Hilton Flags Middle East Tourism Slowdown as War Weighs on Hotel Revenue

Hilton has reported a 5.6 percent decline in revenue per available room across the Middle East and Africa in the third quarter, and told investors the conflict in the region is damaging travel demand more than it previously expected. The figures, released during the company's quarterly earnings call on Tuesday, make the Middle East one of the few weak spots for a hotel group whose United States business is expanding.

Chief executive Christopher Nassetta said the conflict has kept the region under pressure and described the Middle East as a little more beaten up than the company had assumed. Hilton now forecasts a low double-digit decline in regional room revenue for the full year. Nassetta said the region's problems, along with a slowdown in Mexico, should prove temporary and signaled confidence that conditions will normalize.

Why the region matters for hotel jobs

The Middle East is a major employer in hotels, restaurants, events and airport services, and the region's demand slump lands at a moment when the wider hospitality industry is already navigating higher costs and uneven travel patterns. In the three months to September, the decline was isolated to that area. Hotel operators and their suppliers rely on steady room revenue from business travelers, conference delegates and long-stay guests to sustain staffing and maintain investment.

Across the group, the wider picture was brighter. Global revenue per available room rose 5.8 percent compared with a year earlier, with both room rates and occupancy ahead of company expectations. Group business rose 8.2 percent and leisure transient demand edged up 1.6 percent. In the United States, room revenue climbed 7 percent, helped by demand linked to the World Cup tournament, corporate travel and meetings.

Business travel returns, global outlook improves

Hilton said bookings from individual business travelers rose 8.3 percent in the quarter, and Nassetta noted that this segment is close to returning to levels last seen before the pandemic, after years of doubt in the industry about whether it would recover. He pointed to manufacturing, technology and workforce lodging as segments that each grew more than 10 percent, with strong demand from large companies and small and medium-sized businesses.

Part of that growth reflects construction and investment projects, including data center development, which sends middle-income workers on the road. That pattern has helped lift hotel performance in the United States through the year and offers one explanation for why corporate room demand has held up while some other travel categories softened.

Hilton raised its full-year guidance for global room revenue growth to a range of 4 percent to 4.5 percent, from 3 percent to 3.5 percent. Nassetta told analysts he expects global growth of 3 percent to 4 percent in 2027, with business travel leading, followed by group and then leisure demand. For the hospitality industry, the mix matters: business and group guests tend to support higher rates and steadier staffing than leisure travelers.

What to watch next

The central question for the region is how quickly international demand returns to hotels in the Middle East and how airlines respond as fuel costs remain elevated. Hilton's rivals will report their own quarterly results in the coming weeks, giving a clearer picture of whether the regional weakness is limited to one operator or reflects a broader pullback in travel and bookings.

For workers and job seekers, the signal is mixed: strong corporate and group demand in the United States and other markets is supporting front desk, sales, events and food service roles, while properties in the Middle East may be slower to resume hiring and expansion until bookings recover. Hotel groups are also under pressure to control costs, which could slow staffing growth even where room revenue is improving.