Hilton Hotels Corp. cut in half its profit forecast for the first quarter Thursday, joining other lodging companies that say the war with Iraq has hurt business.
Beverly Hills-based Hilton said revenue per available room would drop 4% in the first quarter from a year ago. That was down from the flat range Hilton forecast Jan. 27. Earnings per share, before items, would be about 2 cents to 3 cents, compared with a Jan. 27 forecast of about 5 cents, a spokesman said.
Hilton, which owns its own brand as well as Embassy Suites and Hampton Inn, said earnings per share in the first quarter would be flat to 1 cent a share, including charges.
Shares rose 2% before the warning, to $11.79, on the New York Stock Exchange, but fell to $11.39 in after-hours trading.