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

Learn about Tru by Hilton, a midscale hotel franchise brand that is focused on offering affordable, modern stays with consistent quality for travelers.

By Victoria CampisiStaff Writer

8:08AM • 09/26/24

LAST UPDATED: September 2024

FRANCHISE WEBSITE: https://www.hilton.com/en/brands/tru-by-hilton/

NUMBER OF LOCATIONS: 293

REPORTED COST TO GET IN: $12,763,888 - $18,595,223

REPORTED ROI (ITEM 19): N/A (See below)

Tru by Hilton is a hotel brand in the mid-scale lodging market, tailored to younger, modern travelers who seek a balance of affordability, quality and contemporary amenities. Tru by Hilton focuses on offering guests a streamlined and consistent experience.

Tru by Hilton was launched in 2016 to compete with brands like Comfort Inn and La Quinta. It is part of Hilton Worldwide's diverse portfolio, which also includes Hilton Garden Inn, Hampton by Hilton and Embassy Suites by Hilton.

How Many Tru by Hilton Locations Are There?

As of September 2024, there are 293 Tru by Hilton locations in the U.S., Canada, Chile, Colombia, Mexico and Brazil.

What Is the Tru by Hilton Business Model?

Tru by Hilton operates with a business model focused on providing modern travelers with a value-driven and straightforward experience. Targeting millennial guests, the brand emphasizes contemporary designs, technology integration and affordability. The hotels typically feature limited food and beverage options, vibrant social areas, and an overall atmosphere that is fun and engaging, appealing to those who want to socialize or work in a dynamic environment.

Tru by Hilton’s properties are designed to be smaller, cost-efficient, and easily scalable, allowing the brand to adapt to both urban and suburban locations. The brand's design choices, including bright colors and open lobby spaces, enhance its appeal to a younger demographic.

Consistency is key across all Tru by Hilton locations, ensuring that guests receive the same level of service and amenities no matter where they stay, mirroring the reliability seen in other Hilton brands. This approach helps maintain brand loyalty and ensures a predictable experience for travelers.

How Much Can Tru by Hilton Franchise Owners Make?

In its 2024 Franchise Disclosure Document (FDD), Tru by Hilton doesn’t share exactly how much its franchise owners make. However, it does disclose the following data:

The average room rate in 2023 was $128.44. Of the 211 franchisee-managed hotels in operation at the time, 92 (43.6%) met or exceeded this average.
The average room occupancy in 2023 was 71.2%. Of the 211 franchisee-managed hotels in operation at the time, 115 (54.5%) met or exceeded this average.

How Much Does It Cost To Open an Tru by Hilton Franchise?

The investment range to open a Tru by Hilton franchise is $12,763,888 to $18,595,223. Below is a breakdown of the associated costs:

Franchise Application Fee: $100,000 - $150,000
Property Improvement Plan: $0 - $10,000
Construction and Leasehold Improvements: $8,975,214 - $12,964,198
Designer and Engineering Fees: $359,009 - $518,568
Furniture, Fixtures and Equipment: $1,313,535 - $1,866,603
Inventory and Operating Equipment: $110,000 - $275,000
Signage: $27,500 - $75,000
Computer Hardware and Software Systems: $31,035 - $90,735
Guest Internet Access System: $56,600 - $87,000
Connected Room System: $24,190 - $28,910
Delphi Sales and Events System: $1,900 - $33,000
Required Pre-Opening Training: $5,000 - $17,500
ADA Consultant Fee: $2,500 - $10,000
Construction/Renovation Extension Fees: $0 - $10,000
Organization Expense: $50,000 - $122,900
Permits and Licenses: $134,628 - $194,463
Miscellaneous Pre-Opening and Project Management Expenses: $269,256 - $388,926
Contingencies: $897,521 - $1,296,420
Additional Funds: $400,000 - $500,000
Other Required Pre-opening Services Fees: $6,000

What Is the Franchise Fee for Tru by Hilton?

Tru by Hilton charges a franchise application fee of $100,000 to $150,000, depending on whether the hotel in question is newly constructed or changing ownership. This fee is due when the application is submitted and is non-refundable unless the applicant is rejected or withdraws the application prior to approval.

Who’s on the Tru by Hilton Leadership Team?

What Helpful Articles Can I Read to Learn More About Tru by Hilton?

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