TRU Story

The Tru brand occupies the mid-scale market. Properties offer limited food and beverage options.  They also feature a social area characterized by a large central lobby that is divided into sections for eating, working, playing and lounging.  The front desk, called the Command Center, will also have a social media wall to engage guests. T

Tru Midscale Market Game-Changer

Tru has been designed to be scalable so that properties can vary in size and still fit in urban, suburban, airport or highway adjacent settings.  All of the brand's hotels will be newly built or created through the re-purposing of existing buildings.

Tru by Hilton Fly Thru

Why Create TRU brand?

Following the move of Hampton by Hilton into the upper midscale tier (where it is the segment leader), there was an opportunity in Hilton Worldwide’s portfolio for a brand at the midscale price point. Approximately, 15-20 percent of U.S. Hilton HHonors guests currently use midscale/economy brands, but Hilton does not have a brand at this price point.

Chasm in Marketplace

Approximately forty percent of guest stays in the U.S. are in the economy and midscale segments yet the existing midscale landscape is filled with generic product that is inconsistently executed, leaving consumers to have to compromise between price and a quality experience. It is a sea of sameness – uncertain experiences, uninspired design, and undifferentiated features and amenities. Competitor legacy product makes it difficult for existing brands to rapidly improve the overall quality, freshness and consistency of their product. With a blank canvas, Hilton can fill this void.

Huge Opportunity

In addition to Hilton’s existing loyal customer base, it is estimated that there are more than 15-20 million potential new customers within this market niche. This customer base includes millennials who are beginning  to rise in their purchasing power and are candidate fpr HHonors system so they become loyal to the Hilton portfolio of brands as they mature and gain purchasing power.

Development Investment

The total investment necessary to begin operation of a newly constructed 98-room Tru by Hilton hotel, excluding real property, is $7,719,242 to $12,144,387 including up to $227,052 that must be paid to the franchisor or its affiliate.  The structure will be a  98-key prototype, buildable on less than 2 acres. Scalable prototype may range from 82 to 150 rooms.  Tru will be positioned to achieve an ADR approximately 15%-20% below Hampton’s ADR in comparable markets.

Tru by Hilton FDD/UFOC

Tru by Hilton FDD/UFOC Franchise Disclosure Document (FDD) / Uniform Franchise Offering Circular (UFOC) contains 23 items of information published following the completion of the franchisor's fiscal year. Key elements of the FDD / UFOC report include the full franchise agreement as well as extensive discussion of franchise fees, capital requirements, ongoing royalty and marketing expenses, financing options, site selection requirements, site build-out costs, training programs and costs, current and projected franchisor and franchisee-owned units, franchisee listings and contact information, franchisor historical financial performance, earnings performance (for franchisors supplying Item 19s), outstanding lawsuits, franchisor bankruptcy filings, and key executive biographies. Download FDD for Tru by Hilton.

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