Hilton Group posts pretax profit of 192.1 million pounds in 1H2005

The Hilton Group PLC, an international hotel owner and operator of
betting shops in Britain, has managed pretax profit of 192.1 million
pounds in the first half of this year.

The group stated that the outlook "remains strong with Ladbrokes and
Hilton both enjoying steady growth."

David Michels, Group chief executive, said, "Overall profit in the first
six months of this year has improved on last year's record first half
and, looking forward the trends in both Ladbrokes and Hilton remain
positive."

Michels added, "Worldwide Revpar increased by 8.4% as the performance in
the hotel division continued to improve across the globe. Following the
successful disposal of seven UK hotels earlier in the year, the sale of
a further 18 UK properties, with a preference to maintain management
contracts, is progressing well. Our commitment to expanding the Hilton,
Scandic and Conrad brands remains strong and during the first six
months, a total of seven hotels were opened." It expects to open another
eight properties in the remainder of this year, in locations including
Italy and Saudi Arabia.

Among the highlights were: worldwide Revpar increasing by 8.4%, with
occupancy up 3.5 percentage points, and rate up by 2.7% and Ladbrokes
gross win increased by 2.7%, however profits fell by 6.3%, reflecting
poor horse margins, no European Football Championships and additional
costs.

As per the information available, overall, group hotel profits rose 11
percent with previous difficult areas such as France and Sweden showing
improved performance, with room rates across the world up 2.7 percent
helping the previous largely occupancy-led recovery. Michels said the
group's disposal plan for 18 UK hotels, worth around 400 million pounds,
was progressing well with a number of bids to be assessed in the coming
weeks, and a sale is expected to be completed by the end of the year.

Hilton Group Finance Director Brian Wallace said that occupancy in
London was down by around 5 percent for July and into August, but is now
climbing back to the same levels seen last year.