The subject process enhances catalytic activity for demetallization and desulfurization of a residue feed stream by splitting a recycle hydrogen stream and feeding each of the split hydrogen streams to the first and second stages of demetallation and desulfurization, respectively, with interstage separation. The recycle hydrogen stream may first undergo scrubbing to remove acid gases and compression before recycle. The recycle hydrogen stream is taken from a first hot vapor stream from the first hydrotreating unit and a second hot vapor stream from the second hydrotreating unit.