Hilton Group has released trading figures for the four months to 31 October which show pre-tax profits are down 9 per cent on the same period last year.

The group has blamed the fall on 'challenging' trading in the hotel market and 'widely varying performances in different parts of the world' due to 'worldwide political and economic uncertainties, aggravated by the reduced numbers of US travellers'.

The group did see improvement in the latter two months however, with revenue per available room (revPAR) in Hilton Hotels in all regions of the world down on 2001 in July and August this year, but up in September and October. However, the comparison is with a period of slump after the events of 11 September.

The Scandic chain of hotels, which the group acquired recently has also failed to meet revenue expectations.

Hilton refuses to say when a sustained recovery in the hotel industry may happen, saying it remains difficult to predict.

The company has set capital expenditure for 2003 at £130m, to ensure the upkeep of the portfolio and complete the £46m redevelopment of the Hilton Sydney.

Hilton's betting arm, Ladbrokes, has fared better with profits up 15 per cent on last year. Details: +44 (0)20 7856 8109