MCLEAN, Va.—Homewood Suites by Hilton and Home2 Suites by Hilton continue their strong expansion efforts into urban markets throughout the country, with 11 new urban hotel openings slated for 2015, and seven more metropolitan properties on track to open in 2016. The extended-stay brands currently have 19 properties in metropolitan centers, six of which opened in the last year alone, including New York City, Chicago, Denver, Philadelphia, Dallas, and Oklahoma City.
The brands’ surge of urban development is a direct result of metro areas receiving more attention for residential development, as well as an increasing demand from business and leisure travelers for midscale to upscale, value-driven suite accommodations in prime metro markets. According to the Urban Land Institute, a majority of Americans would choose smaller housing in favor of a shorter commute and prefer neighborhoods close to shops, restaurants, and offices, indicating a demand for extended-stay hotels to provide more downtown lodging options to capture the growing number of extended-stay business guests that share this desire. Leisure travel to America’s top urban destinations is also on the rise. In New York City for example, total visitors increased by more than 1.6 million from 2012 to 2013 alone.
“The value-added amenities and cost-conscious price points of our extended-stay hotels, combined with the comfort and convenience that our brands are known for make Homewood Suites and Home2 Suites ideal for bustling downtown areas where guests are looking for proximity to attractions, shopping, and nightlife,” said Bill Duncan, global head, Homewood Suites by Hilton and Home2 Suites by Hilton.
Homewood Suites and Home2 Suites have proven to be leaders in implementing flexible building models in downtown markets with limited space. The number of failed apartment and office complexes and existing historic centers that can be found in urban areas make adaptive reuse projects an appealing option for developers looking to bring hotel products into markets with limited options for new construction. Home2 Suites will open a new adaptive reuse hotel in downtown Atlanta in Q3 2015. Similarly, the dual-build concept, which enables two brands to come together in one complex but occupy a smaller space and create operational efficiencies, has allowed both Homewood Suites and Home2 Suites to grow their footprint in cities with very little land to build new hotels. Homewood Suites and Home2 Suites currently have 13 dual-brand properties open.
Homewood Suites’ recently launched a new prototype that further takes advantage of urban markets where construction space is limited, allowing owners to incorporate up to 85 percent studio suites, and to meet local market demands.
“The evolution of urban development has required flexibility in extended-stay hotels as well as a different approach to implementing the product and service our customers love,” Duncan added. “Our ability to own that flexibility and the innovation of the Homewood Suites and Home2 Suites building models is what enables us to break in to high-barrier to entry downtown markets.”
