The Hilton Group announced a small rise of £800,000 in its first half year pre-tax profits of £192.1m compared with £191.3m for 2004.
While the operating profits for its betting division fell in the six months to June, 2005 to £143.6m from £153.3m, its operating profits in its hotel division rose from £65.6m in 2004 to £72.6m.
The group reported that, worldwide, its revenues per available room (Revpar) rose by 8.4%, its occupancy was up 3.5% and its rates up 2.7%.
But the group revealed that while its continental European hotels fared well, it suffered reduced profits on its UK properties.
For the six months up to June, 2005, the UK hotels had a revenue of £303.9m, down from the comparable 2004 figure of £318.7m and profits fell by 22.6% from £38.7m to £30.1m.
In the rest of Europe and Africa, the group said revenue rose from £541.3m to £601.7m and profits were up by 55% from £20.2m to £31.3m.
In London, the group said that five of its major owned hotels had show a decline in revenue although forward bookings were now looking “more positive.”
On the continent, Revpar was up 8.8% with Germany up 2.3%, Paris 10.5% and Sweden 12.6%.
Both Stockholm (13.4%) and Copenhagen (21.3%) saw big increases in Revpar, largely due to an increased number of business travellers.
Barcelona, Zurich and Amsterdam also saw trade improving.
David Michels, group ceo, said that the outlook for the hotels remained “positive”. He said the disposal of 18 hotels in the UK (following the earlier disposal of seven hotels in the UK) was going well.
But the group was committed to expanding its three brands, Hilton, Conrad and Scandic with seven new hotels opened this year and a further eight due to be opened during the rest of 2005.