By Shivansh Tiwary and Aishwarya Jain
(Reuters) -Hilton Worldwide’s finance chief warned on Wednesday that the ongoing U.S. government shutdown was affecting travel demand, echoing concerns from other corporate leaders as businesses brace for broader fallout if the impasse is not resolved soon.
The shutdown, now stretching into its fourth week amid a deadlock in Washington over government funding, has raised concerns across the corporate world about disruptions to consumer spending, business travel and financial developments such as public share listings.
CFO Kevin Jacobs said the shutdown “is affecting the numbers somewhat.” Hilton cut its 2025 room revenue growth forecast, noting that the closure is now reflected in the outlook.
Jacobs’ warning echoes similar remarks from other corporate leaders and industry bodies who say prolonged uncertainty could dampen bookings and force companies and government workers to delay trips. Also on Wednesday, Marc Casper, CEO of medical equipment maker Thermo Fisher, said the company expects a delay in some expenditures by the U.S. government due to the shutdown.
Consumer goods giant Unilever has delayed the spinoff of its Magnum ice cream unit as the U.S. SEC remains unable to approve the registration required to list the shares on the New York Stock Exchange.
Last week, United Airlines CEO Scott Kirby warned that an extended government shutdown risks taking a toll on airline bookings as well as flight operations.
Revenue per available room for hotels in the Washington area is “underperforming, which we think reflects a mix of tough comparisons from last year’s election cycle and the impact of the current government shutdown,” said BofA Securities analyst Shaun Kelly.
He noted that D.C.-area hotels underperformed the rest of the United States in the last two shutdowns by about 8 percentage points.
Industry groups have warned that staffing shortages at federal agencies, including the Transportation Security Administration and the Federal Aviation Administration, could lead to longer airport wait times and flight delays, potentially discouraging travel.
The U.S. Travel Association, an industry group representing airlines, hotels and other travel businesses, estimates the shutdown could cost the sector about $1 billion a week in lost spending if disruptions intensify.
(Reporting by Shivansh Tiwary and Aishwarya Jain in Bengaluru; Editing by Alan Barona)
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