MIAMI—The multi-brand hotel model is hitting on all cylinders—domestic and internationally, urban and surburban. And this trend is gaining massive momentum in certain parts of the country in particular.

GlobeSt.com caught up with Dianna Vaughan, global head and senior vice president of All Suites brands by Hilton, to get her insights into this growing trend in part one of this exclusive interview. In part two, we'll explore some of the key ingredients to success.

GlobeSt.com: The multi-brand model continues to gain popularity across the country and even abroad. Why does this model work so well in urban and surban markets?

Vaughan: Urban and “surban” markets—areas containing attributes of both urban and suburban lifestyles—while increasingly becoming target markets for all-suite hotels, present a number of challenges for development such as a lack of available land to increasing construction costs. That's why hotel brands need to get creative in order to expand into these locations.

The All Suites brands by Hilton have had great success using innovative building models, like multi-brand hotels, to enter and grow in metropolitan centers. In fact, out of the more than 60 multi-brand projects in the Hilton pipeline, nearly half contain at least one Embassy Suites, Homewood Suites or Home2 Suites. This model offers increased operational efficiencies by combining some of the facilities and back-of-house areas and adds more opportunities to cross-sell across the brands.

GlobeSt.com: Is this trend more prominent in the Southeast?

Vaughan: This is especially true in the Southeast, where we have opened several multi-brand hotels over the last few years. In 2012 we opened a Homewood Suites and Hilton Garden Inn in midtown Atlanta, and in 2016, we debuted a Home2 Suites and Hampton Inn by Hilton property in east Louisville that is within close proximity of the city's downtown, the University of Louisville and other local attractions.

Also, last year we opened the first dual-branded hotel between Home2 Suites and Tru by Hilton in Murfreesboro, Tennessee, a pairing that has proven to work well. In fact, there are already plans to add another four dual-branded properties between Home2 Suites and Tru in the region by 2019, including in downtown Nashville and downtown Fort Lauderdale, Florida.

GlobeSt.com: The All Suites brands have an increasing footprint in resort and coastal destinations throughout the Southeast, why have these niche markets been so ripe for development?

Vaughan: In the past, all-suite hotels tended to be located mainly in secondary and tertiary markets, designed for the business traveler in town for a meeting or work assignment, or a family in the midst of a relocation. Today, however, given that these hotels frequently provide significant added value for guests in addition to spacious accommodations, the All Suites brands are growing in popularity among leisure travelers. This has led to these hotels expanding into not only in urban and surban markets, but also resort and beach destinations as well.

Of course, certain considerations must be made to adapt the all-suite model to these resort and coastal destinations. The upcoming Embassy Suites by Hilton St. Augustine Beach Oceanfront Resort, for example, features several picturesque outdoor venues with ocean views, 7,500 square feet of indoor meeting and social gathering space, multiple dining options and more. This positions the hotel to not only welcome business functions but also serve as an option for destination weddings and family vacations.

Home2 Suites hotels are also gaining popularity in resort destinations throughout Florida, with locations close to the state's most popular beaches including Nokomis Beach, Destin and Saint Simons Island.

Instant Insights /

Why the Multi-Brand Hotel Model Is Invading Surban Markets

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