- Hotel performance at Hilton saw broader demand growth in Q1, moving beyond the luxury segment.
- Hilton raised its 2026 RevPAR outlook to 2%-3%, citing sustained demand across chain scales.
- The Middle East accounts for about 3% of Hilton’s business, with regional conflict posing some risk to growth.
- Hilton achieved net unit growth of 6.3% in Q1, supported by new openings and strategic partnerships.
Broader Demand Powers Gains
Hilton reported that hotel performance exceeded expectations in the first quarter of 2026, with revenue per available room (RevPAR) increasing 3.6% year over year, reports CoStar. The company credited this growth to a shift from luxury-driven performance to more balanced demand across chain scales, signaling broader travel recovery in the US and markets worldwide.
Outlook Gets a Lift
Reflecting confidence in ongoing travel demand, Hilton raised its 2026 RevPAR outlook from 1%-2% to 2%-3%. Net income is now expected to top $1.9B, with adjusted EBITDA forecast slightly above $4B for the year. At the same time, consumer spending trends remain supportive, with retail activity showing resilience in recent months. The company remains positive despite caution around Q2 projections, influenced by Middle East instability.
Get Smarter about what matters in CRE
Stay ahead of trends in commercial real estate with CRE Daily – the free newsletter delivering everything you need to start your day in just 5-minutes
Middle East Impact
Continued disruption in the Middle East, particularly linked to war in Iran, poses short-term challenges. Hilton estimates the region represents around 3% of its business. Any significant prolonged decline there would impact overall growth, but effects in other markets have so far been limited.
Unit Growth and Partnerships
Hilton posted a 6.3% net unit growth rate in Q1. The company opened several properties, including two Apartment Collection locations. It also debuted the Waldorf Astoria Rabat Salé in Morocco. Strategic alliances continue to support expansion. For example, Hilton partnered with Yotel to bring micro brands into its network. This approach helps the company scale across new segments. Hilton also emphasized its global pipeline. Currently, one in five hotels under construction worldwide carries a Hilton flag.
