Hilton Group Reports Increased Profits

LONDON— Hilton Group reported surging profits in the first half of 2001 and declared that the London hotel market remained remarkably buoyant despite knockbacks from the economic downturn and foot-and-mouth disease. The owner of Ladbrokes betting shops and Hiltons outside the U.S. said its 10 London hotels were still running at about 80% full, while revenues were easily holding their own. London Revpar increased by about 9% in the foot-and-mouth-free first quarter. That unusually high growth flatlined in the second quarter, but was measured against a record period in 2000, said Chief Executive David Michels. Hilton remains on target to pick up cost savings of £9 million, or $12.8 million, from its recent acquisition of Scandinavias 154-strong Scandic hotels estate. Forty properties will be reflagged under the Hilton flag. SOURCE: Evening Standard