Second-quarter earnings at Hilton Hotels Corp. failed to meet expectations Tuesday due mainly to renovations at key properties despite a jump in revenue driven by higher room prices.

Still, shares of the Beverly Hills-based company rose on an improved outlook for the remainder of the year.

Hilton reported net income of $144 million, or 35 cents per share, in the three months ended June 30, down from $202 million, or 49 cents per share, a year earlier.
Excluding one-time gains related to tax benefits, second-quarter profit was 32 cents per share, compared to 27 cents a year ago.

Revenue rose to $2.2 billion from $1.18 billion a year earlier.

Analysts projected earnings of 34 cents per share on sales of $2.21 billion, according to Thomson Financial.

"All three parts of our company -- the hotels we own, our management and franchise fee business, and our timeshare operations -- continue to perform extremely well as our unparalleled collection of respected brands remain the first choices for the world's travelers and hotel owners," Stephen Bollenbach, co-chairman and chief executive, said in a statement.

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