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:
BRAND MILESTONES:
- 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.
PIPELINE ADDITIONS:
Urban
- 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.
Resort/Coastal
- 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.
KEY OPENINGS:
- 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.
Read more about Homewood Suites by Hilton at www.homewoodsuites.com andnews.homewoodsuites.com, and Home2 Suites by Hilton atwww.home2suites.com and news.home2suites.com.
*Highland group extended stay report
