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Hilton 2026 Projections
Projected RevPAR growth for full-year 2026 compared to earlier estimates.
Primary Sources
Hilton's CEO says he sees a C-shaped economy emerging in the US
Hilton's CEO says he sees the K-shaped economy converging. Justin Sullivan/Getty Images 2026-04-29T05:01:12.382Z Hilton's CEO says he sees the K-shaped economy converging into a C-shape. He said macro trends are boosting spending from lower-income consumers. However, other company executives have said that the economy is more divided than ever. Hilton's CEO said America's K-shaped economy is converging as lower-income consumers are spending more. During a Tuesday earnings call, CEO Christopher Nassetta said that he expects "improving performance in the lower and mid-chain scales" in the rest of the year.He said sales growth would continue to "move downstream from luxury and upper upscale toward a more balanced convergence demand shape, or what I have been calling a C-shaped economy."The term is a play on the K-shaped economy. Analysts and company executives have warned about the economy going K-shaped in recent months — a difference in spending behavior between high- and low-earners.When asked why he predicted a "C-shaped economy," Nassetta said factors like falling inflation, the expectation of lowered interest rates, and heavy investment in AI are "benefiting the middle and lower income consumer and driving broader demand growth." He said these were broad, big-picture trends, adding that people should "forget, for the moment, the spike in energy prices and oil because of the war in Iran."Hilton reported a 3.6% increase in RevPAR — a measure of revenue per available room — in the first quarter of 2026 compared to the same period last year.Nassetta's comments are at odds with those of other industry executives, who have warned that the K-shaped economy is more divided than ever. Executives of Delta Air Lines, Macy's Inc, and Ralph Lauren previously said that their affluent customer base has driven sales.On the other side of the "K-shape," food and beverage brands are slashing prices to attract lower-income spenders.PepsiCo's CEO Ramon Laguarta announced in February that the company would cut the prices of some of its products, such as Lay's, Doritos, and Cheetos, by up to 15%. And at the start of April, McDonald's announced that it was expanding its value menu to include $3 items and $4 meal deals.However, Visa's CFO on a Wednesday earnings call gave promising indicators that consumer spending is holding strong. Visa finance chief Christopher Suh said the US payment volume grew 8% in the latest quarter compared to the same period the year before, "re...
Hilton Sees Reversal of 'K-Shaped Economy'
The trend of luxury demand driving hotel performance is shifting, according to Hilton CEO Christopher Nasseta[HC1] , speaking on a first quarter earnings call. He said broad-based demand growth fueled a stronger-than-expected first quarter. Nassetta said the “K-shaped economy” — with luxury hotels outperforming and economy hotels performing poorly — could be ending. “We expect improving performance in the lower and mid-chain scales with RevPAR strength continuing to move downstream from luxury and upper upscale toward a more balanced convergence demand shape, or what I have been calling a ‘C-shaped economy,’ ” Nassetta said. Hilton hotels saw systemwide revenue per available room (RevPAR) increase 3.6% year over year in the first quarter, with Nassetta noting much of that demand came from further down the chain scales than the luxury demand that largely fueled performance in 2025. Nassetta attributed the growth in demand partly to a “broad deregulatory regime,” the 2025 tax cuts and “very, very business-friendly” tax attributes. Nassetta noted that prior to the conflict in the Middle East, that region had been among the best-performing parts of the world for Hilton. He added he’s hopeful that things can normalize sooner rather than later, but the company’s full-year projections account for a wide range of scenarios in the area. “The Middle East creates some uncertainty, but I think you can make an argument that we’re being reasonably conservative with our guidance,” he said. Hilton now projects a 2%-3% increase in RevPAR for full-year 2026, compared with earlier projections of 1%-2%. Hilton officials are also expecting net income of slightly more than $1.9 billion and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of slightly more than $4 billion. Hilton had $2.9 billion in revenue in the first quarter, according to an earnings report. The company also realized $383 million in net income during the first quarter, with $901 million in adjusted EBITDA. [HC1]I’m seeing Nassetta with two t’s https://stories.hilton.com/bio/christopher-j-nassetta
Hilton Navigates Middle East Impact Amid Global Market Shifts: Travel ...
Nassetta also cited what he described as a domestic "C-shaped economy," in which midmarket demand is catching up to the upscale and luxury segments, driven by declining inflation, a deregulatory ...
With Q1 in the books, the sanguine CEO of Hilton feels better about the ...
Though Nassetta foresees a C-shaped economy at least buffering against the up-to-now K-shaped economy, one where different parts of the economy diverge sharply, with wealthier households trending upward and lower-income households trending downward, a large portion of Hilton's openings are in the luxury and lifestyle segments, accounting for ...
