Hilton Reports $432 Million Second-Quarter Loss

Like much of the hospitality sector and the travel industry at large, Hilton’s business was ravaged by the COVID-19 pandemic in the second quarter of 2020.

On Thursday, the hotel giant reported a net loss of $432 million for the quarter and said it saw systemwide comparable RevPAR (revenue per available room) decrease by 81 percent from the same period in 2019.

Meanwhile, Hilton reported adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $51 million for the three months ended June 30 compared to $618 million during the same period last year.

The coronavirus crisis continues to impact Hilton’s business but the company reports that all major regions have experienced month over month increases in occupancy and RevPAR since hitting rock bottom in April. Hilton’s recoveries in the United States and Asia Pacific have been among the bright spots, with occupancy levels up approximately 20 percentage points and 15 percentage points, respectively, from April to June.

“Our second-quarter results reflect the challenges that our business has experienced as a result of the pandemic,” Hilton President and CEO Christopher Nassetta said in a statement accompanying Thursday’s report. “However, as restrictions are lifting and properties around the world are reopening, we are seeing improved occupancy. While we have a long journey in front of us, we are on the road to recovery and look forward to the opportunities ahead.”

In addition to launching the CleanStay program in collaboration with RB, maker of Lysol and Dettol, and the Mayo Clinic, to ensure an enhanced standard of cleanliness and disinfection at properties around the world, Hilton opened 60 new hotels totaling 6,800 rooms during the quarter and reports that 96 percent of its systemwide hotels are open as of July 31.

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