For fixed h ≥ 2, we consider the task of adding to a graph G a set of weighted shortcut edges on the same vertex set, such that the length of a shortest h-hop path between any pair of vertices in the augmented graph is exactly the same as the original distance between these vertices in G. A set of shortcut edges with this property is called an exact h-hopset and may be applied in processing distance queries on graph G. In particular, a 2-hopset directly corresponds to a distributed distance oracle known as a hub labeling. In this work, we explore centralized distance oracles based on 3-hopsets and display their advantages in several practical scenarios. In particular, for graphs of constant highway dimension, and more generally for graphs of constant skeleton dimension, we show that 3-hopsets require exponentially fewer shortcuts per node than any previously described distance oracle, and also offer a speedup in query time when compared to simple oracles based on a direct application of 2-hopsets. Finally, we consider the problem of computing minimum-size h-hopset (for any h ≥ 2) for a given graph G, showing a polylogarithmic-factor approximation for the case of unique shortest path graphs. When h = 3, for a given bound on the space used by the distance oracle, we provide a construction of hopset achieving polylog approximation both for space and query time compared to the optimal 3-hopset oracle given the space bound.