BEVERLY HILLS, CA— Hilton Hotels Corp. said room revenues at its hotels would fall about 5% in the second quarter, down from its earlier forecast of a decline of between 1% and 2%. Hilton said RevPAR has not risen as much as anticipated in late April, when it reported first-quarter results. In a statement issued as it meets with investors, Hilton held to its April forecast for earnings before interest, taxes, depreciation, amortization and non-cash items of around $300 million, with diluted earnings per share in the 20-cent range. The company, among the first in the industry to cut costs last year, said earnings were supported by better profit margins at its owned hotels and demand for its time-share properties. Hilton said EBITDA margins at its owned hotels were in the mid-30% range.
