34 HB • November 7, 2014 BUSINESS® News

BEHIND Hampton has come a long way from its BRANDthe humble beginnings By Dennis Nessler coffee. “The we knew 30 years ago certainly are very successful. You’re a new brand and you’re trying to nothing like the brand we know today, other than the build awareness, so what better way to do that than to MEMPHIS, TN—Originally conceived in 1983 as an core tenets of value and consistency,” he said. tell the customer, ‘Come check us out and if you’re not economy hotel and a complement to the A significant part of that evolution was the brand’s happy, you don’t pay.’ And that was probably one of the flag, the Hampton brand has come a long way. To start 100% satisfaction guarantee, which was the first such turning points for the brand culturally,” he said. with, the select-service brand—which has been part of program in the lodging industry when it was imple- Over the years, a number of different prototypes have the family of brands since 1999— mented in 1989. Cordell talked about the impetus been introduced for the brand, which typically includes is quickly approaching the 2,000-property milestone for such a program. “The brand started wildly suc- 110 or more rooms. For example, in 1990, Hampton with more than 1,900 hotels currently open. cessful for those first number of years. There was modified its prototype for development in smaller The first Hampton hotel opened in 1984 in Mem- huge interest from franchisees and it was hitting on communities. In contrast, just a few short years later in phis, which was long before the city became the cur- all cylinders. After being around only five years, we 1993, the brand was extended with the introduction rent location of Hilton’s headquarters for its select- actually started to think about what else we could do of Hampton Inn & Suites. The larger product—which service brands. In 1990, Hampton Hotels’ parent to differentiate,” he said. features guestrooms that include a studio suite—made company became The Promus Companies Inc. Some its debut in 1995 in Newport News, VA. nine years later, Hampton became the midscale Cordell added, some 20 years after the concept de- (without food & beverage) brand of Hilton Hotels buted, “We’re going through an interesting transfor- Corporation through completion of the company’s mation as a brand.” He noted that the Inn & Suites By Stefani C. O’Connor merger with Promus. model represents roughly one-third of the hotels Phil Cordell, global head for focused service and in the Hampton system, and about 70% of the new Hampton brand management, Hilton Worldwide, projects approved. He added that, broadly speaking, By Nicole Carlino said the brand really took off when it was married with construction costs are approximately $80,000 a key Hilton. “It gained huge loyalty and recognition on its for such projects, which “still offers very attractive By Christina Trauthwein own, but I think a big turning point was when those returns. For a pure cash-on-cash basis, these are out- former Promus brands [including Embassy Suites and standing hotels.” By Matthew Marin DoubleTree] were acquired by Hilton to become part In 1998, the brand reached the 750-property mile- of Hilton Worldwide. Prior to that, Hilton was really a stone with the opening of the Hampton in Taos, NM, single-branded company. Promus had these segment- and the first small-town prototype opened in Cedar ed brands, but with no mother brand,” he said. The groundbreaking ceremony for the first Hampton Inn City, UT, in 2002. Cordell further noted that more than 50% of Hamp- With competition increasing in the segment, the ton’s business comes from the Hilton HHonors loyalty After considerable research and eliciting the feed- brand launched its “Make It Hampton” program program, which didn’t exist within the brand prior to back of its owners, the company decided to beta test in 2004 in an effort to differentiate its offerings and the merger. He also noted the upper-midscale brand the idea in some 50 hotels throughout its portfolio of emotionally connect with its guests. The program en- has evolved significantly since its early years, when the roughly 200 properties. Cordell added, “So we made a compassed more than 127 product changes, including rooms were smaller in an effort to keep construction decision we’re going to be bold and we’re going to try the addition of its On the House hot breakfast and On costs down; the case goods were configured different- this. We knew we had the product piece nailed. The ser- the Run breakfast bags; complimentary wireless high- ly; and breakfast was nothing more than donuts and vice piece, the guarantee, we launched and it became speed Internet access; and an easy-to-set alarm clock.

property (Niagara Falls-At the Falls, begins testing a self-service check-in Canada) and introduces a new alternative for guests through hotel Hampton Nationwide Reservation “blended” hotel product, Hampton lobby kiosks at select locations. 1988System links to the PARS (TWA/ Inn & Suites. Northwest); Datas II (Delta); System One (Continental); Apollo (Untied); 1997Hampton opens a hotel in Sioux and Sabre (American) airline 1994Hampton, Homewood Suites and Falls, SD, creating a presence for reservation systems. Embassy Suites become the first the chain in all 48 contiguous major hotel companies to distribute United States. Later in the year, it chainwide and individual hotel also opens its first properties in the Holiday Inns’ Limited Service Hotel information via the Internet. Caribbean (San Juan, Puerto Rico), 1983Division established; Ray Schultz is Hampton introduces an South America (Iquique, Chile) named president. 1989 unconditional 100% satisfaction and Alaska (Anchorage), while guarantee, a first within the lodging Promus Hotel Corporation forms Hampton Inn & Suites opens its industry. 1995following the split of The Promus first international hotel property Companies Inc. into two separate (Calgary, Alberta, Canada). Hampton Inns, Inc., a wholly public companies, while the first 1984owned subsidiary of Holiday Inns, Hampton’s parent company becomes Hampton Inn & Suites hotel opens in Inc., incorporates in the State of 1990 The Promus Companies Inc., and a Newport News, VA. Hampton’s 750th hotel opens in Delaware, and the company’s first prototype hotel design is modified 1998Taos, NM. property opens in Memphis, TN, on for development in communities I-40 East. with populations of 75,000 or less. Promus Hotel Corporation announces 1996online confirmation and cancellation Hampton officially becomes the capabilities through its website, and 1999midscale (without food & beverage) 1993Hampton opens its first international

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“About 10 years ago, we said. ‘Even though are include: Can you imagine investing in a brand other guests tell us we’re consistent, wouldn’t it be cool if we than Hampton? “So we really try to get a sense for could so some soft-touch things to cement that?’” said their engagement with the brand,” he said, adding Cordell, who noted the changes took place over the 75% of the company’s development deals come from course of 18 months. existing owners. Two years later, the brand unveiled a new Clean and He said, when it comes to guests, the company Fresh Bedding package featuring a crisp, white duvet reaches out to those who stay with Hampton as well cover enveloping a plush down-like comforter and as those who don’t. Cordell noted they ask a number 200-thread-count white sheets. In 2008, the brand of broad questions, including “What do they think opened its 1,500th hotel, the 101-room Colorado about the brand?” Springs Hampton Inn & Suites. Cordell noted that the brand has evolved geographi- In 2009, the brand debuted its Perfect Mix Lobby de- cally as well. The brand initially grew quickly in the sign. “We locked onto the idea that we knew our lob- Southeast before spreading throughout the U.S., even- bies, which were used heavily for the free breakfast, tually reaching the West Coast, which was the “final weren’t as attractive as they needed to be—and utilized frontier.” More recently, Hampton has really gained as they could be—during other parts of the day. What momentum in many urban markets. Cordell—who could we do to fix that?” he asked. noted the brand has more than a dozen locations in In response, the brand developed a concept de- New York City and several in Chicago—talked about its signed to be a departure from the “cafeteria style” evolution in terms of locations. lobbies prevalent throughout the segment, and cre- “First Hampton was known only as the roadside exit, ated more of a socialization space with a community suburban office park location. We’ve had huge suc- table and different types of lighting. Cordell noted cess with urban locations. You hit any major urban the brand gave owners five years to comply with the area in America and you’ll find at least one Hamp- A community table within the new lobby specifications. ton. That’s another area people said, ‘It’s never going Perfect Mix Lobby design The company launched an ad campaign called “Feel to work. If a Hampton guest is used to paying $125 a the Hamptonality” in 2012. According to Hilton, it night in Georgia, he’ll never pay $450 a night in New was part of an effort to shine the light on the brand’s York.’ But they do,” he said. unique culture and innovative product. The brand, which debuted in Canada as well as Mex- Cordell noted that the company continues to elicit ico in 1993, continues to grow internationally. Cordell feedback to help shape the direction of the brand. noted the expansion started in earnest in Western Eu- “Listening to owners is very important, and listening to rope, in such countries as the United Kingdom and guests is very important,” he said. Germany, and has progressed to Eastern Europe and, As an example, he noted every couple of years the more recently, China. company reaches out to owners through a Gallup Cordell touted the continued growth of the brand engagement study, where it asks what Cordell refers and sees no end in sight. “We’re not sure how big it can to as the “hard questions.” He noted such questions get. It just keeps going,” he said. HB A Clean and Fresh Bed inside a guestroom

brand of Hilton Hotels Corporation service—ranging from a new, free on the international strength of hotel brand ever to be ranked through completion of the merger On the House hot breakfast and Hampton’s parent brand, Hilton. number one in Entrepreneur with Promus Hotel Corporation. On the Run breakfast bags; Purity Magazine’s annual Franchise 500. Basics bath products and a curved shower rod; complimentary high- Hampton reaches the 1,500-hotel Hampton Hotels’ Save-a-Landmark speed wireless Internet access; and 2008milestone with the opening of The brand launches the “Feel 2000program is launched to help the industry’s easiest-to-set radio the 101-room Colorado Springs 2012the Hamptonality” advertising preserve historic, cultural and alarm clock— as part of the “Make Hampton Inn & Suites. campaign; “Hamptonality” is iconic roadside attractions. It Hampton” program. a term that the brand uses to define the proactive, friendly ’s first hotel service that Hampton hotel team Hampton announces the ground Hampton celebrates its 1,300-hotel 2009opens in Corby, United Kingdom, members offer guests daily, 2002breaking of its first “small-town” 2005milestone with the opening and the brand introduces the aligning with the product and prototype hotel in Cedar City, UT. of the 228-room Hampton Inn Perfect Mix Lobby design. amenities at the hotels. Washington, DC.

Hampton announces the grand All Hampton properties announce Hampton’s “forever young” 2003opening of the Hampton Inn-Cedar Hampton announces its new 2010the inclusion of waffles in its free, 2013initiative takes the hotels up for City, UT, the brand’s first “small- 2006bedding package, Clean and hot breakfast offering. Hampton relicensing and creates product town prototype.” Fresh Bedding. kicks off the offering by baking improvement plan to help them 7,000 waffles during a launch event remain relevant for next 30 years. in New York City. 2004Hampton unveils more than 2007All Hampton properties throughout 127 feature product changes Canada and Mexico are rebranded 2014Hampton by Hilton’s largest hotel introduced at all of its hotels as Hampton by Hilton to draw 2011Hampton Hotels becomes the first outside the U.S. opens in London.

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