Hilton International profits plunge 18%

Profit at UK-based Hilton International's hotels fell by almost 18% in the 12 months to 31 December.

Excluding a £33.9m profit from Scandic Hotels, which Hilton bought in June 2001, profit fell by 17.4% to £221m. The company cited difficult trading conditions after 11 September as the reason for the decline.

In the group's UK and Ireland hotels, profit fell by 19.3% to £126m because of the sale-and-leaseback of 11 hotels to the Royal Bank of Scotland for £312m, which Hilton said reduced profitability by £16.8m.

The sale of a further five hotels, and the effects of the foot-and-mouth outbreak, were also blamed for the decline.

Turnover at the group's UK hotels fell by 1.4% to £598m, down from £606m in 2000. Overall revenue per available room (revpar) was down by 0.3% to £60, with the figure for London down by 4.9% to £75.80. Outside London, the hotels performed well, with revpar up by 3.5% to £50.30.

In Europe, the Middle East and Africa, profit fell from £83m in 2000 to £73m in 2001. Revpar fell 6.5% to £45.10.

But trading in Asia and Australasia held up well, said Hilton. Profit grew by 2.9% to £14m, though turnover fell to £497m from £519m. In the Americas, revpar increased to £47 from £45.20. Turnover increased by 5.8% to £262m, but profit fell by 5.5% to £24m.

by Samantha McClary