2015 Marked by Rapid Growth for Hilton’s Extended Stay Brands
Homewood Suites by Hilton and Home2 Suites by Hilton open a collective 42 hotels/First three quarters of 2015 end with a combined property pipeline of 387 hotels
MCLEAN, Va. - This year has been marked with strong growth for Hilton Worldwide's extended stay brands, Homewood Suites by Hilton, an international brand of upscale, all-suite, extended-stay hotels, and Home2 Suites by Hilton, a mid-tier, all-suite hotel brand. In the first three quarters of 2015, Homewood Suites opened 19 hotels and closed 40 new development deals, including two new deals in Latin America, bolstering its property pipeline to 131 hotels. Home2 Suites opened 23 hotels, including its milestone 50th property, and signed 117 new development deals closing out the first three quarters of the year with a pipeline of 256 hotels. Hilton's extended stay brands are on pace to open an additional 28 new properties before the end of 2015.
"Occupancy rates for the extended stay segment are at their highest since 2005*and the demand for new extended stay hotels continues to outpace supply," said Bill Duncan, global head, Homewood Suites by Hilton and Home2 Suites by Hilton, Hilton Worldwide. "Because of our innovative and flexible building models, proven value proposition, and unmatched Hilton performance advantage, we've been able to capitalize on these positive conditions, bringing our unique upscale and mid-tier offerings to a growing market of extended stay travelers."
Another major contributing factor to Homewood Suites' and Home2 Suites' growth has been dedicated expansion efforts into urban markets. The extended stay brands currently have 23 properties in metropolitan centers, with 15 more urban properties slated to open before the end of 2016. This urban push was further supported by last year's launch of an updated Homewood Suites North America prototype that provides more flexibility for building in metropolitan markets, as well as Homewood's more recent foray into Latin America with an added prototype designed specifically for development in Caribbean, Central and South American markets, with a focus on key city centers in the region.
Other key activity to date in 2015 has included:
- Home2 Suites Opens 50th Hotel - In May, Home2 Suites reached a significant milestone, opening its 50th hotel - less than five years after welcoming its first guests - with the debut of Home2 Suites by Hilton Austin North/Near the Domain.
- First Caribbean Hotel Signed - In April, Hilton Worldwide signed a management agreement with Inversiones Robledo, SAS, to bring the Homewood Suites brand and its new Caribbean and Latin America prototype to Santo Domingo, Dominican Republic. Scheduled to open in Q2 2017, the new build 120-room Homewood Suites by Hilton Santo Domingo also represents the brand's first hotel in the Caribbean.
- Continued Expansion in Mexico - In November, Hilton Worldwide signed a deal for a Homewood Suites project in Silao, Mexico, which will mark the brand's second hotel in the country. Scheduled to open in early 2017 in the state of Guanajuato, the new build 137-suite Homewood Suites by Hilton Silao developed by Edco Turismo Bajio, SA de CV will also utilize the brand's new Caribbean and Latin American-focused design.
- Homewood Suites by Hilton Chicago Downtown/South Loop, IL - a new build project to develop a 14-story hotel offering 196 Suites in one of Chicago's fastest growing downtown neighborhoods. Owned by 11TH ST. WABASH, LLC and managed by SB Yen Management Group, the property is slated to open in 2016.
- Homewood Suites by Hilton Providence, RI - a new build project to develop a 7-story hotel offering 120 suites in Downtown Providence overlooking Burnside Park. Owned by Providence Redevelopment Agency and managed by J Karam Management, the property is slated to open in 2018.
- Home2 Suites by Hilton Virginia Beach/Oceanfront, VA - a new build project to develop a 14-story, 132 suite hotel along the famed Virginia Beach waterfront, represents Home2's first Oceanfront hotel. Owned by BBS Corporation and managed by Alliance Hospitality, the property is slated to open in 2017.
- Home2 Suites by Hilton Head, SC - a new build project to develop a 100-suite hotel in heart of Hilton Head Island. Owned by Hilton Head Suites, Inc. and managed by Newport Group Inc., the property is slated to open in Q1 2018.
- Homewood Suites by Hilton Cincinnati-Downtown - an adaptive reuse hotel which converted the historic former headquarters for the Cincinnati Enquirer into a 105 suite Homewood Suites and a 144-room Hampton Inn & Suites dual-build hotel. Listed on the National Register of Historic Places, the 14-story hotel was Cincinnati's first major art deco building and its large, arched windows and intricate limestone, marble and copper work were incorporated into the hotel's design. Developed and owned by SREE Hotels, LLC, the property opened on April 3, 2015.
- Home2 Suites by Hilton Albuquerque/Downtown-University - a 123 suite hotel that represented Home2's first property in New Mexico and built upon the brand's growing portfolio of University-adjacent hotels. Owned by 1660 University, LLC, the property opened on April 13, 2015.
*Highland group extended stay report
About Home2 Suites by Hilton
Home2 Suites by Hilton, one of the fastest-growing brands in Hilton’s history, is a mid-tier, all-suite, award-winning extended-stay hotel concept designed to offer stylish accommodations with flexible guestroom configurations and inspired amenities for the cost-conscious guest. With a commitment to environmentally friendly products and hotel operations, Home2 Suites offers complimentary breakfast selections with hundreds of combinations; innovative and customizable guestroom designs; laundry and fitness areas; complimentary WiFi; multiple outdoor spaces; 24-hour business centers; expansive community spaces; and pet-friendly environments. Home2 Suites by Hilton has 395 hotels with 455 in the pipeline. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits, including a flexible payment slider that allows members to choose nearly any combination of Points and money to book a stay, an exclusive member discount that can’t be found anywhere else, free standard WiFi, and digital amenities like digital check-in with room selection and Digital Key (select locations), available exclusively through the industry-leading Hilton Honors mobile app. Visit www.home2suites.com or newsroom.hilton.com/home2suites for additional information, or here for franchising opportunities. Connect with Home2 Suites on Facebook, Twitter, LinkedIn, and Instagram.
Hilton (NYSE: HLT) is a leading global hospitality company with a portfolio of 18 world-class brands comprising more than 6,100 properties with more than 977,000 rooms, in 118 countries and territories. Dedicated to fulfilling its mission to be the world’s most hospitable company, Hilton welcomed more than 3 billion guests in its 100-year history, earned a top spot on the 2019 World’s Best Workplaces list, and was named the 2019 Global Industry Leader on the Dow Jones Sustainability Indices. Through the award-winning guest loyalty program Hilton Honors, more than 106 million members who book directly with Hilton can earn Points for hotel stays and experiences money can’t buy, plus enjoy instant benefits, including digital check-in with room selection, Digital Key, and Connected Room. Visit newsroom.hilton.com for more information, and connect with Hilton on Facebook, Twitter, LinkedIn, Instagram and YouTube.
About Homewood Suites by Hilton
Homewood Suites by Hilton, Hilton’s upscale, all-suite, extended-stay hotel brand with more than 500 locations in the United States, Mexico, Canada, and the Caribbean, with 116 properties in the pipeline, is an award-winning leader. The first choice for guests seeking comfortable accommodations when traveling for extended or quick overnight stays, Homewood Suites offers inviting, generous suites featuring separate living and sleeping areas, and fully equipped kitchens with full-size refrigerators. Additional value-driven essentials include complimentary internet, a daily full hot breakfast, and complimentary evening socials every Monday - Thursday. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits, including a flexible payment slider that allows members to choose nearly any combination of Points and money to book a stay, an exclusive member discount that can’t be found anywhere else, free standard WiFi, and digital amenities like digital check-in with room selection and Digital Key (select locations), available exclusively through the industry-leading Hilton Honors mobile app. Homewood Suites is focused on guest satisfaction and stands behind each stay with its 100% Suite Assurance® guarantee. For more information on the extended-stay advantage, visit www.homewoodsuites.com or newsroom.hilton.com/homewoodsuites, and connect with Homewood Suites on Facebook, Twitter, LinkedIn, and Instagram.Download Article Photos