Hilton Worldwide

Performance indicators

2020: Revenue halves to $4.31 billion, losses $720 million

Hilton's revenue in 2020 more than halved compared to 2019 - from $9.45 billion to $4.31 billion. The company also registered net losses of $720 million against $866 million in profit in 2019.

A significant deterioration in Hilton's financial performance was the result of the COVID-19 coronavirus pandemic, due to which tourist flows sharply decreased, and hotels were left without guests. So, in the second quarter of 2021 in Europe, the company's hotels were settled on average by only 7%.

Hilton financials

Hilton's revenue per number (RevPAR) at the end of 2020 amounted to $46, a decrease of 56.7% compared to the previous year. This figure fell the most (by more than 70%) in Europe, where RevPAR amounted to $30.71. In the United States, the average revenue of the network per hotel room fell by 55.4%, to $49.53, in the Middle East and Africa - by 54.3% (to $44.59), in the Asia-Pacific region - by 49.5% (to $41.21).

The average price for a room in Hilton hotels in 2020 turned out to be $114.03 per day, which is 19.6% less than a year ago. In the United States, it decreased by 20% (to $117.4), in Europe - by 22% (to 107.37%), in the Asia-Pacific region - by 19.3% (to $93.85). The best situation was in the Middle East and Africa, where the average cost of a night of accommodation in Hilton hotels at the end of 2020 decreased by 10.1%, to $125.3.

The occupancy rate of Hilton hotels at the end of 2020 was 40.1%, which is a third less than a year earlier. In Europe and the United States, this figure decreased by 47.8% and 33.5%, respectively - to 28.6% and 42.2%.

As of December 31, 2021, Hilton's net debt was measured at $7.33 billion, slightly less than a year ago's debt of $7.45 billion.

Hilton Reports Fourth Quarter and Full Year Results

History

2020:22% staff cut amid COVID-19 pandemic

In mid-June 2020, Hilton Worldwide Holdings announced the dismissal of 2,100 corporate employees (22% of the total). We are talking about the dismissal of those who work directly in the company (hotel staff are not included in this). The decision to eliminate working positions is associated with a sharp decrease in demand for travel services due to the COVID-19 coronavirus pandemic.

The hotel industry turned out to be one of the industries most affected by the pandemic: travelers were forced to cancel their reservations and stay at home due to general quarantine. Hotel chains Marriott International and Hyatt Hotels have also laid off thousands of employees as orders plummet.

Hilton Worldwide Holdings Announces Layoff of 2,100 Corporate Employees (22% of Total)

Never before in Hilton's century-old history has our industry faced the kind of global crisis that led to a near-complete end to travel. Hospitality has always been and will be the business of people who care for other people, and I am bitterly aware that in order to protect the business, we are forced to withdraw the support of many of our employees, "said CEO Christopher Nassetta.

Most hotel operators say that the fall in demand To Europe in America will reach a minimum in the second quarter of 2020, while in key markets Asia there has already been a turning point, as China it gradually lifts restrictions.

In April 2020, amid the pandemic, Hilton sent many employees on leave without pay for 90 days. Now the company is not only cutting jobs, but also extending previously announced forced vacations, reducing working hours and cutting wages for another three months. Hilton CEO Nassett has completely given up his salary for the rest of the year, other executives are cutting their wages by up to 50%.

By mid-June 2020, Hilton's workforce numbers 9,600 worldwide, and the total number of all employees, including temporary ones, was 173,000.^[1]

1969: John Lennon and Yoko Ono bed protest

Wanting to attract the public, musician John Lennon, together with his wife Yoko Ono, organized a meeting with reporters at the Hilton Hotel and gave interviews for 7 days, urging American politicians to end the senseless and bloody war in Vietnam, the protest was called "Bed of Peace," Montreal Canada, 1969

Aktivs

The chain has more than 3,600 hotels and 600,000 rooms in 82 countries. Hilton Worldwide Brands:

• Waldorf Astoria Hotels & Resorts,
• Conrad Hotels & Resorts,
• Hilton Hotels & Resorts, Doubletree,
• Embassy Suites Hotels,
• Hilton Garden Inn,
• Hampton Hotels,
• Homewood Suites by Hilton,
• Home2 Suites by Hilton
• Hilton Grand Vacations.

The company also offers customers a world-class bonus program, Hilton HHonors.

IT partner

On December 22, 2010, Accenture and Hilton Worldwide entered into a long-term partnership agreement. As part of the agreement, Accenture will develop computer applications for Hilton Worldwide, as well as support the company's real estate management systems and Hilton Worldwide's multi-brand websites, through which reservations, room payments and other customer transactions are carried out in more than 3,600 hotels worldwide. Also under the agreement, Accenture will provide technical support services for Hilton hotels Worldwide in all countries of presence.

The agreement makes Accenture a key member of the Hilton Worldwide Innovation Collaborative, a consortium of leading IT professionals working together to develop and implement the latest technology solutions for Hilton Worldwide's business.

The work will be carried out through the Accenture Global Service Network. Accenture will provide services in collaboration with Avanade, a business IT service provider that has deep expertise in Microsoft's innovative technologies. Accenture is the majority shareholder of Avanade. The financial parameters of the transaction are not disclosed.

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