Hilton has achieved a record number of hotels in its development pipeline, attributing this success to the power of the group’s brands. Christopher J. Nassetta, president and CEO, stated in a Skift interview that a significant portion of hotels under development worldwide are set to carry Hilton flags. He credits this potential share gain to the group’s brands and their reputation for driving high returns among owners. Nassetta highlighted Hilton’s loyalty program as a key component of this reputation, noting that the program has experienced significant growth in membership over the past five years, reducing costs of customer acquisition for owners.
In 2023, Hilton saw a record year for signings, resulting in the largest pipeline in its history. Nassetta praised the efforts of the teams in achieving this milestone, with the opening of more new rooms in Q4 than any other quarter in Hilton’s history. He emphasized the importance of the company’s brands in driving growth and highlighted the launch of new brands, LivSmart Suites by Hilton and Spark by Hilton, which are expanding Hilton’s portfolio into new territories and attracting new guests. These brands are expected to cater to different guest demographics and offer unique experiences within the Hilton family.
Hilton’s loyalty program has seen membership increase by 110% over the past five years, outpacing its competitors in the industry. Nassetta attributed this growth to Hilton’s diverse portfolio of brands in sought-after destinations worldwide, emphasizing the value offered to members. He highlighted partnerships that offer exclusive experiences and announced a new partnership with Small Luxury Hotels of the World to enhance luxury offerings for Hilton Honors members. Nassetta also praised Hilton’s technology platform for delivering value to guests and continuing to drive growth.
In terms of environmental sustainability, Hilton has been a high performer in reporting carbon emissions at the property level, even with franchised properties. Hilton has been using its proprietary management platform, LightStay, since 2009 to measure the environmental footprint of its portfolio. This tool has helped the company understand which initiatives have the most positive impact and drive progress across the portfolio. Hilton is employing incentives and data-sharing to encourage franchisees to reduce energy use and emissions, focusing on initiatives that enhance the guest experience and benefit the environment and bottom line.
The company’s efforts in reducing carbon emissions have resulted in over $1 billion in utility cost savings, a 44% reduction in emissions intensity, and improvements in water and landfill intensity across its properties. Hilton aims to drive sustainability efforts at scale to align with its mission of doing well by doing good. For example, the company’s turnkey LED lighting program helps reduce utility costs, waste, and emissions while improving design, making it an attractive and cost-effective option for property owners.
Overall, Hilton has experienced strong growth in its development pipeline, loyalty program membership, and environmental sustainability efforts. The company’s focus on its brands, loyalty program, and sustainability initiatives has positioned it as a leader in the industry. Nassetta remains confident in Hilton’s ability to continue driving growth and delivering value to guests, owners, and the planet. With a clear strategy and commitment to innovation, Hilton is well-positioned for success in the evolving hospitality landscape.
