Ladbrokes is leading the way for Hilton's profits

Hilton has announced that pre-tax profits more than doubled for the first four months of 2004, with Ladbrokes leading the way.

It said its main hotels business has recovered after last year's pressures from the Sars outbreak in the Far East and the war in Iraq.

Hilton said pre-tax profits for January to April 2004 rose 106% on a year ago.

In its trading statement it said total gross wins for Ladbrokes on bets placed increased by 27%.

Telephone betting gross win was even higher at 91%, due to higher margins and bolstered by successful results at Cheltenham and Grand National meetings.

The news helped lifted Hilton shares 2% higher to 250.50 pence in London.

Hotels still struggling

For its hotels, Hilton said trading conditions had latterly seen recovery in many parts of the world, including the UK, although it could still be better.

Room occupancy rates were up 8.9% across Europe.

Although not releasing any figures, Hilton said the group profit achieved in the first four months of 2004 was "encouraging".

"Prospects for the Betting and Gaming division remain strong," it said.

"Against a background of continuing global uncertainties growing demand in the hotels division needs to be sustained over several months to provide a platform for enhanced rate growth towards the end of this year and, particularly, in 2005."

Watford-based Hilton operates around 400 hotels worldwide outside the US and nearly 1,900 Ladbrokes betting shops in the UK.

Labrokes is continuing with a roll out of fixed odds betting terminals- such as automated roulette machines - across its branches, with 4,800 installed by the end of April and a further 1,100 to be introduced by the end of next month.