Hilton '03 Earnings Suggest Better '04

Hilton Hotels Corp. today announced that full-year 2003 net income fell approximately 17 percent from 2002. Growth in revenue per available room, a key indicator of hotel profitability, fell from 2002 at each Hilton brand, except for Hilton Garden Inn, its midprice with food and beverage chain. Fourth-quarter results, however, were more positive, with all but Doubletree, a full-service brand, showing gains in quarterly RevPAR growth.

The first of the large multi-brand company companies to report 2003 earnings, Hilton's results are a good indicator for the industry as a whole. Its relatively upbeat fourth-quarter performance led Hilton to project that the positive results would extend into 2004. The company cited "continuing improvement in the U.S. economy and improving trends in business travel and international visitation" for the generally optimistic 2004 outlook.

On a market-by-market basis, Hilton said New York, Washington, D.C., New Orleans, Honolulu and Boston, key destinations for both transient and group business travel, were expected to fare well in 2004, while bookings in San Francisco and Chicago were likely to remain soft. Chicago is at a disadvantage due to a reduced number of citywide conventions planned for the year.