Under the planned disposal program, Hilton is in the process of selling 11 UK hotels, which would otherwise need "considerable" investment. It may make further asset disposals during the next 12 months, either through outright sales or through "sale and manage" arrangements, the company says. If all the disposals are achieved, the company will raise up to euro 576.1 million ($764 million). It has not yet decided how the cash will be returned to investors.
Prospects for the hotel sector are the best for years, Hilton says, and the recovery at the division has continued. Operating profits were up 17% to euro 249 million (330.6 million) as like-for-like revenue per room climbed 7% worldwide.
Despite the buoyant outlook, the company cautions it has felt the impact of increasing cost pressures, notably wages, energy and business rates. Capital expenditure remains under tight control, with the redevelopment of the Sydney Hilton the only major ongoing project. The company also has an upbeat outlook for its gaming division, and says it wants to develop a regional casino if planned deregulation of the industry occurs. It also expects its core betting shop business to grow and the online businesses to expand.
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