Hilton Plans New Mid-Scale Brand

Hilton is planning to launch a mid-scale hotel chain early next year that will cater to value-oriented customers. CEO Chris Nassetta announced the plans during yesterday’s Q2 earnings call but did not provide any details on a name for the brand or expected locations. Hilton exceeded earnings expectations for the quarter and saw shares rise 4% in afternoon trading, reports Phoenix Business Journal. The new brand will be made up of almost all new-build projects as opposed to conversions and come in at a lower price point than its Hampton Inn brand. “There is no good mid-scale product. 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,” said Nassetta. Development in the limited service hotel category has been growing in the US and other parts of the world since the recession. Limited service has accounted for 53% of Hilton’s development in China so far in 2015. [PBJ]

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