Lodging giant’s profit soars

Monday, Jan. 26, 2004 | 9:07 a.m.

BEVERLY HILLS, Calif. -- Hilton Hotels Corp., the No. 3 U.S. hotel company and a big operator in Las Vegas, today said fourth-quarter profit rose 68 percent on improved demand for its urban hotels.

Net income rose to $67 million, or 17 cents a share, from $40 million, or 11 cents a year earlier, the company said in a statement. Revenue rose 3.3 percent to $989 million from $957 million.

Business and international travel improved in the second half of last year, Hilton said. Business travel is expected to rise further this year, after a weak economy, the Sept. 11 attacks and war in Iraq slowed demand starting in 2001, according to PricewaterhouseCoopers.

The company was expected to earn 11 cents a share, based on the average estimate of analysts polled by Thomson Financial.

Hilton, the first of the three largest U.S. hotel companies to report earnings, owns, manages or franchises more than 2,000 hotels under the Doubletree, Hampton Inn and Embassy Suites names. Hilton trails Marriott International Inc. and Starwood Hotels & Resorts Worldwide Inc. in annual sales.