Hilton launches new extended-stay hotel brand

By
Roger Yu, USA TODAY
January 26, 2009, 7:09 PM ET
2 min read

— -- Hilton Hotels said Monday it's launching a new brand, Home2 Suites by Hilton, aimed at young travelers seeking a budget extended-stay option.

Addressing what it considers an "under-represented" segment, Home2 Suites is a more affordable offshoot of Hilton's existing extended-stay chain, Homewood Suites, according to the Beverly Hills-based company.

Emphasizing light colors and modern decor, Home2 Suites' will target younger, design-conscious travelers. It will charge about $100 a night compared to $120 at Homewood Suites, whose rooms are about 30% larger.

Other mid-price, extended-stay chains include Marriott's TownePlace Suites, which has recently undergone renovations at more than half of its properties, and InterContinental's Candlewood Suites.

"Owners wanted us to get into the midscale segment," says Bill Duncan, Hilton's senior vice president overseeing Home2 Suites and Homewood Suites. "We've been focused on Homewood and we were looking for vehicles for growth."

Among Home2 Suites' standard features:

•Each hotel will typically have four floors and 108 rooms. About 80% of the rooms will be studios (323 square feet), and the rest will be one-bedroom suites (509 square feet).

•Each room will have a sleeper sofa, a 42" flat screen TV, a full kitchen and a desk.

•The lobby will contain a community table, individual work zones, a pantry and an activity room that combines fitness equipment, video games and washer/dryers.

•Free continental breakfast and outdoor grills.

•A walking/exercise course and an indoor pool.

Hilton's new project comes at a difficult time in the industry, which is facing canceled projects, declining room rates, weak demand and a tight credit market.

"I do think financing is going to be rough," Duncan says. "But it's out there for this type of brand."

Possible early sites for development, based on submitted developer applications, include New York City; Baltimore/White Marsh, Md.; Charlotte; Jacksonville, N.C.; Gadsden, Ala.; Alabaster, Ala.; Elko, Nev.; and San Antonio.