Hilton Worldwide Holdings has plans to plug a gap in its brand portfolio by moving into the economy segment.
In an interview with Hoelsnewsnow.com, Jim Holthouse, executive VP of global brands said a new economy brand could become a reality within two to three years.
"We’ve looked at the economy segment many times. This isn’t something that we’ve just unintentionally not done. We’ve looked at it many times and it’s an important one for us to get right," Holthouser said.
He said the midscale and economy segments represent about 40% of hotel demand but "we really have no product to serve that."
"Unfortunately, the model you find in economy doesn’t throw off enough profit to be able to keep the hotels in the kind of condition that we would want, especially if we would put the Hilton name on it," he added.
However Holthouser sees an economy brand as an ideal entry point for millennial travelers.
It is a portal if you will, for next-generation travelers, get them hooked into Hilton HHonors, and then as they go through the various life phases you’ve got all kinds of really cool products you can serve them with over time."
