Hilton expands into EMEA with Home2 Suites

McLEAN, Virginia — The Republic of Ireland and Türkiye will be the first stops for Hilton as it begins its inaugural march across Europe, the Middle East and Africa (EMEA) with its Home2 Suites brand, looking to replicate the success it’s had with owners and developers in other regions of the globe with the extended-stay product.

“Until now, the EMEA region has been an untapped market for Hilton in terms of offering a quality extended-stay product,” said Talene Staab, a 30-year Hilton veteran who took the reins as Home2 Suites brand leader in May 2022. “Notably, in many popular European metropolitan cities, space is limited, making hotel accommodations smaller and more compact. By entering this region, Home2 Suites has the opportunity to welcome leisure and business travelers with a more spacious, stylish accommodation.”

Bringing the first Home2 Suites into Western Europe is JMK Group, a family-run, U.K.-based, property developer and hotel owner/operator led by Founder, Chairman and CEO Jalaluddin “John” Kajani. The new-build hotel, Home2 Suites by Hilton Dublin City Centre, is slated to have 290 keys, divided into 214 king studio suites and 76 one-bedroom suites.

Talene Staab, Home2 Suites brand leader

The property will join another Hilton brand in JMK Group’s portfolio in the area, the 249-key Hampton by Hilton Dublin City Centre.

The Middle East foray is being made by IFC Hotel ve Ofis İşletmeleri A.Ş. (IFC Hotel and Office Management Inc.) The expected 119-key Home2 Suites by Hilton Istanbul Financial Centre will be part of the new mixed-use center that opened in May 2023 in the Ataşehir district.

Both EMEA projects are slated to open in 2025, adding to the some 650 Home2 Suites open (595 hotels are in the U.S.). “And we expect more announcements to be made,” said Staab, noting, “We continue to attract interest from existing Hilton owners, new-to-Hilton owners, as well as developers who are new to the hospitality industry.”

The executive was “unable to share specifics” as to whether Hilton was offering any key money or incentives to attract investors/developers to the EMEA initiative. But Staab did indicate the franchising model for EMEA “is similar” to what’s in place in the United States, where the brand enjoys the bulk of its distribution since launching in 2009. Similarly, Staab added, the cost per key is in line with the U.S., and likewise will be market dependent in the EMEA countries.

Investors and developers outside the U.S. can expect some changes to the physical plant, although none so stark as to create brand confusion.

“The EMEA prototype is designed with unique customizations specific to the region,” Staab said. “For example, it has a smaller footprint and room size than the U.S. prototype to reflect the needs of the market, yet it retains the key elements of a suite, including separate bedroom and living spaces, as well as a full kitchen.” She stressed the prototype features many of the brand’s signature amenities, including space for complimentary hot breakfast, pet-friendly accommodations, multifunctional community spaces and combined fitness and laundry facilities.

Due to our investment in creating and building a deep network of owners and developers in EMEA, there hasn’t been a need to offer master franchises.

Talene Staab

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“Home2 Suites’ smaller footprint creates a more flexible and affordable development option for owners and offers the possibility of unmatched returns, growth and lower operating costs,” Staab contended.

Home2 Suites is predominantly a new-construction brand, but Staab expects “many opportunities for adaptive reuse” within EMEA. “We look forward to conversion opportunities on a case-by-case basis,” she said.

How soon inroads might be made by the brand in Africa, where Hilton currently has seven brands across more than 50 open hotels, remains to be seen.

Although the potential breadth of the brand rollout in EMEA could attract a multitude of existing and new owners and operators, Staab indicated master franchises were not going to be part of the plan. “Master franchises tend to be rarer in the hospitality industry compared to other sectors,” she said. “In addition, due to our investment in creating and building a deep network of owners and developers in EMEA, there hasn’t been a need to offer master franchises.”

China, CALA growth

While Home2 Suites is rolling out for the first time in EMEA, it’s the second time the upper-midscale brand has made a major move outside its North American stomping grounds. In mid-December 2021 the brand debuted in Asia Pacific with the opening of a property in the Bao’an district of Shenzhen, China, that was ballyhooed as the first of 1,000 Home2 Suites. Those would come to the country over the next three decades via a partnership between Hilton and Funyard Hotels and Resorts, a subsidiary of real estate development company, Country Garden, based in Guangdong.

Rendering for Home2 Suites room in CALA

In late February this year, however, numerous media outlets were chronicling Country Garden’s financial woes. A report by Reuters on February 28 indicated Country Garden “has struggled with high liabilities and steepening losses in the [past] two years as it faces a liquidation petition” filed by a creditor. The New York Times indicated the petition “is meant to force Country Garden to close its doors and sell its assets to make money it can use to pay back its creditors.” A court hearing is slated for May 17. How—or if—any outcome may affect the plans for Home2 Suites via the partnership is unclear.

“China is a strategic growth market for Hilton and the demand for upper-midscale hotels across the country opens the door for Home2 Suites to provide an elevated extended-stay experience for travelers,” said Staab, noting there are 51 properties open in China. Among the most recent are Home2 Suites by Hilton Beijing Shunyi, Home2 Suites by Hilton Guangzhou Conghua and Home2 Suites by Hilton Beijing West Railway Station. Future development will target the country’s major business districts, transportation hubs, provincial capitals and emerging markets.

Half a world away, the brand also is bringing some changes to its prototype for Caribbean and Latin America (CALA) properties. “Modeled after the success of the North America Home2 prototype, which features bold and modern design, flexible and spacious suites with a full kitchen, commitment to sustainability and being pet friendly, the CALA prototype is designed with unique customizations specific to the CALA market, including food offerings, décor and more,” Staab said.

While the CALA and U.S. prototype feature similar exterior, footprint and cost-per-key aspects, she noted that the CALA prototype “accommodates slightly more flexibility for the outdoor spaces, such as the grilling area and fire pits, given site and adaptive-reuse opportunities.”

The brand launched the refreshed prototype in Monterrey, Mexico, this past October, and Staab said a number of conversations are currently underway with interested owners and developers.

Looking ahead, Staab said she and her team are excited to continue building on the brand’s global expansion and regional presence. “As the brand enters the EMEA region, we look forward to continuing to build relationships with potential owners and developers, showcasing why Home2 Suites is a smart and strategic investment for their portfolio, as well as raising awareness and increasing customer consideration with travelers who may not be as familiar with the brand. With continued brand differentiation, regional knowledge, customization and relationship building, we’re excited to uncover new development opportunities.”