Hilton considers sale of hotels

Leisure group Hilton reported a 41% hike in annual profits to £383.1m (€551.8m) today as it unveiled plans to sell a string of hotels.

The group, which also owns the Ladbrokes betting business, said it planned to raise £300m (€432.1m) to £400m (€576.2m) from the sale of hotels in the next 12 months - and hoped to return a substantial part of that to shareholders.

It said 2004 had been an “eventful but also encouraging” year, with Ladbrokes bringing in record profits of £273.4m (€393.7m) despite adverse racing and football results at the end of the year. Hilton reported a satisfactory start to 2005.

The group is already in the process of selling 11 UK hotels and said it was looking at the possibility of further disposals in the next 12 months.

Finance director Brian Wallace could not say where the hotels might be or how many would be involved, but said they would probably be sold and leased back to the company.

During the year to December 31, profits at the hotels division rose by 17% to £171.3m (€246.7m) as the recovery in the sector continued.