Hilton Forecasts Slower Growth, Trims Plans for 2001

BEVERLY HILLS, CA-Lodging giant Hilton Hotels Corp. said Wednesday that its fourth-quarter earnings met analysts’ estimates, but added that its revenue growth will likely slow this year in lock-step with the economy.

Hilton also said it will scale back the number of hotels it originally expected to open in 2001, a reflection of the tight financing environment for new lodging projects. Wall Street reacted by sending Hilton’s stock down nearly 6%.

Hilton–whose brands also include the Doubletree, Homewood Suites, Embassy Suites and Hampton Inns–is considered a bellwether for the lodging industry because it serves a broad range of customers throughout the United States and around the world. The company reported fourth-quarter earnings of $64 million, or 17 cents a share, compared to a year-earlier $25 million, or seven cents a share. Revenue totaled $875 million, a 7% gain from a year earlier.