Hilton has closed 150 hotels in China due to coronavirus
Guests stand outside of a Hilton hotel in San Francisco, Feb. 16, 2015.
David Paul Morris | Bloomberg | Getty Images
Hilton has closed 150 hotel rooms in China due to the coronavirus, its CEO said Monday.
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 later on the call that the situation was evolving. “We’re reporting at a time where we know a bunch but not that much relative to where this thing is going,” he said. He noted that China represents 2.7% of company’s overall EBIDTA.
Hilton shares were up 2% at $113.74 in afternoon trading after the company reported an earnings beat.