Homo floresiensis is a species of Human that inhabits southeastern Asia, Australia, and New Zealand. They first appeared on Flores island, but slowly moved throughout OTL Indonesia, eventually spreading to mainland Asia and Australia. From Australia some went to New Zealand and other islands of the Pacific. A few managed to sail all the way to South America, but they failed to make a permanent settlement due to competition with Ndutu and Neanderthals. The ones on the mainland and the island of Borneo compete with Cro-Magnon.
Although the Hobbits are weak and not very intelligent, their small size lets them last in greater numbers as they require less resources. This helps them compete with the Cro-Magnon and create larger tribes.