Coronavirus Outbreak Forces Hilton, Marriott to Close Thousands of Hotels
Hilton Hotels' preliminary systemwide first-quarter estimate of revenue per available room showed a 56% to 58% decline for March, according to the company's filing with the U.S. Securities and Exchange Commission as reported by USA Today.
For the company's hotels in Europe, the Middle East and Africa, revenue per room is down 62% to 64% for March, which is slightly worse than Hilton properties in North and South America, which are down 54% to 56%.
These numbers are all better than the hotel's revenue per room in the Asia/Pacific region, which declined 74% to 76% in March.
As of April 14, 1,000 Hilton Hotels have suspended operations, which accounts for 16% of the chain's total global properties.
Marriott hotels also expect to report a decline of at least 23% in revenue per room for the first quarter.
About 25% of Marriott's 7,300 hotels around the world are temporarily closed as a result of coronavirus travel fallout, according to a business update from the company Tuesday.
Marriott's North American occupancy levels are at about 10%, and more than 870 hotels are temporarily closed (16%). Marriott expects to report that its revenue per room fell 60% worldwide in March, reflecting declines of 57% in North America. Nationwide, about 80% of hotel rooms are empty.
Hotel occupancy, average daily rate and revenue per available room were down significantly year-over-year for the week of April 5-11, according to a report from STR, a firm that analyzes hospitality industry data.