Listen and subscribe to Opening Bid Unfiltered on Apple Podcasts, Amazon Music, Spotify, YouTube, or wherever you find your favorite podcasts.
If you’ve spent several decades in any industry, you’re certain to expect ups and downs as part of the business.
One way to combat those potential downs is by seeking ways to meet the customer where they are — especially when it comes to their price points.
In the case of Hilton Worldwide’s (HLT) extended stay properties, the company “found there was a product that people wanted, but they just couldn’t afford [it,”] Hilton Worldwide CEO Chris Nassetta explained during a conversation with Yahoo Finance executive editor Brian Sozzi for the Opening Bid Unfiltered podcast (See the video above or listen below.)
“That means we needed to go to work and engineer a product.”
The example from this endeavor can now be seen throughout the country in the form of more affordable Home 2 Suites brand, which currently boasts a reported 600 locations. In addition to being the top brand that owners request to build worldwide, Home 2 Suites “opened up a broad swath of different kinds of customers that we weren’t serving,” he said. “It’s a little bit smaller room module, but it has all the functionality.”
Nassetta is no stranger to the hospitality industry’s ebbs and flows.
Prior to joining Hilton, he spent a decade as an executive with Host Hotels (HST) and also served as chairman for the World Travel & Tourism Council. He joined Hilton in 2007 and ushered the brand through a period of evolution and several intense speed bumps, including the Great Recession and the COVID-19 pandemic.
Today, Hilton Worldwide is a 25-brand 9,300 properties giant that has opened three hotels per day over the past 12 months, according to Nassetta. He added that when he joined Hilton 18 years ago, it was a different kind of hotel.
“We had to reinject a new strategy, a lot of energy to rebuild culture and that’s great,” he said. “But you’ve got to keep doing it.”
A stay at a Hilton property can range from under $100 per night to several thousand dollars depending on the hotel brand and the timing of the booking. Consumers appear to be reaching for both this year.
Hilton reported upbeat third-quarter results just a few short weeks ago. Both earnings-per-share and revenue beat expectations, and Hilton said it repurchased 2.8 million shares of common stock in the quarter.
Nassetta acknowledged that Hilton is seeing a tale of two consumers — the high-end doing well and the low-end under pressure. Nonetheless, he maintains a bullish outlook on the business for 2026.
