Loneliness among older adults is a growing concern with significant implications for mental and physical health. Although traditional communication technologies often lack the emotional richness of physical touch, recent advances in haptic interfaces offer new possibilities to improve remote social interactions. This study evaluates HugBits, a huggable communication device designed to connect users through shared hugging experiences, with a focus on its usability and emotional impact among older residents in a care facility. Using a mixed methods approach, we conducted a usability study with 16 participants (aged 65+), combining surveys, physiological measures, and qualitative interviews. The results show that while HugBits improved the experience of communication and was generally well received, it did not lead to significant reductions in loneliness or physiological stress markers. Participants valued the simplicity and emotional potential of the device, but highlighted the need for more immersive features, such as warmth or vibration. The findings underscore the promise of haptic communication for emotional support in older adults and underscore the importance of co-design in developing acceptable and meaningful interaction paradigms.