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Joint Builds: Two Hotels Are Better Than One

Hilton Hotels is pairing up two of its brands as a way to get new developments off the ground.

By Maria Wood | Updated on November 19, 2009

MEMPHIS-Homewood Suites has been pursing the concept of joint builds of late. In this model, a Homewood–Hilton Hotels Corp.’s upscale extended-stay brand–is built within the same building as another Hilton flag, most commonly a Hilton Garden Inn, a midscale full-service chain.

Just this year, three Homewoods have opened side by side with another Hilton brand. In Silver Spring, MD, 90 Homewood studio suites are paired with 149 Hampton Inn guestrooms in a property that debuted in January. In March, a combination of 99 Homewood Suites and 151 Hilton Garden Inn rooms welcomed guests in March. And in July, a hotel with a total of 221 rooms, split between 98 Homewood Suites and 123 Hilton Garden Inn keys, opened in Downtown Jacksonville, FL.

Bill Duncan, global head of Homewood Suites and its mid-tier offshoot, Home2 Suites, says putting two brands in different demand categories enables cost savings in both the construction and operations of the property. “Each brand in a combo deal has a strong identity and a strong niche market and you are able to build a terrific performance story using both,” he says. “You can maximize the resources available from construction materials to project management, as well as architectural services and the back-of-house areas that can be common, such as the kitchen and laundry. Obviously, there are a lot of costs in operating a hotel and you can streamline that by having a central source that can serve both hotels.”

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