*

Hilton CFO warns shutdown affects travel demand, cuts 2025

revenue forecast

*

Prolonged shutdown could dampen bookings, delay corporate

and

government trips

*

Shutdown may cost travel sector $1 billion weekly, US

Travel

Association estimates

By Shivansh Tiwary and Aishwarya Jain

Oct 22 (Reuters) - Hilton Worldwide's ( HLT ) 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 ( UL ) 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.