Hilton’s All Suites Keeps Rocking
Times are good in the hotel biz—really, really good—as a multi-year growth streak continues. As one nugget of continuing good news in the category, Hilton’s All Suites brand just released a midyear update that points to continued growth for the brand, and likely many others in hospitality.
Hilton’s All Suites umbrella includes brands by Hilton hotels, Embassy Suites, Homewood Suites and Home2 Suites, neither of which is showing any signs of a slowdown. Taken as a whole, the All Suites portfolio has opened 49 new hotels over the past six months, which is an average of a new hotel opening every four days. In addition, it currently has 80 new hotels in the pipeline that are scheduled to open by year’s end. Beyond 2017, its pipeline is loaded with 550 pending hotels, with the 1,000th All Suites hotel opening before the end of 2019 if projections hold.
“When you look at the upward trajectory of the individual brands since the launch of the All Suites category it becomes abundantly clear that the strategy works,” says Bill Duncan, global head of All Suites. “We’re opening new hotels at a faster rate than ever before, and with nearly 15,000 rooms opened or scheduled to open in 2017 the All Suites pipeline, which spans three continents, is at a record high.”
The company attributes its growth to a focused, strategic expansion plan, centered on transitioning from simply a suburban staple to establishing and growing its presence in urban and "surban" locations, both domestically and abroad. Within the first six months of 2017, Embassy Suites, Homewood Suites, and Home2 Suites opened six properties in urban and surban locations including New Orleans, Los Angeles and downtown Charlotte, North Carolina, bringing their current footprint of urban properties to nearly 30 hotels. High-barrier-to-entry markets will continue to be broken into this year with upcoming properties such as the Embassy Suites in New York City; Homewood Suites’ upcoming properties in Las Vegas and Downtown Austin, TX; and Home2 Suites’ new locations in Downtown Birmingham, Ala. and Columbia, S.C.
A growing footprint outside of the United States is also a critical strategic component for the All Suites brands. All three brands are continuing to bolster an already strong presence in Canada. Embassy Suites and Homewood Suites are also both setting sights on growth in the Caribbean and Latin America. Homewood Suites is slated to open its doors in Silao, Mexico in November of this year, with four more Latin American/Caribbean properties in the pipeline. Likewise, Embassy Suites is growing its footprint in established resort destinations with upcoming properties in Aruba and St. Kitts & Nevis.
In January Hilton unveiled its first-ever triple-brand property including a Home2 Suites slated to open in 2019 in Chicago near McCormick Place. This milestone property will join the more than 60 multi-brand hotels in the Hilton pipeline, nearly half of which contain at least one Embassy Suites, Homewood Suites, or Home2 Suites. Other noteworthy upcoming multi-brand hotels this year include a dual-branded Home2 Suites and Tru by Hilton property in Murfreesboro, Tenn. and a Homewood Suites and Curio by Hilton property near Los Angeles International Airport.
“The impressive outcomes of the All Suites category are clear, and our strong network of owners have fully embraced this strategy, which has been a key component to our expansion and inked deals. In fact, we are proud to say that we now have 192 owners who have two or more of our All Suites brands in their portfolio, compared with 118 when the category was launched. Now that’s a testament to success,” said Duncan.