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What Advisors Should Know About Tru by Hilton

by Laurie Wilson  October 31, 2023
What Advisors Should Know About Tru by Hilton

Tru by Hilton Monterrey Fundidora. Photo: Hilton

Andrew Harp, brand leader at Tru by Hilton, shares the genius behind the spirited brand’s young-at-heart hotel concept
 
Tru’s debut
Tru came on the scene in January 2016, when Hilton launched Tru by Hilton at the Americas Lodging Investment Summit. The new midscale brand was announced with over 100 locations approved. Fast forward eight weeks later, Tru by Hilton broke ground on its first property, in McDonough, Georgia, marking the fastest brand announcement to a groundbreaking period in Hilton history.
 
What inspired Tru
The brand was designed to disrupt the midscale hotel category. Developed from the ground up using consumer and owner feedback, Tru is all about a playful, modern design to appeal to a younger, tech-minded, design-savvy demographic—but still inviting for travelers of all ages. The cat’s meow: All four-legged guests are welcome.

Each hotel is uber-local with community-inspired custom mural art and a Truly Local Wall that highlights must-see local attractions and current activities/events/festivals.  

The brand’s reimagined lobbies feature board games, pool tables, and a build-your-own “Top It” breakfast bar with an automatic, hands-free pancake maker. Guest rooms are bright and outfitted with must-have amenities, like rolling desks and spacious bathrooms. 

Tru’s quick and sustained growth spurt includes ambitious plans for the future—and New York City is on deck

After seven years, the brand will open its 250th hotel in the coming weeks. “I remain blown away by Tru’s impressive growth not just here in the U.S. but internationally in Canada and the Caribbean and Latin America region with open hotels in Brazil and Mexico,” says Harp. 

Tru’s first New York City hotel, Tru by Hilton Brooklyn, is expected to debut at the end of the year in Brooklyn’s Gowanus neighborhood. Tru by Hilton Brooklyn will be a short walk from notable landmarks, including Prospect Park, Brooklyn Museum, Brooklyn Botanic Garden, and Barclays Center, which hosts year-round concerts and sports events.
 
Plans are focused on new locations, or “more Tru dots on the map,” says Harp. “I’m excited that in 2024 we anticipate opening our second hotel in Brazil, our fourth hotel in Canada, our first hotel in Chile, and our first hotel in Columbia.” 

In the next few years, expect marquee locations like the Tru Mexico City Airport, serving the busiest airport in Mexico; the brand’s largest approved Tru yet with 287 rooms in Sao Paulo’s Tatuape district as part of a large mixed-use development; and a 176-room Tru in Austin Downtown near the Capitol and the University of Texas Austin campus.
 
To help achieve the milestone, the midscale brand will also welcome five new locations in North Carolina, South Carolina, Texas, and Virginia.

Partnerships and new initiatives 
Speaking to the youthful mindset of Tru’s business and leisure travelers, the brand recently launched two innovative initiatives:
 
?    Automatic, Hands-Free Pancake Maker: The signature brand pancake maker turns batter into a pancake—with the wave of a hand.
?    Partnership with Truly Hard Seltzer: Tru joined forces with equally-spirited Truly Hard Seltzer. Guests 21-plus can purchase Truly Wild Berry Seltzer from the 24-hour Eat. & Sip. markets found in participating Tru by Hilton lobbies. 

Hilton Honors guests stay true to Tru
The 200-plus comparable Tru hotels (those that opened before 1/1/2022) are running an aggregate occupancy of 72.7% in 2023 through the end of the third quarter. This is up +2.3 points from the same time in 2022.  

And more than 70% of that 72.7% occupancy is driven by Hilton Honors guests. “Tru by Hilton guests appreciate the value of the Hilton Honors program, the fastest-growing loyalty program in the hotel industry with over 173 million members,” says Harp. The free Honors app allows guests to book their stay, select their room, check-in, unlock their door with a Digital Key, and check out, from their smartphones.

Hilton’s plans to continue to diversify 
Hilton has 100-plus years of experience as a leader in the hospitality industry, and its success in the midscale segment was a game-changer and proved to the chain that successful new brands at affordable price points can open the door to launching new brands across a variety of price segments. Tru tapped into an open space within its portfolio, and Hilton plans to continue to appeal to younger, tech-minded, design-conscious, and budget-savvy travelers. Hilton recently announced two new brands—Spark by Hilton and Project H3–to serve guests and owners looking for value and consistency.
 
Thoughts on the state of the travel industry   
Hilton understands that travel is an unstoppable force, and firmly believes that the innate human desire to explore new cultures and connect with others is at the heart of the travel industry. “My work here with the Tru Cru has made me very optimistic about the current state and future of leisure and business travel,” says Harp.

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