Hilton Hotels Corporation has launched a new extended stay brand called Home2 Suites (www.home2suites.com/), which targets the mid-market segment. Hilton made the announcement at the 8th Annual America’s Lodging Investment Summit being held at the Hilton San Diego Bayfront,  just before the event started.

10 submitted franchise applications were also announced at the launch, with another 10-15 to be approved in the next 2 months, and construction expected to begin on the first hotel in the next 6 to 12 months.

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. Submitted franchise applications announced today at the ALIS Conference included 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.

In a statement, Phil Cordell, Global Head of Focused Service Brands, Hilton Hotels Corporation, said that “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. Home2 Suites will offer developers an opportunity to enter the segment with a comfortable, yet stylish product at a low cost per key.”

Development plans call for four-story, wood frame construction with an average of 108 guest rooms. The hotels will be comprised 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.

Bill Duncan has been apoointed as Senior Vice President, Brand Management for both Home2 Suites and Homewood Suites by Hilton. Duncan was the vice president of sales and marketing for Homewood Suites before taking over this new assignment. Homewood is Hilton’s extended stay brand for the upscale market.

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Posted on January 27th, 2009 by PLing
Filed under: Hotels