In the spring of 2023, Hilton Honors announced the details of a new apartment-style extended stay brand (which seems to be all the rage for hotel groups nowadays). Well, Hilton has finally gotten around to naming the brand, and it’ll be known as LivSmart Studios by Hilton. Let’s go over the details of Hilton’s 22nd hotel brand.
In this post:
Hilton details new extended stay hotel brand
Hilton’s new extended stay brand will be named LivSmart Studios by Hilton, and it’s expected to launch in the United States in the near future. The company claims that there are 350 deals in various stages of negotiation (I wouldn’t read too much into that). Construction has started on the first property, in Kokomo, Indiana.
Hilton describes this as a lower midscale, extended stay solution, intended primarily for guests who want to stay for 20 or more nights. It’s intended to meet the needs of the rapidly expanding $300 billion workforce travel market, including for travel nurses, military personnel, and those experiencing workforce relocations. For those kinds of guests, Hilton is promising a brand that offers a reliable home base that allows them to maintain their routines while delivering simplicity, consistency, and convenience.
So, what features will these limited service properties offer? Hilton highlights how there will be three main brand elements, comprised of:
- Deliberate Design: Long-stay guests will be welcomed by the hotel’s inviting exterior of warm wood tones and a modern farmhouse-inspired palette with light industrial touches. Properties will also feature outdoor patios outfitted with grills, a communal fire pit and comfortable seating to make it truly feel like home.
- Spacious Studio Apartment-Style Accommodations: The adaptable layout of the thoughtfully crafted suites will provide comfort and functionality. Each room will feature spacious bathrooms, ample storage space, efficient closet design, and movable, multi-purpose furniture that allows guests to utilize the space as a place to work and rest. The kitchen area is also especially important to long-stay travelers and will include a fully equipped kitchen with a full-sized refrigerator, dishwasher, microwave, two-burner stovetop and more.
- Nontraditional Lobby Experience: The brand’s hyper-functional lobby allows sight lines from the front desk to the fitness and laundry areas, as well as a simple retail market, creating a safe and welcoming environment for long-stay guests looking to grab a great cup of coffee, fit in a workout or start their laundry.
What Hilton’s new hotel brand means for owners
It’s worth keeping in mind that new hotel brands are really created for hotel owners, and us guests are just the product. So what is Hilton promising investors about the new LivSmart Studios by Hilton concept?
LivSmart Studios by Hilton is described as an exciting investment opportunity for developers looking to diversify their portfolio under the Hilton brand name. Hilton highlights that:
- The new brand prototype dedicates the majority of space to revenue-generating guest rooms, reducing overhead costs
- Through Hilton’s best-in-class commercial engine, owners will have access to above-property revenue management and sales support that will streamline on-property staffing needs, including with digital check-in, digital keys, and more
Here’s how Isaac Lake, brand leader for LivSmart Studios by Hilton, describes the new brand:
“After much anticipation, we’re thrilled to announce that LivSmart Studios by Hilton is official. With a resilient $300 billion workforce travel market, the extended-stay segment continues to grow. It has never been as primed as it is now for this long-stay brand, and we’re thrilled with the initial excitement we’ve received from owners.”
My take on Hilton’s new extended stay brand
First of all, while most hotel brands have been doing quite a bit of cost cutting since the start of the pandemic when it comes to the guest experience, it’s interesting the extent to which Hilton’s CEO has been vocal about this. Nassetta has been clear that many hotel service cuts are permanent. As he explained in April 2021:
“The work we’re doing right now in every one of our brands is about making them higher-margin businesses and creating more labor efficiencies, particularly in the areas of housekeeping, food and beverage, and other areas. When we get out of the crisis, those businesses will be higher margin and require less labor than they did pre-Covid.”
So it’s not surprising to see the continued focus on brands that tick all of those boxes, of having labor efficiencies, and more. I can’t blame Hilton, as a publicly traded company looking to maximize shareholder value. At the same time, I wish we’d see Hilton focus on creating a more robust portfolio of lifestyle brands, since it’s an area where Hilton could do better, in my opinion.
Next, I find it interesting that the hope is that this brand will have an average length of stay of 20-30 nights, compared to significantly less than that for existing extended stay brands. What exactly is different about this brand compared to other extended stay brands, other than the desire for guests to stay longer?
Will the hotels only be bookable with a certain minimum stay? There’s nothing about the amenities of these hotels that seem to differentiate them otherwise, perhaps except them being a bit lower end than current existing options. Conversely, people can nowadays book homes and apartments by the night (through companies like Airbnb), so I’m not sure it’s so easy to target guests in this way.
Along those lines, will full points and elite nights be awarded for this brand? Given the average length of stay that Hilton anticipates, this might just be the brand with the highest concentration of Hilton Honors Diamond members. 😉
There are currently a lot of hotel brands that are referred to as extended stay (we’ve seen both Hyatt and Marriott launch new ones recently as well). In reality, that just means they don’t offer many services, and that rooms are large and have kitchenettes. There hasn’t actually been much innovation in this sector, so I’m curious if Hilton can create something that actually encourages people to stay for an extended period of time, as I don’t think that’s something that’s currently done very well.
In theory it would be innovative if Hilton actually created a brand that could compete with apartments for longer stays, but I don’t see anything that really differentiates these hotels in that regard. Maybe it will just come down to pricing?
Bottom line
Hilton has announced more details about LivSmart Studios by Hilton, which is the company’s new extended stay brand that will be lower end than any of Hilton’s existing brands. Hilton is targeting guests who stay 20+ nights, and will offer apartment-style accommodations. I’m curious to see how this all plays out…
What do you make of Hilton’s new extended stay concept?
I am a hotelier with Hilton Ihg brands
You all need to understand that this is just one brand competing with another and the cycle continues. There is no need to build and develop more brands within the same franchise. What happens is when all the brands are taken up the franchise comes up with new schemes to incorporate and develop new brands with new names in the same exact markets, that the other...
I am a hotelier with Hilton Ihg brands
You all need to understand that this is just one brand competing with another and the cycle continues. There is no need to build and develop more brands within the same franchise. What happens is when all the brands are taken up the franchise comes up with new schemes to incorporate and develop new brands with new names in the same exact markets, that the other brands that they own already are. you can’t put Hampton Inn next to each they came out with the Hilton Garden Inn, which is no different except you have to pay for breakfast. You can’t put a Homewood suites next to another Homewood suites so they started Home2 suites
so now all those markets have been taken and diluted even more let’s come up with a third brand that does the same exact thing make it look a little different with different color tones and called something different and now we can put three of the same properties doing the exact same thing in the same exact market
Who is the winner at the end of the day? The stockholders and the board of these franchise companies. New brands means diluted revenues at the existing ones and more rooms. More properties shows growth, therefore higher share price.
It’s a scam
We like the idea of the extended stay brand, its a great concept for an extended stay, which often have.
Except for a major flaw.
We tried a few times at different brands within the USA.
The problem is the residents being unchecked.
1. Prostitution
2. Drugs dens, distribution
3. Groups hanging out in the room.
We did not feel safe enough staying. Apparently management turned a blind eye, or was in...
We like the idea of the extended stay brand, its a great concept for an extended stay, which often have.
Except for a major flaw.
We tried a few times at different brands within the USA.
The problem is the residents being unchecked.
1. Prostitution
2. Drugs dens, distribution
3. Groups hanging out in the room.
We did not feel safe enough staying. Apparently management turned a blind eye, or was in on it.
Therefore we have avoided them completely.
Unless Corporate has another idea to keep these extended places safe, we would not stay there.
And it was across the states, not any one city in particular, small towns as well.
I've stayed at many extended stay hotels over the years in many places. Never run into this. Lots of construction contractors and utility workers though. Maybe you're confusing them with prostitutes and drug dealers.
I don't want to stay somewhere for 20 days that doesn't have a sofa to stretch out on. If I sitting all day, I don't wnat my only options to be a chair again or the bed with no back support.
Yes, direct sight from the front desk to anywhere I move in the hotel is exactly what I want because nothing feels better than being stared at by Rose when I do my laundry.
Also, if Hilton management paid even a cent to the person who wrote that product description, they desperately need to be introduced to ChatGPT.
Why would you create an extended stay property and not have sofas in the studios? This is such a poor use of space. You put the kitchen on the other wall. Bathroom door opens opposite the kitchen. Then you have that extra wall where bathroom door is so you can put bed there and then a sofa where bed is. Who wants to stay 20+ nights in a room with no sofa?
I'm so excited I can see the laundry area from the front desk! (What an odd thing to market)
In my experience, if a product has the word "smart" in its name, they are targeting customers who are anything but.
Extended stay hotels are really nice for traveling families, fwiw. The kitchenettes allow families to cut down on eating out costs and the added space is highly valuable. Laundry facilities are also key for families to cut down on the volume of gear needed. I really like these types of hotels for traveling but the main downside is that they're generally way outside of city centers; presumably the economics are a challenge in downtown areas.
It looks awful. But why do all of the new hilton brands have such bad names?
Inquiring about potential development opportunities for this brand in Miami. We have a plot of land near Miami International Airport. Looking for any contacts for further information.
So I actually travel for a week at a time for work, and I actually stay in places like this, like Marriott's Residence Inn. So I guess I'm close to their target market (although I'd slit my wrists if I had to stick around some of these places for 20-30 days at a time...)
Here's the only thing I want in an extended stay place that's different from a hotel: a full kitchen. A full...
So I actually travel for a week at a time for work, and I actually stay in places like this, like Marriott's Residence Inn. So I guess I'm close to their target market (although I'd slit my wrists if I had to stick around some of these places for 20-30 days at a time...)
Here's the only thing I want in an extended stay place that's different from a hotel: a full kitchen. A full fridge (i.e. with a freezer) is a must. A range is good. An oven is optional plus. Most of these places are not NYC, with an endless array of restaurants and exciting places to explore. And besides, if you're going regularly to the same places, then after a while you're sick of the local restaurants and would rather just get some stuff at the grocery store and whip up some meals for yourself.
But aside from the kitchen, I'm looking for the same things as a regular hotel: a nice room with a good bed, fast wifi, and a decent workspace / desk to get some work done in the off hours. The rest is fluff (some nice indoor and outdoor spaces to go when you get sick of your room is great, but a fire pit is hardly a make-or-break amenity). And oftentimes I've stayed at regular hotels for 7-10 days because the extended stay places were so expensive, I could literally get UberEats delivery from luxury restaurants for lunch and dinner every day, and still come out ahead, and with a nicer room to boot.
The rest of this stuff (laundry, gyms, breakfast) is often found in regular hotels too so doesn't really make much of a difference.
If the reduced service, reduced lobby, reduced everything leads to a reduced price, then I'm fine with it. But if the price is $50-100 more than a comparable quality hotel, then the savings in making your own meals is not worth it and I'll just stay at a regular hotel.
"A lifestyle brand catering to the needs of today's active budget-conscious traveler seeking communal experiences in a chill vibe."
-CrackHouse by Marriott
While these look nice, not sure how they differ from the many other options out there or from Hyatts : hyatt place....BUT, if they included an oven in their FULL kitchen, THAT would be a game changed and I would happily switch in an instant!
I want a sofa. My 2 bedroom Hyatt Place was a regular apartment with sofa + decent chairs.
Am I missing something here? I thought this was the whole point of Home2 Suites? They don’t seem very different. Why does Hilton feel the need to start yet another low tier brand??
No, you are not. There is Home2 Suites, now H3 (Home3) is in the works... same concept, new version.
This is Project H3, just finally getting an official name reveal.
Ben:
Why do you think Diamond Members will concentrate at H#?
Because there will be tons of NEWLY generated Diamond members at this average stay duration.
There will be some, but not a ton.
Anyone that has to spend half their time on the road, is deserving of top elite status, even when minted through "District 9 by Hilton" (Thanks Andrew for the new branding - couldn't help myself) :-) :-)
Right, a hotel chain for traveling nurses with minimal staffing (if any at nights), hackable electronic keys and a communal fire pit.
Hey Ben,
What do you mean by lifestyle brands?
As a hospitality company that already has a huge footprint, Hilton is in no hurry to get anywhere fast. Therefore, they have the luxury to grow their brands and portfolio of hotels "organically", i.e., one brand at a time, from within and from scratch....
As a hospitality company that already has a huge footprint, Hilton is in no hurry to get anywhere fast. Therefore, they have the luxury to grow their brands and portfolio of hotels "organically", i.e., one brand at a time, from within and from scratch. That is in contrast to Hyatt, which has staked its growth on "mergers and acquisitions."
It will be interesting to check the result of this ongoing “experiment” (i.e., organic growth vs. M&A) in a few years . I bet Hilton retains control of their company while Hyatt dilutes theirs…
What are these names - they get weirder the cheaper the brand gets.
Next up it's going to be "District 9 by Hilton."
Bwahahahahahahah That's fuuuunny!
It's a great relief that they’ll feature a “deliberate design.”
One can only hope that the ambience is subtle, yet yielding.
Marketingspeak makes my head explode.
My had explodes when I realise there are people out there who actually buy that crap.
My head explodes when I realize there are people out there who generate million dollar salaries thinking up that crap!
In the wake of the Dobbs decision and developments in the American South that outlaw abortion, these H3 properties might be a useful complement to women’s health centers in northern states, especially if there may be a wait to see a provider.
Sir, this is a Wendy's.
I'll have a triple-H Whopper, or is it H-triple?
Okay, 3H
Hypocrite
Hysterical
Hollow
A great fit for a hotel in America.
Or was it
Hookers
Herpes
Hedonist
Still a great fit for an extended stay.
Trailer2Suites
That closet appears to be laughably small for a stay of 20+ nights.
There's this thing called laundry.