Question · Q3 2025
Mike Bellisario asked about broad pricing trends, how and where customers are booking (especially leisure), and whether promotions and discounts are weighing on Average Daily Rate (ADR).
Answer
Chris Nassetta, President and CEO, acknowledged that in weaker periods (like Q3), Hilton runs more promotions and uses OTAs, but emphasized that rate integrity has been reasonably maintained, with declines balanced between rate and occupancy. He explained that the observed impact on ADR is primarily a 'mixed shift' – substituting lower-rated leisure customers for higher-rated business transient customers, rather than a collapse in leisure rates themselves. He noted that inflation, though moderating, still supports rate maintenance.