Hilton Profit Surges 46 Percent

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Hilton Hotels Corp. on Thursday said third-quarter profit soared 46 percent, led by strong increases in hotel stays and rates across various consumer segments.


The Beverly Hills-based hotelier reported third-quarter net income of $89 million (22 cents per share), compared with $61 million (15 cents) for the like period a year earlier. Revenue rose 7 percent to $1.1 billion.


Analysts expected a profit of 20 cents a share on revenue of $1.06 billion.


Revenue per available room rose 13.3 percent at owned hotels in the quarter, and is expected to advance about 11 percent for the full year. Company-owned hotels in New York City and Hawaii the two strongest U.S. lodging markets fueled the double-digit gains in the quarter, Hilton said. The average daily rate increased 8.9 percent to $171.02. As of Sept. 30, the Hilton system consisted of 2,357 properties and 370,111 rooms.


Hilton narrowed its full-year earnings outlook to about $1.05 per share, compared with previous guidance of $1.05 to $1.07 per share. The new outlook includes an estimated loss of 2 cents a share from Hurricane Katrina. Hilton’s two hotels in New Orleans suffered business interruptions and minor damage because of the hurricane. Both hotels are now primarily occupied by relief workers and Hilton employees.


Full-year revenue is anticipated to be in the range of $4.40 billion, compared with previous guidance of $4.44 billion to $4.46 billion.


For 2006, the company expects earnings of 97 cents to $1.03 per share and projected room revenue growth of 8 percent to 10 percent.


Hilton shares fell 3.2 percent to $19.18 on Thursday.

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