Economic tailwinds, infrastructure investment, and falling rates could lift both luxury and middle-class travel
Oct 23, 2025
Hilton CEO Christopher Nassetta expects a strong multi-year recovery in U.S. hotel demand, fueled by business investment, tax stability, and declining interest rates. Speaking during the company’s earnings call, he predicted that 2026 and 2027 will outperform 2025, with both corporate and middle-class travelers contributing to renewed growth.
Key takeaways
- Economic optimism: Nassetta forecasts a multi-year upswing for the U.S. hotel industry, citing improving macroeconomic conditions and greater business confidence.
- Falling inflation and interest rates: Lower borrowing costs and easing inflation are expected to encourage spending and investment, benefiting hotels across segments.
- Infrastructure and AI investment: Government and private-sector projects — from highways to data centers — are seen as major catalysts for new business travel demand.
- Middle-class travel rebound: The CEO predicts that the spending gap between luxury and mid-market travelers will narrow as job creation and income growth return.
- Short-term headwinds: Hilton’s Q3 RevPAR fell about 1% year-over-year, with some corporate clients still cautious amid tariff concerns and global uncertainty.
- 2026 outlook: Events like the U.S. midterm elections, America’s 250th anniversary, and the World Cup are expected to drive additional hotel demand nationwide.
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