Hilton Group Launches Mid-Priced Hotel Brand

Budget travelers can now include Hilton hotels in their hotel choices as the hotel chain is launching a new brand focusing on budget travelers looking to spend $US75 to $US90 a night.

The new brand is named Tru and aims to complete with other economy midscale chains such as Comfort Inn, Fairfield Inn and La Quinta. This new market for the chain was announced in a press release published in the Hilton website.

With more than 4,500 hotels all over the world, Hilton Worldwide already has 'limited service' brands like Hilton Garden, Hampton Inn, Homewood Suites and Homes2 Suites.

Hilton chief executive Chris Nassetta notes that 40 per cent of the demand for hotel rooms comes in this price segment - the largest of any market.

The brand will target all age groups, but is intended to appeal to a "millennial" mindset, Nassetta says. Millennials, those in their twenties and early thirties, tend to like modern design, public spaces where they can work and socialize, and advanced technology such as mobile check-in. Because of the price point, it will probably attract younger travelers on the road for business and pleasure, he says.

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 travellers whose spending is limited 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, there's really nobody doing it well at this price point,' Nassetta says.

Tru properties will be mostly new construction with the others being urban conversions of historic buildings - banks, office buildings - into the hotel.

Hilton is launching the chain at a large conference for hotel investors - The Americas Lodging and Investment Summit - with 102 locations already signed and an addition 30 deals in various stages of negotiations and approval.

'That's bigger than entire hotel companies,' Nassetta says.