Hilton Hotels Corporation (HHC) plans to add more than 120,000 rooms to its portfolio within the next three years, the company forecast today.
The group, which released its outlook to 2009 ahead of its US investor day today, assumes compounded annual revpar growth of 7-9%.
A compounded annual growth rate of 7% would result in fees of $980m (£499m) or $1.005b (£511m) at 9%.
At the more conservative 7% estimate, owned profit in 2009 would hit $870m (£443m), as well as leased profit of $515m (£262m), timeshare profit of $235m (£120m) and total company adjusted earnings before interest, tax, depreciation and amortisation of $2.31b (£1.17b).
At 7% growth, the approximate price per share would rise to $1.70 (£0.86), while a 9% growth rate would take it to $2.00 (£1.02).
HHC also reaffirmed its preliminary forecasts for 2007, of 15% growth in management and franchise fee growth and worldwide hotel revpar growth of around 7-9%.
The announcement comes as HHC unveiled a deal with Deutsche Bank's real estate investment arm RREEF and private equity firm H&Q Asia Pacific to develop more than 20 focused service hotels across China.
By Emily Manson
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