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.

By Jeff DwyerStaff Writer

1:13PM • 09/26/23

LAST UPDATED: August 24, 2023
FRANCHISE WEBSITE: https://www.hilton.com/en/corporate/development/
NUMBER OF LOCATIONS: 242
REPORTED COST TO GET IN: $12,254,825 to $19,204,116
REPORTED ROI (Item 19): N/A

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.

How Many Tru by Hilton Locations Are There?

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

What Is Tru by Hilton’s Business Model?

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.

How Much Can Tru by Hilton Franchise Owners Make?

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.

How Much Does It Cost to Open a Tru by Hilton?

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

What Is the Franchise Fee for Tru by Hilton?

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

Who’s On Hilton Worldwide’s Leadership Team?

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

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