FeaturedfinanceSkift·1 min·For: Owner, GM, Revenue, Investor
Hilton Cuts Franchisee Fees to Boost Owner Margins
Hilton is cutting loyalty and program fees by up to 100 basis points to help franchisees navigate rising operating expenses and soft U.S. room rates. Despite these cuts, Hilton's core royalty rates remain unchanged as management and franchise fee revenues grew 6.4% year over year.
Key Takeaways
- 1Hilton reduced global loyalty fees by 30 bps and launched the RISE program to discount fees for high guest-experience scores.
- 2Fee relief totals 75–100 bps in program fee savings, largely offset by internal efficiencies and AI implementation.
- 3Hilton raised full-year RevPAR guidance to 3%–3.5%, driven by accelerating small-and-medium business travel.
Source: Skift