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Hilton Launches Mid-Market Extended-Stay Brand

January 26, 2009 By: David Eisen

Hilton Hotels Corp., which is owned by the Blackstone Group, has unveiled a new extended-stay hotel brand called Home2 Suites by Hilton. Unlike Hilton's other extended-stay brand, Homewood Suites, Home2 Suites is aimed at the mid-price market and will compete with Intercontinental Hotels' Candlewood brand and Marriott's TownePlace Suites.

Hilton says the new chain will shoot for an average room rate of about $100, compared with Homewood's average of $122.

Bill Duncan, brand manager for Home2 Suites and Homewood Suites, describes the new brand's style as "hip and humble," which will "appeal to everybody from millennials (those born between 1982 and 2002) to baby boomers."

Hilton estimates that 100 Home2 Suites will be open by the end of 2012, with another 60 to 70 opening each following year. The immediate focus will be on U.S. development, with expansion into Canada, Mexico and abroad in subsequent years.


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