Hilton is typically one of the first public hotel companies to report its quarterly earnings, taking on the role as the proverbial canary in the coal mine. Its third-quarter results are a warning.
Hilton’s Q3 global RevPAR declined 1.1% compared to the same time a year ago (though tougher comps had a drag on results) and marks two consecutive quarters of negative RevPAR. The Middle East and Africa region was the one exception, where RevPAR increased 9.9% YOY, driven by robust intra-regional travel growth for both the business and leisure segments.
Full-year 2025 RevPAR is projected to be flat to an increase of 1% compared to 2024.
Net income was $421 million for the third quarter.
In the quarter, Hilton approved 33,000 new rooms for development, bringing its development pipeline to 515,400 rooms as of September 30, 2025, growth of 5% from the same time a year ago. It also added 24,800 rooms to its system, resulting in 23,200 net additional rooms for the third quarter, which contributed to net unit growth of 6.5% from September 30, 2024. For the full year, Hilton expects net unit growth of between 6.5% and 7% percent in 2025 and 6% to 7% over the next several years.
In typical fashion, Hilton CEO Chris Nassetta looked to lift above the noise, but acknowledged the clamor, citing declines in international inbound travel to the U.S. and declines in government related-travel. Still, he is optimistic. “that in the U.S., lower interest rates, a more favorable regulatory environment, certainty on tax policy and a significant investment cycle will accelerate economic growth and travel demand, and, when paired with limited industry supply growth, should drive stronger RevPAR growth over the next several years,” he said, adding that the ongoing development of data centers that stoke AI, midterm elections next year, the U.S. 250-year celebration and World Cup are all growth accelerators.
Hilton opened 199 hotels in the quarter with a continued focus and expansion of the its luxury and lifestyle brands, including the addition of the Conrad Hamburg, the luxury brand’s first in Germany, and the KROMO Bangkok, Curio Collection by Hilton, the brand’s first hotel in Thailand. In October, Hilton reached its milestone 9,000th property opening with the Signia by Hilton La Cantera Resort and Spa.
Conversions continue to be a focal point and vehicle of growth as new development remains stymied by higher interest rates and elevated construction costs. “New development construction starts in the U.S. were strong during the quarter,” Nassetta said, but remain below 2019 levels.
Also in the quarter, Hilton announced the launch of its 25th brand, Outset Collection by Hilton, a new collection that targets guests looking for boutique hotels with an independent identity and experience. It has more than 60 hotels in development.
An optimistic Nassetta is still a realist, understanding that hotel owners are feeling margins squeeze in a negative RevPAR environment. To succor that, Hilton introduced what it called a “first-of-its-kind program” that offers owners system fee reductions, many of which tied to hotel specific product and service quality scores. “The fee reductions will share the efficiencies we have gained through scale and technology with our owners, while reinforcing the need to continue maximizing the customer experience,” Nassetta said.
That customer experience will undoubtedly be impacted by artifical intelligence and Hilton, like its peers, is putting it high on its priority list. “[AI] will evolve and change and you have to be really agile with the speed at which this is moving,” Nassetta said.
Hilton talks about AI as both a way to increase efficiency and also engage the customer on the discovery and booking journey. “Historically,” Nassetta said, “you have antiquated ways of doing things that require a lot of people; there are different ways to do it and repurpose people to do higher value things. That can benefit our general and administrative [costs].”
The enormous distribution landscape is another implication for AI, and maybe the biggest. “We’re in the business of fulfillment,” Nassetta said. “We have 9,000 and growing hotels that we control rate, inventory and availability for. The only way you get it is through us. You either get it from us or you don’t get it, and we are in charge and in control of fulfillment, the actual experience for the customer.”
This Underrated European Country Still Really Really Wants You to Visit
https://www.fodors.com/world/europe/slovenia/experiences/news/this-european-country-probably-isnt-on-your-radar-but-it-should-be
And it’s actually like five European vacations in one.
Perhaps you’ve heard the news: Europe is over tourists. The past few summers have seen several anti-tourism protests in heavily trafficked countries like Spain, Portugal, and Italy, all with the express purpose of making it clear that locals are sick of the issues created by overtourism, namely overcrowding, lack of affordable housing, and an ever-rising cost of living.
So what’s a Europe-loving American to do? Well, the good news is that there is at least one European country that is still welcoming tourists with open arms, and not only is it a pitch-perfect replacement for any European adventure you’ve been craving—it actually might be better.
Before I headed to Slovenia this past May, I was surprised by how many people didn’t seem to quite know where or even what Slovenia is. Some vaguely knew it was somewhere in
Eastern Europe, maybe part of the former
Yugoslavia? (yes to the latter, but as for the former, it considers itself
Central Europe). A lot of people confused it with its neighbor,
Slovakia (definitely not the same). A handful only heard of it because it’s where
Melania Trump is from (also true, although someone keeps
stealing the controversial statue of her in her hometown).
Throughout the country, there’s a deep commitment to both sustainability and local traditions that capture the spirit of this place and the people who are eager to share their home with the rest of the world. And while spots like Lake Bled certainly can see crowds, tourism numbers are nowhere near its neighbors, and if you time it right, you can be in some of the most beautiful places in the world, almost all to yourself.
Exclusive: Why Ace was the right play for Seibu Prince
https://www.hotelinvestmenttoday.com/HICAP2025Conferences/Exclusive-Why-Ace-was-the-right-play-for-Seibu-Prince?
By Rob Schneider
The president of Seibu Prince Hotels discusses the company’s $90 million acquisition and why expansion outside Japan will be in luxury, lifestyle.
“Our expansion outside Japan will be in luxury and lifestyle… Ace Hotel is among the highest standards and highly recognized globally. It has a very interesting, distinctive and unique DNA,” said
Yoshiki Kaneda, president and representative director for
Tokyo-based Seibu Prince Hotels Worldwide.
Kaneda said Seibu Prince wants to help Ace maintain its high standards while also using the company as a vehicle for its global expansion into luxury.
“We would like to make sure that Ace maintains its strengths and original identity, while we work together to have more Ace hotels globally,” he said. “I’m sure Ace will expedite our global expansion when talking about luxury.”
Ace Hotel CEO
Chris Penn spoke about the day on stage during a panel on Day 2 of HICAP. It came from a question about the relationship between owners and operators.
“It’s a relevant answer to what we’ve been through recently, because you spoke about alignment, and particularly broad alignment,” Penn said. “I’m very fortunate, because I’ve just spent probably the best part of six months discussing strategy with a new owner.”
Penn said those conversations have led to what he calls “the best part” of the two companies’ journey together.
“There is real alignment at the moment because we’ve spent the time together to really understand strategy and build strategy together. So, we’re very clear collectively about what the next 10 years needs to be, what Ace can do, what [Seibu Prince] can do and how we can work together to drive that growth and ambition over the next 10 years,” he said.
Q&A with Seibu Prince president
After his panel, Kaneda sat down with Hotel Investment Today for an exclusive interview about the deal and Seibu Prince's future plans.
Kaneda said the acquisition gives Seibu Prince its first lifestyle brand.
“Lifestyle provides a custom experience and, as you know, many of the lifestyle brands have been taken by large, international hotel companies,” he said. “Seibu Prince didn’t have a lifestyle brand. Ace Hotel and Seibu Prince Hotel have the same vision and we both respect our local communities.
Ace Hotel CEO Chris Penn
“Ace is quite unique and a very creative brand. I believe Ace was also looking for a partner and someone they could grow together with.”
Ace also gives Seibu Prince a stronger foothold in the U.S. through its hotels in New York City, Brooklyn, Seattle, and Palm Springs. But Kaneda said the expansion for Ace wouldn’t just be limited to the U.S. (he mentioned Europe and Asia Pacific as potential expansion locations).
At the same time, Kaneda added, “The U.S. is a very important market and the right place for us to grow.”
Since the acquisition, Kaneda said there have been many inquiries about future expansion, but he doesn’t see rapid expansion.
“Ace Hotel is not like a cookie-cutter,” he said. “They’ll decide [the best location] and what’s the best offer.”
When asked about Seibu Prince's growth, he said the company is well positioned to create more opportunities.
“We focus on luxury, particularly outside of Japan, because the people who stay in luxury are not necessarily [worried about price]. It’s a different level of niche,” he said.
Kaneda said he is also bullish on the hotel market in Japan in general because of record numbers of inbound visitors (last year the country had a record high of 37 million visitors, and it’s set to exceed 40 million this year).
“Most of the required infrastructure, transportation, cleanliness, safety in Japan [is already there]. So, I believe it will keep growing,” he said.
He also mentioned that 60% of inbound tourists are only visiting Tokyo,
Kyoto, and
Osaka, and thinks there is much more Japan can offer those visitors on return visits.
“That is still a small portion of Japan,” he said. “There are many, many other destinations in Japan.”
When asked where in Asia Pacific Kaneda would like Seibu Prince grow, he noted that Southeast Asia will continue to be a focus for the company, but he also mentioned capital or gateway cities in Australia as attractive options.
Restaurant Boots Tourists for Being ‘Naked’
sylv1rob1/Shutterstock
https://www.fodors.com/world/asia/japan/experiences/news/restaurant-boots-tourists-for-being-naked
The owner said their outfits were too revealing.
Two Chinese tourists
allegedly faced discrimination while eating at a popular restaurant in Japan. A Chinese blogger visited the establishment with a friend, and both were kicked out for wearing clothes the owner considered “too revealing.”
The tourists were wearing sports vests and loose trousers when they visited
Kobe’s Baan Thai Market in August. Upon entering the Thai restaurant, the owner allegedly said, “Summer is over. You don’t need to come out naked anymore.”
They claim their experience continued to deteriorate: the waitstaff cleared their table before they finished their meal, took away their chopsticks, and removed the food. When the blogger attempted to pay the bill, they said the owner ignored them and gestured for them to check the screen and settle the bill themselves. Later, the blogger read Google reviews for the restaurant and found that other diners had also faced alleged discrimination from the owner.
One reviewer said they were kicked out for wearing perfume, while another mentioned the owner’s attitude soured when hearing them speak Chinese. The restaurant has drawn criticism from Japanese citizens and condemnation on Chinese social media.
Chinese tourists are traveling to Japan in droves due to a
weak yen and relaxed visa policies. As Japan sees an influx of visitors, the country is introducing new measures to control overtourism.
Dressing Down
While this incident appears to be a case of discrimination, tourists often get into trouble for ignoring local customs regarding clothing. Increasingly, destinations are enforcing appropriate behavior with fines, especially throughout Europe.
Italy has also struggled with tourists swimming naked in its fountains and
Venetian canals, urging visitors to act appropriately.
British tourists were fined €250 ($290) in 2019 for biking shirtless in Venice, along with a €100 ($116) penalty for riding in the city center. One woman even
bathed naked in a fountain, sparking outrage from locals.
Airlines, too, can penalize passengers for inappropriate clothing. Under the contract of carriage, airlines can decide if a passenger’s outfit is offensive or inappropriate. Passengers can be removed from a flight for not wearing shoes or for clothing with profanity. Airline staff have, at times, asked women to cover up, sparking debates over moral policing. Airlines may also refuse boarding to passengers who are intoxicated or act rudely toward staff.
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