Hilton launching Tru, a budget chain aimed at young travelers

Young jet-setters looking for a bargain are the target demographic for Hilton's new hotel brand, Tru.

Prices will range from $75 to $90 a night for a room, with Tru's competition being economy and midscale chains like La Quinta and Fairfield Inn. Tru rooms will have an open space concept, without closets or desks — instead, there will be hooks on the wall and a chair with a spot for a tablet or laptop. The beds won't have box springs, and benches will be on top of the heating and air conditioning units to save space. Hilton CEO Chris Nassetta told The Associated Press that 40 percent of the demand for hotel rooms is in this price range. "You go in a lot in the competition and it's like Russian roulette," he said. "There's really nobody doing it well at this price point."

Already, there are 102 locations signed on (in places like Denver, Chicago, Atlanta, Portland, Nashville, and Dallas), and 30 in various stages of negotiation. Most of the hotels will be new construction, with a few in converted historical buildings, like old banks and office buildings. Tru hotels will typically have 98 rooms and sit on 1.5 acres of land, with each room costing $84,000 to build. The goal, Nassetta says, is to impress younger travelers now, so they'll remember the Hilton name when it's time to check in to more luxurious digs. "Get them loyal to our system," he told AP, "and trade up as they move on in their lives."

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