Hilton CEO: AI-Driven Project RISE Targets 75-100 Basis Points Owner Margin Improvement
Hilton President & CEO Christopher Nassetta said at Skift Global Forum that the company launched Project RISE in mid-2025, targeting 75 to 100 basis points of owner margin improvement through AI and process redesign. He stressed that AI-driven efficiency should be a recurring program, not a one-off cut, and revealed Hilton scrapped its entire legacy technology stack seven or eight years ago to maintain agility. Nassetta also noted that non-residential fixed investment exceeded 10% in Q2 2026, giving the industry room for structural cost improvements, but the AI infrastructure spending cycle has not yet peaked, with winners and losers expected.
Impact and considerations
Hilton's AI-driven margin improvement plan sets a quantifiable efficiency benchmark for the hotel industry, potentially prompting competitors to follow with similar technology investments and process redesign, affecting industry cost structures and owner return expectations.
Key points
- Hilton launched Project RISE in mid-2025, targeting 75 to 100 basis points of owner margin improvement through AI and process redesign.
- Nassetta stressed that AI-driven efficiency should be a recurring program, not a one-off cost cut.
- Hilton decided seven or eight years ago to scrap its entire legacy technology and rebuild to maintain agility and speed.
- Non-residential fixed investment exceeded 10% in Q2 2026, giving the industry room for structural cost improvements.
- The AI infrastructure spending cycle has not yet peaked, with winners and losers expected.
- AI should empower frontline staff with real-time customer information, not be used to cut staff.
Sources and time
- Primary source
- Skift
- Other sources
- 0
- First source publication
- 24 Sept 2026, 20:09
- Page published
- 24 Sept 2026, 20:25
- Last updated
- 24 Sept 2026, 20:09
- Original links
- Skift Feed:Recalibrating Travel: What AI Changes, and What It Doesn’t (opens in a new tab)Primary source · en · Published 24 Sept 2026, 20:09