Hilton estimates up to $50m loss on earnings due to coronavirus

Hilton estimates up to $50m loss on earnings due to coronavirus
Hilton Wuhan Riverside
Published: 13 February 2020 - 6 a.m.
By: Josh Corder

Hilton CEO Chris Nassetta has announced the group could see earnings in 2020 drop by between US$25 and US$50 million due to the knock-on effect of the coronavirus.

In a conference call with investors on Tuesday, Nassetta explained the group has temporarily closed 150 hotels across China, equating to 33,000 rooms.

He explained: “Assuming the outbreak lasts around three to six months with an additional three - to six -month recovery period, for the full year, we would estimate a potential 100 basis point impact to comp system -wide RevPAR growth, assuming closed hotels ultimately wind up being non -comp.”

Business Insider spoke with Hilton VP of corporate communications, Nigel Glennie. Glennie said: "Some of these [Chinese] hotels are still housing existing guests and medical professionals, but they are not accepting new reservations at this time. We will look to re-open these hotels as soon as possible and once the local authorities confirm that is appropriate."

According to Glennie, Hilton has four hotels in Wuhan, all of which have been closed, along with 225 hotels in Greater China.

Touching on Hilton’s 2019 in China and wider Asia, it was revealed RevPAR was down in the region by 0.9% and down in the final quarter by 3.8%. Nassetta explained this was mainly due to a slowed tourism industry caused by the Hong Kong protests.

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