Southern Hospitality Services Opens San Francisco Bay’s First Home2 Suites by Hilton

USA, San Francisco, California. July 30, 2019

Home2 Suites by Hilton, part of Hilton's (NYSE: HLT) All Suites portfolio, announced today its newest property and the first open hotel built through modular construction in Bay Area history, the Home2 Suites by Hilton San Francisco Airport North. Designed for travelers who want to maintain their normal routine, the hotel features 155 suites and a range of value, tech-focused and eco-conscious amenities. Through an efficient modular building process, the hotel will meet San Francisco's booming tourism demand, where already-strong tourism numbers grew by 3 percent in 2018 to a record 26.3 million visitors.*

"Thanks to its high demand but equally high barriers to entry, San Francisco is an ideal market to introduce our cutting-edge modular build concept," said Adrian Kurre, global head, Home2 Suites by Hilton. "Through this innovative building process, we were able to efficiently offer guests the value-added amenities, central location and unique modern design that both business and leisure travelers expect when visiting the ‘City by the Bay.'"

Owned by Sri Krishna Enterprises Inc. and managed by Southern Hospitality Services, Home2 Suites by Hilton San Francisco Airport North offers all-suite accommodations with fully-accessorized kitchens and modular furniture, providing guests the flexibility to customize their suite to their style and preference. The hotel also features complimentary internet, inviting communal spaces, and trademark Home2 Suites amenities such as Spin2 Cycle, a combined laundry and fitness area, Home2 MKT for grab-and-go items, and the Inspired Table, a complimentary daily breakfast that includes more than 400 potential combinations. Guests can also enjoy a gaming room. Home2 Suites by Hilton San Francisco Airport North is pet friendly.

Not only is the property the first modular-build hotel in the Bay Area, it is also the first of its kind in the Home2 Suites by Hilton portfolio. Modular construction is a process in which a project is built off-site in a controlled environment to produce "modules" which are then assembled on location. This building technique allows for dramatically expedited speed to market without sacrificing quality, as the hotel progressed from groundbreaking to opening in just 16 months, a fraction of the typical construction duration in the Bay Area. In addition to construction efficiency, eco-conscious guests of the hotel will be thrilled to see several sustainability measures above the standards of the already green Home2 Suites by Hilton brand, including solar panels which produce close to 50 percent of the hotel's energy and a bio-retention pond that filters water run-off to reduce the property's overall carbon footprint.

Located at 550 Gateway Blvd South, just off US-101, Home2 Suites by Hilton San Francisco Airport North offers guests convenient access to South San Francisco dining and shopping, downtown San Francisco, the Moscone Center and nearby transportation centers including BART and Caltrain. A complimentary shuttle service to San Francisco International Airport is also available.

Home2 Suites by Hilton San Francisco Airport North is part of Hilton Honors®, the award-winning guest-loyalty program for Hilton's 17 distinct hotel brands. Hilton Honors members who book directly through preferred Hilton channels have access to instant benefits, including a flexible payment slider that allows members to choose nearly any combination of Points and money to book a stay, an exclusive member discount that can't be found anywhere else and free standard Wi-Fi. Members also enjoy popular digital tools available exclusively through the industry-leading Hilton Honors mobile app, where Hilton Honors members can check-in, choose their room and access their room using a Digital Key.

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Revenue Management: Focus On Profit

Revenue Management is still a relatively new profession within hotel operations and as such, it continues to evolve. One significant trend in this area is a shift away from using revenue as the foundation to generate key performance indicators (KPIs) and to instead place the emphasis on profit. Traditionally, revenue managers have relied on total revenue per available room (TrevPAR) and revenue per available room (RevPAR) as the basis of their KPIs. Now, some revenue managers are using gross operating profit per available room (GOPPAR) as their primary KPI. This puts profit at the center of revenue management strategy, and managers are increasingly searching for new ways to increase the profitability of their hotels. Return on Investment is the objective of any hotel investment, so it is only logical that profitability and ROI will be emphasized going forward. Another trend is an expanded focus on direct hotel bookings. Revenue managers know that one way to increase profitability is to steer guests away from online travel agencies (OTAs) and book directly with the hotel. This tactic also reinforces brand identity and loyalty, and encourages repeat business. In addition, it provides a valuable platform to market the hotel directly to the customer, and to upsell room upgrades or other services to them. Another trend for revenue managers involves automation in their software programs. Revenue management systems with automation are far more desirable than those without it. Automating data entry and logistics increases efficiency, allowing managers to spend more time on formulating strategy. As a bonus, an automated system helps with aggregating and interpreting data. The October issue of the Hotel Business Review will address these developments and document how some leading hotels are executing their revenue management strategies.