A Sharp Dip, Followed by a Rapid Rebound
Hilton has confirmed it will continue an aggressive expansion drive across the Middle East, even after the hospitality giant absorbed a steep revenue decline linked to the Iran war earlier this year. Simon Vincent, Hilton’s president for Europe, Middle East and Africa, told a UAE business publication that regional revenue fell approximately 30 per cent in the second quarter before recovering to a near-flat performance by the third quarter — a turnaround he described as remarkably strong.
Speaking at the Arabian Travel Market in Dubai, Vincent detailed how the year began on an exceptionally strong footing, with the UAE recording a record fourth quarter in 2025 followed by record-setting January and February figures. That momentum was abruptly interrupted when conflict-related disruption hit the region in March, sending trading levels into sharp decline through the following months.
From Minus 30 to Minus 2
The scale of the recovery has been notable. Vincent described the shift from a 30 per cent year-on-year revenue decline in the second quarter to a near-flat performance in the third as evidence of the resilience underpinning the region’s hospitality sector. He expressed confidence that the company would return to prewar performance levels by next year, buoyed by the broader recovery underway in the UAE’s tourism market and the gradual restoration of international airline capacity.
Emirates, he noted, is now operating at close to full capacity, though several other international carriers have yet to fully restore their pre-conflict schedules — a factor Hilton is monitoring closely as it plans its own recovery trajectory.
Expansion Continues Despite the Setback
Perhaps the most striking element of Hilton’s outlook is that the revenue disruption did not translate into a slowdown in development activity. The company is on track to more than double its regional hotel portfolio — encompassing both trading properties and those still in the pipeline — to in excess of 230 hotels across the Middle East. That pipeline alone is expected to generate approximately 32,000 job opportunities across the region.
The UAE remains Hilton’s largest operating market in the Middle East, with 36 hotels currently trading and a further 13 in development. Saudi Arabia, meanwhile, has emerged as an increasingly critical growth market for the company, accounting for more than half of Hilton’s regional pipeline with 85 hotels planned across the kingdom.
As part of that push, Hilton is introducing new brands from its global portfolio into the Saudi market, including its Spark and Tempo brands, as the company seeks to capture demand across luxury, lifestyle, mid-market and budget segments alike.
No Job Cuts During the Conflict
One of the more notable aspects of Hilton’s response to the crisis was its decision to protect jobs rather than reduce headcount. Vincent confirmed that the company kept its hotel teams intact throughout the conflict period, choosing instead to reduce working hours where necessary rather than furlough or lay off staff — a decision he framed as essential to maintaining operational continuity once conditions improved.
That approach appears to be paying dividends as the sector rebuilds, allowing Hilton’s properties to ramp back up to full service more quickly than might otherwise have been possible had experienced staff been let go during the downturn.
Rebuilding Business Travel and Events
With the immediate crisis largely behind it, Hilton’s attention has turned toward rebuilding demand for meetings, incentives, conferences and exhibitions — commonly referred to in the industry as Mice business — which Vincent described as a critical component of strengthening Dubai’s overall appeal as a destination.
He acknowledged that the nature of demand returning to the market has shifted somewhat, with leisure travel and shorter-dated, more domestically oriented bookings leading the recovery ahead of the return of larger-scale international business travel and events.
Artificial Intelligence as a Support Tool, Not a Replacement
Hilton is also expanding its use of artificial intelligence across both the customer journey and back-office operations, though Vincent was clear that the company does not anticipate AI fundamentally altering the fundamentally people-focused nature of hospitality. The technology is being integrated into areas such as holiday research, booking processes and itinerary planning, with the stated goal of facilitating excellent customer service rather than replacing staff.
On the back-office side, AI is expected to improve efficiency in areas including recruitment, finance and human resources, while at the guest-facing level it could enable greater personalisation — helping travellers discover restaurants, activities and experiences tailored more closely to their individual preferences.
A Vote of Confidence in the Region’s Future
Taken together, Hilton’s continued investment commitment — even in the immediate aftermath of a significant revenue shock — sends a clear signal about the company’s long-term confidence in the Middle East’s hospitality sector. With Saudi Arabia’s pipeline expanding rapidly and the UAE market showing strong signs of recovery, Hilton’s leadership appears convinced that short-term disruption has done little to dent the region’s fundamental appeal as a hospitality growth market.
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