Hilton's US region (about 75% of total sales) is seeing strong demand sparked by secular investments into artificial intelligence, onshoring manufacturing, and infrastructure, offsetting near-term demand softness in its Middle East business (3%) due to the Iran war. Long term, we see lasting demand and a strengthening brand intangible asset, a source of its wide moat, for Hilton’s strong upper-scale, lifestyle, and luxury portfolio. Its portfolio is expanding, supported by the Small Luxury Hotels of the World partnership in 2024, the emerging premium economy midscale brand Spark, launched in 2023, and the extended-stay offering LivSmart Studios, also new in 2023. As of Sept. 30, 2026, Spark already had 292 hotels open, and we estimate LivSmart has more than 100 hotels in the pipeline. In the long term, Spark has the potential to reach a few thousand units, offering an attractive unit growth catalyst for the company. Also, Hilton launched a midscale lifestyle brand, Outset, in October 2025, with the potential to add 500 properties in North America over the long term.