Hilton Worldwide Holdings Inc. announced this week the withdrawal of its previously announced first quarter and full year 2020 outlook. Hilton cited the novel coronavirus’ (COVID-19) impact on the global economy as the reason for the withdrawal.
As of 2019, Hilton’s portfolio included 5,757 properties of which a substantial portion–4,947–are franchisee run. The hotel giant operates under fifteen brands across different market segments, including Conrad Hotels & Resorts, Canopy by Hilton, Curio – A Collection by Hilton, Hilton Hotels & Resorts, DoubleTree by Hilton, Embassy Suites Hotels, Hilton Garden Inn, Hampton by Hilton, Homewood Suites by Hilton, Home2 Suites by Hilton, Hilton Grand Vacations, Waldorf Astoria Hotels & Resorts, Tru by Hilton, Tapestry Collection by Hilton, and Motto by Hilton.
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Hilton’s Statement
Hilton issued a statement by Christopher J. Nassetta, President & Chief Executive Officer of Hilton addressing the outlook and virus. “Our first thoughts continue to be with our guests and team members affected by the coronavirus. It is times like these when the world needs our hospitality most, particularly in the communities that have been hit hardest by the outbreak.
“With the coronavirus now spreading beyond China and the Asia Pacific region, and the related increase in travel restrictions and cancellations around the world, we believe that the potential negative impact will be greater than our previous estimate and have decided to withdraw our previously announced guidance. We will provide an update during our first quarter earnings call, based on the information we have available at the time.
“As a 100-year company that takes the long view, we are confident in our resilient business model, the performance of our leading brand portfolio, and our ability to respond appropriately to market conditions.”
It is unclear how deep a blow the coronavirus and related travel restrictions will deliver to Hilton, its nearly 5,000 Hilton franchise hotels, and the hotel industry in general. However, with travel restrictions in place in many countries and tourism numbers significantly down, it goes without saying bottom lines will take a significant hit.
