Hilton has launched a new brand of hotel that is focused on the budget traveler that wants to spend between $75 and $90 per night.
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“I ultimately think this will be our biggest brand over time”, Hilton CEO Christopher Nassetta told USA Today.
The new line is expected to open its first property in late 2016 and is looking to attract business and leisure travelers “united” by a common, youthful outlook, said Alexandra Jaritz, global head, Tru by Hilton, via email.
Hilton said it has 102 hotels on board and another 30 in various stages of approval in cities including Atlanta, Dallas, Houston, Chicago, Denver, Portland, Ore., and Nashville, Tenn.
Tru marks a return to the large midscale market for Hilton, which now has 13 brands. The hotels will also be included in the company’s HHonors loyalty program and each guest room will have a 55-inch TV.
Mid-scale-hotel revenue in the USA reached $8.58bn last year, accounting for 6% of total USA hotel revenue, according to travel-research company STR. Mid-scale revenue rose 6.4% last year, while total hotel revenue climbed 7.4%.
An exterior shot of hotel operator Hilton Worldwide’s Hilton Midtown in NY.
The hotel giant said that new concept has been created to be “easily scalable to fit urban, suburban, highway and airport adjacent locations”.
The typical hotel will have 98 rooms and sit on 1.5 acres of land.
In addition to targeting guests seeking affordability, Hilton said the brand is aimed at those travelers possessing a “millennial mindset” and a “desire for human connection”. Those typically have 130 rooms, sit on 2 acres and cost $110,000 a room to build.
That means building a Play Zone filled with table games, a large-screen TV with tiered, stadium-style seating and a lobby called “The Hive” that will house distinct zones dedicated to lounging, working, eating or playing.
But although the hotels look set to be brightly coloured and newly built, checking in could be a shock to the system for some – as wardrobes are replaced by hooks on the wall, and the traditional hotel desk is scrapped in favour of a chair with space for a small laptop.
Built from the belief that being cost conscious and having a great stay doesn’t have to be mutually exclusive, Tru by Hilton offers a unique experience in its space that is surprisingly affordable.
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Chris Nassetta, Hilton’s chief executive, said the chain hopes to “get them loyal to our system and trade up as they move on in their lives”.
