BEVERLY HILLS, Calif.--(BUSINESS WIRE)--Dec. 13, 2006--Hilton
Hotels Corporation (NYSE:HLT) will discuss with institutional
investors and security analysts in New York today the company's
earnings growth and global unit growth expectations through 2009.
Assuming compound annual RevPAR growth of 7 to 9 percent, the
company anticipates Adjusted EBITDA to increase at a compounded annual
growth rate of 11 to 14 percent through 2009; operating income to
increase 12 to 17 percent, and recurring diluted earnings per share
(EPS) to increase 16 to 22 percent.
Assuming a 9 percent compounded annual growth rate in RevPAR, the
company anticipates diluted EPS would approximate $2.00 per share in
2009. Based on this assumption, Hilton would anticipate 2009 fees of
$1.005 billion; profit from owned hotels of $980 million; profit from
leased hotels of $600 million; timeshare profit of $235 million, and
total company Adjusted EBITDA of $2.530 billion.
Assuming a 7 percent compounded annual growth rate in RevPAR, the
company anticipates diluted EPS would approximate $1.70 per share in
2009, with fees of $980 million; owned profit of $870 million; leased
profit of $515 million; timeshare profit of $235 million, and total
company Adjusted EBITDA of $2.310 billion.
Consistent with its strategy of growing its franchise and
management fee business and expanding development of its Family of
Brands to markets around the world, the company said it anticipates
adding approximately 120,000 rooms to its global system between 2007
and 2009, with a gradually increasing percentage of the room growth
coming from international markets. The company recently announced
deals for development of its Hilton full-service and mid-scale Hilton
Garden Inn hotels in markets throughout India and China.
Hilton also reaffirmed the preliminary 2007 guidance it originally
provided on its October 31, 2006 earnings call, specifically:
management/franchise fee growth in the 15 percent range; pro forma
comparable worldwide owned hotel RevPAR and margin growth of
approximately 7 to 9 percent and 125 to 175 basis points,
respectively; pro forma comparable worldwide leased hotel RevPAR and
margin growth of approximately 4 to 5 percent and 30 to 70 basis
points, respectively; and an effective tax rate of approximately 38
percent.
The webcast of today's investor meeting can be accessed by going
to www.hiltonworldwide.com, clicking the "Investor Relations" tab, and
clicking on the "Hilton Investor Day Webcast" icon. Following the live
broadcast, the complete presentation will be available on the
company's investor relations website, under "Presentations," including
reconciliations to the most directly related comparable GAAP measures
of the non-GAAP financial measures included in this press release and
in the presentation.
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
those identified under the "Risk factors" section of our Form 10-K and
Form 10-Qs, as well as 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; changes in foreign currency exchange rates;
acquisition and disposition of assets; 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. Although we believe the expectations reflected in these
forward-looking statements are based upon reasonable assumptions, we
can give no assurance that our expectations will be attained and
caution you not to place undue reliance on such statements. We
undertake no obligation to publicly update or revise any
forward-looking statements to reflect current or future events or
circumstances.
CONTACT: Hilton Hotels Corporation
Marc Grossman, Sr. VP - Corporate Affairs, 310-205-4030
marc_grossman@hilton.com
or
Atish Shah, VP - Investor Relations, 310-205-8664
atish_shah@hilton.com
http://www.hiltonworldwide.com
SOURCE: Hilton Hotels Corporation
