Hilton CEO Christopher Nassetta believes that too many people focus on the risks that travel demand could weaken even further. He notes that economic fundamentals are strong despite short term uncertainty.
Nassetta, during a call with analysts on Tuesday, said: “I believe that at this time the risk is skewed too much to the downside.” “I think the risk is much more evenly distributed.” He said: “I think that the risk should probably be more on the upside over the intermediate to long term.”
Nassetta admitted some weakness: “In March, macroeconomic uncertainty increased, which put pressure on demand, particularly in leisure,” Nassetta stated. “Weaker patterns have continued into second quarter.” … We’re still seeing growth just growth at a little bit lower level than what we would have hoped for or expected coming into the year.”
He also outlined what could be done right in the months to come, including potential legislation that addresses deregulation, tax cuts and energy policy.
“If we lift our heads and see what is happening, real progress is being made,” said he. It’s choppy and there’s lots of noise but the legislative processes is moving forward.
“There’s a very high probability that this will happen sometime in the future.”
