Hilton Slips To Loss In Q4, Results Miss Estimates
Hilton Worldwide Holdings Inc. (HLT) reported Wednesday a loss for the fourth quarter compared to a profit last year, hurt by the complete or partial suspensions of hotel operations due to the ongoing COVID-19 pandemic. Both adjusted loss and quarterly revenues missed analysts’ expectations.
“Our fourth quarter results were largely in line with our expectations as rising COVID-19 cases and tightening travel restrictions disrupted the positive momentum we saw throughout the summer and fall,” said Christopher Nassetta, President & CEO of Hilton.
For the fourth quarter, the company reported a net loss attributable to Hilton stockholders of $224 million or $0.80 per share, compared to net income of $175 million or $0.61 per share in the prior-year quarter.
Excluding items, adjusted loss for the quarter were $0.10 per share, compared to adjusted income of $1.00 per share in the year-ago quarter.
Total revenues for the quarter plunged to $890 million from $2.37 billion in the same quarter last year.
On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.03 per share on revenues of $1.02 billion for the quarter. Analysts’ estimates typically exclude special items.
System-wide comparable RevPAR declined 59.2 percent on a currency neutral basis for the fourth quarter, due to both occupancy and ADR decreases.
The company opened 22,900 rooms in the fourth quarter, reaching the one million room milestone. As of February 10, 2021, 97 percent of Hilton’s system-wide hotels were open, while approximately 220 hotels had temporarily suspended operations.
Source: Read Full Article