A Truly Different Approach: How Hilton Reinvigorated the Midscale Hotel Segment

Have you ever stayed at a dodgy hotel? You probably didn’t intend to but it’s likely that the low-price point gave you an unpleasant experience. Often times, we are stuck paying $100 a night for an odd-smelling, tub-clogging, damp room with outdated curtains. I know, because I just did this. On a recent missed flight connection, I was forced to stay at an airport-central Chicago hotel that rang true to all the above. The irony? I was en route to the grand opening of Hilton’s newest midscale brand, Tru by Hilton.

According to the U.S. Travel Association, direct spending on leisure and business travel by domestic and international travelers totaled 990.3 billion in 2016. Now that’s a lot of money. With an influx of options, the average American should be able to find a decently-priced hotel providing  a quality experience. Unfortunately, that’s not always the case. Yet, Hilton’s 13th brand is fighting these stereotypes and figuring out how to please owners, guests, local communities and everyone in between with Tru by Hilton. The brand is something new. It’s unruly and disruptive – read on to learn more about how Tru by Hilton is changing the hotel game and playing by its own rules:

A Star Is Born: The Development

From breaking ground to grand opening, it only took Tru by Hilton 16 months. Based on consumer and owner feedback, the Tru brand tapped into their existing Hampton owners to get the buzz on what they should do, what works, what doesn’t and what they needed to do differently. These insights plus market research, rounds of consumer testing and learnings from other industries differentiated Tru by Hilton from what is currently on the market.

Lounge and Grub: The Focal Point

Our brain doesn’t automatically scream “lobby” when you think about a hotel. Although, it is the first thing you see when you step through the doors. It can make or break your first impression. So, in my opinion, that lobby better shine. Tru by Hilton does just that. A nearly 3,000 square feet reimagined hub with public space for guests to eat, chill, work or play games. The lobby offers something for everyone – whether you want to seclude yourself in a sound absorption work station or watch others play pool from the stadium seating, it’s all up to your personal preference. And, the one feature that truly stands out? The not-so traditional complimentary breakfast dubbed the “top-it” breakfast bar, which has 30 sweet and savory toppings for you to create whatever your taste buds desire. Start with a bagel or a Greek yogurt as a base and go from there – the combinations are endless!

Catch Me If You Can: The Future

Now, let’s talk about speed because it’s mind boggling. Not only is the first Tru by Hilton already open for business after launching just over a year ago, there are already 425 hotels in various stages of development. According to Hilton, this speed has allowed Tru by Hilton to achieve the fastest growing pipeline in the history of the hospitality industry. And, looking at the entire midscale segment, Tru by Hilton is responsible for 2/3 of all net pipeline growth since its launch in 2016.

What’s to come? A lot more – 10-15 openings in 2017 and approximately 70 in 2018. Tru by Hilton is truly making a name for itself as a leader in the industry while keeping exceptional service and happy customers and developers at the forefront. As a client of Padilla, we’re excited to see what’s to come and how this vibrant brand will transform the industry.

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