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Hilton Wants Millennials To Stay Over At Its 'Hostel On Steriods'

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Hilton Worldwide plans to test a new hospitality concept that will appeal to millennials. 

Edited hotels, hotel industry, hotel market, hospitality

The concept will be a lower cost "hostel on steroids," according to Hilton CEO Christopher Nassetta, with smaller room sizes measuring between 125 SF and 150 SF, but it is expected to pack a big punch in the common room areas, which will be flexible. The spaces will also be customizable and may connect like Lego blocks in order to allow guests to create the room they want during their stay, Curbed reports.

Each hotel will be different depending on where it is situated. Hilton is planning to partner with local businesses in the food and beverage industry to create a concept that appeals to local residents. 

The hotel sector has increasingly sought new ways to attract customers amid industry challenges and increased competition from home-sharing concepts like Airbnb, which launched nine years ago and disrupted the industry.

This is the second lower-cost concept Hilton has rolled out for the younger generation. The brand launched Tru in May, which also offers smaller room sizes, though it has much in the way of hangout areas and common rooms.