Homewood Suites

Homewood Suites by Hilton is an upscale, all suite, extended stay hotel brand operated under Hilton Worldwide. The brand was founded in either 1988 or 1989 and opened its first hotel in Omaha, Nebraska, on August 23, 1989. During its first decade, it belonged to Memphis based Promus Hotel Corporation, which also managed Embassy Suites, Hampton Inn, and Doubletree. Hilton acquired Promus in 1999 for $3.1 billion, bringing Homewood Suites into the Hilton family. The brand adopted the name Homewood Suites by Hilton in 2000. Its corporate headquarters are at 7930 Jones Branch Dr., McLean, VA 22102, USA. Christopher Nassetta was CEO as of December 2022. Homewood Suites had more than 530 pet friendly locations across the U.S., Mexico, Canada, and the Caribbean as of October 2022, and 538 units in operation as of 2023. As of December 31, 2019, the broader system included 505 locations across 4 countries and territories, with 57,545 rooms. Franchisees independently owned and operated 490 of those hotels, representing 55,899 rooms. The global hotels market was valued at USD 2,080.57 billion in 2025 and is projected to reach USD 3,931.42 billion by 2034, reflecting a Compound Annual Growth Rate of 7.54%.

The wider hospitality market has continued to expand. Europe held a 36.04% share of the global hotels market in 2025. The U.S. hotels market was estimated at USD 263.21 billion in 2024 and is projected to grow at a CAGR of 7.1% from 2025 to 2030. North America's market was expected to reach USD 609.98 billion in 2025, including a U.S. contribution of USD 505.61 billion. The overall hospitality market grew from $5.52 trillion in 2025 to $5.82 trillion in 2026 at a CAGR of 5.5%, with projections reaching $7.47 trillion in 2030 at a CAGR of 6.4%. Growth is supported by increased domestic and international tourism, which can raise hotel occupancy. Online booking platforms such as Airbnb, MMT, and Booking.com have expanded hotel visibility and consumer access while offering booking convenience and discounts. Travelers are also seeking customized packages, personalized guest experiences, and value for money, supporting the economy, budget, and midscale segments. The midscale segment is expected to record the fastest CAGR from 2025 to 2030, at 7.6%. Extended stay hotels have remained a bright spot during economic downturns because they serve guests staying for longer periods. Demand comes from business travelers, families, and corporate project workforces, including construction workers near data centers. Hilton Worldwide uses AI, data analytics, and machine learning to track demand patterns and support loyalty programs, alongside smart hotel technology. Sustainable hospitality practices are receiving greater attention. Onsite accommodation demand generally peaks in summer and fall and declines significantly during winter, creating a seasonal pattern for owners to plan around.

Homewood Suites requires a substantial capital commitment. The initial franchise fee is generally reported as $75,000, although one 2023 source reports an initial fee of $100,000. A Franchise Application Fee for a Change of Ownership is $175,000, while re licensing to the same owner costs $75,000. Reported total initial investment ranges include $12,337,700 to $25,972,000 as of March 2022 and $11,047,200 to $22,076,650 as of 2025. Other sources report $10,899,500 to $20,925,750, while a 2023 figure is $21.4 million to $31.9 million. The 2025 FDD reports total investment costs from $20,276,671 to $30,054,220. Differences can reflect the property location, hotel size, and whether the project is a new build or conversion. One source lists a liquid capital requirement of $1,000, and another reports Cash Required of $85,000. Those amounts may relate to initial fees or specific project components rather than the liquid assets needed for a hotel investment costing many millions of dollars. Buyers should assess their available liquidity against the full investment range. The Ad Royalty Fee, also called the Ad Fund, is typically 3.5%, while one source reports a maximum advertising fee of 4.00%. The franchise agreement runs for 22 years and is renewable.

The operating model centers on an upscale, residential style extended stay experience. Properties offer full kitchens, separate living and sleeping areas, complimentary internet, daily breakfast, and evening socials. Delivering these services consistently requires close attention from the owner and staff. A typical Homewood Suites by Hilton property requires at least 25 employees. The brand also had more than 530 pet friendly locations across its operating regions as of October 2022. Training reports vary. One source describes 1 hour of classroom training followed by additional instruction at the Memphis, TN, corporate office. Another describes an initial five week program at the Homewood Suites corporate headquarters covering brand standards and operating practices. Other information cites 134 to 143 hours of classroom training and continuing support. In 2007, the brand used video iPods for team member training. Hilton supports franchisees with site selection, design, construction assistance, operating guidance, marketing advice, and a dedicated business performance coach. Other support includes technology, quality assurance programs, branding teams, business reports, and a dedicated franchise location website. Hilton also provides a central reservations system, support for third party financing, and the Hilton Honors guest reward program. Exclusive territories are generally unavailable, so owners may face competing hotels in their selected markets. The business requires a full time commitment, and absentee ownership is generally not permitted.

Buyers should prepare their own business plans and pro forma statements and obtain independent market studies before projecting earnings. The brand operated more than 275 hotels in August 2009 and had approximately 120 properties in its development pipeline. It forecast opening its 300th hotel in early 2010. By the second quarter of 2019, Homewood Suites by Hilton was on pace to open its 500th property in the third quarter of that year. The brand has also been described as an award winning leader of the hotel industry. Its extended stay format and Hilton affiliation support access to a global reservation system, a loyalty program, and corporate resources, including a warm and welcoming corporate staff. Those factors can influence demand, but they do not establish results for a particular location.

Homewood Suites grew from more than 275 hotels in August 2009 to nearly 450 hotels in the USA, Canada, and Mexico by 2018. It reached 505 locations across 4 countries and territories as of December 31, 2019. By March 2022, the system included approximately 500 franchises in the United States and 23 outside the country. It had more than 530 pet friendly locations in the U.S., Mexico, Canada, and the Caribbean as of October 2022, followed by 538 units in 2023. The development pipeline included approximately 120 properties in August 2009 and more than 105 properties as of October 2022. Hilton's purchase of Promus Hotel Corporation in 1999 for $3.1 billion was central to the brand's expansion under Hilton. Homewood Suites opened its first hotel in Mexico, in Torreon, in 2007. In June 2015, Hilton Worldwide identified Latin America and the Caribbean as expansion priorities for the brand, including Mexico, Colombia, Chile, Peru, and Argentina, where Hilton's full service brand already had a strong presence. In October 2022, Homewood Suites by Hilton broke ground on a 131 room hotel in Viera, FL. The property was expected to be completed in early 2024 as part of a larger mixed use development. The brand introduced a 100% satisfaction guarantee in 1993, added online reservation capabilities in 1995, provided complimentary high speed internet in every guest suite across the brand in 2004, and launched the web based Suite Selection tool in 2006. Its extended stay model serves corporate project workforces and other traveler groups seeking residential style amenities. Hilton continues to use AI, data analytics, and machine learning to monitor demand and improve loyalty programs while placing greater emphasis on sustainability.

A suitable Homewood Suites franchisee needs management ability, customer service knowledge, and a full time commitment to hotel operations. Hotel ownership experience can help, but it is not always required. Absentee ownership is generally not allowed, so the owner must remain directly engaged in daily management and strategic oversight. With an investment that can range from over $12 million to upwards of $30 million, the opportunity may fit a sophisticated investor or experienced hotelier. A multi unit development capability may be useful, although the brand does not expressly state a multi unit requirement. International growth has focused on Latin America and the Caribbean, including Mexico, Colombia, Chile, Peru, and Argentina. In the United States, the 131 room Viera, FL, project broke ground in October 2022 and was expected to finish in early 2024. Markets with strong travel activity may benefit from the seasonal pattern in which onsite accommodation demand rises during summer and fall and falls during winter. Corporate project workforces can add demand for longer stays. Development may take substantial time because hotel projects involve design, construction, and opening work. The Viera property provides an example of a 1.5 year development cycle. The renewable franchise agreement lasts 22 years. Buyers should review local competition, possible reliance on specific suppliers, royalty and other fee obligations during unprofitable periods, and the franchisor's ability to change manuals and business models without franchisee consent. Such changes may require additional investment. Supplier restrictions and limits involving location, customer access, offerings, marketing, and operating hours also require review.

Homewood Suites by Hilton combines an established Hilton identity with an extended stay operating model and a sizable development history. The brand grew from over 275 hotels in 2009 to more than 530 locations by 2022, while the global hotels market is projected to reach $3.93 trillion by 2034. Initial investment reports range from $12.3 million to $31.9 million, placing the concept at the high end of hotel franchise costs. Franchisees receive training, operating assistance, and support connected to Hilton Worldwide. Buyers should evaluate construction costs, liquidity, market demand, staffing, seasonal occupancy, competition, and the full fee structure before deciding whether the opportunity fits their investment plan.