Hilton lowers its revenue forecast

By Jeannine DeFoe
Bloomberg News Service

BEVERLY HILLS, Calif. — Hilton Hotels Corp., the No. 3 U.S. hotel company, has forecast that its room revenue will fall 5 percent in the second quarter, a further sign that the industry's recovery will be delayed until business travel picks up.

Revenue per available room, a measure of average occupancy and room rate, will fall more than the 1 percent to 2 percent Hilton had forecast in April, said spokesman Marc Grossman.

Marriott International Inc., the largest U.S. hotel company, said last week that its room revenue may fall as much as 7 percent in the quarter, on the lower end of previous estimates.

Revenue per room for U.S. hotels fell during five of the past six weeks, according to Smith Travel Research.

PricewaterhouseCoopers, citing an "uneven" economic recovery, yesterday reversed a forecast that it made last month, when it had said revenue per room would rise 3 percent this year. The firm now predicts a 0.7 percent decline.

Hilton will report its earnings July 30.