LOS ANGELES (AP) – Hilton is launching a new hotel brand, focusing on budget travelers looking to spend $75 to $90 a night.
The new brand, named Tru, aims to compete with economy and midscale chains like Comfort Inn, Fairfield Inn and La Quinta.
Hilton Worldwide – which has more than 4,500 hotels globally – already has “limited service” brands like Hilton Garden Inn, Hampton Inn, Homewood Suites and Home2 Suites. This would be a new market for the chain.
Hilton CEO Chris Nassetta notes that 40 percent of the demand for hotel rooms comes in this price segment, the largest of any market. He also says many of the economy and midscale chains offer an “inconsistent product and service delivery,” giving Hilton the opportunity to build loyalty among younger travelers whose spending is limited right now, but could afford a more upscale location in the future.
“You go in a lot of the competition and it’s like Russian roulette,” Nassetta says. “There’s really nobody doing it well at this price point.” Many of the hotels in the segment were once part of more upscale brands but as their owners couldn’t keep up with renovation costs, they downgraded to economy chains.