Optimistic of which Congress will pass tax reform, Hilton CEO Chris Nassetta said he looks forward to potential benefits for the hotel company’s shareholders in addition to the industry overall.
“I think the idea is usually Great for the economy. the idea is usually going to be Great for our business — I think the idea is usually going to be Great for our industry,” he said on CNBC’s “Power Lunch.”
Nassetta emphasized demand for hotel rooms would likely increase, based on a bump to gross domestic product.
Beyond increasing hotel room demand, Nasetta seemed most optimistic about how shareholders might benefit coming from the corporate tax cut.
Earlier inside year, Hilton successfully spun off its real estate assets in addition to time share business, creating three independently traded companies.
“In a post-spin world, we are a very capital light business,” he said. “Tax reform in addition to reducing our tax rates is usually going to drive more free cash flow in addition to the largest part of of which free cash flow increase is usually going to go back to our shareholders.”
Shares of Hilton closed down more than 1.1 percent Wednesday.