The hotel market is fiercely competitive, driving brand owners to find increasingly innovative ways to stand out and appeal to the diverse preferences of travelers.
In this latest digital interview, we sit down with Isaac Lake, Brand Leader of LiveSmart Studios by Hilton – the hotelier giant’s newest venture designed to cater to the growing extended stay market segment.
LiveSmart Studios is Hilton’s smart approach to extended stay, custom-designed to provide workforce travelers with a reliable and friendly experience at an attainable price point. With accommodations that genuinely feel like studio apartments, utilizing space in a unique manner to create a sense of separation between key areas, such as the kitchen, living space, and bedroom, the company is meeting the needs of guests looking to stay for an average length of stay 20 nights or longer.
Lake outlines demand for such spaces, noting the significant expression of interest that the company has seen with more than 350 deals currently in the works. Further, he also points to the power of branding, highlighting that the Hilton name has given developers the confidence to pursue LiveSmart Studios agreements despite tough market conditions.
With the new brand’s first property having broken ground in Kokomo, Indiana in October 2023, several others are moving forward in areas such as Texas and Arizona.
For more insights from Lake, including how LivSmart Studios plans to attract the right customers and develop an optimal business mix, tune into the full interview!
Esther: Hi, everyone. I’m Esther Hertzfeld, Senior Editor with Hotel Management Magazine. I am here with Isaac Lake, Brand Leader of LiveSmart Studios by Hilton, to discuss the new Extended Stay brand, which was announced last year and officially named earlier this year.
Esther: Thank you so much for joining me, Isaac.
Isaac: Thank you, Esther. It is a absolute pleasure to be here and thank you for making the time for us.
Esther: Great. We’re so happy to have you. With so much increased demand in the extended stay category, especially in mid tier, how is LiveSmart differentiating itself from its competitors?
Isaac: We’ve created a product, Esther, that is completely different from anything else that you see out in the market. And what I mean by that is when you enter most of the competitors, you see basically a studio shotgun style hotel room. And we’ve created a hotel brand that genuinely feels like a studio apartment.
Isaac: There’s differentiation of space within the room. When you’re standing in the kitchen, you feel like you’re in a kitchen. You’re not in a hotel room. And the same is true in the living space as well. In the sense that when you’re sitting in the soft seated chair, or if you’re on the bed, you can’t see into the kitchen.
Isaac: So creating some very unique senses of space. And we’ve really leaned in, as I said, on the kitchen itself. Creating a truly differentiated product and then an incredible bathroom that’s much bigger than most of the competitors and has some nice touches like a backlit mirror, for example, and an improved shower experience.
Esther: That does sound great. How has the owner community responded to LiveSmart Studios?
Isaac: The excitement is incredible. We spend most of our time returning phone calls to owners, asking questions about sites that are available. Wanting to know about some of the unique ways that Hilton is supporting the true long stay traveler. And I can tell you, I have seriously thought many, many times about changing my phone number.
Isaac: I think it was a little bit of a rookie mistake when we first launched the brand to include my phone number in the development packet. But you know, I love hearing from the owners that are developing this brand and the excitement, as I said, it’s just been incredible.
Esther: So, going along with that, what has the developmental interest been like, and what does the pipeline look like?
Isaac: The pipeline is incredibly healthy. I think we have to date around 350 deals that are currently in the works and that number just keeps growing. Like every single day I get a development update from the team and there’s a handful more that have called in and expressed interest in the site and have signed an FTD and are looking to develop.
Isaac: And I think that’s a really a testament to the strength of the brand and the strength of Hilton as well, because even in, you know, somewhat challenging times from a financing perspective. Owners and developers are continuing to push forward because they believe in the product and they believe in the power of the Hilton engine.
Esther: So when can we expect to see the first LiveSmart Studios and where will it be?
Isaac: Well, I’m so glad you asked. We broke ground on the first in October, late October of last year. And that property is located in Kokomo, Indiana. I would have said a couple of weeks ago, that will be the first one open, but I happen to know that there’s a couple of others out there that are very close.
Isaac: Moving along construction, those are Tyler, Texas, Yuma, Arizona, and a handful of others that are all trying to be the first one open. I think the front runner is still Kokomo. We’re still expecting Kokomo, Indiana to open later this year but I would keep an eye on that cause you never know.
Esther: Well, I hope I get an invite to that very first opening because Kokomo, Indiana is not too far away from me. So I can’t wait to visit it in person.
Isaac: That would be lovely. There’s a running joke internally that we should have the Beach Boys perform at our grand opening ceremony. So stay tuned for that, but you’ll definitely get an invite.
Esther: Great. So with this new brand just being named, and with development interest being so high, what are your priorities in leading LiveSmart Studios?
Isaac: Well, the key priority right out of the gate is making sure that we get the mix of business, right? For this brand to be effective, it really needs to operate at 60, 65 plus percent true extended stay travelers. And that enables us to have sort of the super lean staffing models, the weekly housekeeping and strong, strong returns on owner investment.
Isaac: So educating the development community on how to operate this hotel, these hotels effectively and making sure that we’re focused on the right business that’s out there. That’s a key priority for us. Another key priority is, of course, the development pipeline. We spend a lot of time in our showroom in Nashville
Isaac: and basically should have just bought another home there because I’m there Monday through Thursday of every week, but we’re continuing to tour owners and developers, and Hilton worldwide sales clients through that space. And Hilton worldwide sales clients have been extremely valuable to us too, because they pointed out certain very small and subtle tweaks that we can make to the prototype.
Isaac: That will really impact the end consumer. So, you know, staying hyper focused on those things are our critical priorities right now.
Esther: Well, that sounds great. Well, again, I can’t wait to visit the new one, wherever it may be, or the very first one, wherever it may be. And I want to thank you so much, Isaac, for joining us today.
Isaac: Thank you so much for your time. And I really, really appreciate you making time for us. Thank you.