Hilton Hotels Corp. HLT.N said on Monday it will proceed with most planned hotel maintenance and construction next year, despite the sharp travel drop-off in the two weeks since the Sept. 11 air attacks. 
"Since we are running our company with an expectation that business will return to 1998-99 levels after a difficult period of eight to 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," Hilton chief executive Stephen Bollenbach said in a statement. 
Specifically, Hilton said it will proceed on schedule with $170 million in planned hotel maintenance and technology spending in 2002. 
It also said that $40 million in significant renovation projects now underway will be completed as scheduled, including renovations at Hiltons in San Francisco, New Orleans, Cleveland and Salt Lake City. 
It said it will continue with $25 million in several other projects, but has decided to postpone two previously announced vacation-ownership properties in Las Vegas and Orlando. 
The announcement came in contrast to plans by rival Starwood Hotels & Resorts Worldwide Inc. HOT.N , which said it is putting millions of dollars in similar projects on hold in an effort to preserve cash until the industry's future direction is clearer. 
Bollenbach has been critical of proposals by some in the hotel industry to put together a government-funded support package after U.S. airlines won $15 billion for their troubled sector. 
Other top hotel executives were scheduled to meet on Tuesday with U.S. Commerce Secretary Don Evans in Washington to discuss the state of the $582 billion U.S. tourism industry. 
