Hilton CEO: AI-Driven Project RISE Targets 75-100 Basis Points Owner Margin Improvement
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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.
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- Skift FeedHilton 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.