Hilton Worldwide Holdings Inc. on Monday said it is launching a new value brand aimed at younger guests.

The contemporary midscale brand, dubbed Tru by Hilton, targets the largest segment of the hotel market—a segment where Chief Executive Christopher Nassetta said no brands are meeting guests' needs for cost and taste.

Hilton said the brand will appeal to travelers of all ages who "are united by a millennial mind-set—a youthful energy, a zest for life and a desire for human connection."

Hilton said it has 102 hotels on board and another 30 in various stages of approval in cities including Atlanta, Dallas, Houston, Chicago, Denver, Portland, Ore., and Nashville, Tenn.

The new hotel brand will feature a front desk with a social-media wall with real-time content "to foster engagement among guests" in an open space lobby.

"More than 40% of all U.S. hotel stays are within the midscale and economy sectors," said Jim Holthouser, executive vice president of Hilton global brands.

The first Tru by Hilton hotel is slated to open by the end of the year.

Hilton shares, down 33% over the past 12 months, fell another 2.9% to $17.75 in morning trading in New York.

Last month, the hotel chain giant said it was pursuing a spinoff of its hotels into a real-estate investment trust, a move that has become popular among companies looking to slim down and boost their stocks.

Hilton has sought the blessing of the Internal Revenue Service for the transaction, which would involve a large chunk of the hotels it owns, according to people familiar with the matter. Hilton owns or leases 147 hotels around the world.

Write to Anne Steele at Anne.Steele@wsj.com

 

(END) Dow Jones Newswires

January 25, 2016 12:15 ET (17:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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