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Hilton enters the 'midscale' hotel market


Hilton Worldwide is launching a new brand, Tru, which is aimed at the $75-90 a night economy and midscale market now occupied by chains such as Comfort Inn, Fairfield and LaQuinta. Hilton's CEO says that 40% of all demand for rooms falls in that range.

Hilton says it already has 102 locations locked in, and is working on 30 more. Unlike many others in that market range, they will all be new construction or renovation of historic buildings. The announcement, made at a hotel investor conference, says Hilton hopes to provide a consistent experience; they say their competitors' offerings are "like Russian roulette," with inconsistent quality.

The new hotels will fall into a segment below Hilton's existing limited-service brands such as Hilton Garden Inns and Hampton inns. There will be a mix of airport and city locations, with some suburban sites as well. Most hotels will be around 100 rooms, with hangers and hooks instead of closets, a chair with tablet but not laptop space and no desk.

Hilton's CEO, Chris Nasetta, sees it as a sort of starter experience: "Get them loyal to our system, and trade up as they move on in their lives."


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