Hilton Plans up to 3 New Brands Despite Trimming Growth Forecast
Photo Credit: A view of the lobby at the Hilton Cairo Nile Maadi Hotel. Hilton Worldwide
Skift Take
Hilton's latest results suggest travelers aren't hitting the brakes yet. The hotel giant maintained its optimistic outlook despite lingering economic uncertainties, particularly in the vital business travel segment.
Hilton forecasted "modest" growth this year because of economic uncertainty, yet still planned to pursue the development of as many as three new brands.
"We believe travelers are in a wait-and-see mode as the rapidly changing macro environment continues to unfold," said Christopher Nassetta, president and CEO on a Tuesday earnings call, citing "somewhat weaker" demand.
"Broader macro uncertainty intensified in March, which pressured demand, particularly across leisure," Nassetta said. "Weaker trends have continued into the second quarter," he said. "We're still seeing growth. Just a little less growth than what we would have expected coming into the year."
Nassetta said the uncertainty wasn't going delay the company's plans to expand its portfolio of brands. "We've got 24 brands," Nassetta said. "My guess is that, in the next year or two, we're going to have 27."
Despite the weakness, Nassetta painted a more optimistic picture than other CEOs
