Hilton Hotels has launched a new mid-tier, extended-stay brand, Home2 Suites, aimed at young travellers seeking an extended stay. The brand will be rolled out across the U.S. with plans to expand into Canada and Mexico. It forecasts 100 properties open by year-end 2012, with 60 to 70 per year thereafter.
The hotel giant said its target market is the “savvy, value-wise, extended-stay guest, an under-represented segment of the marketplace”.
Ten franchises across the U.S. have been announced, with the first Home2 Suites hotel expected to begin construction in the next 6 to 12 months. Executives anticipate an additional 10 to 15 franchise applications to be approved within the next 30 to 60 days.
“The addition of Home2 Suites to Hilton’s industry-leading family of brands is an exciting milestone for our company,” said Christopher Nassetta, President and CEO, Hilton Hotels Corporation. “During challenging economic times, developers turn to strong brand names they can trust that are supported by proprietary systems and programs like our Hilton HHonors, OnQ technology, global reservations and cross-selling, eBusiness, and our worldwide sales and marketing force.”
Home2 Suites, a complement to the current Hilton Family of Brands, will embody the following attributes:
- An authentic new design and brand personality that greets guests upon arrival and is reflected throughout the property.
- The “Oasis,” an expanded living zone with a community table, individual work zones, a pantry, integrated guest laundry and activity room.
- More amenities and services such as complimentary continental breakfast; walking/exercise course; fitness facility; indoor pool; outdoor living rooms; outdoor grills and more.
The properties will be comprised of approximately 80 percent studios and 20 percent one-bedroom suites, at 323 and 509 square feet, respectively. Average cost per key, excluding land, will average $70,000 to $75,000.
Submitted franchise applications include sites in New York City, N.Y., Baltimore/White Marsh, Md., Charlotte, N.C., Jacksonville, N.C., Gadsden, Ala., Alabaster, Ala., Elko, Nev., and three hotels in San Antonio, Texas.