With travel at a virtual standstill, operations have been suspended across many managed and franchised Hilton hotels, and those 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:
- President and CEO Christopher Nassetta will forgo his salary for the remainder of 2020;
- the executive committee will take a pay cut of 50 percent 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 but will maintain their health benefits and, subject to local regulations, will also be eligible for unemployment benefits;
- corporate team members who are not furloughed will have their pay reduced by up to 20 percent for the duration of the crisis;
- eliminate non-essential expenses, including capital expenditures; and
- suspend all share buybacks and the payment of dividends, other than those previously declared.
Additionally, through the Hilton Workforce Resource Center, team members are being given direct and, in some cases, expedited access to more than 500,000 temporary jobs at more than 30 companies including Amazon, CVS, Albertsons, and Walgreens. Hilton hopes to expand this program globally and welcome team members back when travel resumes.
Photo: Courtesy of Hilton