Hilton Hotels’ Q3 Profit Jumps

BEVERLY HILLS, CA— Hilton Hotels Corp.’s third-quarter profit rose 46% as its revenue climbed, with a show of strength in hotel occupancy and rates across its brands. Earnings for the quarter increased to $89 million from $61 million or $0.22 per share from $0.15 cents per share last year. Revenue climbed 7% to $1.1 billion from $1.03 billion. Earnings before interest, taxes, depreciation and amortization were $279 million, up 9% from $257 million in the year-ago quarter. Based on a Thomson Financial poll, the Associated Press reported analysts had expected earnings of $0.20 per share and lower revenue of $1.06 billion. In a statement, Hilton CEO Stephen Bollenbach termed the financial results “outstanding,” but acknowledged the company was challenged by events surrounding Hurricane Katrina in New Orleans and along the Gulf Coast. Two hotels in New Orleans, the Hilton New Orleans Riverside and the Hilton New Orleans Airport, had some business interruptions and minor damage due to Hurricane Katrina. Both hotels are now mainly occupied by relief workers and Hilton employees. For the full year, Hilton narrowed its outlook to the lower end of expectations issued in July, said the AP, and put earnings within the $1.05 range, with recurring earnings in the low $0.80 per share range. It sees total revenue within a $4.4 billion range. In July, Hilton forecast earnings of $1.05 to $1.07 per share, and recurring earnings of $0.82-$0.84 per share, on revenue of $4.44 billion-$4.46 billion. Analysts have predicted a full-year profit of $0.85 per share on revenue of $4.44 billion, said the AP. Hilton forecast 2006 earnings of $0.97-$1.03 per share, compared with analysts expectations of $1.04 per share.