If you want to excel in the hotel business these days, you have to offer far more than just a hotel.
Hilton is officially launching a new vertical in the lodging industry with Apartment Collection by Hilton, the company announced Thursday morning. Set to debut in the first half of this year, the new brand is a collection model designed to offer travelers furnished, apartment-style accommodations with the safety net of hotel-grade service.
The launch begins with a strategic partnership with Placemakr, a flexible-living operator with a decade of experience in the sector, bringing an initial pipeline of up to 3,000 units in key urban markets like New York City, Washington, D.C., and Atlanta.
Hilton already has 10,000 apartment-style units in its global inventory thanks to residential offerings at properties like DoubleTree by Hilton Dubai M Square Hotel & Residences and Hilton Dubai The Walk. But the Apartment Collection is focused on initial growth coming from the U.S.
For the consumer, this promises the holy grail of modern travel: the space of an Airbnb without the chore lists, inconsistent hosts, or cleaning fees. For the brand, it represents a continuation of the company’s longtime “build it, don’t buy it” strategy that allows Hilton to penetrate the booming short-term rental market without the risks associated with recent competitor moves.
Consider this the latest in Hilton’s partnership building spree, which extended to the cruise sector late last year with a new partnership with Explora Journeys.
(Hilton)
The Vertical, Not the Buyout
Crucially, this latest partnership is not an acquisition. Hilton is not buying a brand; it is launching a new lodging category using Placemakr as its seed partner.
This distinction is vital for industry watchers comparing this move to Marriott’s recent integration of Sonder before it collapsed. While Marriott’s partnership provided a distribution lifeline to an operator facing significant financial headwinds, Hilton is building a standalone collection brand from the ground up. By designating Placemakr as a launch partner rather than a sole operator, Hilton retains the flexibility to open the collection to other developers and multifamily owners who meet their strict criteria.
On the chain scale front, Apartment Collection sits between the upper-upscale and upscale segments. It is a play for conversion and new builds alike, allowing multifamily owners to maximize real estate value through flexible inventory.
Solving Airbnb Fatigue
The launch directly addresses a shifting travel trend: demand for blended travel (work and leisure are married now, whether we like it or not) and the growing fatigue regarding unregulated short-term rentals.
Travelers have grown weary of checking into a stranger’s apartment only to find complex check-in procedures and exorbitant cleaning fees. Apartment Collection by Hilton counters this by mandating Hilton brand standards. This includes 24/7 on-site staffing, professional front desks, and the absence of cleaning fees or restrictive house rules.
“Apartment Collection by Hilton represents the next chapter in Hilton’s growth story and the ways we are evolving to meet growing guest demand for this dynamic segment of hospitality,” Hilton CEO Chris Nassetta said in a statement. “With this new brand, we are continuing to pioneer the future of the hospitality industry, giving guests even more ways to choose Hilton for every stay, backed by our service and reliability.”
(Hilton)
The Placemakr Factor
Placemakr’s role is to provide the “proven operational model” necessary to get the brand off the ground quickly. Unlike traditional hotels, these units feature chef-ready kitchens, separate living areas, and on-site laundry.
However, unlike pure residential plays, they are integrated into Hilton’s commercial engine of distribution channels, the Hilton Honors loyalty program, and support.
“We’ve pioneered the furnished apartments asset class property by property, stay by stay, and to continue that work alongside the world’s most valuable hotel brand is so exciting,” Bao Vuong, co-founder and president of Placemakr, added in a statement.
Why This Feels Different Than the Competition
The industry has seen similar attempts stumble. Marriott’s dual approach — launching Apartments by Marriott Bonvoy while simultaneously partnering with Sonder — created a complex web of inventory. The Sonder partnership linked the world’s largest hotel company to a company struggling with stock delisting threats and liquidity issues.
Hilton’s approach appears more conservative. By creating something under the collection banner, Hilton owns the standards. If a partner underperforms, the brand remains.
“We’ve long seen the opportunity to deliver hospitality-driven apartment stays, offering spacious accommodations, thoughtful amenities, and authentic connections to local neighborhoods, and Placemakr shares that vision,” added Chris Silcock, Hilton’s president of global brands and commercial services.
(Hilton)
The Future of the Stay
As the line between living and traveling blurs, this move signals that major hospitality players are no longer willing to cede the serviced apartment experience to tech platforms.
For the real estate market, it opens a new revenue stream.
With a booking window opening in early 2026, Hilton is betting that travelers want the kitchen and the couch, but they also want the points and the promise that someone is at the desk when they arrive.
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