Hilton launches new budget hotel chain Tru Hotels

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 per cent of demand for hotel rooms is in the mid-scale segment, which includes brands such as Comfort Inn by Choice Hotels and Fairfield Inn & Suites by Marriott.

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 socialise, and advanced technology such as mobile check-in.

Because of the price point, it will probably attract younger travellers 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."

See also: The weirdest hotel guests ever

Analysts think the new brand could find a niche. "The mid-scale 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 mid-scale 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 customised experiences is very important to them."

See also: The worst things guests steal from hotel rooms

Local snacks and drinks, including single-serving beer and wine, will be available from a grab and go area. A build-your-own breakfast station will be complimentary. Coffee and tea will be free throughout the day.

The play area will have a large TV and activities such as ping pong and foosball tables.

Wi-Fi will be free.

Rooms will come with either a king bed or double queen beds, in sizes of 231 or 275 square feet (21 or 26 square metres).

"Smaller rooms are very common in Europe," Cordell says. "There are some people who think customers aren't ready for that in Atlanta or Dallas. We think they are."

The rooms have platform beds and 65-inch TVs and various storage areas such as a luggage bench. Closets will not be enclosed. Instead of a desk there will be a multi-functional chair.

Bathrooms will have extra-long vanities and showers instead of bathtubs.

"We really wanted to make sure the guest experience was simple, intuitive and efficient," Jaritz says.

USA Today with Chicago Tribune

See also: Melbourne's newest five-star hotel opens
See also: Rules to stealing toiletries from fancy hotels