Hilton Worldwide Holdings (HLT) plans to open 150 new midprice hotels under the new "Tru by Hilton" brand by the end of 2019, the Wall Street Journal reported.
Tru by Hilton offers rooms at about $100 per night and is focused on building in suburban spots and off highway exits. The first Tru hotel opened in Oklahoma City in May.
Tru entered a competitive field crowded by other brands including Choice Hotels' (CHH) Quality Inn, Marriott International's (MAR) Moxy Hotels and Intercontinental Hotels Group (IHG) . But it makes its mark by offering distinctly millennial amenities including craft beer and pool tables in its lobbies.
Tru also aims for brand new properties instead of "putting lipstick and rouge on a structure that's obsolete," as most midtier hotels do, Hilton CEO Chris Nassetta said. Tru manages to build new properties instead of renovating old ones by cutting costs with smaller rooms that are easier to clean.
Hilton shares traded down in early afternoon trading.
What's Hot On TheStreet
Apple is OK for the time being: For those silently worrying how the Apple (AAPL) iPhone 8 will sell, simmer down -- the tech giant still has several huge advantages. On the hardware side, for instance, the iPhone still feels ahead of the pack thanks not only to Apple's design skills and the visible features of its hardware, but also what's under the hood points out TheStreet's tech columnist Eric Jhonsa. From the looks of things, the iPhone 8 should extend that lead, Jhonsa predicts.
Tesla is looking wobbly: Tesla (TSLA) shares are looking a little shaky (again) after its Model S didn't get a top rating from Insurance Institute for Highway Safety (IIHS), reports TheStreet's James Skinner. The IIHS cited issues with the small overlap front test, which is meant to simulate crashes into trees, poles and other vehicles, as why the Model S did not receive the highest rating. IIHS Executive Vice President David Zuby said the front test remains a "hurdle" for some vehicles.
"Tesla made changes to the safety belt in vehicles built after January with the intent of reducing the dummy's forward movement," IIHS said. "However, when IIHS tested the modified Model S, the same problem occurred, and the rating didn't change."
Costco finally scores some good news: After watching its stock crash about 13% inside a month thanks to fears Amazon (AMZN) and Whole Foods (WFM) will dominate society, Costco (COST) scored a nice win. Costco said same-store sales in June rose 6.5% in June. Canada saw sales up 3.2%, while international sales rose 6.2%.
The numbers should serve as a reminder how resilient Costco's business has been in the face of Amazon's rise.
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