MCLEAN, Virginia—Hilton announced a new extended-stay brand designed to meet the needs of the expanding $300 billion workforce travel market—the long-stay guests that never stopped traveling, even throughout the pandemic. Through research, Hilton has created a hotel product for this underserved group looking for apartment-style accommodations for 20 nights or more.
Launching in the United States under the working title Project H3 as Hilton navigates the final stages of the trademark process, this lower midscale, extended-stay solution is the newest addition to Hilton’s portfolio. The product provides a foundation for the long stay and delivers an investment option for developers looking to diversify their portfolio under the Hilton name.
“Project H3 is perfectly positioned to serve the unique needs of the long-stay traveler, thanks to its innovative design, strong value proposition for our owners, and of course, the hospitality our team members offer every day,” said Chris Nassetta, president and CEO, Hilton. “We aim to serve any guest, anywhere in the world, for any travel need they may have, and this new brand represents a greater opportunity for us to grow our portfolio while providing the reliable and friendly service our customers expect from Hilton.”
Hilton’s research shows long-stay travelers, including traveling nurses, military personnel, and those experiencing workforce relocations, value the simple things in life, placing quality time and comfort above all else. In addition, those looking for a long stay will book an average of 20 or more nights and a home base that allows them to maintain their routines while delivering simplicity, consistency, and convenience.
This new extended-stay brand will appeal to the long-stay traveler through elements including:
- Deliberate Design: This product will reimagine core design elements and deliver essential amenities in a modern way. Guests are welcomed by the hotel’s exterior, designed to include warm wood tones and a modern farmhouse-inspired palette with industrial touches. Outdoor patios are outfitted with grills, a communal fire pit, and seating.
- Apartment-Style Accommodations: The suites have an adaptable layout with four distinct areas for guests to rest, work, cook, and refresh, which bridge comfort and functionality. Storage space, closet design, and multi-purpose furniture enable guests to use the space as both a place to work and rest. This includes a fully equipped kitchen with a refrigerator, dishwasher, microwave, two-burner stovetop, and more, as well as a bathroom design, focusing attention on the amenities long-stay guests value.
- Lobby Experience: Hilton has included a lobby called The Hive, providing access to all amenities. The lobby is designed to be nontraditional for guests and operationally friendly for team members. The Hive lobby allows sight lines from the front desk to fitness, laundry, and a retail market, creating a safe environment for guests.
“Many long-stay guests never stopped traveling during the pandemic, especially within the lower midscale extended-stay segment, and we designed a product in direct response to this growing need,” said Matt Schuyler, chief brand officer, Hilton. “Project H3 will disrupt the category and allow Hilton to better provide reliable and friendly service for those who are in it for the long stay.
Hilton is providing owners with an investment opportunity in Project H3. The brand has been developed with input from owners, keeping the needs of the development community and long-stay travelers at the front of the design process. The prototype dedicates the majority of space to guestrooms, thus reducing overhead costs for prospective owners.
Through Hilton’s commercial engine, owners will have access to revenue management and sales support models that can streamline on-property staffing needs. Automated customer offerings such as digital check-in and Hilton’s Digital Key will be used for the guest experience and create efficiencies for staff.
“Hotel owners have played an integral role in the development of Project H3 and they will continue to guide us as we build this brand from the ground up,” said Kevin Jacobs, chief financial officer and president, global development, Hilton. “Project H3 has incredible growth potential, tapping into the rapidly expanding and underserved workforce travel market. The response from the hotel owner and developer community has been immediate and enthusiastic. We’re engaged in more than 100 active development conversations, with many owners expressing interest in multiple locations.”
