Questions mount over hilton bid

21 March 2003
Questions mount over hilton bid

Hilton Group executives are expecting a deluge of questions over whether it intends to bid for Six Continents' hotels when it announces its preliminary results today. The group has been consistently dismissive of mounting speculation that it is preparing to bid. However a spokesman said that the group will "watch closely" the outcome of Six Continents' demerger plans.

Hilton's results are expected to be flat, at best, in line with other major hotel groups suffering from a decline in overseas visitors and dwindling consumer spend. A spokesman said that, in the past few months, it had not encountered any major upswing or downturn in the number of overseas visitors to its hotels. Overseas visitors account for 20% of guests.

Last week saw brokers both upgrading and downgrading recommendations, according to investor website multexinvestor.co.uk. Analyst Salomon Schroder Smith Barney, expecting poor hotel performance, said Hilton's results would be bolstered by its gaming arm, Ladbrokes; while Credit Suisse First Boston expected Hilton Germany to show losses by its leasing structures, with tax changes in Germany - from 22% to 24% - also causing concern.

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