Hilton launches budget hotel brand

After hotels giant Hilton launched a new brand aimed at budget travellers, shares in UK hotel companies were sent lower on Monday on fears of increased competition.

Hotel said its new Tru brand will "fill a massive void" in the hotel market, arguing that the offering of rival budget hotels is "inconsistent".

Tru hotels are initially planned in 102 locations across the US and Canada, with no details on a European launch yet.

Hilton said its rooms will be priced at between $75 and $90 per night, the range that currently captures 40% of US demand.