Hilton has closed 150 hotel rooms in China due to the coronavirus, its CEO said Monday.
The hotels total roughly 33,000 rooms, CEO Christopher Nassetta said on the company's post-earnings conference call.
Assuming that the outbreak lasts three to six months, with an additional three to six month recovery period, Hilton expects a $25 million to $50 million hit on full-year adjusted EBIDTA, he said. The company estimates a percentage point impact on RevPAR, or revenue per available room, a key metric in the hotel industry.
Nassetta said later on the call that the situation was evolving. "We're reporting at a time where we know a bunch but not that much relative to where this thing is going," he said. He noted that China represents 2.7% of company's overall EBIDTA.
Hilton shares were up 2% at $113.74 in afternoon trading after the company reported an earnings beat.