Hilton launches new budget hotel chain aimed at young guests

“We are incredibly excited to be launching Tru by Hilton, which will serve the largest segment of the hotel market, but a segment where no brand is meeting guests’ current needs”, said Christopher J. Nassetta, president & CEO of Hilton Worldwide.

The target demographic spans different generations, says Hilton, but shares the millennial mindset: “youthful energy, zest for life and a desire for human connection”.

Key hotel features will include an open lobby area called “The Hive”, which will comprise spaces for working, eating, relaxing and playing. The hotels also would include a fitness center and complimentary “Build Your Own” breakfast.

All-white rooms will feature 55-inch TVs and platform beds.

Mobile check-in will be available, as will the ability to use a smartphone as a room key.

Besides the locations in Southern California, Tru hotels are expected to launch as soon as the end of 2016 in Phoenix, Portland, Ore., Chicago, Dallas, Atlanta, Houston and other cities.

At a hotel investment conference in Los Angeles, Hilton executives unveiled their plans Monday, noting that Hilton already has commitments to open more than 100 franchises to be dubbed Tru by Hilton. “We’re breaking through the clutter of undistinguished offerings to capture the hearts of today’s travelers and anticipating the needs of tomorrow’s guests, while delivering a hotel that’s a place travelers will want to go to rather than just through”.

When asked if Tru by Hilton was created as way to combat the rising popularity of Airbnb, Ms. Jartiz said: “The consistency, quality, exceptional customer service and overall experience this brand will provide at an affordable price point simply can not be offered by non-traditional providers”.

The brand’s prototype was created to be easily scalable to fit urban, suburban, highway and airport-adjacent locations. It formerly competed in the segment with Hampton Inn but renamed that brand Hampton by Hilton and moved it slightly upmarket.

“We looked at our existing competitors in the space and felt we had a real opportunity, combined with the power of Hilton, to disrupt the midscale segment and really make a difference with a product we believe could be one of our biggest brands and really drive distribution”.

Tru’s launch comes as the hotel industry has been rapidly consolidating. Hilton HHonors offers members exclusive benefits and more ways to redeem points than any other guest-loyalty program. “We feel that Tru by Hilton will deliver on that vision”.