Hilton plans to use crisis as opportunity to grow network, says CEO

04:51

The hospitality industry has been one of the hardest hit sectors due to the COVID-19 pandemic. But opportunities always emerge from the crisis, according to Christopher Nassetta, president and CEO of Hilton during an interview with CGTN last week.

London-based consultant firm Brand Finance, in its latest Hotels 50 2020 report, estimated that the global hotel sector could lose up to 20 percent of cumulative brand value, equaling to 14 billion U.S. dollars, due to the pandemic.

As a result of travel bans, stay-at-home advisement and social distancing guidelines across the globe, the hotel industry is experiencing the lowest occupancy rates. With the restrictions around the world gradually easing, recovery is underway.

However, Nassetta considered that it would take long time for the industry to get back to the pre-pandemic level.

Christopher Nassetta (r), President and CEO of Hilton talks to CGTN anchor Cheng Lei in an interview last week. /CGTN Photo

"We're in the earlier stages of recovery… At Hilton, we finished last year with 75 percent occupancy. [Now] we have seen occupancy rate from the low double digits – 10-12 percent -- go [up] to 25 or 30 percent," the CEO said, adding that China is ahead with 40-50 percent occupancy, while the rest of the world will be a bit behind.

"In terms of the shape of the recovery, there will be a little bit different everywhere," he said, noting that leisure business would come back first, followed by business travel. And meeting business will "take the longest to come back."

Brand Finance also expected that properties with strong brands where social distancing protocols are easier to be implemented will be less impacted. And Hilton remains the world's most valuable hotel brand in the ranking.

The CEO said Hilton would use the crisis time to gain a competitive advantage, particularly in China. On May 8, Hilton announced the reopening of all of its hotels in the Chinese Mainland.

"I believe, as I always do that in times of crisis in times of disruption, there's opportunity," he told CGTN. And he is positive on China's growth potentials by saying "China will continue to be our highest growth market for many years. We have another over 500 hotels in our pipeline."