Hilton 4th-Quarter Profit Falls 94%

Hilton Hotels Corp., the third-largest U.S. hotel company, said its fourth-quarter profit fell 94% as fewer travelers stayed in its hotels after the Sept. 11 terrorist attacks.

Net income fell to $4 million, or 1 cent a share, from $64 million, or 17 cents a year earlier, Chief Executive Steven Bollenbach said on a conference call.

Revenue declined 24% to $662 million at the Beverly Hills-based company, whose properties include Honolulu’s Hilton Hawaiian Village.

Revenue per room, a measure of occupancy and room rate, at hotels Hilton owns and operates, fell 23% from a year earlier. The company’s average daily rate fell 12% in the quarter, while occupancy fell to 59.7% from 67.8%.

Bollenbach has said he was “managing for recovery” and avoiding layoffs, while rivals such as Starwood Hotels & Resorts Worldwide Inc. and Marriott International Inc. cut staff.

“The last 14 weeks of 2001 represented perhaps the most trying and difficult period in the history of the hotel business,” Bollenbach said. “We’re not nearly all the way back, but business travel and consumer confidence are returning.”

The company was expected to break even on a per-share basis, according to the average estimate of analysts polled by Thomson Financial/First Call. Results for the latest quarter include a $46-million tax credit.

Hilton shares fell 30 cents to $11.30 on the New York Stock Exchange, and have gained 70% since Sept. 20, rising along with other hotel companies’ shares as investors anticipate a rebound in hotel room demand.

Another California company reporting earnings, excluding one-time gains or charges unless noted:

Idec Pharmaceuticals Corp. said net income rose 41% to $28.7 million, or 16 cents a share from $20.4million, or 12 cents, because of higher sales of its cancer drug Rituxan. Revenue at the San Diego company rose 78% to $81.7 million from $45.8 million.