CEO remains optimistic despite short-term challenges, citing growth opportunities and strong development pipeline
Jul 24, 2025
Hilton reported a slight decline in revenue per available room (RevPAR) in the second quarter of 2025, with global RevPAR down 0.5% and U.S. RevPAR down 1.5% compared to last year. Despite these setbacks, CEO Chris Nassetta expressed optimism, pointing to long-term growth drivers, including corporate investment and infrastructure development.
Key takeaways
- RevPAR performance: Global RevPAR decreased by 0.5%, with U.S. RevPAR down 1.5%, which Nassetta attributed partly to economic uncertainty following new tariffs.
- Optimistic outlook: Nassetta remains confident in medium-term growth, citing favorable regulatory expectations, corporate profits, and AI-driven infrastructure investments.
- Development progress: Hilton opened 221 hotels (26,000+ rooms) in Q2, including the reopening of Waldorf Astoria New York and its first Curio Collection all-inclusive in the Dominican Republic.
- Pipeline expansion: Hilton’s development pipeline now exceeds 510,000 rooms, with new projects announced in Helsinki, Bali, New Delhi, Singapore, and more.
- Conversion growth: Conversions accounted for a third of all openings, with Spark by Hilton expanding rapidly (170 open, 200 in the pipeline) and plans for more conversion brands by year-end.
- China market challenges: Hilton anticipates modest declines in China due to austerity measures but sees the market as undersupplied and plans to increase signings and construction in the region.
- Full-year projection: Hilton expects full-year 2025 RevPAR to be flat to up 2%.
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