(Bloomberg) -- Hilton Worldwide Holdings Inc. is pulling its guidance for 2020, joining other companies in the hotel industry that are taking a hit from the coronavirus outbreak.
“With the coronavirus now spreading beyond China and the Asia Pacific region, and the related increase in travel restrictions and cancellations around the world, we believe that the potential negative impact will be greater than our previous estimate and have decided to withdraw our previously announced guidance,” Christopher Nassetta, Hilton's chief executive officer, said in a statement.
After weeks of conference cancellations, corporate travel restrictions and cratering stock values, hotel companies are cutting expenses while the spread of the virus socks hotel demand.
Hilton is the latest travel company to withdraw guidance this week, following Bookings.com, JetBlue and hotel owners including Host Hotels & Resorts Inc. and Pebblebrook Hotel Trust.
Hilton, and its rivals in the industry, had described the coronavirus as a minor drag on earnings, focusing mainly on travel in and out of China. The tone has started to change as the virus spreads across the U.S., roiling markets globally.
To contact the reporter on this story: Patrick Clark in New York at pclark55@bloomberg.net
To contact the editor responsible for this story: Craig Giammona at cgiammona@bloomberg.net
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