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

The hotel group recently announced the closure of 150 Chinese properties

Hilton Wuhan Riverside
Hilton Wuhan Riverside

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.”

Did you like this story?
Click here for more

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.

For all the latest hospitality news from UAE, Gulf countries and around the world, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page.

Most Popular



Human Capital Report 2017

Human Capital Report 2017

The second annual Hotelier Middle East Human Capital Report is designed to explore the issues, challenges and opportunities facing hospitality professionals responsible for the hotel industry’s most important asset – its people. The report combines the results of Hotelier Middle East's HR Leaders Survey with exclusive interviews with the region's senior human resources directors.

Hotelier Middle East Housekeeping Report 2016

Hotelier Middle East Housekeeping Report 2016

The Hotelier Middle East Housekeeping Report 2016 provides essential business insight into this critical hotel function, revealing a gradual move towards the use of automated management and a commitment to sustainability, concerns over recruitment, retention and staff outsourcing, and the potential to deliver much more, if only the industry's "image problem" can be reversed.

From the edition

From the magazine