Hilton Exceeds Expectations

Hilton Hotels Corp., the No. 3 U.S. hotel company, said first-quarter profit fell less than expected and raised its forecast for the year as leisure travel picked up.

Beverly Hills-based Hilton’s net income fell 38% to $34 million, or 9 cents a share, from $55 million, or 15 cents, in the year-earlier period. Revenue fell 14% to $921 million, Hilton Chief Financial Officer Matthew Hart said.

Hilton follows Marriott International Inc. in reporting better-than-expected results as consumers spend more on travel. Corporate travel, often the most profitable for hotel companies, still hasn’t recovered from last year, preventing hotel companies from raising room rates, analysts and investors said.

Hilton was expected to earn 5 cents, based on the average estimate of analysts polled by Thomson Financial/First Call. On the New York Stock Exchange, Hilton shares rose 60 cents to $16.01, a two-year high.