Hilton is a general indicator for decline in international travel
The decline in international travel has hit Hilton Group’s hotels, causing profits to fall by 17 per cent. In the 12 months to December 31 2002, operating profit at the London-based company’s 384 hotels fell to GBP212.1 million, down from GBP255.3 million for the same period in 2001.
Turnover increased by 8.8 per cent to GBP2.7 billion, compared with GBP2.5 billion a year earlier.
Revenue per available room (revpar) across the group’s hotels fell by one per cent to GBP44.95, with occupancy down by 0.5 percentage points to 64.7 per cent and average room rate down by 0.2 per cent to GBP69.51.
The Asia Pacific and Middle East region recorded a 2 per cent decline in profits to GBP24.2 million during the year, while revpar increased by 6.4 per cent to GBP45.89.
Hilton cited the difficult economic climate as a reason for the declines.
It said that until the economic climate became clearer, capital expenditure would be kept to a minimum and the company would focus on controlling its costs.