Hilton CEO Sees More Room to Improve Owner Margins
Hilton CEO Christopher Nassetta discussed an abnormal decade for hotel owners at the Skift Global Forum and outlined Project Rise to boost margins.
Stock photo for illustration only, not from the actual event
- Christopher Nassetta described the past decade for hotel owners as abnormally difficult.
- Hilton launched Project Rise to return 75 to 100 basis points of incremental margin.
- The current market shows a C-shaped recovery with strengthening middle and lower segments.
- Hilton plans to leverage AI to cut distribution costs and drive higher profits for owners.
Hilton President and CEO Christopher Nassetta took the stage at the Skift Global Forum in New York City to argue that hotel owners have endured an exceptionally challenging decade, marking a scenario he has rarely encountered in his career spanning over 40 years.
His assessment of the turbulent period traced a timeline from the aftermath of the 2008 financial crisis through sluggish economic growth in 2017 and 2018, followed by a pandemic that wiped out more than 90 percent of revenue, a subsequent government-stimulus-led rebound, and a return to weak growth paired with high inflation.
Stock photo for illustration only, not from the actual event
In response to these persistent challenges, Nassetta initiated a strategic shift between late 2024 and early 2025, culminating in Project Rise, which was launched last June and rolled out this year to guarantee a return of 75 to 100 basis points of incremental margin to property owners.
“It’s really abnormal in my experience of 40-plus years of doing this, where you would have essentially, other than a sugar high, a really difficult 10 years.”
Christopher Nassetta, Hilton CEO
Looking ahead, Nassetta explained that the upcoming phase of the initiative will lean heavily on artificial intelligence to cut distribution and operational expenses, thereby channeling greater profit directly to owners, while characterizing the broader economic climate as a C-shaped recovery where high-income households moderate their spending while middle and lower segments gain strength.
Contextual Analysis: Hilton's push toward Project Rise and AI integration highlights how major hospitality brands are actively confronting rising operational burdens such as labor, financing, and insurance costs. By utilizing technology to streamline distribution channels, brands aim to protect owner profitability in an increasingly competitive landscape.
Stock photo for illustration only, not from the actual event
Nassetta also highlighted non-residential fixed investment, noting that corporate spending on data centers and infrastructure grew by over 10 percent in the second quarter, which correlates directly with midweek bookings from small and midsize enterprises that generate 85 to 90 percent of Hilton's business travel revenue. Addressing AI booking agents, he emphasized that Hilton will meet customers across every booking channel while relying on its massive scale, including 25 percent of U.S. quality hotel supply and 300 million Honors members, to defend direct customer relationships.
Source: Skift
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