Hilton Worldwide Holdings Inc. (NYSE:HLT) indicates that it caters to different needs compared to home-sharing platforms like Airbnb (NASDAQ:ABNB), even as it expands into premium economy lodging.
Furthermore, the company benefits from an unconventional strategic advisor, Paris Hilton, who recently collaborated with the CEO at Hilton (HL) headquarters in MacLean, Va.
According to Chief Executive Officer Christopher Nassetta, home-sharing apps fulfill distinct needs from traditional hotels. He expressed that both industries can thrive in their respective markets.
Earlier this year, Hilton (HLT) introduced a new segment called Spark by Hilton, offering affordable prices along with complimentary amenities such as continental breakfast, Wi-Fi, parking, a seasonal outdoor pool, air conditioning, and a 24-hour front desk.
Nassetta explained that home-sharing apps primarily attract leisure travelers seeking value, while hotels like Hilton offer a more comprehensive experience.
Paris Hilton’s Role
Paris Hilton has been in a business partnership with Hilton for five years. As described by Nassetta, she brings thoughtfulness, intelligence, popularity, and social media expertise to assist with campaigns and Hilton’s lifestyle brand. It’s important to note that the Hilton family no longer has direct involvement with the hotel chain.
Nassetta also addressed the Hotel Fees Transparency Act introduced in July, which aims to require hotels to display the full cost of rooms upfront. Hilton has pledged to promptly disclose fees on their websites to prevent confusion among consumers.
Nassetta urged all apps, including home-sharing platforms, to adopt similar transparency regarding fees.