BEVERLY HILLS, CA— Hilton Hotels Corp. reported meager fourth-quarter profits of $4 million as revenues suffered amid an economic slump and the travel slowdown following the terrorist attacks on the United States September 11. Profits amounted to 1 cent per share, compared with net earnings of $64 million, or 17 cents per share, a year earlier. The consensus earnings estimate among analysts polled by research firm Thomson Financial/First Call was for a break-even fourth quarter, with forecasts ranging from a profit of 2 cents per share to a loss of 3 cents per share. Revenues totaled $662 million, down 24% from a year earlier. Hotel room revenues were down 22.8%. Reportedly, Hilton expects 2002 revenues will be down 1%, with earnings before interest, taxes, depreciation and amortization up 1 to 2%. It expects earnings in the low 60 cents per share range. Hilton said it expects its recent sale of the Red Lion hotel chain and a difficult financing market to impact its new hotel openings this year. However, the chain reaffirmed guidance for total capital expenditures in 2002 at $250 million.
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