British hotels and gaming company Hilton achieved a 72 per cent rise in first-half profit that beat forecasts.
But the company reiterated a cautious outlook today on recovery prospects for its hotels business.
Pre-tax profit, before exceptional items, rose to £189.7 million sterling ($341 million) for the six months to end-June.
Like many hotel operators, Hilton is starting to recover from the woes of 2003, when it suffered from the effects of the Iraq war, the SARS virus and global concern over terrorism.
However, Hilton reiterated that it did not anticipate a full hotel recovery before 2005.
"I think it's sensible to be cautious. There was a good increase in occupancy in the first-half, led by London. But parts of Europe are still a bit patchy, such as France," Finance Director Brian Wallace said.
Hilton raised its interim dividend by 6 per cent to 3.6p. The company's shares edged up 0.4 per cent to 260-1/4 pence in early morning trade.