Randall, a lodging equity analyst at A.G. Edwards & Sons Inc.

Among the dramatic changes overseen by Bollenbach, Hilton grew then spun off its gaming business, steered the acquisition of Promise Hotels, and forged an alliance with Hilton International that served as a precursor to the two companies merging last year.

"He's been, by all measures, an incredibly successful CEO," said Robert LaFleur, a lodging industry analyst with Susquehanna Financial Group. "The stock is up $10 since the summer, so certainly there wasn't any clamoring for a new direction for the company."

Analysts speculated that Matthew Hart, Hilton's president and chief operating officer, may be tapped as Bollenbach's successor.

Yesterday, Hilton announced Hart was elected to the board.

"He's been the obvious successor for some time and the election to the board, I think, solidifies that thinking," Randall said.

Hilton operates more than 2,800 hotels in more than 80 countries. Its brands include Doubletree, Embassy Suites, Hampton and its namesake.

Hilton shares fell 14 cents to close at $35.09 yesterday on the New York Stock Exchange.