Hilton Hotels Net Rises Despite Glut in Industry

Hilton Hotels Corp. reported a 16% gain in its third-quarter profit but said it was troubled by the overbuilt industry and sluggishness of the economy.

Hilton earned $23.7 million on revenue of $189 million for the three months ended Sept. 30.

That compared to the third quarter last year, when Hilton netted $20.4 million on revenue of $169.1 million.

For the first nine months of this year, the company’s earnings were relatively flat, inching up by less than 1% to $71.7 million. A year earlier, the Beverly Hills-based firm reported net income of $71.4 million.

Revenue for the nine months rose to $543.4 million from $528.1 million.

Income contributions from Hilton’s hotel and gaming units rose by 23% and 13%, respectively.

“While we are pleased by the continued improvement in the performance of our hotel group, we remain concerned about the excess room supply in the industry and the lack of encouraging signs in the economy,” said the company’s chairman and president, Barron Hilton.