FIVE RULES OF THUMB: CRISIS MANAGEMENT FOR HOSPITALITY EXECUTIVES

It’s widely reported that bulge-bracket private equity firms urged their portfolio companies, particularly those in the hospitality and energy industries, to draw down on their credit lines to prevent liquidity shortfalls (although subsequently denied by said firms). Hilton, in a move way ahead of the curve, borrowed the maximum under its $1.75 billion revolving credit facility as a “precautionary measure,” according to its 8K filed on March 5th, despite having significant existing cash balances. Boeing borrowed the remaining balance of its credit facility, $13.8 billion.