Hilton foresees a rosy picture
Hilton Hotels Corp. expects recurring earnings per share to increase 16 percent to 22 percent annually through 2009 as it adds about 120,000 rooms globally over the next three years.
The company expects earnings of about $1.70 to $2 per share in 2009, assuming a seven percent to nine percent compound annual growth in revenue per available room. One analyst looks for 2009 recurring earnings of $1.85 per share, according to Reuters Estimates.
Hilton expects earnings before interest, taxes, depreciation and amortization rising at a compound annual rate of 11 percent to 14 percent through 2009, while operating income could increase 12 percent to 17 percent. The company expects international markets, including India and China, to contribute a gradually increasing percentage to room growth.
Beverly Hills-based Hilton´s strategy of growing its franchise and management fee business and expanding development of its family of brands to markets around the world could lead to it adding approximately 120,000 rooms to its global system between 2007 and 2009, with most of that growth coming from international markets.
As per the information available, assuming a nine percent compounded annual growth rate in RevPar, Hilton anticipates diluted earnings per share around $2 in 2009 and a profit from owned hotels of $980 million, as well as profit from leased hotels at $600 million.