Hilton Worldwide is preparing to unveil a brand-new apartment hotel brand in the coming months. This strategic move reflects the company’s ongoing efforts to diversify its portfolio beyond premium and luxury hotel brands like Waldorf Astoria and Conrad.
“The product that we’re developing… we’ve done 99 percent of the work,” said Chris Nassetta, president and CEO. “It’s almost a hybrid. It’s like an apartment efficiency meets hotel.”
The decision aligns with the current trend of increased activity in the extended-stay and long-stay segments due to a shortage of supply in the United States. Just this month, Hyatt made its entry into the segment with the launch of Hyatt Studios, while Wyndham introduced ECHO Suites by Wyndham and BWH launched @Home by Best Western in October. Market leader Extended Stay America has also added brands to its portfolio in recent years.
“While a lot of people are doing things in this arena, we’ve proven we have launched brands pretty well that get to scale and build a network effect,” Nassetta said. “We’ve done that as well or better than anybody.”
These comments were made during Hilton’s first-quarter earnings report, where the Virginia-based company highlighted a strong and sustained demand for travel, driven by the post-pandemic travel boom. Notably, domestic and outbound U.S. travelers have been major contributors to this resurgence.
Hilton executives believe that the way people work has permanently shifted, with hybrid work options influencing changes in travel behaviors.
“There are so many workforce housing needs that are just unmet with this kind of product for somebody who needs to be somewhere 30, 60, 90, 120 days,” Nassetta said. “It’s not competitive with what we’re doing with Home2 and certainly not competitive with Homewood because it’s serving a totally different need [than our other brands], mostly in totally different markets, … for a different demand base, in different types of locations.”
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