Published: 27 Jan 2009：Hilton Hotels Corporation has launched Home2 Suites by Hilton, a new mid-tier, extended-stay hotel concept targeting the savvy, value-wise, extended-stay guest.
The first Home2 Suites hotel is expected to begin construction in the next 6-12 months. Executives anticipate an additional 10 to 15 franchise applications to be approved within the next 30 to 60 days.
Home2 Suites forecasts 100 properties open by year-end 2012, with 60 to 70 per year thereafter. Immediate focus will be on U.S. development, with expansion into Canada, Mexico and abroad in subsequent years.
Christopher Nassetta, president and CEO, Hilton Hotels Corporation, said, "During challenging economic times, developers turn to strong brand names they can trust that are supported by proprietary systems and programmes like our Hilton HHonors, OnQ technology, global reservations and cross-selling, eBusiness, and our worldwide sales and marketing force."
"The mid-tier, extended-stay segment accounts for approximately 42 percent of the U.S. extended-stay supply, with current brands delivering an often inconsistent and quickly-aging product," said Phil Cordell, global head of focused service brands, Hilton Hotels Corporation. "Home2 Suites will offer developers an opportunity to enter the segment with a comfortable, yet stylish product at a low cost per key."
Home2 Suites will require a minimum of two acres for site development; less than most competing brands in the segment. Development plans call for four-story, wood frame construction with an average of 108 guest rooms.
The properties will consist of approximately 80 percent studios and 20 percent one-bedroom suites, at 323 and 509 square feet, respectively. Public space will account for approximately 4,200 square feet. Average cost per key, excluding land, will average $70,000 to $75,000.
The company also announced the appointment of Bill Duncan as senior vice president, brand management for both Home2 Suites and Homewood Suites by Hilton. He replaces Rebecca Wyatt, who has chosen to leave the company to be with family in Atlanta.
