Brand #20 Coming soon: LivSmart Studios by Hilton
 

Another day, another brand: this time, an extended-stay entrant positioned below Home2 consisting of 'cost-efficient' [in other words: formulaic personality-free] new builds on the lower end of midscale. Appears to be Hilton's response to Hyatt Studios and TownePlace Suites; we can't seem to get a proper competitor to EDITION/W/Andaz, but clearly the real money is on the side of highways rather than in city centers.

If this comes to fruition, we'll hear more about this in the next month or two. FYI: pulled this from LinkedIn.

khabah

https://cimg3.ibsrv.net/gimg/www.fly...448346ca7b.png

Not surprising. Everything I've read says that there is huge anticipated demand in the extended-stay space due to all of the major capital projects associated with chips act, infrastructure act, repatriation of manufacturing, etc. Contractors and skilled tradespeople needing to stay in specific, often exurban or remote, places for a long time. Obviously the question is how quickly the hoteliers can stand up the properties in time to catch this wave.

Not really a rumor when the CEO announces it himself

Its amazing how the cost of financing, labor, construction, etc is really squeezing development on the higher end.

I agree that Hilton is underrrepresented in the lifestyle segment, but Marriott has been at Edition for 10 years and just has 15 hotels. It seems very hard to do

this was exactly what I was hoping to see in this post. It’s Still so surprising with how well these brands do and the blatant gap Hilton hasn’t done anything in this category after so long. Still room for improvement in the luxury space. Surprised LXR has so few properties after so long, and it looks like most of them could be Curios anyways judging from reviews and the one (oceana) I stayed at.

And not just the luxury sector- sadly the US development pipeline for all the big chains is mostly full of select service and below properties these days. It seems like a big deal to just see a regular new build Hilton or Hyatt or Marriott open these days.

New build is a big deal for me as it keeps the conversions from BW and Wyndham away.

if they can pull off 250 sf with a good queen size bed, a full size refrigerator, and a microwave and keep the prices under $100/night after tax, that is my market for driving trips.

If Home2Suites only give 50% point earnings, what in the world would this point earnings be? Negative?

At a $90 ADR points don't really matter. Status nights is a different story.

Where does Hilton’s “Homewood Suites” fit? I guess maybe that’s not extended stay?

Just "Longer Stay" similar to how Marriott is managing their brands in this category.

David

Homewood Suites - "Upscale" Extended Stay (competitor: Residence Inn, Hyatt House)
Home 2 - "Upper Midscale" Extended Stay (competitor: Townplace Suites, Hyatt Studio?)
This new brand - "Midscale" Extended Stay (competitor: ?)

Not to derail, but Marriott also has other lifestyle brands like W that provide coverage for that space. IME both have similar vibes. Regardless, Hilton and Hyatt have a lot of catching up in this space - I'm at a W now, sitting at breakfast - crazy busy! Hyatt Studios and Brand #20 aren't cutting it, but alas, we must please developers!

If you can come up with a business case that will convince the folks who actually put skin in the game (REITs, etc.) to go all-in on big construction projects in the current economic climate and with the current cost of capital, by all means go for it.

I'm kind of chuckling at all of the table-pounding posts above about "Oh, we need more luxury properties, this property, that property". The developers and management companies have access to capital. They have financial analysts and planners. They have strategy folks. All of these people are pretty smart and, more than anything, they really, really like making money. So if they're not jumping at something, it's probably for a good reason, regardless of whether it suits the whims of a few people on the Internet.

Eh, I don't think anyone is "table pounding" - all I'm saying is that in my mind as someone who stays at full-service and luxury, I'll continue to prioritize Bonvoy 95% of the time as they have the full service and luxury portfolio across large and mid-size cities I'm looking for. I won't go all in on Hyatt or Hilton because they don't. I don't expect anyone to change strategies because of that.

And all parties are probably fine with that. Hilton's strategy is pretty clearly to move towards the high-volume, high occupancy, high-margin leisure and non-executive business segments in lower cost-to-serve markets.