Hilton pulls out of operating its Cape Town Hotel

American hospitality major Hilton has stopped operating its Hilton Cape Town hotel from Sunday, after nine years of running it. The property at the Buitengracht Street of Cape Town, will be handed back to its owner, Millat Properties.

Hilton had recently announced that it would cut 2,100 jobs – more than a fifth of its corporate staff –  in response to the coronavirus crisis, which has decimated the hospitality industry.

“Never in Hilton’s 101-year history has our industry faced a global crisis that brings travel to a virtual standstill,” said CEO Christopher J. Nassetta.

In South Africa, leisure accommodation is still banned under lockdown rules.

A Hilton spokesperson told Business Insider SA that the group, however, had no plans to withdraw from the country. The company also operates Hilton Sandton and Hilton Durban. Its DoubleTree by Hilton Hotel in Woodstock, Cape Town, is managed by a franchise holder.

“We remain committed to Cape Town as a destination,” the spokesperson said. Hilton still plans to open its first boutique-style Canopy by Hilton hotel in the city towards the end of next year.