Oct 27, 2026 earnings call — Strong RevPAR and record unit openings
System-wide RevPAR rose 5.8% and Hilton opened a record quarter of rooms, with net unit growth of 6.0%.
Revenue $3.3B (est $3.4B) · EPS $2.45 (est $2.37)
Key quotes
"During the quarter, system wide RevPAR increased 5.8% versus the prior year on a comparable and currency neutral basis."
"For the quarter, we saw net unit growth of 6.0%."
"we recently announced the appointment of Savneet Singh as Chief Technology Officer."
Analyst Q&A 11
Demand and 2027 outlook
Q (Dan Politzer · JPMorgan): The analyst asked how management sees the demand environment and updated thoughts on 2027, and to break down demand across customer types.
A: Management said fundamentals are strong and demand patterns are improving, led by business transient, group and leisure. They gave a directional view that global RevPAR next year should be in the 3% to 4% range.
"I think the US run rate is more like 4% and the global run rate is like 3.5%." — Christopher J. Nassetta (CEO)
Algo, flow-through headwinds
Q (Elizabeth Dove · Goldman Sachs): The analyst asked about flow-through and algorithm impacts, including IMS effects in HGB and headwinds from Middle East, owned and leased renovations, and HGV.
A: Management said the shortfall versus the 10 point expectation split roughly between The Middle East and license fees in the timeshare segment. They estimated the onetime items this year are "probably $60 million to $70 million maybe even a little bit more."
"it is probably $60 million to $70 million maybe even a little bit more." — Christopher J. Nassetta (CEO)
Development confidence
Q (Shaun Kelley · BofA): The analyst asked what underpins confidence in development and NUG growth, given higher interest rates but stronger RevPAR.
A: Management said their observed development momentum is real, with conversions performing very well and new construction starts rising. They highlighted taking a disproportionate share of opportunities within the industry.
"We are taking a disproportionate share within the industry of opportunities there." — Christopher J. Nassetta (CEO)
AI booking agents and distribution
Q (Brandt Montour · Barclays): The analyst asked how ready Hilton is to accept direct bookings from new AI consumer agents, how fast that channel has grown, and if agents could shift share from OTAs.
A: Management said they are in the early days but are working with each of the new entrants and are present across those platforms. They expect these tools to enable much more direct business at lower cost structures over time.
"I think in the end, this will be we will continue to have a big relationship with our OTA partners for a certain segment of our business." — Christopher J. Nassetta (CEO)
Select service vs luxury trends
Q (Steven Pizzella · Deutsche Bank): The analyst asked whether recent data suggest the C-shaped recovery is broadening and what Hilton's exposure is to a select-service recovery.
A: Management said the mid and lower parts of the industry continue to pick up, driven by business transient, and that business transient is approaching pre-COVID levels. They see ongoing strength from NFI investment supporting this C-shaped trend.
"And so thus, the C. it is the mid the mid and the bottom particularly the mid continues to come up really driven by business transient, which has just been on a tear." — Christopher J. Nassetta (CEO)
Franchisee relationships and fees
Q (Stephen Grambling · Morgan Stanley): The analyst asked how Hilton frames talks with owners, feedback on lower charge-out rates started last year, and owner margins or EBITDA per key versus history.
A: Management acknowledged it has been a rough extended period for owners but said owner feedback is constructive and they appreciate recent steps like the RISE fee reductions. They plan RISE 2.0 in Q1 to seek further efficiencies that can benefit owners.
"I would say broadly, and I have talked about this on a number of prior calls, it is been a rough extended period of time for owners." — Christopher J. Nassetta (CEO)
U.S. group demand detail
Q (Smedes Rose · Citi): The analyst asked for specifics on U.S. group strength, including large corporate bookings versus small enterprise strength.
A: Management said big group bookings are up in the mid single digits going into next year and that, when ranking segments, business transient would lead, then group, then leisure. They expect business transient to drive much of next year's growth.
"I think it would be business transient group and leisure, all of which we believe will be positive, but in that order." — Christopher J. Nassetta (CEO)
Luxury and lifestyle strategy and costs
Q (David Katz · Jefferies): The analyst asked about Hilton's luxury strategy, momentum, and whether it requires increased investment.
A: Management said they have been investing in luxury and lifestyle for years and are seeing momentum, citing Waldorf performing very well and multiple upcoming openings. They said between upper upscale and above, 45% of this year's deliveries will be in those categories and they do not expect a step change in investment versus historical norms.
"This year, between upper upscale and above, 45% of our deliveries this year will be represented in those in those categories." — Christopher J. Nassetta (CEO)
Unit growth visibility
Q (Robin Farley · UBS): The analyst asked how much of the 6% to 7% unit growth guide is already on the books (under construction) versus conversions, and whether conversion pace will change.
A: Management said a little over 80% of the guidance is already on the books, so they have high visibility. They noted conversions will remain important but new construction deliveries give them easier visibility compared with this year.
"I think that number is like, what is on the books is a little over 80%." — Christopher J. Nassetta (CEO)
Tech strategy and guest experience
Q (HSBC): The analyst asked how the new CTO appointment and marketing leadership changes will affect technology prioritization, guest experience, and operations.
A: Management said the CTO joins to give tech more oxygen while the current CIO remains, and they are focused on three areas: efficiencies for the system, distribution, and customer experience innovation. They expect tech, AI and process change to drive lower costs, better direct business and improved owner profitability.
"1, efficiencies in the system corporately, but also for the system we manage on behalf of owners." — Christopher J. Nassetta (CEO)
Europe development and owner sentiment
Q (Michael Bellisario · Baird): The analyst asked about owner sentiment in Europe and the development dynamic there given macro headwinds and Middle East effects.
A: Management said new development in Europe is harder because economics and financing are tougher, so success is concentrated in limited service and conversions. They described owner sentiment as broadly quite good and said they expect a terrific year for same-store performance and one of their best years for development in Europe.
"From a development point of view, we are gonna have 1 of our best years." — Christopher J. Nassetta (CEO)