Hilton Walloped by $720 Million 2020 Loss That Pushes Hotel Giant to Permanent Cost Cuts
Photo Credit: Hilton posted a massive loss for 2020, but its banking a major pandemic recovery on cost and job cuts. Wikimedia / Raysonho @ Open Grid Scheduler / Grid Engine
Skift Take
Hilton's pandemic recovery plan hinges significantly on companywide cost-cutting and fewer staffers at the property level becoming a permanent way of doing business.
The world’s second largest hotel company stalled at the end of 2020 in its pandemic recovery, but company leaders say they used the crisis as an opportunity to position the business for higher earnings and lower labor costs in the future.
Hilton reported a $720 million loss for the entirety of 2020, with $225 million of that coming from the fourth quarter. That’s a setback for the company, which saw an $81 million loss in the prior quarter and had company leaders believing at the time they were on their way to a breakeven point.
While Hilton leaders recognize the fiscal headwind, they remain confident cost-savings measures instated earlier in the pandemic as well as ongoing labor efficiencies position the company for better gains on the other side of the crisis.
“The positive momentum in demand we saw through the summer and early fall was disrupted in November and December by rising Covid cases, tightening travel restrictions, and further hotel suspensions – particular
