Hilton Says Earnings to Be Less Than Expected

Hilton Hotels Corp. said its fourth-quarter earnings will be far less than analysts expected because of a sluggish gaming market and problems at its Las Vegas and Louisiana operations. Hilton said it expects earnings before charges of middle to high 20 cents a share. It was expected to earn 37 cents, the average estimate of 13 analysts polled by IBES International Inc. The shortfall is the latest piece of bad news for Beverly Hills-based Hilton, which lost out to Starwood Lodging Trust on Nov. 13 in a 10-month battle to buy ITT Corp. that would have made it the world’s largest hotel and gaming company. Hilton’s stock price since then has fallen 5.6%, and its debt ratings were cut. Hilton made its announcement after the markets closed. Its stock fell $2 to close at $29.25 on the New York Stock Exchange.