Hilton profits fall to £98m

HOTELS and betting group Hilton yesterday reported a slump in half-year profits after its hotels arm continued to suffer from fall in demand.

The division, which includes 78 sites in the UK and Ireland, has been hurt by the global economic downturn and the fall in international travel.

Profits at the hotels slid 23% to stg£97.8m for the six months to June 30, Hilton said.

The fall knocked overall pre-tax profits, stripping out one-off costs, which came in 10% lower at £130m.

Hilton said the market was still uncertain.

“The timing of an upturn in global travel remains uncertain but the hotel division has positioned itself well to benefit from the recovery when it comes,” the group said.

But while the hotel business suffered, the group’s Ladbrokes gaming arm, which includes 1,900 shops, saw profits jump 20% to £76.5m.

The group said it benefited “enormously” from changes in the UK bookmaking industry. This included the scrapping of betting tax for punters.

The group said the prospects for the betting and gaming division remained “positive for the rest of the year and beyond”.

Chief executive David Michels said: “I believe the group as a whole has performed relatively well despite widely divergent performances from our two divisions, operating as they have, in totally different environments.”

But the group said its hotels division, which operates 385 hotels in 65 countries, had seen a smaller decrease in revenues than in previous downturns. Hilton shares slid 4% yesterday after the announcement.