Published on : Wednesday, February 12, 2020
Hilton hotels has closed 150 hotel rooms in China due to the coronavirus says the CEO. The hotels total roughly 33,000 rooms, CEO Christopher Nassetta said on the company’s post-earnings conference call.
Assuming that the outbreak lasts three to six months, with an additional three to six month recovery period, Hilton expects a $25 million to $50 million hit on full-year adjusted EBIDTA, he said. The company estimates a percentage point impact on RevPAR, or revenue per available room, a key metric in the hotel industry.
Nassetta said that later on the call that the situation was evolving. They are reporting at a time where they know a bunch but not that much relative to where this thing is going. He noted that China represents 2.7% of company’s overall EBIDTA.
The shares in Hilton were up 2% at $113.74 in afternoon trading after the company reported an earnings beat.