Ladbroke quashes Hilton merger speculation

Ladbroke Group has quashed speculation about a full merger between its Hilton International chain and the USA-based Hilton Hotels Corporation, which owns the Hilton brand in the USA.

Both hotel groups signed a marketing alliance in January to unite the Hilton name worldwide but, according to a spokesman, there are no plans to take the alliance further.

"We had discussions about a merger before the alliance was signed, but it didn't result in any action for legal and tax reasons. It is not on the agenda now," said a Ladbroke spokesman.

Since the marketing partnership was signed, the two hotel chains have combined guest loyalty schemes, and work is under way on a single logo. There are also plans to merge sales offices worldwide.

Meanwhile, the Hilton International chain has announced interim profits for the six months to 30 June up 20% to £76.2m from £70m on a like-for-like basis at constant exchange rates.

However turnover, which includes owned and managed hotels, was down to £851.8m, from £914.1m for the same period last year.

Hilton's 25 UK hotels saw profits rise to £42.7m from £38.9m in the same period last year.

Ladbroke reported the London market as "particularly buoyant" with average room rates up 12.7%.

Revenue per available room was £72.90 in the 10 London hotels and £40.40 in the chain's 15 provincial properties.

Hilton International's overall occupancy was up 1% to 69.1%. And overall average room rate increased by 6.4% on a like-for-like currency basis to £68.90. But in sterling terms it fell by 3%.

In the provinces, good demand for meetings and conferences contributed to the improved result.

Ladbroke's group profits before tax and exceptional items increased by 39% to £101.2m.