|
|
.
|
Newsletter - October 24, 2002
Hilton's
Third Quarter net income more than doubled
Hilton
Reports Third Quarter Results
|
Strong Occupancy Levels Drive RevPAR Growth at Owned Hotels; All
Hilton Brands Continue to Increase Market Share; Cost Controls
Contribute to Solid Margins
(BUSINESS WIRE) -- Hilton Hotels Corporation (NYSE:HLT) today
reported financial results for the third quarter and nine months
ended September 30, 2002.
Compared to the year-ago quarter, the following factors
contributed to the company achieving solid quarterly
earnings-per-share in a continued challenging environment: positive
revenue-per-available-room (RevPAR) growth at the company's
comparable owned hotels, driven by high occupancy levels at most of
the company's owned city-center properties; market share increases
for all brands in the Hilton family; solid margins; a decline in
interest expense; favorable comparisons in late September versus the
2001 period, and a reduction in the provision for income taxes.
Factors adversely impacting the quarter, compared to the 2001
period, included: a general decline in average daily room rates (ADR);
general weakness during the week of September 11; increased
insurance costs, and an additional charge related to the Hilton
Hawaiian Village.
Hilton reported third quarter net income of $48 million, versus
$21 million in the 2001 quarter. Diluted net income per share was
$.13, compared with $.06 in the third quarter 2001. Pro forma
diluted EPS in the third quarter 2001 (including $.03 per share from
the new accounting rules pertaining to non-amortization of goodwill
and certain intangible assets) was $.09.
The following items combined to benefit the company's third
quarter income by approximately $.02 per diluted share:
- A $15.6 million reduction in the provision for income taxes
(equal to $.04 per diluted share) due to higher than expected
utilization of capital loss carryforwards on its 2001 Federal
income tax return that was filed in September of this year.
- A pre-tax charge of $10 million, or approximately $.02 per
diluted share, for continued mold remediation efforts in certain
areas of the Hilton Hawaiian Village. Actual costs incurred in
future periods may vary from the estimates, given the inherent
uncertainties in evaluating these types of situations. Hilton
anticipates being able to re-open the hotel's Kalia Tower
guestrooms in the second quarter 2003.
The company reported 2002 third quarter total revenue of $934
million compared with $942 million in the 2001 period. Total company
earnings before interest, taxes, depreciation, amortization and
non-cash items (EBITDA) was $224 million, compared with $237 million
in the 2001 quarter. Revenue and EBITDA each increased 1 percent in
the third quarter when excluding the impact of the following items:
asset sales (primarily the 2001 CNL and Red Lion transactions); the
purchase of the Hilton Waikoloa Village in 2002, the sale of
Harrison Conference Centers, and the cash portion of the
aforementioned remediation costs in Hawaii.
Total company EBITDA margin for the quarter was 32.0 percent (EBITDA
as a percentage of revenue before "other revenue from managed
and franchised properties").
Owned Hotel Results
Across all brands, EBITDA from the company's owned hotels totaled
$137 million in the third quarter, with comparable EBITDA up 3.0
percent from the 2001 period. RevPAR from comparable owned
properties increased 1.2 percent in the quarter; occupancy at these
hotels showed an increase of 3.6 points to 73.7 percent, while
average daily rate declined 3.7 percent to $141.13. EBITDA margins
at these hotels, while impacted by increased insurance costs,
remained solid for the quarter at 27.0 percent, equal to the 2001
quarter.
Third quarter comparisons to the first two quarters of 2002
continue to confirm the sequential quarterly improvement the company
has anticipated for the year. Compared with the respective 2001
quarters, RevPAR at comparable owned hotels in the first and second
quarters 2002 declined 15.3 percent and 6.1 percent, respectively,
compared to the 1.2 percent increase in the third quarter 2002.
Consistent with the company's strategy of driving occupancy in a
continued rate-sensitive environment, the third quarter RevPAR
increase was fueled by strong occupancy levels at the company's
owned hotels in many of its most important markets; the Boston,
Chicago, Honolulu, New York, San Diego and Seattle (Airport) markets
each reported occupancy in excess of 74 percent, with several
solidly in the 80's. Additionally, solid RevPAR gains were reported
at the company's owned hotels in Washington, D.C., Minneapolis,
Charlotte and Portland (Oregon). The company's hotels in the San
Francisco/San Jose and Phoenix markets continue to exhibit softness
owing to a combination of demand pressure and the introduction of
new competitive supply.
Owned-or-Operated Hotel Results
Comparable RevPAR at the company's owned-or-operated hotels
increased 0.6 percent in the quarter, compared to the 2001 period,
on an occupancy increase of 3.1 points to 71.4 percent, and a 3.6
percent decline in ADR to $121.06. Within the Hilton full-service
brand, comparable owned-or-operated RevPAR increased 0.2 percent,
with occupancy up 2.4 points to 72.5 percent, and ADR declining 3.1
percent to $140.84.
As with the owned hotels, comparisons to the 2002 first and
second quarters continue to show sequential quarterly improvement.
In the first and second quarters, comparable U.S. owned-or-operated
RevPAR decreased 13.7 percent and 7.5 percent, respectively,
compared to the 0.6 percent increase in the third quarter.
System-wide RevPAR; Management/Franchise Fees
System-wide RevPAR increased at each of the Hilton brands
(including franchise properties) during the quarter as follows:
Hilton Garden Inn, 4.3 percent; Embassy Suites, 2.9 percent; Hampton
Inn, 1.9 percent; Hilton, 1.1 percent; Homewood Suites by Hilton,
0.6 percent, and Doubletree, 0.4 percent.
Management and franchise fees for the quarter totaled $83
million, a 5 percent increase from the 2001 period.
Brand Development/Market Share
Year-to-date August 2002 (the latest period for which data is
available), each of the company's hotel brands has increased market
share, with most commanding significant RevPAR premiums over their
respective competitive sets. With 100 representing a brand's
"fair share" of the market, the Hilton brands (according
to data from Smith Travel Research) performed as follows for the
first eight months of 2002: Embassy Suites, 123.7 (+3.8 pts.);
Homewood Suites by Hilton, 118.2 (+5.3 pts.); Hampton Inn, 118.1
(+4.7 pts.); Hilton, 109.5 (+2.6 pts.); Hilton Garden Inn, 107.8
(+2.5 pts.), and Doubletree, 99.1 (+0.9 pts.)
Effective cross-selling among the Hilton family of brands, along
with the benefits of the Hilton HHonors loyalty program, continues
to contribute to the strong performance of the company's brands.
Through the first nine months of 2002, cross-selling through Hilton
Reservations Worldwide generated approximately $238 million in
system-wide booked revenue, an increase of more than 20 percent over
the same period a year ago. HHonors members comprise a combined 36
percent of the occupancy at all of the company's hotel brands.
During the quarter, two of the company's brands - Embassy Suites
and Hilton Garden Inn - earned first place J.D. Power Awards for
"Highest Customer Satisfaction." Embassy Suites was a
winner for the fourth consecutive year, a first in the history of
the J.D. Power Award in the lodging category.
In the third quarter, the company added 39 properties and 4,658
rooms to its system as follows: Hampton Inn, 18 hotels and 1,527
rooms; Hilton Garden Inn, 10 hotels and 1,377 rooms (including the
company's 150th Garden Inn, located in Arlington, Virginia);
Homewood Suites by Hilton, 6 hotels and 725 rooms (including four
conversions from a non-Hilton brand); Doubletree, 2 hotels and 424
rooms (conversions in Key West, Florida and Charlotte, North
Carolina); Embassy Suites, 1 hotel and 150 rooms; Hilton Grand
Vacations, 1 property and 70 rooms; other, 1 hotel and 385 rooms (a
property currently managed by the company and slated for re-flagging
to the Hilton brand post-renovation).
Eighteen hotels and 3,851 rooms were removed from the system
during the quarter, 13 due to Hilton's termination of its
affiliation with the Camino Real chain in Mexico. At September 30,
2002, the company's system totaled 2,058 properties and 334,704
rooms.
The company's current development pipeline has approximately 365
hotels and 50,000 rooms either approved, in design or under
construction.
Hilton Grand Vacations
The company's vacation ownership business, Hilton Grand Vacations
Company, reported an EBITDA increase for the quarter of
approximately 7 percent to $20 million. Strong sales at its property
adjacent to the Hilton Hawaiian Village (currently approximately 46
percent sold), and an increase in average unit sales price across
the HGVC system, contributed to this increase.
Sales began in June, and development continues on schedule, at
the company's three most recently announced timeshare projects: in
Las Vegas, Nevada at the north end of the Las Vegas Strip (estimated
completion of the 295 units in Phase I: late 2003); in Orlando,
Florida (estimated completion of the 96 units in Phases I and II:
early 2004); and at the new 78-unit "Hilton Club" in
midtown Manhattan's Hilton New York (estimated completion: year-end
2002.)
Twenty-two percent of unit sales in the third quarter were at
these new venues which, due to the required method of accounting for
construction period sales, limited the amount of reported revenue
and EBITDA growth.
In addition, the following factors combined to adversely impact
HGVC EBITDA by approximately $4.5 million in the third quarter: the
sale of receivables in the second quarter 2002; revisions to final
construction costs in Hawaii, and start-up costs in New York.
Corporate Finance
At September 30, 2002, Hilton had total debt of $4.4 billion (net
of $325 million of debt allocated to Park Place Entertainment). As
of September 30, 2002, approximately 30 percent of the company's
debt was floating rate debt. Cash and equivalents totaled
approximately $63 million at September 30, 2002. The company's
average basic and diluted shares outstanding for the third quarter
were 376 million and 402 million, respectively.
Consolidated interest expense declined 18 percent in the third
quarter due to reduced debt balances and declining interest rates.
Hilton's debt currently has an average life of 6.5 years, at an
average cost of approximately 6.1 percent. At September 30, 2002,
the company had approximately $620 million of available capacity
under its various lines of credit.
The company's effective tax rate for the 2002 third quarter was
approximately 8 percent, due to the aforementioned $15.6 million
reduction in the provision for income taxes.
During the quarter, the company resolved a property insurance
issue with the servicer of its 7.95 percent collateralized mortgage
bonds due 2010. As reported in the second quarter 10-Q, the servicer
of the bonds asserted that an event of default arose due to an
exclusion from insurance coverage for terrorist acts. While Hilton
disputed whether the insurance was required, the company decided to
obtain insurance to resolve the dispute. The company's purchase of
insurance with aggregate coverage of $250 million covering certain
terrorist events has resolved the matter and cured the asserted
default.
The company, as planned, anticipates total full-year 2002 capital
spending of approximately $290 million as follows: approximately
$180 million on maintenance capital expenditures and technology at
its owned hotels; $60 million in master plan and
return-on-investment projects, and $50 million on timeshare
projects. By year-end 2002, the company expects that more than 80
percent of its owned rooms will have been newly renovated within the
last five years.
Nine-Month Results
For the nine-month period ended September 30, 2002, Hilton
reported net income of $158 million, compared to $162 million in the
corresponding 2001 period. Diluted net income per share was $.42
versus $.44 in the 2001 period. Pro forma diluted EPS in the
nine-month period in 2001 (including $.09 per share from the new
accounting rules pertaining to non-amortization of goodwill and
certain intangible assets) was $.53. Revenue for the nine-month
period declined 7 percent compared to the 2001 period to $2.890
billion, while total company EBITDA declined 14 percent to $758
million. Revenue and EBITDA declined 4 percent and 9 percent,
respectively, from the 2001 period when excluding the impact of the
following items: asset sales, the Waikoloa acquisition, deferred
timeshare sales in Hawaii in 2001, and the cash portion of the
remediation efforts in Hawaii.
Outlook For Fourth Quarter 2002
For the remainder of 2002, the company expects continued pressure
on room rates to impact RevPAR growth at its owned hotels, and
expects a modest full-year decline in fee revenue. It is anticipated
that these factors will be mitigated to a degree by solid EBITDA
margins at Hilton's comparable owned hotels, though margins are
expected to be adversely impacted by continued softness in room
rates and higher insurance costs.
The company's current estimates for the fourth quarter 2002 are
as follows:
Fourth Quarter 2002 Estimates
Total revenue Mid single digit % increase
Total EBITDA $235 million range
Owned hotel EBITDA $160 million range
Owned hotel EBITDA margins 30% range
Comparable owned hotel RevPAR Approximately 10% increase
Diluted earnings per share $.10 range
Based on the company's EBITDA guidance plus the proceeds from the
sale of Harrison Conference Centers and timeshare receivables, and
after all capital expenditures, interest, taxes, dividends, and the
cash portion of the Waikoloa transaction, Hilton anticipates
generating approximately $300 million of net cash flow in 2002.
Hilton also reconfirmed its previously issued estimate for new
hotel openings in 2002. The company anticipates adding approximately
145 hotels and 18,000 rooms to its system in 2002, virtually all
through franchising agreements and management contracts.
2003 Preliminary Outlook
With continuing uncertainty in the economic and political arenas,
and visibility remaining low, the company noted the difficulty of
providing accurate projections for its business in 2003. On a
preliminary basis, however, the company provided the following
general guidance for full-year 2003:
Preliminary 2003 Estimates
Total revenue $4.1 billion range
Total EBITDA $1.060 billion range
Owned hotel EBITDA Approximately $675 million
Owned hotel EBITDA margins Low 30% range
Comparable owned hotel RevPAR Low single digit % increase
Diluted earnings per share Mid to high $.50 range
Total capital spending in 2003 is expected to be approximately
$325 million, with approximately $175 million being spent on normal
maintenance capital expenditures and technology, approximately $110
million on timeshare projects currently in development in Las Vegas
and Orlando, and approximately $40 million on special projects at
owned hotels.
Hilton anticipates adding 100 to 115 hotels and 12,000 to 15,000
rooms to its system in 2003, approximately half of which are
expected to be Hampton Inns and another roughly 25 percent Hilton
Garden Inns. Given the challenging environment for many operators
and the market share leadership position of Hilton's brands, the
company anticipates having the opportunity to convert several hotels
to one of Hilton's brands in 2003 and beyond.
"Despite a business environment that remains generally
challenging, we are delivering solid earnings for our shareholders
by maximizing RevPAR at our owned hotels, controlling costs, growing
our system, and tending to the needs of our customers -- whether
they're travelers or our hotel owners -- and our team members,"
said Stephen F. Bollenbach, president and chief executive officer of
Hilton Hotels Corporation.
"There are certain things within our control and in these
areas we are doing well: managing our costs, maintaining our service
levels, engendering customer and owner loyalty and enhancing the
performance of our brands. In addition, we know for sure that there
is limited introduction of new full-service supply, a factor that
will benefit our owned hotels.
"While we have seen quarter-by-quarter improvement in our
business, uncertainties abound, especially in the economy and the
world political scene. Such external forces make this both a
challenging time for our industry, and a difficult environment in
which to predict future performance. But by tending to the basics of
our business, as described above, we are reporting good results and
continuing to outperform."
Mr. Bollenbach concluded: "With this as a foundation, we are
making our way steadily through the tough times. When the economic
picture brightens - which it will - bringing with it a return to
full strength for the lodging business, we are very well-positioned
to solidify our industry leadership position."
Note: This press release contains "forward-looking
statements" within the meaning of federal securities law,
including statements concerning business strategies and their
intended results, and similar statements concerning anticipated
future events and expectations that are not historical facts. The
forward-looking statements in this press release are subject to
numerous risks and uncertainties, including the effects of economic
conditions; supply and demand changes for hotel rooms; competitive
conditions in the lodging industry, relationships with clients and
property owners; the impact of government regulations; and the
availability of capital to finance growth, which could cause actual
results to differ materially from those expressed in or implied by
the statements herein.
HILTON HOTELS CORPORATION
Financial Highlights (Unaudited)
(in millions, except per share amounts)
Three Months Ended Nine Months Ended
September 30 September 30
2001 2002 % Change 2001 2002 % Change
----- ----- --------- ------- ------- ---------
Revenue
Owned hotels $488 $502 3 % $1,650 $1,555 (6)%
Leased hotels 43 27 (37) 133 86 (35)
Management and
franchise fees 79 83 5 270 251 (7)
Other fees and
income 101 88 (13) 335 280 (16)
----- ----- --------- ------- ------- ---------
711 700 (2) 2,388 2,172 (9)
Other revenue
from managed
and franchised
properties (1) 231 234 1 718 718 -
----- ----- --------- ------- ------- ---------
942 934 (1) 3,106 2,890 (7)
Expenses
Owned hotels 351 365 4 1,118 1,080 (3)
Leased hotels 37 24 (35) 117 77 (34)
Depreciation
and
amortization 100 86 (14) 294 258 (12)
Impairment loss
and related
costs - 10 - - 20 -
Other operating
expenses 80 71 (11) 258 223 (14)
Corporate
expense, net 16 17 6 48 47 (2)
----- ----- --------- ------- ------- ---------
584 573 (2) 1,835 1,705 (7)
Other expenses
from managed
and franchised
properties (1) 231 234 1 718 718 -
----- ----- --------- ------- ------- ---------
815 807 (1) 2,553 2,423 (5)
Operating income 127 127 - 553 467 (16)
Interest and dividend
income 15 9 (40) 49 37 (24)
Interest expense (95) (78) (18) (298) (252) (15)
Net interest from
unconsolidated
affiliates (3) (5) 67 (12) (15) 25
Net loss on asset
dispositions - (1) - (1) (16) -
----- ----- --------- ------- ------- ---------
Income before taxes
and minority interest 44 52 18 291 221 (24)
Provision for income
taxes (22) (4) (82) (123) (58) (53)
Minority interest, net (1) - - (6) (5) (17)
----- ----- --------- ------- ------- ---------
Net income $21 $48 129 % $162 $158 (2)%
===== ===== ========= ======= ======= =========
Net income per share (2)
----------------------
Basic $.06 $.13 117 % $.44 $.42 (5)%
===== ===== ========= ======= ======= =========
Diluted $.06 $.13 117 % $.44 $.42 (5)%
===== ===== ========= ======= ======= =========
Average shares - basic 369 376 2 % 369 373 1 %
===== ===== ========= ======= ======= =========
Average shares -
diluted 394 402 2 % 394 400 2 %
===== ===== ========= ======= ======= =========
Reconciliation of
Operating Income to
EBITDA (3)
----------------------
Operating income $127 $127 - % $553 $467 (16)%
Pre-opening
expense 1 - - 3 1 (67)
Non-cash items,
net - 1 - - 3 -
Operating
interest and
dividend
income 3 3 - 11 9 (18)
Depreciation
and
amortization
(4) 106 93 (12) 311 278 (11)
----- ----- --------- ------- ------- ---------
EBITDA $237 $224 (5)% $878 $758 (14)%
===== ===== ========= ======= ======= =========
(1) Revenue and expenses from managed and franchised properties are
included in our reported results beginning January 1, 2002 in response
to a FASB staff announcement. These costs relate primarily to payroll
costs at managed properties where we are the employer. The 2001
revenue and expenses have been reclassified to conform with the 2002
presentation.
(2) EPS for the nine month period in 2002 differs from the sum of the
six month and third quarter EPS due to the required method of
computing the weighted average number of shares in the respective
periods.
(3) EBITDA is earnings before interest, taxes, depreciation,
amortization, pre-opening expense and non-cash items. EBITDA can be
computed by adding depreciation, amortization, pre-opening expense,
interest and dividend income from investments related to operating
activities and non-cash items to operating income.
(4) Includes proportionate share of unconsolidated affiliates.
HILTON HOTELS CORPORATION
U.S. Owned-or-Operated Statistics (1)
Three Months Ended
September 30
2001 2002 %/pt Change
--------- --------- ------------
Hilton
------
Occupancy 70.1 % 72.5 % 2.4 pts
Average Rate $145.34 $140.84 (3.1) %
RevPAR $101.93 $102.15 0.2 %
Doubletree
----------
Occupancy 67.6 % 70.5 % 2.9 pts
Average Rate $104.99 $101.33 (3.5) %
RevPAR $70.99 $71.42 0.6 %
Embassy Suites
--------------
Occupancy 67.0 % 71.6 % 4.6 pts
Average Rate $127.66 $121.72 (4.7) %
RevPAR $85.49 $87.11 1.9 %
Other
-----
Occupancy 65.8 % 68.4 % 2.6 pts
Average Rate $93.56 $90.19 (3.6) %
RevPAR $61.58 $61.68 0.2 %
Total U.S. Owned-or-Operated
----------------------------
Occupancy 68.3 % 71.4 % 3.1 pts
Average Rate $125.63 $121.06 (3.6) %
RevPAR $85.86 $86.40 0.6 %
Nine Months Ended
September 30
2001 2002 %/pt Change
-------- --------- ------------
Hilton
------
Occupancy 72.7 % 71.7 % (1.0) pts
Average Rate $158.18 $149.36 (5.6) %
RevPAR $115.02 $107.13 (6.9) %
Doubletree
----------
Occupancy 69.8 % 68.5 % (1.3) pts
Average Rate $111.78 $104.64 (6.4) %
RevPAR $78.04 $71.70 (8.1) %
Embassy Suites
--------------
Occupancy 70.6 % 70.4 % (0.2) pts
Average Rate $135.34 $125.57 (7.2) %
RevPAR $95.49 $88.37 (7.5) %
Other
-----
Occupancy 67.6 % 67.7 % 0.1 pts
Average Rate $96.16 $91.46 (4.9) %
RevPAR $64.98 $61.95 (4.7) %
Total U.S. Owned-or-Operated
----------------------------
Occupancy 71.0 % 70.1 % (0.9) pts
Average Rate $134.79 $126.59 (6.1) %
RevPAR $95.64 $88.80 (7.2) %
(1) Statistics are for comparable U.S. hotels, and include only those
hotels in the system as of September 30, 2002 and owned or operated by
Hilton since January 1, 2001.
HILTON HOTELS CORPORATION
System-wide Statistics (1)
Three Months Ended
September 30
2001 2002 %/pt Change
--------- --------- ------------
Hilton
------
Occupancy 67.8 % 70.3 % 2.5 pts
Average Rate $124.63 $121.44 (2.6) %
RevPAR $84.45 $85.34 1.1 %
Hilton Garden Inn
-----------------
Occupancy 65.4 % 69.8 % 4.4 pts
Average Rate $99.64 $97.28 (2.4) %
RevPAR $65.13 $67.95 4.3 %
Doubletree
----------
Occupancy 66.8 % 69.4 % 2.6 pts
Average Rate $102.33 $99.04 (3.2) %
RevPAR $68.40 $68.69 0.4 %
Embassy Suites
--------------
Occupancy 67.2 % 71.9 % 4.7 pts
Average Rate $123.00 $118.38 (3.8) %
RevPAR $82.70 $85.13 2.9 %
Homewood Suites by Hilton
-------------------------
Occupancy 71.8 % 75.2 % 3.4 pts
Average Rate $97.88 $93.97 (4.0) %
RevPAR $70.24 $70.64 0.6 %
Hampton
-------
Occupancy 69.8 % 71.4 % 1.6 pts
Average Rate $78.64 $78.37 (0.3) %
RevPAR $54.90 $55.96 1.9 %
Other
-----
Occupancy 61.1 % 63.9 % 2.8 pts
Average Rate $128.49 $118.61 (7.7) %
RevPAR $78.54 $75.82 (3.5) %
Nine Months Ended
September 30
2001 2002 %/pt Change
-------- --------- ------------
Hilton
------
Occupancy 70.2 % 69.3 % (0.9) pts
Average Rate $133.48 $126.97 (4.9) %
RevPAR $93.75 $88.01 (6.1) %
Hilton Garden Inn
-----------------
Occupancy 65.7 % 67.9 % 2.2 pts
Average Rate $103.32 $97.61 (5.5) %
RevPAR $67.89 $66.31 (2.3) %
Doubletree
----------
Occupancy 69.1 % 67.7 % (1.4) pts
Average Rate $107.98 $101.72 (5.8) %
RevPAR $74.66 $68.82 (7.8) %
Embassy Suites
--------------
Occupancy 70.2 % 70.9 % 0.7 pts
Average Rate $128.61 $120.99 (5.9) %
RevPAR $90.22 $85.84 (4.9) %
Homewood Suites by Hilton
-------------------------
Occupancy 72.8 % 74.3 % 1.5 pts
Average Rate $100.44 $94.88 (5.5) %
RevPAR $73.16 $70.50 (3.6) %
Hampton
-------
Occupancy 68.7 % 69.0 % 0.3 pts
Average Rate $77.96 $77.45 (0.7) %
RevPAR $53.57 $53.40 (0.3) %
Other
-----
Occupancy 62.9 % 60.4 % (2.5) pts
Average Rate $137.75 $121.18 (12.0) %
RevPAR $86.71 $73.21 (15.6) %
(1) Statistics are for comparable hotels, and include only those
hotels in the system as of September 30, 2002 and owned, operated or
franchised by Hilton since January 1, 2001.
HILTON HOTELS CORPORATION
Supplementary Statistical Information
September
2001 2002
Number of Number of
Properties Rooms Properties Rooms
---------------------------------------
Hilton
------
Owned 40 28,227 39 28,981
Leased 1 499 1 499
Joint Venture 3 1,896 5 1,863
Managed 15 10,177 16 10,343
Franchised 169 44,857 170 45,791
------------------- -------------------
228 85,656 231 87,477
Hilton Garden Inn
-----------------
Owned 1 162 1 162
Joint Venture 2 280 2 280
Franchised 111 15,336 151 20,866
------------------- -------------------
114 15,778 154 21,308
Doubletree
----------
Owned 10 3,435 9 3,156
Leased 7 2,333 6 2,151
Joint Venture 30 8,277 30 8,271
Managed 59 16,357 59 16,552
Franchised 49 11,408 50 11,440
------------------- -------------------
155 41,810 154 41,570
Embassy Suites
--------------
Owned 6 1,299 5 1,023
Joint Venture 22 6,063 24 6,581
Managed 60 15,396 61 15,589
Franchised 77 17,624 78 17,776
------------------- -------------------
165 40,382 168 40,969
Homewood Suites by Hilton
-------------------------
Owned 7 905 7 905
Managed 29 3,473 30 3,605
Franchised 68 7,225 80 8,650
------------------- -------------------
104 11,603 117 13,160
Hampton
-------
Owned 1 133 1 133
Managed 27 3,570 26 3,431
Franchised 1,101 112,623 1,165 118,479
------------------- -------------------
1,129 116,326 1,192 122,043
Timeshare 25 2,911 26 3,039
---------
Other
-----
Owned 12 1,655 1 300
Leased 13 1,943 - -
Joint Venture 4 1,604 4 1,598
Managed 19 4,334 11 3,240
Franchised 33 6,067 - -
------------------- -------------------
81 15,603 16 5,138
Total
-----
Owned 77 35,816 63 34,660
Leased 21 4,775 7 2,650
Joint Venture 61 18,120 65 18,593
Managed 209 53,307 203 52,760
Timeshare 25 2,911 26 3,039
Franchised 1,608 215,140 1,694 223,002
---------------------------------------
TOTAL PROPERTIES 2,001 330,069 2,058 334,704
=======================================
Change to
September 2001 December 2001
Number of Number of
Properties Rooms Properties Rooms
------------------- ------------------
Hilton
------
Owned (1) 754 1 1,462
Leased - - - -
Joint Venture 2 (33) (1)(1,241)
Managed 1 166 1 373
Franchised 1 934 1 820
------------------- ------------------
3 1,821 2 1,414
Hilton Garden Inn
-----------------
Owned - - - -
Joint Venture - - - -
Franchised 40 5,530 29 4,020
------------------- ------------------
40 5,530 29 4,020
Doubletree
----------
Owned (1) (279) - -
Leased (1) (182) - -
Joint Venture - (6) - (6)
Managed - 195 (2) (318)
Franchised 1 32 5 1,006
------------------- ------------------
(1) (240) 3 682
Embassy Suites
--------------
Owned (1) (276) - -
Joint Venture 2 518 1 242
Managed 1 193 - (182)
Franchised 1 152 (1) (426)
------------------- ------------------
3 587 - (366)
Homewood Suites by Hilton
-------------------------
Owned - - - -
Managed 1 132 1 132
Franchised 12 1,425 12 1,425
------------------- ------------------
13 1,557 13 1,557
Hampton
-------
Owned - - - -
Managed (1) (139) (1) (139)
Franchised 64 5,856 49 4,376
------------------- ------------------
63 5,717 48 4,237
Timeshare 1 128 1 128
---------
Other
-----
Owned (11) (1,355) (3) (338)
Leased (13) (1,943) (2) (186)
Joint Venture - (6) - (6)
Managed (8) (1,094) (6) (882)
Franchised (33) (6,067) (13)(3,043)
------------------- ------------------
(65)(10,465) (24)(4,455)
Total
-----
Owned (14) (1,156) (2) 1,124
Leased (14) (2,125) (2) (186)
Joint Venture 4 473 - (1,011)
Managed (6) (547) (7)(1,016)
Timeshare 1 128 1 128
Franchised 86 7,862 82 8,178
------------------- ------------------
TOTAL PROPERTIES 57 4,635 72 7,217
=================== ==================
CONTACT:
Hilton Hotels Corporation, Beverly Hills
Marc Grossman, 310-205-4030
http://www.hiltonworldwide.com |
Bali
hotel occupancy drops to 20 pct from 73 pct before bomb blasts
AFX - The hotel occupancy rate in Bali has
dropped sharply to
only 20 pct currently from 73 pct before the Oct 12 bomb
attack in Kuta, Bisnis
Indonesia reported, citing official data.
Data
from the Bali regional tourism office said that starting from the
second day after the bomb blast the hotel occupancy started to fall to 60
pct,
51 pct, 40 pct, 35 pct, 29 pct and then to 20 pct on Sunday.
The report quoted Bali deputy governor Gusti Alit
Putra as saying that
"unfavourable conditions" after the tragedy
have started to hit tourism.
Bali
accounted for some 27 pct of Indonesian tourism revenue of 5.6 bln usd
last year.
World
Tourism leaders to help Bali recover
Asia Pulse -
World tourism leaders have united to help
Indonesia rebuild Bali's once-thriving industry after the devastating bomb
attack in Kuta.
World
Tourism Organisation representative Geoffrey Lipman said today the WTO would
put all its research on responses to disasters in other tourist regions at
Indonesia's disposal.
The
organisation had a wealth of information about reactions to events such as
the massive earthquake in Turkey and the Luxor massacre in Egypt.
"I am requested by the secretary general of the
World Tourism Organisation to offer the full resources of the organisation
in the recovery," Mr Lipman said.
He
would meet with Indonesian officials after completing his visit to Australia
and it was up to them to decide how to react, Mr Lipman said.
But
a relevant example was the response of tourism authorities in Egypt to the
1997 Luxor massacre, when 62 people were killed.
Mr
Lipman said tourism in Egypt bounced back despite a massive drop immediately
after militant Islamic gunmen opened fire at the ancient monument.
"The
first thing (Egypt) did was they made a huge national effort to look at the
source of the terror, and then they dealt with them," he said.
"Then
they were able to say to the world we have taken the necessary steps to make
our country safe for tourists."
They
also created special tourist police, launched an advertising campaign and
made sure the problem region was well protected, Mr Lipman said.
The
Bali crisis was being examined at a regional conference in Japan and would
be under the microscope at upcoming world tourism markets in London.
"We
have a bank of that information from many places and what our goal was and
is in Japan is to make it relevant to the specifics of Bali," Mr Lipman
said.
Mr
Lipman said the tourism industry was caught in the crossfire of a war on
terrorism and had to increase its vigilance and ingenuity to respond to the
market impact.
"(The
future) really depends what happens in relation to terrorism and if
terrorism starts to be used against tourism," he said.
"9/11
wasn't used against tourism and I don't believe Bali was used against
tourism but the problem is in both of those instances, tourism was part of
that process."
Mr
Lipman met with Australia's Tourism Minister Joe Hockey during his visit to
Australia and offered him access to the organisation's recovery research.
"He
was very grateful that if there are tools, then he would avail himself of
them," he said.
Bahrain:
Move to shut clubs irks hotel owners
Gulf News -
Twenty-two hotel owners yesterday protested the order
of the Minister of Information to close down their entertainment outlets for
three months.
Minister of Information
Nabeel Al Hamer issued the order on Sunday to close down dance halls in six
four star, six three star, seven two star and three one star hotels.
Mahmoud Al Mahmoud, the
Information Undersecretary, said the ministry had extended full cooperation
to these hotels and granted them time and opportunity to follow the law of
the country. "Despite several warnings, the violations continued and
the facilities were ordered closed."
The ministry clamped an
immediate ban on presenting 'garlands' to belly dancers in all Arabic dance
halls and other such outlets early this year and did not give them a grace
period.
In July, he added, all
hotels and outlets were notified that from September 1, they will not be
allowed to play non-traditional bands, stressing that the move was aimed at
"promoting family tourism."
The Department of Tourism
Affairs working under the ministry, again granted one-month's grace, until
September 31, to all hotels to "improve their services, send back all
indecently-clad dancers and get new professional bands," he said.
Some hotel owners
protesting the move told the local press that the closure order was executed
without notice.
Calling the order
'unwarranted', Hotel Al Jazira's Abdul Jalil Al A'ali said the hotel has
already closed its Arabic night club following the ministry's instructions.
He threatened to move to the court saying such a move will harm the
country's tourism industry.
Al Mahmoud, however, said
the decision to close these outlets was taken after several verbal and
written warnings and fines. Some hotels "pay fines but continue to
serve unlicensed alcohol, have non-traditional dancers and allow their
patrons to present garlands to the dancers."
The new regulation was
announced three months ago by Mubarak Al Atwi, Assistant Undersecretary for
Tourism Affairs who said hotels, restaurants and dance halls in Bahrain
would no longer be allowed to host "unconventional flashy bands from
September 1."
Later, the grace period
was extended for one month. He noted the move was part of the island's
policy of promoting 'family tourism'.
Ex-Club
Med director to head up RCI Europe
e-Tid.com
- Cendant-owned
timeshare operator RCI Europe has named Preben Vestdam as president and
chief executive officer.
Formerly VP and head of marketing for the EMEA region with JP Morgan
Investment Management, Vestdam will take over responsibility for overseeing
all staff and day-to-day operations throughout RCI Europe.
Vestdam has previous experience in the travel industry, having been VP, head
of rewards, for American Express Services Europe and also director of
marketing for Club Med.
BHA
confirms Restaurant Association talks
Caterer.com
-
The British Hospitality Association (BHA) has confirmed that it is in
discussions with the Restaurant Associations about a possible merger.
In a statement the BHA
said: “Discussions are in hand between the Restaurant Association and the
British Hospitality Association to examine ways in which the two
associations can work together. If successful, we hope that these
discussions can be concluded by the end of the year.”
Earlier this week,
Caterer.com reported that the two groups were “exploring” an arrangement
in which committee members of the Restaurant Association would take over the
BHA’s restaurant dealings, and essentially become its restaurant arm
Chinese
tourism to create 40 million jobs in 10 years
(Xinhua) --China's tourism industry is expected
to provide 40 million jobs in the next decade, according to the China
National Tourism Administration (CNTA).
People
working in the tourism industry increased by 500,000 annually during the
1996-2000 period.
Tourism is a labor-intensive industry comprising
several related trades including transportation, accommodation, food and
recreation. It is becoming the principal channel to absorb laid-off workers,
said He Guangwei, director of the CNTA.
According
to a development plan set forth by the State Development Planning Commission
and the CNTA, efforts will be made to keep the tourism industry growing at a
faster pace than that the national economy in the coming 10 years.
China's
National Bureau of Statistics reported recently, the nation's gross domestic
product reached 7.1682 trillion yuan (866 billion US dollars) in the first
nine months of this year, a rise of 7.9 percent year-on-year.
Regent
attempts a comeback in Asia
Carlson Hotels sets
up Asia-Pacific headquarters in Singapore and is close to signing a Beijing
property
TTG Asia
- Carlson Hotels
Worldwide, which bought the Regent brand from Four Seasons several years
ago, and did little to grow it, is finally showing signs of moving the brand
forward again.
Carlson Hotels
Asia-Pacific has been established in Singapore, headed by president and
managing director, Mr Paul Kirwin.
“We see growing Regent
as one of our most important aims,” Mr Kirwin told TTG Asia. “We are
close to signing the first Regent in Asia-Pacific (since Carlson took over
the brand) next week.”
The negotiations are for
a new property in Beijing.
“If we can add one or
two Regent hotels a year over the next five years, we would be delighted,”
he added. “Our focus would be the gateway cities that previously had a
Regent, eg, Hong Kong and Sydney, followed by other important gateways such
as Seoul and Tokyo, and major resorts.”
There are currently only
five Regent hotels in Asia-Pacific, in Singapore, Taipei, Kuala Lumpur,
Bangkok and Chiangmai. The Regent Jakarta is closed, while Regent Sydney is
no more. But it was losing The Regent Hong Kong to Six Continents Hotels
that brought stinging industry comments that Regent – Asia’s premier
luxury chain created by hotel luminaries such as Adrian Zecha, George Rafael
and Bob Burns – was in danger of becoming irrelevant.
Some of the existing
Regent hotels that remain managed by Four Seasons after the brand was sold
to Carlson, for instance, Regent Bangkok and Chiangmai, also look set to be
rebranded Four Seasons.
Mr Kirwin admitted
Regent had lost ground. It now faces competition from the likes of
Starwood’s St Regis and now, even the Inter-Continental brand.
Asked why Carlson did
not capitalise on Regent after it bought the brand, Mr Kirwin said: “Our
company has been going through changes. One of the motivations for the
reorganisation (of Carlson Hotels Worldwide) was to give more support to
growing Regent. By running the brand out of Minneapolis, for instance, we
missed out on the opportunities for growth.”
In Europe, the Middle
East and Africa, Regent’s growth will now be handled by Rezidor SAS
Hospitality, which has just been appointed master franchisor for Regent,
Country Inns and Suites By Carlson, and Park Inn hotels, two other brands
owned by Carlson.
“The Regent brand has
a lot of strengths and unique features. And the science of brand marketing
is more advanced now than 20 years ago,” Mr Kirwin said. “Carlson, as a
private, family-owned business, excels in partnerships and relationships,
which we feel is critical in expanding the brand here.
“Carlson is a great
sales and marketing company, which benefits hotel owners. We come with a
travel marketing commpany, which we work hard every day to leverage on.”
Mr Kirwin is also in
charge of growing Radisson Hotels & Resorts, and Country Inns &
Suites By Carlson, in the region. Before, Carlson treated each brand as
separate business units. The recent reorganisation, which grouped the three
brands under one umbrella, as well as development under geographical
regions, would enable Carlson to leverage greater synergies in global sales
and marketing, and distribution, Mr Kirwin said.
In Asia-Pacific, he
expects to grow Radisson in gateway cities such as Hong Kong, Singapore and
Kuala Lumpur; in resorts such as Lombok and Langkawi; and to achieve greater
distribution depth for Radisson (eg, in Australia, into states such as
Perth). He does not expect Country Inn to grow by leaps and bounds.
“There are select
opportunies in eastern Australia, North Asia (Japan and Korea) and China,
although our initial studies show what China currently needs are smaller,
two-star hotels. The opportunity for Country Inn may present itself in China
in the next five years, as the economy matures,” he said.
Source:
TTG Asia
China
International Tourism Mart to kick off in mid November
(Xinhua) --The fourth China International Tourism Mart (CITM)
is scheduled to be held in Shanghai from Nov. 14 to 17, giving participants
from foreign and domestic tourism industries a chance to promote themselves.
A
record total area of 34,500 square meters will be used for the exposition.
By Oct. 17, more than 1,600 exhibition booths were
registered, 1,111 of which were for domestic participants and 503 from
overseas.
Participants
in the CITM come from 46 countries and regions including Singapore, Japan,
the United States, Germany, France and Italy.
The
International Conference Organization, taking part in the CITM for the first
time, will jointly organize a special forum with the China National Tourism
Administration in order to attract more attention to China's tourism market.
| 
