Industry Update
External Article29 October 2018

Hilton CEO Speaks to Corporate Sentiment & Rate Negotiations

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Hilton president and CEO Christopher Nassetta pegged 2019 corporate rate increases in the 2 percent to 3 percent range during the company's third-quarter earnings call. Last year, Hilton projected rates to end the year between 1 percent and 3 percent higher than in 2016, and the actual increase landed on the modest end of that range, close to 1 percent. However, the outlook is improving and business travel is looking strong for next year, based on "the latest and greatest update" Nassetta received from Hilton's corporate sales team this week.

Negotiated corporate business makes up only 10 percent of Hilton's overall business, but Nassetta said the segment serves as a positive macro-indicator for 2019. "Not everybody is created equal, but broadly, [corporates] say they're going to travel more for business and for meetings and they know they're going to pay more and they're willing to pay more," Nassetta said.

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