Home2 Suites by Hilton, Fastest Growing Brand in Hilton History
Home2 Suites by Hilton, the mid-tier, extended-stay hotel brand targeting value-wise extended-stay guests, continues to see promising growth in its development pipeline and substantiates it being the fastest growing brand in Hilton Worldwides history.
Home2 Suites, which broke ground on its first hotel in Fayetteville, N.C. in December 2009, is on track to open more hotels in less time than any other Hilton Worldwide brand.
“Home2 Suites by Hilton is attractive to developers because it’s both economical to build and competitively priced”
“Home2 Suites by Hilton is attractive to developers because it’s both economical to build and competitively priced,” said Bill Duncan, Global Head, Brand Management, Home2 Suites by Hilton. “The overwhelmingly positive response from the franchise community is reflected in our pipeline and the brand will quickly move into the markets of Canada and Mexico.”
Home2 Suites was launched in January 2009 in the midst of one of the worst recessions in the U.S. In the first six months, the brand secured 24 approved franchise agreements and within 10 months, the number doubled, making 48 approved deals. Currently, it has 60 approved franchise agreements with commitments to move into construction shortly and has more than 30 additional agreements in various stages of the development pipeline. The 100th Home2 Suites, a pivotal milestone for the brand, is anticipated to open in 2013.
“Hip and humble” Home2 Suites is especially flourishing in suburban markets that include government, long-term training and contract business – all industries that particularly benefit from the amenities of an extended-stay product. At an estimated $70-$80,000 cost per key, excluding real estate and based on the Memphis market, the configuration has proven desirable to developers. Additionally, the four-story wood frame construction requires a site plan that is less than two acres, allowing for less overall land space yet still maximizing rooms at a 108-key prototype.
Other attractive construction highlights include 4,200 square feet of community space; 56,668 gross square feet for the entire building; and comfortable suite sizes at 323 square feet for studios and 509 square feet for one bedroom suites. The operating model also allows for 14 to 16 employees, providing lower overhead costs.
Home2 Suites sets itself apart from competitors through overall guest experience and by aiming to provide a differentiated extended-stay offering. The signature of Home2 Suites will be the overall guest experience, with lifestyle-focused amenities such as expanded community spaces, combined laundry and fitness areas and outdoor walking trails. All of this is offered at a budget-conscious price, affording guests the luxury of maintaining a comfortable lifestyle while on the road.
