Hilton Sees Strong Fourth Quarter

BEVERLY HILLS, CA— Despite a strong fourth quarter, Hilton Hotels Corp. said it has cut in half its plan to open more than 400 hotels over the next two years. For the fourth quarter of 2000 ended Dec. 31, Hilton reported net income of $64 million, or 17 cents per diluted share, compared to $25 million, or 7 cents per diluted share, for the same period a year ago. On a recurring basis, fourth quarter net income was $59 million, or 16 cents per diluted share, versus $42 million, or 11 cents per diluted share last year, representing a 45% increase in earnings per share. Comparable RevPAR at the company’s U.S.-owned or -operated hotels increased 7.4% during the quarter, and was achieved despite severe weather conditions in December that affected business and leisure travel in certain U.S. markets. RevPAR benefited from occupancy increasing 1.8 points to 68.2% and a 4.7% increase in ADR. Within the Hilton full-service brand, comparable owned or operated RevPAR increased 7.8% for the quarter, a result of a 3 point gain in occupancy to 71.5% and a 3.2% improvement in ADR to $175.94. For the full year, comparable RevPAR at Hilton’s U.S.-owned or -operated hotels increased 7.8%. Occupancy improved two points to 73.3%, while ADR increased 4.8% to $133.04. Full-year comparable RevPAR within the Hilton full-service brand increased 9.9% from a 3.2-point improvement in occupancy to 76.3% and an ADR gain of 5.3% to $166.77. Hilton reported a 7% increase in fourth quarter revenue to $875 million, while fiscal 2000 revenue improved 9%.