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Hilton planning ‘hostel on steroids’ for millennials

With smaller, more affordable rooms than Tru

Rendering of a colorful cafeteria with circular booth with snacks and seating.
A rendering of a Tru lounge space. The new hostel could be even more bonkers.
Image via Tru

Hilton Worldwide is upping the ante on its millennial bet: by planning a “hostel on steroids. But a lot of steroids,” said CEO Christopher Nassetta.

This new concept would be the global hotel brand’s second venture into the realm of lower-cost accommodations geared at the younger generation. In May, Hilton launched Tru, which offers smaller rooms, plenty of hang-out spaces, and a decidedly “young-at-heart” vibe. The first location opened in May in Oklahoma City, with 14 other locations planned or already opened throughout the country.

But this new “hostel-on-steroids,” which has yet to be named, will feature “super efficient spaces that are crazy flexible,” with a “very cool locally curated concept with a local partner in the food and beverage scene,” according to Nassetta.

Rooms are expected to measure between 125 and 150 square feet, in contrast to Tru’s rooms, which clock in between 231 to 275 square feet. And they’re heading in the direction of modularity: Nassetta hopes to make each space connect like building blocks, offering guests the option customize their stays.

Are these wild hostels the legacy industry’s answer to Airbnb’s creep on the market share? Stay tuned.

Via: Fortune