Hilton launches new budget hotel chain aimed at young guests

Hilton CEO Chris Nassetta notes that 40 percent of the demand for hotel rooms comes in this price segment, the largest of any market.

Many of the hotels in the segment were once part of more upscale brands but as their owners couldn't keep up with renovation costs, they downgraded to economy chains.

Hilton is launching the chain at a large conference for hotel investors — The Americas Lodging and Investment Summit — with 102 locations already signed and an addition 30 deals in various stages of negotiations and approval.

While chain luxury and upscale hotels have the highest occupancy rates and average nightly room rates, their growth in the past year has trailed the lower end of the market.

Instead there will be an open space with hangers and hooks on the wall.

[...] the traditional hotel desk is replaced with a chair that includes a spot for a tiny laptop or tablet.

The platform bed doesn't have a box spring and there's a space-saving bench that rests over the heating and air conditioning unit.