Hilton Plans To Close Most US City Hotels

12 Comments

Marriott started furloughs and hotel closures yesterday (read more here), and now Hilton CEO has informed the White House that they expect to close most US city hotels.

The occupancy rates have plummeted as the travel has come close to a complete halt due to the coronavirus (COVID-19) pandemic.

You can access Hilton’s info page coronavirus here.

READ MORE: Hilton Honors Rate & Bonus Points And Miles Promotions

Here’s an excerpt what Bloomberg reported (access their piece here):

Hilton Worldwide Holdings Inc. plans to close most of its hotels in major U.S. cities, Chief Executive Officer Christopher Nassetta said at a meeting with President Trump at the White House on Tuesday.

Nassetta, whose company has already begun to temporarily shutter namesake properties in New York and Washington, said occupancy rates could fall to 10% globally as world governments seek to halt the spread of the novel coronavirus.

The outbreak has hit the industry in a “devastating way,” Nassetta said, adding that occupancy rates in major U.S. cities were “running in the single digits.”

Hilton already closed half of its hotels in China:

Hilton Has Temporarily Closed 150 Hotels In China

Here’s what is happening with Marriott:

Marriott Begins Massive Furloughs & Hotel Closures

Conclusion

Hotels tend to stay open as long as they can cover variable expenses, which they can bring down by closing floors and combining F&B outlets.

When the occupancy rates are hovering in the low single digits, and the situation may last for some time, it is financially responsible to shut down the property.

All the hotels are facing this unprecedented shock. We’ll see all chains to close many, if not most, of their hotels for a while in North America.

If you enjoyed this article, get our blog updates for free!

Previous articleUnited Arab Emirates Closes Its Borders From All Non-Residents & Bans Nationals Traveling
Next articleDon’t Cancel Hotels & Airline Reservations If No Full Refunds Offered

YOU MIGHT ALSO LIKE