• Hilton Group hands out £4.2bn leaving present

Hilton Group bowed out of hotel operations last week with the completion of the £3.3bn sale of its hotels to US-based Hilton Hotels Corporation.

Its shareholders are set to receive a bumper payout of £4.2bn equivalent to 62% of the company's market value.

Profit at the company, now renamed as Ladbrokes to reflect the betting business that is left, was up 10%. Like-for-like profit at the hotels division for the full year 2005 was up 17.3% excluding exceptional items. The 390 hotels generated revenues of £2.9bn and gross operating profits of £659m.

The breakdown of profit according to contract type showed that the 41 owned hotels generated £7,228 per room. The 127 managed hotels made £1,273 per room and the 29 franchised properties delivered £454 per room. Fixed lease and contingent lease were £1,379 and £1,604 respectively.

Share →