Hilton’s stock slips after wider-than-expected loss, revenue dropped nearly 80%

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Shares of Hilton Worldwide Holdings Inc. slipped 0.3% in premarket trading Thursday, after the hotel operator reported a second-quarter loss that was wider than expected, with revenue dropping 77%, as the COVID-19 pandemic had a “significant adverse impact” on occupancy. The company swung to a net loss of $430 million, or $1.55 a share, from net income of $260 million, or 89 cents a share, in the year-ago period. Excluding non-recurring items, the adjusted per-share loss was 61 cents, compared with the FactSet loss consensus of 31 cents. Total revenue dropped to $564 million from $2.48 billion, below the FactSet consensus of $818.8 million. Revenue per available room (RevPAR) sank 81.0%, as occupancy fell 56.1 percentage points to 22.3% and the average daily rate declined 33.2% to $97.18. Hilton said, however, that RevPAR and occupancy rates have increased each month since April. Total cash and cash equivalents totaled $3.58 billion as of June 30, while Hilton had $10.3 billion in long-term debt. The stock has dropped 27.9% year to date through Wednesday, while the S&P 500 has gained 3.0%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.