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Hilton CEO Touts 'C‑Shaped' U.S. Recovery as Travel Demand Broadens Beyond Luxury

Hilton links the shift to easing inflation that could be reviving budget travel.

Overview

  • Hilton’s chief executive told investors on the company’s earnings call that U.S. spending is moving into a “C‑shaped” pattern with more demand flowing to mid- and lower-priced hotels.
  • Hilton reported stronger first‑quarter results, with revenue per available room up 3.6%, net income at $383 million, and adjusted EBITDA at $901 million, and the company raised its full‑year outlook with $3.5 billion earmarked for shareholder returns.
  • Christopher Nassetta credited cooling inflation, expectations for lower interest rates, and big AI investment for lifting lower‑income spending, while asking investors to set aside a short‑term oil spike tied to the war in Iran.
  • Other company leaders still describe a K‑shaped split led by affluent shoppers, including executives at Delta Air Lines, Macy’s, and Ralph Lauren.
  • Signals remain mixed across consumer brands, with Visa reporting an 8% year‑over‑year rise in U.S. payment volume as PepsiCo cuts some prices by up to 15% and McDonald’s adds $3 items and $4 meal deals.