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If you’ve spent several decades in any industry, you’re sure to expect ups and downs in your business.
One way to combat these potential declines is to look for ways to meet the customer where they are, especially when it comes to their pricing.
In the case of Hilton Worldwide’s (HLT) extended-stay properties, the company “discovered there was a product that people wanted, but just couldn’t afford.” [it,”] Chris Nassetta, CEO of Hilton Worldwide, explained in conversation with Yahoo Finance Editor-in-Chief Brian Sozzi for the Opening Bid Unfiltered podcast (see video above or listen below.)
“That meant we had to get to work and design a product.”
The example of this initiative can now be seen nationwide in the form of the more affordable Home 2 Suites brand, which currently has 600 locations. In addition to being the first brand owners are asking to expand around the world, Home 2 Suites “has opened up a wide range of customer types that we weren’t serving,” he said. “It’s a bit of a smaller room module, but it has all the features.”
Nassetta is no stranger to the ebbs and flows of the hospitality industry.
Before joining Hilton, he spent a decade as an executive at Host Hotels (HST) and also served as Chairman of the World Travel and Tourism Council. He joined Hilton in 2007 and guided the brand through a period of evolution and several intense speed bumps, including the Great Recession and the COVID-19 pandemic.
Today, Hilton Worldwide is a 25-brand, 9,300-property giant that has opened three hotels per day over the past 12 months, according to Nassetta. He added that when he joined Hilton 18 years ago, it was a different type of hotel.
“We had to reinject a new strategy, a lot of energy to rebuild the culture and that’s great,” he said. “But you have to keep doing it.”
A stay at a Hilton property can range from less than $100 per night to several thousand dollars depending on the hotel brand and timing of booking. Consumers seem to be looking for both this year.
Hilton reported upbeat third-quarter results just a few weeks ago. Earnings per share and revenue beat expectations, and Hilton said it repurchased 2.8 million shares of its common stock during the quarter.
Nassetta acknowledged that Hilton sees a story of two consumers: the high end doing well and the low end under pressure. Nevertheless, he maintains an optimistic view of the company for 2026.
