Hilton Reports $18 Million Q1 Profit Despite Coronavirus Pandemic

By Paul Riegler on 7 May 2020
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Hilton Worldwide announced financial results for the first quarter of 2020.

The hotelier said that, with the exception of the Asia/Pacific region, its revenue was not impacted by the coronavirus pandemic until March 2020, but it does expect the pandemic to have a negative impact on financial results going forward.

The company reported an $18 million for the quarter on $1.9 billion in revenue, an 89% drop from $159 million in the same period in 2019.

The company said that revenue per available room decreased 22.6% and franchise fee revenues decreased 18% for the quarter.

“The decreases were due to the Covid-19 pandemic and the related reduction in global travel and tourism, which required the complete and partial suspensions of hotel operations at many of Hilton’s properties,” the company said in a statement.

Hilton said it opened 67 new hotels in the first quarter, a net gain of 6,100 rooms, adding that it has over 2,600 hotels in its pipeline.

CEO Christopher Nassetta said in an earnings call that he expects the virus to last about three to six months, with an additional three- to six-month recovery period.

(Photo: Accura Media Group)

Accura News

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