Hilton Slashes Hotel Owner Loyalty Fees Up to 32%, Cuts Guest Earnings

Hilton has quietly reduced the fees its franchised hotels pay into the Hilton Honors loyalty program while simultaneously cutting the points guests earn on stays, according to documents filed with the company's 2026 franchise disclosures.

The changes, revealed during the company's second quarter earnings call, show loyalty program assessment fees dropping by 30 basis points across most brands. Full-service Hilton Hotels properties now pay 4.0% of member spending compared to 4.3% previously, while Hampton Inn assessments fell from 4.9% to 4.6%. Hilton Garden Inn franchisees saw their contributions reduced from 3.6% to 3.3%.

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The most significant cut came at Homewood Suites properties, where the fee plummeted from 2.5% to 1.7%—a 32% reduction. That brand also experienced the steepest guest earning adjustment, with base points accrual dropping from ten to five points per dollar spent on bookings made after January 8, representing a 50% decrease in earning power.

Industry observers suggest the reduced program funding may explain recent award pricing increases across Hilton properties, as the loyalty program must balance lower incoming revenue with redemption obligations. The relationship between owner assessments and guest earning rates is not one-to-one, however, making the exact impact on award availability difficult to calculate.

Hilton also discussed its RISE initiative during the earnings call, which reduces owner payments by an additional 50 basis points for United States and Canadian properties meeting guest satisfaction benchmarks. Roughly half of eligible hotels currently qualify for the discount. The company revealed plans for what executives internally call "RISE 2," examining hotel profit and loss statements for opportunities in workforce optimization, procurement savings, brand cost discipline, and modified operating standards—changes that could affect staffing levels, amenities, and renovation requirements at franchised properties.

Despite the program adjustments, Hilton reported revenue per available room increased 5.4% during the quarter, though 2.7 percentage points of that growth came from World Cup demand and favorable year-over-year comparisons. Business transient bookings, which include independent short-stay and last-minute reservations, rose 5.7% driven primarily by small and medium-sized business travel.