Hilton Worldwide Holdings Inc has said that it expects its room occupancy rates to improve by 5% by early autumn as economies reopen gradually, and predicted that it will take at least two years for demand to rebound to pre-coronavirus levels.
Shares of Hilton rose as much as 1.2% on the above outlook, reversing course from pre-market losses after the company reported an 81% drop in second-quarter revenue per available room (RevPAR).
"I think about the shape of the recovery so far, which has gone from a low of a little over 10% to now running 45% and moving our way up to 50%," CEO Christopher Nassetta told investors on a post-earnings call. "That is a lot of improvement over a relatively short period of time."
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Hilton's results come amid rising coronavirus cases in the United States and extended disruptions to travel.
Since April, US occupancy has more than doubled to approximately 48.1% as of July 25, according to data from research firm STR.
Other industry estimates of overall US hotel occupancy say it fell to as low as 20% in April.
Hilton did not give details for hotel occupancy levels, but said that they increased 20 and 15 percentage points in the United States and Asia-Pacific, respectively, between April and June.
Hilton's recovery has been faster in Asia-Pacific, and the company has reopened all of its hotels in mainland China.
Loss Per Share And Revenue
On an adjusted basis, Hilton posted a loss of 61 cents per share, much bigger than the average analyst estimates of 31 cents, according to Refinitiv IBES data.
Revenue plunged 77.3% to $564 million, below estimates of $848.7 million.