Hip, humble Home2 Suites by Hilton hits Canada

distinct work zones while providing plenty of storage.

TORONTO, CALGARY—The extended stay market has proved resilient to the toughest economy, and Hilton is planning to capitalize on the trend by introducing a new entry into the mid-tier long-term stay sector.

And the international hotel company sees Canada as a very promising market.

“The country is our oyster.  We’re very excited about it,” says Bill Duncan, global head of brand management for Homewood Suites by Hilton and Home2 Suites by Hilton. Duncan visited Toronto Oct. 14, where he met with 60 area developers regarding the Home2 brand, introduced by Hilton in late August. A second developers meeting was held in Calgary on Oct. 15.

So why a new brand?

“We started the Home2 Suites brand for two reasons,” Duncan says.  “First was the tremendous performance of Homewood extended stay in the upscale sector, with significant market share growth and strong customer loyalty gains.  We’ve grown distribution by 25 per cent in the past two years alone.”

“Despite tough times, we’ve had a really, really strong performer.

“Our owners asked us to get into the mid-tier extended stay segment because of the fact that it was under-served and not an offering in the Hilton portfolio. For over a decade, we’ve been losing a lot of business to mid-scale extended stay brands because we couldn’t compete on rates,” says Duncan.

Bill Duncan, Hilton’s global head of Homewood Suites and Home2 Suites by Hilton.

Purposeful distinctions

He adds that Hilton built in some very purposeful distinctions, so that there would be no confusion between Homewood Suites, the upscale extended stay offering, and Home2 Suites in the mid-scale extended stay sector. 

Homewood Suites studio suites are 420 square feet versus 323 square feet for Home2 Suites.  Homewood has a full, hot, complimentary breakfast, while Home2 offers a light, continental breakfast.  Homewood has cook tops, while Home2 does not. Homewood offers an evening manager’s reception with a light dinner, Monday to Thursday, while Home2 will not.  And when guests collect their HHonors loyalty points, they will get 10 points per night’s stay for Homewood and only 5 points for Home2.

“These are big, competitive differences to make sure we are in the appropriate ‘swim lanes,’” says Duncan.  Hilton sees the competitive set for Homewood as being Residence Inn by Marriott, Staybridge Suites from InterContinental and Summerfield Suites by Hyatt.  For Home2 Suites, the competition comes from TownePlace Suites by Marriott and InterContinental’s Candlewood Suites.

On average, Home2 Suites will be comprised of 90 percent studios and 10 percent one-bedroom suites, at 323- and 509 square feet, respectively. Public space will account for approximately 4,200 square feet. 

Working wall maximizes space

One of the innovative features of the new brand is the working wall, which spans the length of an entire wall within the guest suite and is a collection of functional spaces that create specific zones within the room while maximizing space.

Home2 Suites design combines the fitness centre and the laundry room so guests can work out while they wait for their clothes to dry.

The design uses a modular system that helps to create three distinct work zones: kitchen, living/work and bedroom. It achieves this while still providing plenty of storage, a smart kitchen and an entertainment centre which showcases a 42” flat-screen television.

The public spaces also include a combination laundry and work-out room.

Hilton is “very optimistic” regarding future development of the Homewood Suites brand.  “Those hotels have done very well.  Local business communities have embraced them,” notes Duncan. 

“We started with Toronto and Mont Tremblant, and we’re starting to fill the gaps.  We’ve got momentum and optimism going for us here in Canada.”  Hilton has eight Homewood Suites in Canada, with six more in the pipeline.

“With Home2, we really hope to replicate that.  The times are right for a brand in that tier.  We have 60-70 people here [at the Toronto meeting] to hear the Home2 story.  Home2 has just been registered – this is truly the launch.”

Hilton plans to do 6 to 8 Home2 deals per year in Canada over the next 3 to 4 years.

Ten nights or more

Home2 is attractive for the Alberta market as well, Duncan said.  While Homewood is aimed at guests that stay for five or more nights, Home2 is aimed at those who stay for 10 or more nights. “It’s perfect for project-related travel, as you would have with the oil projects.”

Duncan adds that the extended stay market is doing relatively well because extended stay business is generally revenue-generating – product launches, sales calls, consultants, special projects. “If you pull those people off the road, you don’t make money. [This type of business] doesn’t have the transience of a meeting stay, which people don’t tend to feel is as essential.”

For information on Home2, visit www.home2suites.com or contact Jeff Cury, 514-695-6798, jeff.cury@hilton.com.