Franchise Deep Dive: Tru by Hilton's Franchise Costs, Fees, Profit and Data

Tru by Hilton was launched to compete with other midscale hotel brands and is specifically designed to appeal to the younger generations.

REPORTED COST TO GET IN: $12,254,825 to $19,204,116

REPORTED ROI (Item 19): N/A

Brand overview

Tru by Hilton is a hotel brand that operates in the mid-scale lodging sector. The brand is designed to cater to younger, more modern travelers who are seeking a balance between affordability, quality and contemporary amenities. Tru by Hilton hotels are positioned as midscale accommodations and focus on providing a streamlined and consistent experience for guests.

Tru by Hilton was launched in 2016 as a competitor to hotel brands like Comfort Inn and La Quinta. Tru by Hilton is one of many hotels operated by Hilton Worldwide, which also includes names such as Hilton Garden Inn, Hampton by Hilton and Embassy Suites by Hilton.

As of August 2023, there are a total of 242 Tru by Hilton locations spanning North America.

Tru by Hilton caters to modern travelers who are looking for value and simplicity. With its contemporary designs, technology integration and affordable prices, the brand has put a focus on attracting millennial travelers. Most Tru by Hilton hotel locations offer limited food and beverage options, a social area, and strive to come off as fun and engaging. They are typically characterized by bright colors and open lobby spaces that appeal to those socializing or working.

Tru by Hilton’s design has been intentionally created to be smaller, more cost-efficient and scalable, so the properties can vary in size and fit in just about any urban and suburban areas.

Like other Hilton brands, Tru by Hilton maintains consistency in its offerings across different locations. Guests can expect a certain level of service and amenities regardless of which location they choose.

The potential earnings for Tru by Hilton owners can vary depending on factors such as location, occupancy rates and operational efficiency. You can learn more about the potential earnings of a Tru by Hilton franchise by checking Item 19 in the Franchise Disclosure Document (FDD), which you can find here.

Franchise costs

The initial investment necessary to open a newly constructed 98-room Tru by Hilton hotel is $12,254,825 to $19,204,116. This investment is broken down into the following costs:

• Franchise Application Fee: $100,000

• Property Improvement Plan: $0 to $10,000

• Market Study: Varies

• Environmental Assessment: Varies

• Real Property: Varies

• Construction and Leasehold Improvements; $8,603,438 to $12,407,063

• Designer and Engineering Fees: $258,103 to $1,837,500

• Furniture, Fixtures and Equipment: $1,499,000 to $1,837,500

• Inventory and Operating Equipment: $110,000 to $275,000

• Signage: $22,500 to $75,000

• Computer Hardware and Software: $43,195 to $94,625

• Guest Internet Access Program: $56,600 to $87,000

• Delphi Sales and Events System: $990 to $18,600

• Required Pre-Opening Training: $5,000 to $17,500

• ADA Consultant Fee: $2,500 to $10,000

• Construction/Renovation Extension Fees: $0 to $10,000

• Insurance: Varies

• Organization Expense: $50,000 to $119,304

• Permits and Licenses: $129,052 to $186,106

• Miscellaneous Pre-Opening and Project Management Expenses: $258,103 to $372,212

• Contingencies: $860,344 to $1,240,706

• Additional Funds: $300,000 to $500,000

• Other Required Pre-Opening Services Fees: $6,000

The franchise fee required to open a Tru by Hilton is $100K.

• Christopher Nassetta — President and CEO

• Kristen Campbell — Executive Vice President, General Counsel and Chief ESG Officer

• Laura Fuentes — Executive Vice President and Chief Human Resources Officer

• Danny Hughes — Executive Vice President and President, Americas

• Kevin Jacobs — Chief Financial Officer and President, Global Development

• Matthew Schuyler — Chief Brand and Communications Officer

• Chris Silcock — Executive Vice President and Chief Commercial Officer

• Simon Vincent — Executive Vice President & President, Europe, Middle East and Africa

• Alan Watts — Executive Vice President & President, Asia Pacific

*Disclaimer: This content is for informational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on this site constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial advice, nor does any information in the email constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.