Hilton CEO warns against ignoring global warming threat

Revenue per room and occupancy to slow in 2020, experts say

Miami /
Dec.December 06, 2019 12:30 PM
Christopher Nassetta and Doubletree by Hilton Doral managed by Driftwood Acquisitions and Development

Christopher Nassetta and Doubletree by Hilton Doral managed by Driftwood Acquisitions and Development

A lodging industry honcho said hotel companies need to do more to reduce the effects of global warming — before environmental regulators across the globe do it for them.

“Even if you don’t believe that we are, our industry is a huge contributor to energy usage and carbon output,” said Christopher Nassetta, CEO and president of Hilton Worldwide. “One of our No. 1 priorities is to make sure we are all responsible.”

Addressing attendees at an annual investors conference hosted by hotel builder Driftwood Acquisitions and Development, Nassetta pointed to the grassroots movement spreading through Europe known as “flight shaming” that encourages individuals to find alternate modes of transportation other than airplanes. “That is not helping the airlines,” Nassetta said. “And how do people get to our hotels? Planes.”

Nassetta, the keynote speaker at the event at the Biltmore Hotel in Coral Gables, said he is also concerned by the rise in populism and nationalism. “That’s not good when you close borders,” he said. “People don’t see the world, and travel is made more difficult.”

With less than a month left in 2019, Nassetta said he sees the hotel market hitting a small slump in the future. “I think the economy is going to be weaker than it has been in the next year or two,” he said. “I don’t believe it will be a recession.”

A national market presentation by Bobby Bowers, a senior vice president for STR, backed up Nassetta’s assessment. Through the first 10 months of 2019, revenue per available room nationwide grew by less than 1 percent, while supply grew by 2 percent.

For the Miami market, revenue per available room was negative 3 percent and the occupancy rate was 75 percent. “Occupancy is a little bit negative, as we move into next year,” Bowers said. “The rate of growth has been on a slow trajectory.”

Nassetta also said the proliferation of new niche hotel brands is nearing its peak. “I think we are getting close,” he said. “We are launching a mid-scale lifestyle brand we have been working on, and then I think we will take a break.”


Related Articles

arrow_forward_ios
Prologis CEO Hamid Moghadam (Prologis, CBRE, iStock)
Lease roundup: Restaurant, speakeasy, bakery ink leases at new Brickell hotel
Lease roundup: Restaurant, speakeasy, bakery ink leases at new Brickell hotel
The Deauville Beach Resort at 6701 Collins Avenue (Google Maps, Office of the City Manager)
Miami Beach orders historic oceanfront Deauville resort to be demolished
Miami Beach orders historic oceanfront Deauville resort to be demolished
From left: Pedro Villar, owner of Aloft Miami Brickell, along with his attorney Joe Pack (Newstar Media)
Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
Aloft Miami-Brickell exits bankruptcy, staves off foreclosure
From left: Greg Friedman (buyer), managing principal and CEO, Peachtree Hotel Group, and David Leatherwood (seller), CEO and managing member, Norwich Partners (Peachtree Hotel Group, Norwich Partners, Booking.com, iStock)
Peachtree buys AC Hotel by Marriott in Aventura for $50M
Peachtree buys AC Hotel by Marriott in Aventura for $50M
Z Ocean Hotel in Miami Beach
Appeals court upholds $8M judgment against former Z Ocean condo-hotel partners
Appeals court upholds $8M judgment against former Z Ocean condo-hotel partners
From left: James Vosotas and Branden Muhl, former partners who teamed up to renovate and reopen Hotel Greystone (Vos Hospitality, Mahaska, LoopNet)
Partner in South Beach’s Hotel Greystone hit with $19M judgment
Partner in South Beach’s Hotel Greystone hit with $19M judgment
Location Ventures CEO Rishi Kapoor and Miami Beach Mayor Dan Gelber (Dan Gebler, Stock. Photo illustration by Priyanka Modi.)
Miami Beach removes developer Rishi Kapoor from banned political donors list
Miami Beach removes developer Rishi Kapoor from banned political donors list
Sadhana and Sanjaykumar Patel of Luckey’s Management with a rendering of the 172-room hotel development in Fort Lauderdale (Luckey's Management/George White Architect)
Lucky Day? Luckey’s Management wins approval for 172-room, dual-branded hotel in Fort Lauderdale
Lucky Day? Luckey’s Management wins approval for 172-room, dual-branded hotel in Fort Lauderdale
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...