Hilton Worldwide Holdings Inc has announced plans for yet another new brand which will launch early next year.
The as yet unnamed brand will feature mid-scale hotels targeting ‘value-oriented’ guests, CEO Chris Nassetta said.
Rates will be lower than its current mid-scale brand Hampton Inn.
"Hampton Inn was initially targeted to be in that segment, but it’s so successful that it’s grown up out of it," Nassetta said.
"There’s something like 40% of the demand base in the U.S. market that we find we’re not serving as much as we want because they can’t afford basically our lowest chain scale product. There is no good mid-scale product," he added.
Hilton aims to ‘recreate the segment’ with a brand launch that will feature all new build properties and would not try to replicate the Hampton Inn identity.
"We think the demand is there, but the reason no one is building them is that there are no products that resonate with the customer."
Hilton has recently launched two new brands, the independent Curio – a Collection by Hilton and Canopy, and has been looking to establish a new economy brand for a long time.
