Hilton has closed 150 hotels in China
Hospitality group Hilton is bracing for a long impact on its business due to the coronavirus outbreak.
In an earnings call, CEO Chris Nassetta revealed 150 hotels in China have been forced to close.
That represents about 39,000 non-revenue generating rooms.
Although it is too early to say with certainty, it could affect the business for up to a year, based on past experience with the Sars epidemic.
"We’ve tried to estimate the potential impact on our business. Three to six months of escalation and impact from the outbreak, and then these things don’t typically turn around overnight, so another three to six months of recovery," Nassetta said.
Although it will mostly affect China and elsewhere in Asia, it will also affect the US and other global markets with a downturn in outbound China travel.
Hilton expects the outbreak to cut $25 million to $50 million off the company’s EBITDA for 2020.
Nassetta said the inbound China market currently accounts for about 2.7% of its EBITDA.
The China market had already been weak before the outbreak with revenue per available room down 7.7%.
This was due to a slowdown in leisure trips and impact from the Hong Kong pro-democracy protests.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025