Bloomberg's Dahlia Fahmy reports Hilton Worldwide Holdings Inc. may add a new brand of hotels that aims to meet increasing demand by millennial travelers seeking basic, affordable lodging in metropolitan cities.

Hilton and other major hoteliers are currently facing increasing competition for budget accommodations from the recent rise of online vacation rental marketplaces such as Airbnb.

“There’s potential for something that has more of an urban flair, more of a micro-hotel,” Nassetta said in an interview in Berlin. “We haven’t made a decision to do anything in that space, but it’s certainly one of the things we’ve been exploring.”

The brand would offer “hostel-like” accommodation for younger guests, with lower prices and less service, Nassetta said. Hilton prefers to develop new brands itself, rather than making acquisitions, he said.

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