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Hilton Moves Deeper Into Extended Stay With Its New Project H3


A Hilton hotel room with a kitchen space

Skift Take

It was only a matter of time before Hilton formally announced it was opening an extended-stay brand, considering it's becoming a hot commodity for its major rivals.
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Hilton Worldwide announced on Tuesday that it's opening an extended-stay brand as part as its efforts to make inroads in the booming sector. The new brand, which has been assigned the working title Project H3, will be the twentieth in the company's portfolio.

"Project H3 is perfectly positioned to serve the unique needs of the long-stay traveler” said Hilton CEO Christopher Nassetta.

“We aim to serve any guest, anywhere in the world, for any travel need they may have, and this new brand represents a greater opportunity for us to grow our portfolio while providing the reliable and friendly service our customers expect from Hilton.”

Hilton joins a list of major U.S. companies making major moves in the extended-stay segment in recent months. Hyatt unveiled in April its first foray into the segment, a new brand named Hyatt Studios. In addition, Wyndham Hotels & Resorts announced in November 2022 its 24th brand, Echo Suites Extended Stay by Wyndham. And they're poised to be joined by Marriott International, with CEO Anthony Capuano revealing in an early May earnings call that the company was weeks ago from announcing the launch of an extended-stay product.

The Highland Group, a consultancy firm that has examined the sector, said demand for extended-stay lodging has surpassed supply by almost three-to-one in most U.S. markets. Extended-stay has emerged as a popular sector in recent years, catering to travelers staying anywhere from a week to a few months. Marriott officials cited the boom in blended business and leisure travel as one reason why the segment's strength shows no signs of slowing down.

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