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Hilton Launches Micro-Hotel Brand Motto By Hilton, Another Play For Urban Millennial Travelers

A rendering of two possible room configurations in a Motto by Hilton hotel

Hilton is launching a new brand of hotels geared toward cost-conscious millennials, its third in as many years.

The company announced Tuesday the creation of Motto by Hilton, a new chain of micro-hotels with an average room size of 163 SF in the middle of urban centers. Though it did not mention Airbnb in its press release, Hilton's description of what kind of customers it will target with Motto sent a clear message.

"While Motto by Hilton prices will vary by market, each property will offer competitive rates that will make it a viable option for travelers who typically stay with friends or family or seek out temporary housing options when traveling to urban markets," the press release stated.

Hilton said it analyzed trends in the "emerging lifestyle hostel model" when conceptualizing Motto, finding that prime locations were paramount to visitors choosing low-cost concepts, as well as flexibility. Among Motto's primary features will be rooms that can change functionality, with features such as loft beds to maximize available space.

Some of the first Motto by Hilton locations will be in the Marylebone neighborhood of London, where local developer Dominvs Group is set to break ground on a 100-room Motto in January. Other locations are planned in Lima, Peru; Dublin; Savannah, Georgia; San Diego, Boston and Washington, D.C., according to the release.

In 2016, the company rolled out Tru by Hilton, offering rooms at a $40 discount from the average Hilton, with buildings averaging 100 rooms or less. Last year, it launched a "hostel on steroids," touting common spaces, flexible arrangements and connected rooms, much like Motto.