Last updated: 04:00 PM ET, Fri June 17 2016

Ennismore to Launch Hip Budget Brand in U.K.

Hotel & Resort | Patrick Clarke | June 17, 2016

Ennismore to Launch Hip Budget Brand in U.K.

Photo courtesy of Thinkstock.

As more and more millennials become travelers, the hotel industry is constantly looking to improve its appeal among young people.

Therefore, it should come as little surprise that London-based hotel group Ennismore, which owns Scotland's Gleneagles Hotel and London's Hoxton boutiques, has announced plans to launch a new budget hotel brand aimed at millennials.

Known as NoCo, Ennismore plans to open more than two dozen properties boasting anywhere from 150 to 200 guestrooms. Nightly room rates will start at under $143 (£100).

The brand will expand throughout the United Kingdom with the first location slated to open sometime in 2018.

NoCo will allow guests to book and check-in via an online app and will work to highlight its bars and eateries. Ennismore said it plans to take a creative approach to its properties' communal spaces through partnerships with local restaurants.

"Traveling habits and demands have changed; as has the way that people now use hotels," said Ennismore CEO Sharan Pasricha in a statement. "Our aim is to raise the bar for affordable hotels and provide business and leisure travelers with a stylish alternative to bland, cookie-cutter hotels so often found in cities outside of London."

READ MORE: Could Millennial Travelers Lead A Virtual Travel Boom? Expedia Thinks So.

In his own statement, Ennismore's acquisitions director Ben Russell said the group has "shortlisted several key cities, beginning in the UK, and are looking to work with progressive property partners on leasehold opportunities to roll-out the NoCo brand."

"We believe our exciting plans for the product coupled with our track record with The Hoxton makes Ennismore a strong proposition for local developers looking to build out hospitality assets," he added.

NoCo will join several other low-cost brand launched toward millennials, including Marriott International's Moxy Hotels and Hilton Worldwide's Tru by Hilton.

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