Short crisis 'will prevent hotel job losses'

Major job losses at hotels group Hilton will be avoided if the US terrorist crisis lasts less than three months, its chief executive forecast today.

David Michels believes the business could weather the storm financially at least until the end of the year.

Speaking on BBC2’s Working Lunch programme, Mr Michels said Watford-based Hilton would be reluctant to let staff go.

He said: ‘‘We’ll probably do some job sharing to fill gaps and we are unlikely to be hiring new staff. We’ll be using natural wastage of which there is quite a lot in this industry.

‘‘I don’t see any major job losses at all, assuming this lasts for two or three months.’’

The group has nearly 400 hotels around the world, including 75 in the UK but just two in the United States.

Mr Michels said visitor numbers in London had dropped off 15% in the last week, with the figure down 10% on the continent.

Hilton also reported more cancellations than bookings in the two days after the terrorist attacks but Mr Michels said that trend had now stopped.

He acknowledged the continuation of the US crisis would hurt business but pointed out 35% of the company’s profits come from its Ladbrokes betting arm.

Mr Michels said: ‘‘If it lasts three or four months, financially we are more than capable of weathering that particular storm.

‘‘Our cash flow is good enough, our gearing is good enough and our interest cover is good enough. But we will lose business and we will lose profit.

‘‘So in the short term it is serious but with the long term knowledge that it will end, I’d call it a serious hiccup.’’

The group is scheduled to provide investors with a full trading statement on November 8.