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. He also says service in the segment is inconsistent, 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.