Tru by Hilton

Old Jan 25, 16, 6:04 am
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Tru by Hilton

LOS ANGELES--Hilton Worldwide today announced a new affordable brand targeting younger travelers.
Tru by Hilton will debut at the end of this year. It will be Hilton's 13th brand, and its entry re-entry into the midscale hotel segment. The company introduced the new brand at the Americas Lodging Investment Summit in Los Angeles.
The company already has 102 hotels signed. Another 30 properties are in various stages of approval in cities such as Atlanta, Houston and Chicago.
"I ultimately think this will be our biggest brand over time," says Hilton CEO Christopher Nassetta.
The move comes as the hotel industry is consolidating, with Marriott International buying Starwood Hotels and Resorts, and AccorHotels acquiring Fairmont, Raffles and Swissotels. Rather than buy an existing brand, Nassetta says the company preferred to start its own.
Nassetta says that 40% of demand for hotel rooms is in the midscale segment, which includes brands such as Comfort Inn by Choice Hotels and Fairfield Inn & Suites by Marriott.
Rates at Tru will vary by location, but will be in the $90 to $100 range.
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.
"We have a very large swath of demand that indexes very young, and we’re not serving it," Nassetta says. "There's an opportunity to build a new brand, if we do it right, that will drive huge demand."
Analysts think the new brand could find a niche. "The Midscale chain scale contains many older line limited service brands that have not seen the innovation that a new brand would coming out of the box today," says Bruce Ford, Senior Vice President at Lodging Econometrics.
Hilton had a midscale brand, Hampton Inn. But that brand has now been elevated into a more upscale product.
Each Tru hotel will be a new build or a repurposing of an existing property. "We won't take another hotel brand and rebrand it as a Tru," says Phil Cordell of Hilton Worldwide.
The hotels will cost on average about $85,000 a room to build. Each will typically have 98 rooms over 1.58 acres. Common areas include a 2,776 square foot space divided into four zones for working, lounging, playing, and eating and drinking.
Guests "are very interested in having a great degree of flexibility," says Alexandra Jaritz, global head of Tru by Hilton. "This idea of having customized experiences is very important to them."
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Old Jan 25, 16, 6:23 am
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Originally Posted by troyhouse View Post
LOS ANGELES--Hilton Worldwide today announced a new affordable brand targeting younger travelers.
Tru by Hilton will debut at the end of this year. It will be Hilton's 13th brand, and its entry re-entry into the midscale hotel segment. The company introduced the new brand at the Americas Lodging Investment Summit in Los Angeles.
The company already has 102 hotels signed. Another 30 properties are in various stages of approval in cities such as Atlanta, Houston and Chicago.
"I ultimately think this will be our biggest brand over time," says Hilton CEO Christopher Nassetta.
The move comes as the hotel industry is consolidating, with Marriott International buying Starwood Hotels and Resorts, and AccorHotels acquiring Fairmont, Raffles and Swissotels. Rather than buy an existing brand, Nassetta says the company preferred to start its own.
Nassetta says that 40% of demand for hotel rooms is in the midscale segment, which includes brands such as Comfort Inn by Choice Hotels and Fairfield Inn & Suites by Marriott.
Rates at Tru will vary by location, but will be in the $90 to $100 range.
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.
"We have a very large swath of demand that indexes very young, and we’re not serving it," Nassetta says. "There's an opportunity to build a new brand, if we do it right, that will drive huge demand."
Analysts think the new brand could find a niche. "The Midscale chain scale contains many older line limited service brands that have not seen the innovation that a new brand would coming out of the box today," says Bruce Ford, Senior Vice President at Lodging Econometrics.
Hilton had a midscale brand, Hampton Inn. But that brand has now been elevated into a more upscale product.
Each Tru hotel will be a new build or a repurposing of an existing property. "We won't take another hotel brand and rebrand it as a Tru," says Phil Cordell of Hilton Worldwide.
The hotels will cost on average about $85,000 a room to build. Each will typically have 98 rooms over 1.58 acres. Common areas include a 2,776 square foot space divided into four zones for working, lounging, playing, and eating and drinking.
Guests "are very interested in having a great degree of flexibility," says Alexandra Jaritz, global head of Tru by Hilton. "This idea of having customized experiences is very important to them."
Thanks here are two links (with paragraphs) for easier reading

http://www.cbsnews.com/news/hilton-l...-young-guests/

http://www.usatoday.com/story/travel...rand/79185810/


What do people think about the inroom changes. No desk, but multifunctional chair? Platform bed? No enclosed closet?
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Old Jan 25, 16, 6:29 am
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Hmm. Don't like the name (amongst other things, it reminds me of the "blu" electronic cigarettes, and Radisson Blu for that matter), but everything else sounds at least somewhat promising.

As a Millennial, and I guess thus their target audience, I must say that I'm somewhat conflicted though by the whole hotel push towards everything being 24/7 connected, tech-driven, networking-driven, etc. That's every minute of my life to begin with. I kind of like my hotel being a break from that. Sometimes I even appreciate this idea of "service" - paying other people to take care of me. It's quaint and refreshing.

The chair/desk thing should be interesting. On one hand I like desks. On the other hand, I've rarely met a Hilton chair/desk combo that makes any ergonomic sense. Typing this now from a Hampton desk with my hands around chin-height with the chair at its highest setting. And I'm tall! I need to pull out my old trick of sitting on pillows.
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Old Jan 25, 16, 6:29 am
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With some renders here...
http://www.businesstraveller.com/new...midscale-brand

I will not set a foot into one of those if the really have "wow bam och" written on the floor, and silly slogans by the shower.

despite probably fitting their target market. I think the comment below the BT article summarises it quite well...
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Old Jan 25, 16, 7:21 am
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Interesting. Far past the point of being a "millennial" myself, but I would give one a try at least.
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Old Jan 25, 16, 7:47 am
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So it's Aloft by another name then? That was my very first thought when watching the video.
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Old Jan 25, 16, 7:56 am
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This seems like a logical extension of the direction they went with the Home2Suites brand, but in the traditional hotel room market. I'd stay at one if it were more than 20% cheaper than the nearest cheaper step-up Hilton property. The lack of a desk would likely bother me for anything more than a 1-night stay, but might also encourage me to just get out of the room a bit more. I'd also watch out for limited points earnings and less hot options for breakfast, though, similar to Home2Suites... this might push me towards the 20% less price-point being my tipping-point compared to a Hampton/HGI/etc.

As for the comparison to Aloft, I don't think it's quite that high-end though I can understand the sentiment... if nothing else, the (assumed) lack of a lobby bar is a notable distinction. While riding the same modern design aesthetic, I wouldn't expect the same fit/finish/quality in both fixtures, architecture, and amenities.
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Old Jan 25, 16, 8:21 am
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Originally Posted by troyhouse View Post
"I ultimately think this will be our biggest brand over time," says Hilton CEO Christopher Nassetta.
IMHO the CEO's enthusiasm led to hyperbole. Bigger than Hampton Inn? I'll give odds of 3:1 against that within twenty years.
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Old Jan 25, 16, 9:01 am
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I like the concept! I am a millennial and don't have any desire to stay in a midscale hotel for personal or work travel. I won't stay at this brand, but I hope it works out for Hilton. I'm not quite sure who they are trying to reach here. Here's hoping Canopy plays out in the upper upscale space as a fresh option.
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Old Jan 25, 16, 10:37 am
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Pros: New construction or converted urban buildings like banks etc. I certainly prefer that to long in the tooth 20-30 year old Hampton Inns. I might use this for one I just need a bed in a city or an airport hotel stay.

Cons: What an incredibly stupid name.
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Old Jan 25, 16, 11:01 am
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Talking

Originally Posted by CMK10 View Post
Pros: New construction or converted urban buildings like banks etc. I certainly prefer that to long in the tooth 20-30 year old Hampton Inns. I might use this for one I just need a bed in a city or an airport hotel stay.

Cons: What an incredibly stupid name.
TRU!
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Old Jan 25, 16, 11:02 am
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Well, I like the basic look of the exterior and the rooms themselves quite a bit personally. The price seems nice for what is being offered too.

That said the words on the front desk floor look dumb, and the overall feel looks to be trying too hard to be hip. These would look very dated very quickly in my opinion. Not that a lot of the Hilton's I have been been looking at recently trying to book some stays are not also dated I guess; at least these will be dated 20 years newer! Take this concept and tame it down 20-30% and I think it would be just fine.
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Old Jan 25, 16, 11:06 am
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My biggest concern about these and also Home2 properties is how they hold-up over time. Given the low build-out cost, the quality of materials are likely not that great. Much like the "Phoenix" renovated Motel 6 properties... they look modern and great when new and are a huge step up from what they replaced, but now 5-6 years later they look like your kids' Ikea furniture when you donate it to Goodwill. My concern is much less about the aesthetic being dated than the actual furniture, fixtures, carpets, etc not holding up to wear-and-tear and owners then having no motivation to renovate given how down-market they are to begin with, and then churning through lower and lower tier chain affiliations as they are able to meet fewer and fewer brand standards until they're eventually the "ARMADA INN" because the last national brand that would have them was RAMADA and they could switch the first two letters on the outdoor signage.
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Old Jan 25, 16, 11:37 am
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While I'm not entirely sold on the concept (I like desks), a cheaper alternative for quick stays where I basically just want a room with a bed and a shower and some food I can grab in the morning does have some appeal. This isn't something I'd choose for a stay of more than a night, but for those 1 night stays, I can live without a desk.
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Old Jan 25, 16, 11:44 am
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If they're as quirky as Home2Suites (and their breakfasts as bad), I'll stick with my Hampton/HGI/Homewood options (and I'm a Millennial).
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