Here's a summarization of the conversation between Nicola Tangyan, CEO of the Norwegian Southern Wealth Fund, and Chris Nasr, CEO of Hilton, focusing on key insights and themes.
Nicola introduces Chris Nasr and highlights Hilton's massive scale with over 7,000 properties in 123 countries and the Norwegian Southern Wealth Fund's 1% ownership stake. The conversation explores Nasr's leadership in Hilton's resurgence and provides insights into the hospitality industry.
Nasr emphasizes the importance of the fundamentals, stating that getting the basics right is the most critical aspect of hospitality. He underscores that customers want a consistently high-quality experience, functional amenities, and friendly service. He shares that, through customer insights from across the world. One of the biggest customer complaints is regarding towel quality and quantity. Chris shares a specific example of improving towel quality within Hilton Hotels across the globe, as well as his methods of testing the towels himself.
Responding to a question about extraordinary hospitality, Nasr again stresses consistency and reliability. He emphasizes that a reliable, friendly experience, built on training and loyalty technology, leads to customer loyalty and a premium brand perception. While acknowledging the existence of business models like Airbnb, Nasr positions Hilton as offering consistent quality, amenities, and service absent in home-sharing platforms. He notes that customers view Airbnb primarily as a value proposition for larger groups seeking kitchen facilities for leisure trips.
Regarding the current travel landscape, Nasr expresses excitement, characterizing it as a "gold native travel" era. He explains that the desire for experiences, accelerated by the COVID-19 pandemic, is driving increased leisure and business travel. People have realized they need to build relationships in person. He notes a change in travel patterns, with driving gaining popularity over flying due to airfare costs, even though the cost of many other goods and services has increased as well.
Nasr reflects on his experience under Blackstone's ownership, describing it as "spectacular." He states that Blackstone completely transformed the company, investing significant capital and resources. Nasr explains that they worked together to transform the business from a cultural and branding perspective. They increased the number of brands that the company owned from 9 to 22 and also transformed their technology. Nasr describes them as being incredibly supportive and provides an example of them doubling down on their investment during the Great Recession. Blackstone focused on fixing and selling the asset. Blackstone's ownership resulted in the largest private equity profit in history. Blackstone provided assistance across various areas, including strategy, HR, branding, and global growth. Nasr mentions John Gray, formerly of Blackstone, remains the chairman of the board of directors to this day.
Regarding ESG, Nasr indicates that private equity firms, especially Blackstone, are increasingly concerned. He recalls advocating for environmental responsibility within Hilton, arguing that the industry depends on environmental sustainability.
Nasr identifies culture and strategy as his key leadership principles, aiming to empower and inspire individuals to achieve great things. He emphasizes the importance of steadiness and focus, cautioning against being swayed by every trend or "shiny object." He wishes he had been calmer and more experienced earlier in his career.
Nasr notes that a CEO needs to constantly push themselves to delegate. He stresses the need to constantly reinvent himself and the company. As the world is ever-changing around the business, it's easy to fall into a cycle of comfort and complacency, making it harder to see the forest for the trees. He shares that he has been retooling their team in technology and brand development.
In response to a question about travel, Nasr humorously avoids naming a favorite destination, emphasizing that there are many nice Hilton Hotels that offer incredible experiences. The only one he calls out is the Waldorf Astoria Maldives. He also highlights the strong partnership with Paris Hilton, who actively promotes the brand through various channels.
Finally, Nasr provides advice to young people. He suggests finding a company and people that are purposeful, invest in their employees, and make them feel part of something bigger than themselves. This, he believes, is key to finding happiness and fulfillment in a career.