Coronavirus Pandemic: How Hilton is Weathering the Storm
Undoubtedly, the novel coronavirus (COVID-19) has created unprecedented challenges for the global hospitality industry, including hotels’ team members.
Hilton Hotels is taking decisive action to protect the core of its business and support affected Team Members until this crisis passes and travel resumes.
With travel at a virtual standstill, operations have been suspended across many managed and franchised hotels, while those hotels that remain open have reduced services for guests because of decreased occupancy levels.
At the corporate level, Hilton is taking the following actions to significantly reduce expenses and preserve liquidity while re-positioning to welcome guests back:
President and CEO, Christopher Nassetta, will forgo his salary for the remainder of 2020;
The Executive Committee will take a pay cut of 50% for the duration of the crisis;
Beginning April 4, many of Hilton’s corporate Team Members will have reduced schedules or be furloughed for up to 90 days.
Corporate Team Members who are not furloughed will have their pay reduced by up to 20% for the duration of the crisis;
Eliminating non-essential expenses, including capital expenditures; and
Suspending all share buybacks and suspending the payment of dividends – other than those previously declared.
While difficult to make, these decisions will allow the company to weather the current crisis and emerge in the best position to welcome back its Team Members and guests when it is safe again to travel.