Hilton CEO Talks HNA, Cancellations, OTAs, and Airbnb
Skift Take
As it adapts to its new asset-light strategy, Hilton seems determined to leverage the strength of its ties to HNA, prevent unwanted hotel cancellations, and welcome more competition from an unlikely ally: Airbnb.
Hilton reported its earnings for the second quarter of 2017, and during a call with investment analysts, CEO Christopher Nassetta addressed a number of recent developments related to the company, including news regarding its relationship to its newest big investor, HNA Group.
In March, HNA closed its 25-percent acquisition of Hilton shares from Blackstone for approximately $6.5 billion. Recent crackdowns on corporate debt by the Chinese government are fueling concerns that HNA may be forced to pay down its debts, and possibly threaten its many foreign investments — Hilton included.
When asked by analysts if he was concerned about HNA's financial investment in Hilton, Nassetta said, "I don't have anything to add to what you're reading about with HNA." He said Hilton is "in dialogue" with the company and is "in the process of onboarding a couple of board members as planned." He added, "What happens with them, ultimately, I don't know, but it appears, to us, as business as usual. There's not much more to say about that."
Pressed for further comment, Nassetta emphasized the long-term "good strategic potential" of Hilton's relationship with HNA Group.
Additionally, Nassetta fielded a question about Hilton's ties to another Chinese conglomerate, Anbang, which is also facing scrutiny from the Chinese government over its debts. Its chairman, Wu Xiaoui, was even d
