Leisure group Hilton highlighted early signs of a recovery in the travel sector today after profits more than doubled in the first four months of 2004.

Hilton said room revenues at its 400-strong chain of hotels improved by 8.2% on a year ago as guests shrugged off terrorism fears.

The engine for profits growth of 106% came from bookmakers Ladbrokes following a 27% hike in the gross win - the sum of money left by punters after betting.

Prospects for its gaming division were strong but the group still remained cautious about the outlook for its hotels during the rest of the year.

It highlighted a backdrop of "continuing global uncertainties", while it pointed out that its performance last year was especially weak due to the Sars virus in Asia, the economic downturn and the Iraq war.

Hilton's portfolio of hotels in London was helping to lead the revival with revenues per room ahead by 34.7% in April after accelerating in each month.

All other major markets around the world showed an improvement except for its Scandinavian hotels, which were held back by a disappointing performance in Sweden.

Hilton said the increase in demand needed to be maintained over several months to provide a platform for future growth, especially in 2005.

At its Ladbrokes betting shops, 14% growth in over-the-counter trade was helping to drive up the gross win.

The roll out of fixed odds betting terminals continued with 4,800 installed by the end of April and a further 1,100 to be introduced by the end of next month.

Successful results at the Cheltenham Festival and Grand National horseracing meetings saw the gross win from its telephone betting operations jump 91%.

But the loss of live televised horse racing when digital horse racing channel attheraces went off air in March led to a fall in turnover.

The popularity of online poker contributed to a 34% hike in the gross win at its eGaming division.

As well as its hotel and bookmaking operations, Hilton also owns the Livingwell health club chain.

Friday May 21, 2004