Hilton launches new apartment-style extended-stay brand, ‘Project H3’
Hilton offers owners an investment opportunity in the new midscale title
By Vishnu Rageev RMay 25, 2023
HILTON HAS LAUNCHED a new extended-stay brand, Project H3, designed to meet the needs of the rapidly expanding $300 billion workforce travel market, looking for apartment-style accommodations for 20 nights or more. Launching in the U.S. as Hilton navigates the final stages of the trademark process, this lower midscale, extended-stay brand is the newest addition to Hilton's portfolio, the company said in a statement.
Hilton is engaged in more than 100 active development conversations with many owners expressing interest in multiple locations. According to the statement, the product provides a foundation for the long stay, allowing guests to make the most out of every day, and delivers an exciting investment option for developers looking to diversify their portfolio under the Hilton name.
“Project H3 is perfectly positioned to serve the unique needs of the long-stay traveler, thanks to its innovative design, strong value proposition for our owners and of course, the hospitality our team members offer every day,” said Chris Nassetta, Hilton president and CEO. “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’s in-house research shows long-stay travelers, including traveling nurses, military personnel, and those experiencing workforce relocations, place quality time and comfort above all else. In addition, those looking for a long stay will book an average of 20 or more nights and desire a reliable home base that allows them to maintain their routines while delivering simplicity, consistency and convenience.
Focus on owner economics
Project H3 has been developed with input from owners, keeping the needs of the development community and long-stay travelers at the forefront of the design process. According to Hilton, the new brand prototype dedicates the majority of space to revenue-generating guest rooms, thus reducing overhead costs for prospective owners.
“Through Hilton’s best-in-class commercial engine, owners will have access to above-property revenue management and sales support models that will streamline on-property staffing needs. Automated customer offerings such as digital check-in and Hilton’s Digital Key will enhance the guest experience and create efficiencies for staff,” the company added.
“Hotel owners have played an integral role in the development of Project H3 and they will continue to guide us as we build this brand from the ground up,” said Kevin Jacobs, chief financial officer and president, global development, Hilton. “Project H3 has incredible growth potential, tapping into the rapidly expanding and underserved workforce travel market. The response from the hotel owner and developer community has been immediate and enthusiastic. We’re engaged in more than 100 active development conversations, with many owners expressing interest in multiple locations.”
Long-stay travelers on radar
This new extended-stay brand will appeal to the long-stay traveler through several elements. Outdoor patios are outfitted with grills, a communal fire pit and comfortable seating to make guests feel at home. The suites feature four distinct areas for guests to rest, work, cook and refresh, including a fully equipped kitchen with a full-sized refrigerator, dishwasher, microwave, two-burner stovetop.
“Many long-stay guests never stopped traveling during the pandemic, especially within the lower midscale extended-stay segment, and we designed a product in direct response to this growing need,” said Matt Schuyler, chief brand officer, Hilton. “Project H3 will disrupt the category and allow Hilton to better provide reliable and friendly service for those who are in it for the long stay.”
Announcement of $100,000 H-1B visa fee triggers panic among Indian professionals.
The fee applies only to new petitions.
IT companies are reportedly reviewing staffing and travel.
THE TRUMP ADMINISTRATION’S announcement of a $100,000 fee for new H-1B visa petitions, effective Sept. 21, reportedly triggered panic among Indian H-1B holders. Many rushed to book last-minute flights, resulting in fully booked planes and higher fares.
The move caused anxiety among IT employees whose work depends on U.S. assignments, according to India Today.
However, the U.S. Citizenship and Immigration Services later clarified that the fee applies only to new petitions, not existing visa holders, providing some relief but not ending widespread uncertainty.
Airports and travel agents reported a surge in cancellations and rescheduling requests, while families of visa holders faced disruptions during the festive season.
Friday’s announcement sparked further confusion, culminating in chaotic scenes aboard an Emirates flight from San Francisco to Dubai, AeroTime reported. The plane was held on the tarmac for three hours as H-1B holders tried to determine if they could re-enter the U.S. The policy change created confusion over who would be affected.
India’s external affairs ministry said the fee could have humanitarian consequences “by disrupting families.” The Indian government said it “hopes these disruptions can be addressed by U.S. authorities” and emphasized that the exchange of skilled workers has “contributed enormously” to both nations, The Guardian reported.
H-1B visas are valid for three years and can be renewed for another three. The Trump administration says the increased fee helps U.S. companies stay competitive and create more jobs. However, Indian stakeholders raised concerns about its impact on the IT sector, citing potential disruptions to operations and project timelines. IT companies are reportedly reviewing staffing and travel while managing higher compliance requirements.
“Service exports have finally been dragged into the global trade and tech war,” Madhavi Arora, chief economist at Emkay Global Financial Services, wrote in a note on Sunday, according to CNN.
Arora also suggested the policy could have an unexpected upside for India, potentially bringing talent back home. While it could concentrate top professionals within India’s largest tech firms, it could also “catalyze India’s transformation into a more powerful global innovation and delivery hub.”
Meanwhile, U.S. Citizenship and Immigration Services data for fiscal 2025, show Amazon as the top H-1B recipient, securing about 10,000 visas.
The recent 50 percent tariff imposed by the Trump administration on India was also met with backlash from the country.
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The H-2B visa program protects U.S. jobs and wages, according to AHLA citing a study.
It allows hotels and resorts to meet travelers’ needs while supporting the economy.
It provides foreign workers for seasonal jobs when domestic workers are unavailable.
THE H-2B VISA program does not harm U.S. jobs or wages but increases pay and supports the labor force, according to an Edgeworth Economics study. Citing that study, the American Hotel & Lodging Association said the program enables hotels and resorts to meet travelers’ needs while supporting the workforce and economy.
The Edgeworth study for the H-2B Workforce Coalition found the program allows businesses to hire foreign workers for seasonal jobs when domestic workers are unavailable. It showed no evidence that increases in H-2B visas reduce U.S. employment or wages. Instead, each H-2B worker supports three to five local jobs and areas with more H-2B workers saw wages grow 1.6 percent faster.
“Areas that hired more H-2B workers under the higher visa cap saw greater job and wage growth among U.S. workers,” said Steve Bronars, partner at Edgeworth Economics, citing findings consistent with an earlier analysis by the U.S. Government Accountability Office.
Ashley McNeil, AHLA’s vice president of federal government affairs and chair of the H-2B Workforce Coalition, said the new analysis underscores the H-2B program’s clear value to local communities.
“The hotel industry, which is still 200,000 workers short compared to pre-pandemic levels, relies on legal guest worker programs to augment our workforce, particularly to address seasonal demands,” McNeil said. “Access to the H-2B visa program has been critical in allowing hotels and resorts of all sizes to meet travelers’ needs, while supporting the local workforce and economy.”
The program has also helped businesses manage peak-season labor shortages, easing the workload for full-time employees. Landscaping accounts for nearly 40 percent of certified H-2B workers. Hotels and motels account for 8.67 percent, support activities for forestry 6.3 percent and seafood processing and packaging 5.65 percent.
“This study reaffirms what our members have long recognized: despite extensive recruitment efforts, there remains a critical shortage of U.S. workers willing or available to fill temporary positions that are currently being filled by H-2B workers,” said Arnulfo Hinojosa, COO of the Federation of Workers and Employers of America and vice chair of the H-2B Workforce Coalition. “H-2B workers allow seasonal businesses to operate at a higher capacity and create more U.S. jobs.”
Meanwhile, President Donald Trump recently signed a proclamation raising the H-1B visa fee to $100,000 annually, a move that could affect Indian professionals in the U.S.
More than 70 percent expect a RevPAR increase in Q4, according to HAMA survey.
Demand is the top concern, cited by 77.8 percent, up from 65 percent in spring.
Only 37 percent expect a U.S. recession in 2025, down from 49 percent earlier in the year.
MORE THAN 70 PERCENT of respondents to a Hospitality Asset Managers Association survey expect a 1 to 3 percent RevPAR increase in the fourth quarter. Demand is the top concern, cited by 77.8 percent of respondents, up from 65 percent in the spring survey.
HAMA’s “Fall 2025 Industry Outlook Survey” found that two-thirds of respondents are pursuing acquisitions, 80 percent plan renovations in the coming year and 57 percent are making or planning changes to brand affiliation or management strategies.
“With hopes high for a stronger fourth quarter, hotel asset managers continue to maintain an optimistic outlook,” said Chad Sorensen, HAMA president. “More than 70 percent of our members expect RevPAR to increase 1 to 3 percent and two-thirds are pursuing acquisitions. With 80 percent planning renovations in the coming year, we see an engaged community focused on performance.”
Conducted among 81 HAMA members, about one-third of the association, the survey reports expectations for revenue growth, property investments and acquisitions.
However, the top three most concerning issues were demand, ADR growth and tariffs, HAMA said.
RevPAR growth forecast
Looking into 2026, 72.8 percent expect 1 to 3 percent growth, 18.5 percent expect 4 to 6 percent, 7.4 percent anticipate flat results and 1.2 percent project a decline. Full-year RevPAR projections versus budget are more mixed: 49 percent expect 1 to 3 percent growth, 17 percent expect flat results, 12 percent expect 4 to 6 percent growth, 2 percent expect 7 percent or more and 19 percent expect declines.
Hotel asset managers note several market pressures, the report said. Other concerns include ADR growth at 51.9 percent, tariffs at 34.6 percent, wage increases at 33.3 percent and potential Federal Reserve rate changes at 32.1 percent. Management company performance at 25.9 percent, immigration and labor trends, union activity and insurance costs were also mentioned.
“The industry is at its highest level of concern around maintaining or increasing rates,” Sorensen said. “There’s pressure to build on the P&L going into 2026.”
Performance projections
Confidence in the broader economy has increased since spring, the survey found. Only 37 percent of respondents expect a U.S. recession in 2025, down from 49 percent earlier in the year.
When asked about properties exceeding gross operating profit forecasts, 59 percent of managers expect 0 to 25 percent of their hotels to surpass targets, 25 percent expect 26 to 50 percent, 10 percent expect 51 to 75 percent and 6 percent expect 76 to 100 percent. Additionally, 20 percent reported returning hotels to lenders or entering forced sales since the spring survey.
House introduces AFA to boost franchise model and hotel operations.
The act establishes a joint employer standard.
AHLA backs the bill, urging swift adoption.
THE HOUSE Of Representatives introduced the American Franchise Act, aimed at supporting the U.S. franchising sector, including 36,000 franchised hotels and 3 million workers nationwide. The American Hotel & Lodging Association, backed the bill, urging swift adoption to boost the franchise model and clarify joint employer standards.
The AFA amends the Fair Labor Standards Act and the National Labor Relations Act, which since 2015 have created uncertainty for franchisors and franchisees, AHLA said in a statement.
Rep. Kevin Hern (R-Oklahoma) and Don Davis (D-North Carolina) introduced the AFA.
“Hotel franchising is a pathway to the American Dream for many entrepreneurs,” said Rosanna Maietta, AHLA president and CEO. “It is a proven win-win business model that enables partnerships between franchisees and franchisors. The American Franchise Act codifies a clear joint employer definition and is essential to protecting this framework.”
AFA aims to protect the franchise model, which has long enabled women and minority entrepreneurs to run their own businesses with support from larger brands, the statement said. It will clarify the employment relationship by establishing a joint employer standard that protects workers and preserves franchisee autonomy.
Mitch Patel, AHLA board chair and Vision Hospitality Group CEO, said that as a hotel franchisee, he has seen how the model enabled him and others to achieve the American Dream.
“Throughout my career, my hotel business has employed thousands of people who have built lifelong careers in our industry,” he said. “The American Franchise Act is essential to preserving this foundation. For the benefit of both employers and employees, we strongly encourage the swift passage of this critical legislation.”
"As one of the few franchisees in Congress, I understand how damaging an ever-changing joint-employer rule is to the franchise business model,” said Hern. “I'm pleased that we were able to come together in a bipartisan effort to create legislation that safeguards small businesses and individuals working to achieve the American Dream across the country."
Davis said changes to joint-employer rules have created prolonged uncertainty in the industry.
“The American Franchise Act aims to restore stability by clarifying that franchisors and franchisees operate as independent employers while safeguarding workers through established labor standards,” he said.
Separately, a petition for a referendum on Los Angeles’s “Olympic Wage” ordinance, which sets a $30 minimum wage for hospitality workers by the 2028 Games, fell short of signatures. The ordinance will take effect, raising hotel wages from $22.50 to $25 next year, $27.50 in 2027 and $30 in 2028.
Noble broke ground on StudioRes Mobile Alabama at McGowin Park.
The 10th StudioRes expands Noble’s long-term accommodations platform.
Noble recently acquired 16 WoodSpring Suites properties through two portfolio transactions.
NOBLE INVESTMENT GROUP broke ground on StudioRes Mobile Alabama at McGowin Park, a retail center in Mobile, Alabama. It is Noble’s 10th property under Marriott International’s extended stay StudioRes brand.
“Noble is institutionalizing one of the most resilient and undersupplied segments at the intersection of hospitality, mobility and how people stay,” said Shah. “We are scaling a branded platform to capture secular demand that creates stable cash flow and long-term value.”
In May, Noble acquired 16 WoodSpring Suites properties through two portfolio transactions, expanding its platform in branded long-term accommodations.
Noah Silverman, Marriott International’s global development officer, U.S. & Canada, said breaking ground on the 10th StudioRes with Noble reflects the brand’s growth and the companies’ three-decade partnership.
“With both companies’ expertise in long-term accommodations, Marriott’s distribution channels, and the power of our nearly 248 million Marriott Bonvoy members, we are confident StudioRes is uniquely positioned to generate customer demand at scale, drive performance and sustain long-term growth,” he said.
Meanwhile, Marriott has more than 50 signed StudioRes projects, about half under construction, the statement said. The first StudioRes opened in Fort Myers, Florida.