Hilton expects all of its hotels to reopen by midyear
This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.
Hilton is optimistic about 2021.
In its fourth-quarter 2020 earnings call on Wednesday, the hotel chain said that despite last year being the toughest in its 101-year history, it expects to emerge from this crisis a stronger company poised for further growth in the future.
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
As of Feb. 10, 2021, 97% of Hilton’s hotels in its system are operational and CEO Chris Nassetta said his company would have “essentially all system-wide rooms reopened by the end of the second quarter” of this year — a significant milestone after seeing the lowest demand in its history throughout 2020.
Last year, the chain managed to notch increases in market share across every region in which it operates and opened more than 400 hotels, though it still saw systemwide RevPAR (revenue per available room) decline by 57% for the year and recorded a $225 million net loss for the fourth quarter last year.
The fourth quarter of 2020 mirrored trends we’ve seen since the outset of the pandemic, with the state of the virus dictating travel behavior.
Positive demand momentum slowed in November and December because of skyrocketing COVID-19 case counts, increased travel restrictions and hotels suspending operations, particularly in Europe. And, the majority of the demand that was there came from last-minute bookings (Hilton said that 70% of its bookings are made within one week of travel) to hotels in destinations that are easy to drive to. Demand for business and group travel, while showing moderate improvements, remained very low.
Nassetta alluded to trends Hilton is seeing now, saying that so far, this quarter looks very similar to the last quarter of 2020, with modest increases in demand within the U.S. contrasting weaker numbers in Europe and much of the Asia-Pacific region.
Looking forward, Mr. Nassetta sees a fuller recovery manifesting in the latter half of this year. He’s encouraged by the prospect that the COVID-19 vaccine rollout, while slow, will soon accelerate and allow restrictions to be eased on a meaningful scale and thus unleash much of the pent-up demand for travel that the chain is seeing.
He also cites a significant increase in personal savings across the country, which he believes will lead to even more leisure travel as more people become inoculated to COVID-19.
Despite being stuck in a “holding pattern” of sorts and waiting for the vaccine rollout to make a significant impact on the state of the coronavirus pandemic both in the U.S. and worldwide, it appears that Hilton is gearing up for its recovery to begin in earnest around the middle of this year.
As travelers, it’s heartening to see that at least one of the world’s hotel giants will restore operations at virtually all its hotels by this summer and we hope this is a harbinger of further signs of recovery to come throughout the industry.
Featured image of Oceana Santa Monica, LXR Hotels and Resorts courtesy of the hotel
Welcome to The Points Guy!
Earn 90,000 bonus miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new card in the first three months of card membership. Offer ends 11/10/2021.
With Status Boost™, earn 10,000 Medallion Qualification Miles (MQMs) after you spend $25,000 in purchases on your Card in a calendar year, up to two times per year getting you closer to Medallion Status. Earn 3X Miles on Delta purchases and purchases made directly with hotels, 2X Miles at restaurants and at U.S. supermarkets and earn 1X Mile on all other eligible purchases. Terms Apply.
- Limited Time Offer: Earn 90,000 Bonus Miles and 10,000 Medallion® Qualification Miles (MQMs) after you spend $3,000 in purchases on your new Card in your first 3 months. Offer expires 11/10/2021.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide, including takeout and delivery and at U.S. supermarkets.
- Earn 1X Miles on all other eligible purchases.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. *Payment of the government imposed taxes and fees of no more than $75 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights.
- Fee Credit for Global Entry or TSA Pre✓®.
- Enjoy an exclusive rate of $39 per person per visit to enter the Delta Sky Club® for you and up to two guests when traveling on a Delta flight.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees