Tru by Hilton debuts, outlines growth plans

OKLAHOMA CITY—Tru by Hilton Oklahoma City Airport isn’t just the first Tru by Hilton property to open in the city, state and country; it’s the first to open around the globe.

“As we looked at the portfolio, we realized that in the midscale category there’s pretty much a sea of sameness out there,” said Phil Cordell, global head of focused service and Hampton by Hilton brand management at Hilton, in response to a question about the conceptualization of the recently launched Tru by Hilton brand. “Forty percent of travel in the U.S. today occurs in the midscale/economy category, and there are many brands out there—none of which excel at doing something unique and differentiated.”

From there, the team took a blank canvas and asked: “What would a traveler today want that isn’t being delivered?” To find the answer, Hilton collected feedback. Consumers were vocal about a variety of needs: a consistent experience, a contemporary design, large social spaces, enhanced tech solutions and upgraded health and wellness offerings. In addition to guest feedback, a group of owners advised Hilton on a range of issues.

“When you have the opportunity to launch a brand that is growing at the scale of this one, we can’t overemphasize the amount of planning and research that went into every step of the way,” he said, noting the yearlong planning before launch.

Brought to market in just 16 months from when it debuted at the 2016 Americas Lodging Investment Summit (ALIS), the brand now has 425 properties in various stages of development. Pitched as a cross-generational brand, Tru by Hilton defines itself as a “brand-new hotel experience that’s vibrant, affordable and young-at-heart. It’s energetic, but it’s relaxing and comfortable. It’s familiar, and it’s also unexpected…”

For some, the decision to invest in the brand was an easy one. Located just five miles away from Will Rogers World Airport, the 86-room Tru by Hilton Oklahoma City Airport—the first Tru by Hilton property to open and the hospitality company’s 5,000th open—is owned by Champ Patel at Champion Hotels LLC, a development company.

The Tru by Hilton lobby has 2,880 sq. ft. of public space with areas to work, play games, eat or lounge.

“Tru by Hilton really shook things up in the hotel market,” said Harshil Patel, SVP of Champion Hotels. “The buzz that it was creating throughout product development made it very attractive to try it out.”

Hilton broke ground at the Oklahoma City Airport site in May 2016, less than four months after the brand’s debut. “We are happy with how it turned out and built some great relationships throughout the process,” he said. “Additionally, everything about this brand is different from what’s currently available in the market.”

Designed to be the center of all activity, the Tru by Hilton lobby has 2,880 sq. ft. of public space with areas to work, play games, eat or lounge. And in response to guests wanting to spend more time away from guestrooms, Hilton made them smaller, “but you almost can’t tell that there’s a difference compared to other midscale-segment brands,” said Alexandra Jaritz, global head of Tru by Hilton.

Two room types are offered: a king (231 sq. ft.) and a double queen (275 sq. ft.).

Each room has vinyl-tile flooring; a 55-in. TV with 150-plus DirectTV channels; complimentary WiFi; and more than 14 power outlets/USB ports. Bathrooms have only showers.

In addition, tech amenities are central to the brand, including mobile check-in, digital key, remote printing, a social media wall, lobby and market iPads, and charging stations.

“We’ve spent a lot of time ensuring that guests not only get what they need, but that we’re coming in with an overall pro forma, or cost of construction, cost to build, operating margin, that is compelling to our owners,” she explained. “We’ve been laser-focused on making sure the economics from a developer perspective work, and I think that pipeline is indicative of that, as well.”

Certainly, the economics work for Champion Hotels—the developer is slated to develop 16 Tru by Hilton properties. “My family owns and operates several other brands within the Hilton portfolio,” Patel said. “Hilton made sure that Tru by Hilton complements rather than competes with its other brands, which made it an attractive product to developers like us.”

Tru by Hilton expects 10-15 hotel openings this year. Currently, the brand has signed agreements in 41 states. Another 70 openings are planned for 2018. “We’re seeing [the brand]distributed quite nicely around the country,” Jaritz said. Hilton has been focused on developing the brand in the U.S. and Canada. Even though Tru by Hilton has plans to develop outside of North America, it’s not going to expand globally anytime soon. “We want to try to get the prototype right in the U.S.,” she said.

“We’re going to have the opportunity to tweak and learn along the way,” Cordell said. “Of all the brands we have today, this has the potential to be our biggest learning lab.” HB


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