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BEVERLY HILLS, Calif. -- Hilton Hotels Corp., owner of Doubletree, Hampton Inn and Hilton hotels in the United States, is likely to report second-quarter earnings tomorrow that will top published estimates, analysts said. Hilton net likely
to top forecasts,
analysts sayBloomberg News
The company is projected to report profit from operations of 21 cents a share, the average estimate of analysts polled by First Call/Thomson Financial, about the same as its profit from operations in the second quarter 1999.
Hilton's profit is likely to be more than 21 cents a share, though, after the growing U.S. economy spurred travel in the second quarter, especially to big cities like New York and San Francisco. Hilton owns some of the biggest hotels at prime locations in those cities, analysts said.
"I would expect nothing short of a few cents upside surprise from Hilton," said Credit Lyonnais Securities Inc. analyst Bryan Maher, who rates Hilton shares "add."
Other big U.S. hotel companies, including Marriott International Inc. and Starwood Hotels & Resorts Worldwide Inc., already have reported earnings that topped analyst estimates, as they charged higher room prices at upscale, big city hotels.
Hilton's more-than-1,900 hotels include trophy properties such as the Waldorf-Astoria in New York, the Hilton San Francisco & Towers and the Hilton Hawaiian Village in Honolulu.
The Beverly Hills, Calif.-based company's shares have risen about 6 percent this year. Hilton shares have fallen 21 percent over the past year as expenses from its $3.7 billion acquisition of Promus Hotel Corp. last year reduced profit.
Hilton shares fell 19 cents to $10.06 today on the New York Stock Exchange.