MCLEAN, VA.—Home2 Suites by Hilton, the mid-tier, extended-stay hotel chain targeting value-wise business and leisure travelers, announced the groundbreaking of its first hotel, the 119-room Home2 Suites by Hilton Fayetteville, N.C. The hotel is being developed by Alabama-based LBA Properties, a group of companies providing comprehensive hotel development and management services, on behalf of Apple Real Estate Investment Trust Companies (Apple REIT Companies). The hotel is expected to open in the 2010 fourth quarter.
“Home2 Suites is a true complement to the current Hilton Worldwide portfolio,” said Paul Brown, president of global brands and commercial services for Hilton Worldwide. “All of our focused service brands are category leaders and we are confident that this success will repeat itself with Home2.”
“This is a great concept with strong consumer appeal,” said Justin Knight, president of Apple REIT Companies. “Construction costs and the efficient design should make this an attractive product from an owner’s viewpoint. We own 89 other Hilton-branded hotels and know the power behind Hilton Worldwide and their HHonors rewards program.”
More Than 50 Franchise Agreements Approved
“Developer response to this brand has been extremely gratifying,” said Bill Duncan, global head of brand management for Hilton Worldwide. “We launched Home2 Suites by Hilton less than 11 months ago in the midst of the worst recession since the Great Depression. Since January of this year, we have broken ground on the first property, received 67 applications, approved 53 franchise agreements, with commitments to move into construction shortly, and have more than 30 additional properties in the early stage of development pipeline. We believe Home2 is the fastest growing brand to launch in Hilton’s history and based on the current pipeline, we expect the 100th Home2, a pivotal milestone, to open in 2013.”
“We have developed more than 45 hotels during our 35-year history in all phases of the hotel real estate cycle,” said Barry Kraselsky, president of LBA. “Our equity partners, Larry Blumberg, Hayne Hollis, John Watson and myself, are all committed to our growth and have long-term relationships with several local and regional lenders who like what we do in our development process and business model.”
“From a development standpoint, Home2 is an ideal product to build,” Kraselsky said. “With a footprint of less than two acres and an efficient layout, it bypasses a number of headaches normally attached to any hotel development. We like the design, especially the way that the heart of the house is combined in one area of the building.”
Accessible to Nearby Fort Bragg
Located at 4035 Sycamore Dairy Road in Fayetteville, N.C.; the hotel will be situated near the Cross Creek Mall, along the All-American Expressway, and will provide convenient access to nearby Fort Bragg. The base and its companion site, Pope Air Force Base, have an overwhelming economic impact on Fayetteville with 175,000 employees and dependents as well as an economic impact of nearly $4 billion annually. Today Fort Bragg is headquarters of the XVIII Airborne Corps and the home of America’s “Guard of Honor,” the 82nd Airborne Division. Fort Bragg is also home of the U.S. Army Special Operations Command Headquarters and the Army’s Golden Knights.
The four-story hotel will feature a number of amenities, including an integrated guest laundry and fitness room, outdoor living rooms, grills, outdoor walking/exercise course and complimentary high-speed wireless Internet accessible from all areas of the hotel. It will also feature the Oasis, a flexible community space that includes iconic gathering and individual work zones, a pantry, complimentary breakfast service area, activity room and indoor pool. The Oasis encourages a social environment where guests can obtain information on the local area, check e-mail and connect with others.
Guestrooms provide separate media and bedroom areas, as well as a fully accessorized kitchenette, containing a refrigerator/freezer with icemaker, dishwasher, microwave/convection oven and coffee maker. The living area has a queen-size sofa/sleeper, 42-inch flat-screen TV, roll-around ottoman, ambient and task lighting and “hip and humble” brand artwork. All guestrooms include an iconic “working wall” that incorporates the kitchenette and flexible working space with a moveable desk, room to spread out and display work or mementos from home, and offers adaptable storage options. Environmentally conscious appointments include low flow showers and faucets, bulk bath amenities, dual flush toilets, recycled flooring and other sustainable product selections. (Click here for more environment-related information.)
“The extended stay segment remains one of the strongest demand growth engines of all hotel segments, particularly in the middle tier category in which Home2 is priced,” said Kraselsky. “While it might seem counter-intuitive, this point of the cycle tends to be ideal for new development. Land and construction costs typically are lower, and by the time the hotel is ready to open, the economy will be gaining momentum, giving new builds a competitive advantage over older products in their marketplace.”
Go to Home2 Suites by Hilton.
