Dive Brief:

• Hilton’s systemwide RevPAR increased 3.6% year over year in the first quarter of 2026, even in the face of geopolitical uncertainty, including ongoing conflict in the Middle East, CEO Chris Nassetta said on a Tuesday earnings call. 
• The better-than-expected performance was driven by strong economic fundamentals in the U.S., which Nassetta said is experiencing a “C-shaped economy,” with middle- and lower-income households increasing their spending, which also benefits lower and mid-chain scales. This signals a departure from previous reports of a K-shaped economy, as the economy moves toward a “more balanced convergence demand shape,” Nassetta said.
• Despite headwinds in the Middle East, Hilton executives voiced on the call that they are optimistic about RevPAR gains through the rest of the year due to strong macroeconomic conditions in the U.S. 

Dive Insight:

"We delivered great top and bottom-line results for the quarter with RevPAR growth across all chain-scales and brands and customer segments,” Nassetta said in a Q1 earnings release. “The results demonstrate a continuation of strengthening demand trends we’ve seen since late 2025 that are supported by macroeconomic tailwinds most evident in the U.S.”

Nassetta pointed to “one of the most deregulatory environments in modern history,” on the earnings call. “Because of the [Big Beautiful Bill] that was passed last year, you are in a multiyear position, where you have very, very business-friendly tax attributes.” 

For full-year 2026, Hilton forecasts systemwide RevPAR to increase between 2% and 3% year over year. Adjusted EBITDA was $901 million for the first quarter, and net income was $383 million. 

Additionally, the McLean, Virginia-based hospitality giant opened 131 hotels in the first quarter, totaling 16,300 rooms. 

Hilton also approved 26,200 new rooms in Q1, bringing its development pipeline to 527,000 rooms. The company added 16,300 rooms to its system, leading to net unit growth of 6.3% year over year. 

Conversions also continued to drive growth, Nassetta noted on the call. He referenced Hilton’s new Apartment Collection, which recently unveiled its first properties in Atlanta and Salt Lake City. Additionally, Hilton’s lifestyle Curio Collection surpassed 200 hotels, and notable openings in the quarter included The Monarch San Antonio in Texas and the Hotel Heron Alexandria Old Town in Virginia. 

“Conversions are expected to be up on a nominal basis in 2026 across every region, demonstrating the performance our system delivers to owners,” Nassetta said on the call. 

Moreover, while artificial intelligence is still in its “early days,” Nassetta said he feels certain the technology is going to bring a productivity boon. He said Hilton is leveraging AI to “embrace the new ways customers are discovering and engaging with our brands” by working with leading partners like Google, ChatGPT and Anthropic. 

“There is no time in American history where big productivity gains weren’t matched with economic growth,” Nassetta said. 

He referenced Hilton’s collaborations with several AI platforms, including Gemini and OpenAI, that aim to spur innovation and enhance the overall guest experience. In Q1, Hilton launched Hilton AI Planner, a new generative AI-powered digital concierge that allows customers “to tailor an experience unique to their interests.