Hilton forecasts growth in corporate transient demand through 2025

In the third quarter, business transient revenue per available room grew 2% year-over-year, and Hilton expects similar growth through 2025

Oct 24, 2024

Hilton’s total revenue per available room (RevPAR) increased 1.4 percent year-over-year in the third quarter, falling short of the company’s previous guidance of a 2 to 3 percent increase. CEO Christopher Nassetta attributed the shortfall to several factors, including a slower recovery in September after Labor Day, adverse weather conditions, unfavorable calendar shifts and ongoing labor disputes in the United States.

Key takeaways

• Group RevPAR for the third quarter was up 5 percent year-over-year, driven by a significant increase in demand. Nassetta noted, « We’re seeing really great demand » for corporate meetings;
• Demand for transient business travel has increased among Hilton’s large corporate customers as well as small and midsize businesses. Noting that the economy « remains strong, resilient and showing positive growth, » Nassetta predicts that business transient demand in 2025 will exceed 2019 levels;
• He anticipates a year-over-year increase in business transient demand in 2025 in the « low single digits, but higher than one, » with this year’s increase expected to be between 2 percent and 2.5 percent.

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