Hilton CEO Christopher Nassetta thinks too many people are focused on risks that travel demand may weaken further, noting that economic fundamentals remain strong despite short-term uncertainty.
“I think at the moment the risk in the marketplace is sort of weighted too heavily to the downside,” Nassetta told analysts during an earnings call Tuesday. “I think it’s a much more equally weighted risk.” He added: “I would actually say I think the risk over intermediate to longer term probably should be more weighted on the upside.”
He acknowledged some of the weakness: “Broader macro uncertainty intensified in March, which pressured demand, particularly across leisure,” Nassetta said. “Weaker trends have continued into the second quarter. … We’re still seeing growth. Just a little less growth than what we would have expected coming into the year.”
But he also laid out what could go right in the coming months, referring to potential legislation addressing deregulation, energy policy, and tax cuts, as well as potential trade deals that may reduce the need for high tariffs.
“If you really lift up and look at what’s going on, you have real progress being made,” he said. “It’s choppy, and there’s a lot of noise, but the legislative process is grinding th
