Hilton is introducing a new hotel line that will cater to tourists who are on a budget and are looking to spend only $75 to $90 a night.
According to CBS News, the name known for its international chain of full service luxury hotels and resorts is launching the new hotel Tru that will compete with budget chains like Comfort Inn, Fairfield Inn and La Quinta. Hilton Worldwide has 4,500 hotels globally and already has some "limited service" brands like Hilton Garden Inn, Hampton Inn, Homewood Suites and Home2 Suites. "Limited service" hotels are those that have simple and "limited" amenities or services to offer guests Tru reportedly would be a new market for the chain.
According to CBS News, Hilton CEO Chris Nassetta says the demand for hotel rooms that comes in this price category are at 40 percent, which is the biggest of any market. He believes that many budget hotels offer "inconsistent product and service delivery," and this gives Hilton the chance to build patronage among young travelers who are have budget constraints at the moment.
Nassetta said, "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." Tru properties will be a brand new hotel with no prior history unlike upscale hotel brands who have downgraded because they were not able to keep up with maintenance. This is where Hilton believes Tru will have an edge.
Hilton will be launching the new chain during its attendance in a large conference for hotel investors, the Americas Lodging and Investment Summit on January 24-27 at JW Marriott and Microsoft Theatre. Hilton already has 102 locations signed and 30 more additional transactions in many stages of negotiations and approval.
