As part of its ongoing commitment to “managing for recovery,” Hilton Hotels Corp. (NYSE:HLT) today described its capital expenditure plans for 2002.
* The company`s maintenance capital spending at its owned hotels
will proceed as planned. Maintenance capital expenditures,
required to keep hotels in optimal physical condition, plus
technology spending will total approximately $170 million in
* Significant renovation projects that are under way will be completed as scheduled:
** Guestroom renovation at the Hilton San Francisco and
** Guestroom renovation at the Hilton New Orleans Riverside.
** Renovation of the Hilton Cleveland.
** Guestroom renovation at the Hilton Salt Lake City, to be
completed in time for the 2002 Winter Olympic Games.
Spending on these projects totals approximately $40 million for 2002.
* Specific return-on-investment projects that are under way also
will be completed, including:
** Construction of the new 319-room tower at the Hilton
** New restaurant and meeting space conversions at the Hilton
Alexandria in Virginia.
** Addition of a ballroom at the Hilton La Jolla Torrey Pines.
Spending on these projects totals approximately $25 million for 2002.
“Since we are running our company with an expectation that business will return to 1998-99 levels after a difficult period of 8-12 weeks, it is important that we continue to maintain our hotels in the best condition for our guests and customers, and complete significant projects that are already well under way,” said Stephen F. Bollenbach, president and chief executive officer of Hilton Hotels Corp.
The company has decided to postpone two previously announced vacation-ownership properties in Las Vegas, Nev., and Orlando, Fla., for approximately six months, and will re-evaluate these projects at that time.
“While we believe that it is prudent at this time to postpone these two projects for a short time, we are hopeful that business conditions in the U.S. will improve, and that it will make sense to continue development of these projects,” Bollenbach said.