The new hotel brand will help the company target younger demographics in the U.S. and Canada, the McLean, VA-based hotel company announced on Monday. More than 40% of U.S. hotel stays are in the midscale and economy sectors, Hilton added.
About 102 hotels have signed onto the brand and 30 more hotels are undergoing the approval process, according to Hilton. The first Tru by Hilton hotel will open before the end of the year.
"We are incredibly excited to be launching Tru by Hilton, which will serve the largest segment of the hotel market, but a segment where no brand is meeting guests' current needs," CEO Christopher Nassetta said in a statement. "Tru will provide guests with a high-quality, contemporary, consistent and fresh experience at a great value for customers, while at the same time delivering strong returns to our owners."
Hilton stock is down 3.80% to $17.58 in midday trading on Monday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C-. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, a generally disappointing performance in the stock itself and weak operating cash flow.
You can view the full analysis from the report here: HLT