Hilton takes $603 million hit in Q2

The pain of reporting season for hotel giants continues, with Hilton slumping to a big second-quarter loss.

The company posted a net loss of US$432 million ($602.6 million) for the three months to 30 June 2020, compared to a US$261 million ($364.1 million) profit in the prior corresponding quarter.

Adjusted earnings totalled US$51 million ($71.1 million) in Q2, while system-wide comparable RevPAR fell 81.0 per cent.

On a more positive note, Hilton had 18,400 new rooms approved for development during the second quarter, growing its development pipeline to 414,000 rooms as of 30 June 2020 – up 11 per cent from 30 June 2019.

The company opened 6,800 rooms in the second quarter, contributing to 5,500 net additional rooms in Hilton’s system. As of 31 July 2020, 96 per cent of its system-wide hotels were open.

Hilton president and CEO Christopher Nassetta said the second-quarter results reflect the challenges that the company has faced as a result of the COVID-19 pandemic.

“However, as restrictions are lifting and properties around the world are reopening, we are seeing improved occupancy,” he said.

“While we have a long journey in front of us, we are on the road to recovery and look forward to the opportunities ahead.”

The announcement of Hilton’s dour quarterly results comes not long after Accor revealed a tough first six months for the French hospitality behemoth in 2020.

Featured image source: iStock/helen89