Hilton targets millennial travellers with new chain

AAP

25 Jan, 2016 08:40 PM2 mins to read

Hilton is launching a new hotel brand focusing on budget travellers looking to spend US$75 to US$90 (NZ$116 to NZ$139) 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 4500 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.

A press release for the new brand said it would appeal to "a broad range of travellers who span generations but think alike; they are united by a millennial mindset".

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.

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," Nassetta says.

"There's really nobody doing it well at this price point."

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.