US: Hilton has launched a lower midscale extended stay brand aimed at guests staying for 20 nights or more.
Launching in the US under the working title Project H3 as Hilton navigates the final stages of the trademark process, the brand is designed to meet the needs of the rapidly expanding $300 billion workforce travel market – which Hilton describes as “the long-stay guest that never stopped travelling, even throughout the pandemic”.
“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,” he added.
Hilton says its research shows long-stay travellers, 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 “desire a reliable home base that allows them to maintain their routines while delivering simplicity, consistency and convenience”.
The new brand features apartment-style accommodation that features an adaptable layout with four distinct areas for guests to “rest, work, cook and refresh”. This includes a fully equipped kitchen with a full-sized refrigerator, dishwasher, microwave, two-burner stovetop and more, as well as a spacious bathroom design. The ground floor and lobby will include a front desk, fitness area, laundry, and a simple retail market.
“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 says the new brand has been developed with input from owners, keeping the needs of the development community and long-stay travellers at the forefront of the design process. The new brand prototype dedicates the majority of space to revenue-generating guest rooms, thus reducing overhead costs for prospective owners.
“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.”
