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Hilton CEO thinks tax reform will fuel hotel room demand

Originally seen HERE.

  • Hilton CEO Chris Nasetta says tax reform will drive hotel room demand and increase cash flow for shareholders.
  • "It is going to be good for the economy. It is going to be good for our business — I think it is going to be good for our industry," Nassetta said.
     
     
     
     
     
 
Hilton CEO: Innovation is in our DNA
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Optimistic that Congress will pass tax reform, Hilton CEO Chris Nassetta said he looks forward to potential benefits for the hotel company's shareholders and the industry overall.

"I think it is good for the economy. It is going to be good for our business — I think it is going to be good for our industry," he said on CNBC's "Power Lunch."

Nassetta emphasized demand for hotel rooms would increase, based on a bump to gross domestic product.

 

Beyond increasing hotel room demand, Nasetta seemed most optimistic about how shareholders might benefit from the corporate tax cut.

Earlier in the year, Hilton successfully spun off its real estate assets and time share business, creating three independently traded companies.

"In a post-spin world, we are a very capital light business," he said. "Tax reform and reducing our tax rates is going to drive more free cash flow and the largest part of that free cash flow increase is going to go back to our shareholders."

Shares of Hilton closed down more than 1.1 percent Wednesday.