Project H3 by Hilton Breaks Ground on Inaugural Hotel in Kokomo, Indiana

Construction of Hilton’s New Apartment-Style Extended-Stay Brand Begins Less Than Five Months After Launch, Expected to Debut in Mid-2024

USA, Mclean, Virginia. November 20, 2023

Hilton (NYSE: HLT) announced the groundbreaking of the first Project H3 by Hilton hotel in Kokomo, Ind., signifying the start of construction on its new studio apartment-style extended-stay hotel brand. Operating under a working title as Hilton navigates the final stages of the trademark process, the 137-room property is located at 5138 Cartwright Drive and is owned by Sun Management & Development Corporation. Hilton's inaugural lower midscale, extended-stay solution for long-stay travelers is expected to open by the summer of 2024.

Beginning construction less than five months after the brand was first announced, the newest addition to Hilton's portfolio of world-class brands is providing a reliable and consistent foundation for the long-stay guest who never stopped traveling, even throughout the pandemic. The brand has received tremendous interest from owners and developers and currently boasts more than 350 deals in various stages of negotiation.

"We have looked forward to this day with tremendous excitement as Project H3 is truly different from anything in the current market," said Matt Schuyler, chief brand officer of Hilton. "This game-changing brand was created specifically to address the needs of guests who seek accessible quality in a long-stay hotel and provide owners with a cost-effective extended-stay hotel to build and operate."

The inaugural groundbreaking for the brand brought together Project H3 representatives and local dignitaries for a memorable event to officially kick off the construction process. The moment was commemorated by a groundbreaking ceremony and remarks from Isaac Lake, brand leader, Project H3 by Hilton; Tyler Moore, mayor, City of Kokomo; Lori Dukes, president and CEO, Greater Kokomo Economic Development Alliance; and Bharat Patel, co-founder, chairman and CEO, Sun Development & Management Corporation. Guests also viewed renderings of the hotel grounds and enjoyed a celebratory reception.

"This project represents a significant milestone, not just for our team but for the extended-stay hospitality segment as a whole," said Bharat Patel, co-founder, chairman and CEO of Sun Development & Management Corporation. "Backed by the power of Hilton, we're confident that this brand will set a new standard for long-term accommodations, and we couldn't be happier to plant the brand's first flag in Kokomo."

The new brand will reimagine core design elements from the ground up and deliver all the essential amenities long-stay guests need for a great stay. Upon completion, the inaugural property in Kokomo, Ind., will feature three signature elements that will appeal directly to the long-stay traveler, including:

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 Apartment-Style Accommodations: The adaptable layout of the thoughtfully crafted suites will provide comfort and functionality. Each 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 cooktop and more.

Nontraditional Lobby Experience: The brand's hyper-functional lobby allows sight lines from the front desk to the fitness and guest 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.

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