Hilton CEO: Flat Quarter, ‘Green Shoots,’ More Brands to Come

Hilton generated higher profit and revenue year-over-year. But executives cautioned that softer spending and broader uncertainty have left hotel demand underperforming expectations.

Hilton delivered mixed signals on Wednesday about the health of U.S. hotel demand, with executives noting that the second quarter was soft. But the hotel giant maintained confidence in its expansion plans.

During the quarter, Hilton's revenue per available room (RevPAR) decreased by 0.5%, primarily due to declines in occupancy. Yet for the full year, Hilton maintained its RevPAR growth forecast of between 0% and 2%.

Hilton president and CEO Chris Nassetta painted a picture of a sluggish period, but quickly pivoted to discussing encouraging signs for the near future. "We said relatively flat, which means it could be a little up, a little down. It was a little down," he said. But he also said he saw several "green shoots" that he believed would drive stronger demand over the "next 2 or 3 years."

Policy uncertainty in Washington this spring, related to trade deals, taxes, and regulations, led to lower-than-expected hotel bookings in the quarter, especially by leisure travelers and large corporations.

"We believe the economy in o