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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.

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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
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