Hilton embarks on expansion plan with purchase of Caledonian

Hilton International has agreed to buy the Caledonian hotel in Edinburgh from Queens Moat Houses for £44.15m. The sale of the 249-bedroom hotel is expected to take place at the end of March. The group announced today that it also intends to spend some £338m on opening and refurbishing hotels this year.

Peter George, group chief executive, said: "We intend to double Hilton's annual rate of new hotel openings in key cities, airports and resorts over the next five years."

Reporting its results for the year ended 31 December 1999, Hilton revealed a profits drop for its combined UK portfolio from £173.1m to £164.1m, due mainly to the disposal of 12 hotels. Turnover in the UK increased from £303.4m in 1998, to £516.2m last year.

Worldwide, Hilton Group's pre-tax profits increased 9.9% to £305m, from £277.5m in 1998; and turnover was £4.29b last year, compared with £4.68b the previous year. Average occupancy was 67.5% while average room rates were £69.50. Revenue per available room (revpar) averaged £46.90.

Revpar at Hilton's UK hotels was £77.30 in London and £43.70 in the provinces. For the Stakis hotels these figures were £64.80 and £45.30 respectively.

Hilton has 217 hotels, with more than 61,000 bedrooms, in 55 countries.

Between June 1999 and the end of 2000 it intends to open 26 hotels, with 7,214 bedrooms.