Continued uncertainty in the global economies has been blamed for a 22.6 per cent drop in profits at Hilton's Hotels in the first half of the year.

Profits fell to £97.8m in the six months to 30 June compared to £126.3m for the same period last year. But chief executive, David Michels, said revenues per available room (revpar) fell 5.4 per cent, which was less than in previous downturns and that the sales and marketing teams have been putting together leisure packages ranging from golf to theatre breaks to generate more domestic business.

In Europe, the integration of Scandic Hotels AB has resulted in cost savings and leaves the group well positioned to benefit from an upturn in the Nordic market. The group has opened ten new hotels in the last six months and plans to open a further 25 worldwide. It also plans to expand its LivingWell health club concept to up to ten sites in Australia.

Meanwhile, Ladbrokes, the group's betting arm, benefited from the changes in the UK bookmaking industry with a 19.9 per cent increase in profits to £76.5m, while eGaming continues to enjoy growth with profits up from £0.2m to £5.1m.