Hilton Hawaiian Village's renovations dent profits
Hilton Hotels Corp., the third-largest U.S. hotel operator, said second-quarter profit fell 29 percent from a year earlier when it had a gain from selling properties.
The Beverly Hills, Calif.-based company also said renovations at Hilton Hawaiian Village significantly hit its revenue per available room, though the property still showed a double-digit gain. Food and beverage business at the hotel also was adversely impacted due to group business disruptions, Hilton said.
Renovations at Hilton Hawaiian Village, which include upgrades to the Tapa Tower and refurbishment of a lagoon on the property, are scheduled to be completed during the current quarter.
Hilton has seven properties in Hawaii, including Hilton Grand Vacations Club at Hilton Hawaiian Village, Hilton Hawaiian Village Beach Resort and Spa, Hilton Waikiki Prince Kuhio, Hilton Kauai Beach Resort, Hilton Grand Vacations Club at Waikoloa Beach Resort, Hilton Waikoloa Beach and the Grand Wailea Resort Hotel & Spa.
Net income dropped to $144 million, or 35 cents a share, missing analysts' estimates.