Tru by Hilton

Tru by Hilton

Midscale hotels
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Franchise 500 2023
2023 Franchise 500 Rank
#54 Ranked #99 last year
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Initial investment
$11.6M - $17M
Units as of 2022
222 arrow up 188.3% over 3 years

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.

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Company Overview

About Tru by Hilton

Industry
Lodging
Related Categories
Hotels & Motels
Founded
2015
Parent Company
Hilton
Leadership
Christopher Nassetta, CEO
Corporate Address
7930 Jones Branch Dr.
McLean, VA 22102

Business Overview

Franchising Since
2016 (2023-2016 years)
# of employees at HQ
6,998
Where seeking

This company is offering new franchisees throughout the US.

This company is offering new franchisees in the following international regions: Central America, Canada, South America, Mexico

# of Units
222 (as of 2022)

Information for Franchisees

Here's what you need to know if you're interested in opening a Tru by Hilton franchise.

Financial Requirements & Ongoing Fees

Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee Information Circle
$75,000
Initial Investment Information Circle
$11,588,983 - $17,028,467
Veteran Incentives Information Circle
Varies
Royalty Fee Information Circle
5%
Ad Royalty Fee Information Circle
4%
Term of Agreement Information Circle
22 years
Is franchise term renewable?
Yes
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Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

Third Party Financing
Tru by Hilton has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training
8 hours
Classroom Training
174-182 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

Additional details about running this franchise.

Is absentee ownership allowed?
No
Can this franchise be run from home/mobile unit? Information Circle
No
Can this franchise be run part time? Information Circle
No
Are exclusive territories available? Information Circle
No
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Interested in ownership opportunities like Tru by Hilton? Request a free consultation with a Franchise Advisor now.

Franchise 500 Ranking History

Compare where Tru by Hilton landed on this year's Franchise 500 Ranking versus previous years.

Additional Rankings

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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