ATLANTA — Even in the face of the hospitality industry's anemic same-store revenue growth and reasonably high inflationary growth for expenses, Hilton President and CEO Christopher Nassetta said he's still optimistic for hoteliers.
"The math is working against you," Nassetta said to the owners in the crowd at the 2026 Hunter Conference.
But as hoteliers face these challenges, he said there's an opportunity for Hilton and its brands to step in to help provide some relief. He mentioned, as an example, initiatives Hilton has rolled out to reduce loyalty program fee rates.
"In a tough environment, I certainly think my job is like reading it and figuring out," he said. "I can't change the macro — and I think the macro is actively changing — but what we can do in the meantime is take advantage of the scale and the things that we think we can do better than everybody else, even in this environment, and try and create some opportunity for owners."
Nassetta, who was making the case for his optimism, said that while costs for consumers are up and the ongoing war in Iran will both continue to affect consumers, there are also business-friendly changes happening too. He pointed specifically to the rise of artificial intelligence.
"AI is going to create one of the greatest productivity booms," Nassetta said, explaining that growth in AI will result in economic growth.
Recognizing the industry's current headwinds and opportunities, Nassetta said things are changing.
"I think that there's a big sea change coming in terms of broader economic growth, and that the setup over the next seven years is going to be very, very different and much, much better," he said.
Bifurcation will come together, and the K-shaped economy will flatten, he said. He pointed to the fact that investment is happening — it just takes time for these initiatives to come to fruition. In the meantime, hoteliers should aim to rise above the noise.
"In the United States, you have a lot of noise in the system," he said pointing to the divisive political landscape. "It's a lot to handle for all of us, including every day being a new adventure."
Nassetta said he knows people will roll their eyes at his optimism, but he said he's already seen growth reflected in Hilton's data from last quarter and in the beginning of this year.
"I'm pretty confident in the next few years," he said. "You're also [going to be in an] environment where inflation is going to come back, and then top line is going to go up, and you're going to be back with a business that has more opportunity."