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Starwood cuts debt as profits fall
Starwood Hotels and Resorts has sold hotels worth more than $950m (£584m) during the first six months of 2003. It expects to reduce its debt to $4.1b (£2.5b) by the end of the year, down from nearly $5.2b (£3.2b), said chairman Barry Sternlicht. But the company reported profits of $57m (£35m) during the second quarter of this year, down from $85m (£52m) a year earlier.
Hilton takes a hit
Sars and the Iraq war contributed to a weak set of results at US-owned Hilton Hotels Corporation during the three months to 30 June. Pre-tax profits came in at $54m (£33m), against $76m (£47m) during the same quarter in 2002.
NH rebuff for new shares bid
Spain's NH Hoteles has rejected an improved bid of €9 (£6.40) a share for 26.1% of its equity from rival hotel group Hesperia. NH repeated its earlier claim that the bid was too low.
McDonald's profits singed
Burger giant McDonald's has reported a 5% drop in profits for the three months to the end of June. Net income fell to $470.9m (£290m), down from $497.5m (£306m) a year earlier. This was despite an 11% rise in sales and a 5% increase in like-for-like sales.
Sars cuts Fairmont earnings
Canada-based Fairmont Hotels was severely affected by the impact of the Sars virus during the three months to the end of June. Excluding a windfall profit of $24.4m (£15m) from a tax refund, profits fell to $15.7m (£9.7m) from $28.9m (£17.8m) during the same period last year.
Profits slump at Hongkong and Shanghai
Rigorous cost cutting, including a voluntary unpaid leave scheme, helped mitigate the affects of Sars and the Iraq war on trading at Hongkong and Shanghai Hotels. But sales were still down by 13% to HK$1.09b (£86m) during the first half of 2003 and operating profit fell by 44% to HK$168 (£13.2m).
Middle East gets its own Shangri-La
Shangri-La Hotels and Resorts has opened its first hotel in the Middle East. The five-star, 301-bedroom property is owned by the United Arab Emirates-based Al Jaber Group.