Will Caution in Hotel Industry Hurt All Suites Hotels?

Bill Duncan

ATLANTA—Atlanta—and the Southeast—has seen a rise in hotel development in this cycle. Now, however, the industry has shifted its optimism about the future of hotel development and the economy. Amid all of this, all suites hotels are still growing. GlobeSt.com caught up with Bill Duncan, global head of Hilton’s All Suites brands, to get his take on these issues. You can still read the first three parts of this series: Is This The New Standard For Urban Hotels? , Why All Suites Hotels Are A Strategic Investment , and Could Southern Hospitality Help the Hotel Industry? GlobeSt.com: What’s the difference between an all suites hotel and an extended stay hotel? Duncan: Extended stay and all suites properties share many similarities, but are not one in the same. The accommodations at both usually include separate living and sleeping areas, and many will feature a type of partition to denote the two spaces. Home2 Suites, for example, has a curtain that guests can pull across in the studio suites for more privacy. The main difference is that rooms or suites at extended stay properties also have a full kitchen or kitchenette, as these hotels are designed for guests staying five or more nights. While a room at an All Suites property will offer more space, on-site restaurant and in-room dining or room service, it will not typically have as robust of an in-suite kitchen. There may also be differences in the back-of-house areas as well as the number of employees depending if the brand is full-service or limited-service. Embassy Suites is unique in that it is the only upscale All Suites brand in the industry that continues to be popular with business and leisure travelers. It also attracts a significant number of extended stay guests. It combines the best of both worlds with spacious suites but some of the comforts guests desire from full-service hotels, like on-property restaurants and room service. GlobeSt.com: The industry has shifted from being optimistic to cautious about the future of hotel development and the economy. How does this affect the development of all suites hotels? Duncan: The brands within Hilton Worldwide’s All Suites’ category have proven to not only be solid investments, but have traditionally remained steady or even seen an increase during economic downturns. The strength of the Hilton Worldwide name and these brands’ reputation for delivering good ROI, make these type of hotels attractive to owners and lenders. GlobeSt.com: With many properties having been open for several years, and many major Southeast cities updating their core urban areas to keep up with the times, what techniques are being used to keep your hotels fresh and modern? Duncan: Embassy Suites and Homewood Suites are two long-standing brands that are in similar points in their lifecycle. In order to continue to evolve to meet the needs and desires of today’s traveler, we have recently launched two significant property refresh initiatives. Embassy Suites is seeing nearly half of its existing properties undergoing renovations, including refreshing the open atrium areas into more intimate and welcoming spaces. The goal is to modernize the properties and adapt them to their markets, while maintaining Embassy Suites’ signature pillars. Homewood Suites launched its Take Flight program to coincide with the brand’s 25th anniversary as a way to update older properties to incorporate the new brand standards being used. The program focuses on the common areas to create an ambiance for shared spaces, while the in-suite enhancements are designed to increase productivity and comfort. As one of Hilton Worldwide’s newest brands, Home2 Suites has not reached a point where a refresh program is necessary, but we will use the same method to identify the most cost efficient and effective solution once the time comes.