Q&A: Owner Mitch Patel Discusses a Tru-ly Unique Development Opportunity as Tru by Hilton Celebrates Its 100th Open Hotel
Tru by Hilton has grown at an incredible pace, re-energizing the midscale market as the fastest brand launch in hospitality industry history. Today, less than three years since first opening its doors, Tru has 100 open hotels with 320 additional properties in the pipeline, the largest mid-scale pipeline in the Americas with over a third of the overall share.
As Talene Staab, vice president and global head of Tru by Hilton, looks at what’s next for this game-changing brand, she notes, “Tru by Hilton was developed from the ground up based on consumer and owner feedback to deliver an offering that both find valuable. Created with developers in mind, owners have been a critical part of the brand’s success throughout every stage, from conception to today, and their commitment and excitement for Tru continues to drive our momentum.”
Helping to drive that momentum is owner Mitch Patel of Vision Hospitality Group. Patel was not only an early adopter of Tru by Hilton, but also a collaborator in the brand’s development. Mitch opened Tru by Hilton McDonough, the brand’s second hotel, and more recently, Tru by Hilton Atlanta NW Kennesaw and Tru by Hilton Chattanooga Hamilton Place. Read on to learn about his development experience with the brand and insights into why it has become a favorite among owners.
TS: Mitch, tell us a bit about yourself.
MP: We began Vision Hospitality Group 22 years ago from humble beginnings, starting off with little capital but a big dream. I developed my first hotel as the project’s general contractor, even though I’d never even built a shed before. I then took off my hard hat and my role switched to general manager and I opened the hotel, even though I’d never managed a team before. That was our initial entry into the hospitality business, and it’s been a wonderful journey from there. Today, Vision Hospitality Group owns and operates 40 hotels across the country. The majority are within the Hilton portfolio, primarily in the focused service category.
TS: You were an early adopter of Tru by Hilton. What inspired you to add the brand to your portfolio?
MP: I added Tru to my portfolio because it was backed by Hilton, which has a proven track record of developing fantastic brands that become category killers. The powerful Hilton engine provides marketing support, the Hilton Honors loyalty program, the reservation system and more. We have a long track record of success with Hilton across numerous brands, so when the opportunity to build a Tru came to us, we were eager to partner with them.
The midscale segment is the largest of all segments within the hospitality industry. Hilton saw a void in the segment, and that was the birth of Tru. Hilton did a brilliant job getting a focus group together, including a group of long-time owners, of which I was honored to be part of. The team asked for owner input right from the beginning and really listened to that feedback every step of the way. As such, Tru is truly a brand that has been designed in collaboration with the development community.
TS: What would you consider the key differentiator of Tru by Hilton?
MP: The offering and amenities set Tru apart from other midscale brands. Tru by Hilton delivers exactly what our target guest is looking for at the rate that’s right for them. I think the public spaces are one of the keys to the brand’s success. Larger than a traditional hotel’s would be, they provide a fun, bright space for playing, gathering and eating. I love when I walk into Tru and see families ordering a pizza to the lobby and playing board games or pool. Plus, the breakfast concept is well thought out and guests love it.
Tru guest rooms are compact yet efficiently designed. The rooms are bright, clean and functional with great beds and efficient storage. The bathroom provides a great shower experience, with plenty of space, great lighting, and a clean, airy look. Overall, guest feedback has been positive across the board.
TS: Tru recently opened its 100th hotel. In your opinion, why do you think the brand has experienced such fast growth? What would you tell a new hotelier looking to open a Tru?
MP: Lots of existing Hilton owners are building Tru hotels, but I’ve also talked to many new-to-the-Hilton-family owners who are developing a hotel for the first time with Tru. I think the brand is a great entry for an owner as in my experience, it has a great business model and an attractive value proposition. The development cost per key to average rate per key works really well, which is crucial. Plus, Tru is able to penetrate many different types of markets, whether it’s a downtown location or a town with a population of 10,000 people. The opportunities are extremely broad and the brand is attracting a broad developer audience.
TS: How was the development process for Tru?
MP: The bottom line is important, and I love the efficiencies with Tru. The brand has a compact prototype, which is key because land is becoming scarcer than ever. Tru only requires 1 ¼–1 ½ acres to build, compared to 2–2 ½ in a traditional hotel. That more compact footprint helps bring construction costs down. In my experience, Hilton Supply Management has done a great job creating efficiencies with FF&E. Tru provides several package options for owners to select from, helping save on time and costs and making it very simple for developers.
TS: How are your Tru properties performing?
MP: For Tru by Hilton McDonough, we’ve penetrated that market extremely well, and we’re the number one hotel in the midscale segment there. We’re also very happy with our recent openings with Tru by Hilton Atlanta NW Kennesaw and Tru by Hilton Chattanooga Hamilton Place. The first night we opened in Chattanooga, we had quite a bit of walk-in business, a sign that people were looking for a Hilton product in the market. The hotel has strong performance for being just a month old, and we’re on the path to success with the occupancy and average rate ramping up.
About Tru by Hilton
Tru by Hilton is a game-changing hotel brand with more than 150 open locations across North America, providing guests with a consistent, fun experience at an affordable price. Spirited, simplified, and grounded in value, Tru by Hilton is designed for cross-generational appeal. Efficiently designed modern guestrooms feature rolling desks, oversized windows for natural light, and bright, spacious bathrooms. Guests can enjoy complimentary breakfast and fast WiFi. Premium snacks, light meal options and single-serve wine and beer are available for purchase at the 24/7 Eat. & Sip. market. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits. Learn more at www.trubyhilton.com or newsroom.hilton.com/trubyhilton, and connect with Tru by Hilton on Facebook, Twitter, YouTube, LinkedIn, and Instagram.
Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 18 world-class brands comprising more than 6,300 properties with nearly one million rooms, in 118 countries and territories. Dedicated to fulfilling its mission to be the world’s most hospitable company, Hilton has welcomed more than 3 billion guests in its more than 100-year history, earned a top spot on the 2020 World’s Best Workplaces list, and was named the 2020 Global Industry Leader on the Dow Jones Sustainability Indices. In 2020, Hilton CleanStay was introduced, bringing an industry-defining standard of cleanliness and disinfection to hotels worldwide. Through the award-winning guest loyalty program Hilton Honors, the more than 110 million members who book directly with Hilton can earn Points for hotel stays and experiences money can’t buy, plus enjoy instant benefits, including contactless check-in with room selection, Digital Key, and Connected Room. Visit newsroom.hilton.com for more information, and connect with Hilton on Facebook, Twitter, LinkedIn, Instagram and YouTube.