Tru by Hilton logo

Tru by Hilton

Midscale hotels
Investment
$12,767,064
Initial Franchise Fee
$100,000
Units
319
Growth Rate
+43.7%

Overview

Industry
Lodging
Founded
2015
Franchising Since
2016
Parent Company
Hilton
Leadership
Christopher Nassetta, CEO
# of Employees at HQ
8760

Units and Growth Chart

About Tru by Hilton

Tru by Hilton was founded in 2015 by Hilton Hotels Brands as a brand of hotels operating in the midscale hotel market. The company began franchising one year later. The Tru by Hilton franchise sets out as a game-changing brand looking to meet the needs of customers who are seeking a fun and affordable hotel stay.

Since its formation, Tru by Hilton has strived to offer customers a unique hotel experience with cross-generational appeal. In 2019, the franchise had grown to over 125 properties and over 11,200 rooms, signifying its fast growth.

Reimagining the public workspace to fit modern customer needs is Tru by Hilton’s main attraction. An ideal Tru by Hilton’s franchisee is anyone keen on providing quality service and creating a fun and conducive environment.

Why You May Want to Start a Tru by Hilton Franchise

Tru by Hilton’s franchisees are expected to advance the brand’s solid reputation and unique offerings by upholding quality service and appeal. Tru by Hilton features distinct modern aspects that make it a robust hotel franchise compared to the competition.

Each Tru by Hilton franchise is made by first considering a social area featuring a sizable centralized lobby nicknamed “The Hive.” The Hive is the heart of operations at a Tru by Hilton unit, as customers can enjoy multiple offers, such as eating, working, playing, and lounging.

The brand goes further by including a “Command Center,” or the front desk, where social media engages guests. The Tru by Hilton franchise reimagines the mid-range hotel market, aiming to give customers more for less.

What Might Make Tru by Hilton Franchise a Good Choice?

The investment cost varies, so to be part of the Tru by Hilton team, you should make sure you’re financially ready for an initial investment that will include a franchise fee and startup fees. You’ll also want to make sure you have enough capital available to cover possible ongoing fees. These ongoing fees might include royalty percentages, ad fees, or even renewal fees. A typical term of agreement runs for a renewable period of 22 years.

As a brand connected to the reputable Hilton Worldwide family, Tru by Hilton franchisees can benefit from Hilton’s relationship with third-party financiers to cover startup, franchise fees, payroll, equipment, and accounts receivable.

How to Open Your Own Tru by Hilton Franchise

As you make your decision regarding whether to start a Tru by Hilton franchise, make sure you take time to explore the opportunity. Research the brand and your local area to see if a franchise would do well in your community. While competition is healthy, too many hotels in a single area may not set your franchise up for success.

After you've decided to go for the franchise, you'll need to apply. If the company approves your application, you'll need to go through training. Since Tru by Hilton aims to standardize the quality of service and standards across all units, classroom training of over 100 hours is necessary for all franchisees. Additional on-the-job training may last for a few hours.

Support options offered include purchasing co-ops, grand opening, a tool-free line, meetings & conventions. Tru by Hilton also provides marketing support for franchisees, facilitating co-op advertising, national & social media, loyalty program/app, and website development.

Investment Details

Initial Franchise Fee
$100,000
Initial Investment
$12,767,064 - $18,572,795
Net Worth Requirement
Cash Requirement
Royalty Fee
5%
Ad Royalty Fee
4%
Technology Fee
0
Term of Agreement
22 years
Is Franchise Term Renewable?
Yes
Financing
Third Party
Veterans Incentive
Varies

Available Territories

Franchising opportunities available in the following regions

United States International

Training & Support Programs

Comprehensive training and ongoing support to help you succeed

Training

On the Job Training
9 hours
Classroom Training
131-138 hours

Ongoing Support

Purchasing Co-ops
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Field Operations
Proprietary Software
Franchisee Intranet Platform

Marketing Support

Co-op Advertising
Ad Templates
National Media
Regional Advertising
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations & Requirements

Key operational details and requirements for running this franchise

Is absentee ownership allowed?
No
Can this franchise be run from home/mobile unit?
No
Can this franchise be run part time?
No
# of employees required to run
N/A
Are exclusive territories available?
No

Ranking History

Tru by Hilton performance in the Franchise rankings over recent years

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise or business opportunity by Entrepreneur Media. Our listings and rankings are solely research tools you can use to compare opportunities. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise or business opportunity. That should include reviewing the company's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees/licensees/dealers.
Updated: December 12th, 2022