Hilton Launches Midprice Extended Stay Brand

Hilton Hotels Corp. today announced the launch of a midprice extended stay brand, Home2 Suites by Hilton, with plans to begin constructing the first property within a year.

The brand will be at a slightly lower price point than Hilton's established upscale extended stay brand, Homewood Suites, positioning it as a competitor to such brands as InterContinental Hotels Group's Candlewood Suites and Marriott's TownePlace Suites. Hilton's announced design for the brand is a four-story construction with 108 guest rooms, about 80 percent of which will be studios and 20 percent of which will be one-bedroom suites.

"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," Hilton global head of focused service brands Phil Cordell said in a statement. "Home2 Suites will offer developers an opportunity to enter the segment with a comfortable yet stylish product at a low cost."

Hilton today announced 10 submitted franchise applications for the brand in New York; Baltimore/White Marsh, Md.; Charlotte, N.C.; Jacksonville, N.C.; Gadsden, Ala.; Alabaster, Ala.; Elko, Nev.; and three properties in San Antonio, Texas.

Hilton projects having 100 Home2 Suites properties open by 2012 and to open 60 to 70 per year in subsequent years. Its immediate focus will be the United States, though Hilton said it also will be looking to expand into Mexico, Canada and overseas.