Get the app today! Download iPhone App Download Android App

SUBSCRIBE

Hilton Records Loss For Q4 2020

Published on Feb 20 2021 10:00 AM in Hotel tagged: Trending Posts / Hilton

Hilton Records Loss For Q4 2020

Hilton Worldwide Holdings Inc has recorded a surprise quarterly loss as bookings took a hit from a resurgence in COVID-19 cases and renewed travel curbs.

Although occupancy rates have bounced back from April of 2020 lows thanks to a relative easing of lockdowns, emerging variants of COVID-19 have hindered a swift recovery for US hotel operators.

"Rising COVID-19 cases and tightening travel restrictions disrupted the positive momentum we saw throughout the summer and fall," Hilton CEO Christopher Nassetta said in a statement.

Analysts expect a wider rollout of COVID-19 vaccines later this year to first aid a rebound in leisure travel, leaving hotel chains such as Hilton that rely more on business travel struggling for longer.

Hilton said that its fourth quarter revenue per available room (RevPAR) - a key measure for a hotel's top-line performance - fell by approximately 59% to $40.68, and was below the company's expectation of approximately $45 per room.

Net loss attributable to Hilton stockholders was $224 million, or 80 cents per share, in the quarter that ended on December 31, 2020, compared with net income of $175 million, or 61 cents per share, a year earlier.

On an adjusted basis, Hilton lost 10 cents per share, missing analysts' estimates for a profit of three cents per share, according to Refinitiv data.

Revenue

Revenue plunged by 62% to $890 million, which was below Wall Street's estimate of $1.03 billion.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

Share on Facebook Share on Twitter Share on LinkedIn Share via Email