Hilton’s Quest for Breakeven 8 Months Into the Pandemic
Photo Credit: Hilton attributes its third quarter financial rebound to major cost cuts as well as travel demand beginning to revive. Wikimedia / Kenneth C. Zirkel
Skift Take
Hilton's financials are quickly heading in the right direction, but the company — and the greater hotel industry — need to remain cautious about second and third waves of the coronavirus putting a halt to the positive momentum.
The financial worst of the pandemic looks to be behind Hilton, and now is the time to think about growth, company leaders conveyed to investors Wednesday on a third quarter earnings call.
Hilton’s massive second quarter losses have rebounded. The company reported a third quarter loss of $81 million, but that’s significantly better than the $432 million loss posted in the prior quarter. Through a combination of cost savings and focus on organic growth, Hilton leaders think the company has the right fundamentals to make it to the other side of the coronavirus crisis and even boost market share.
“What does it take to get to cashflow positive? We’re almost there — [we] probably just [need] a little bit better demand and better operating performance and you’re there,” said Kevin Jacobs, chief financial officer at Hilton, during the call.
Jacobs and Hilton CEO Chris Nassetta both attribute the company nearing a financial breakeven point to a combination of cost-cutting
