Serviced Apartments (also known as Corporate Housing)

Corporate Housing is a term used in the corporate and travel industry to mean a furnished apartment, condo, townhome or house available on a temporary basis to individuals, military personnel or corporations as an alternative to a traditional hotel or an extended stay hotel.  2018 CHPA Rates

The industry’s trade organization is the Corporate Housing Providers Association (CHPA).

According to the CHPA’s Corporate Housing Industry Report issued March 2018:

  • S. corporate housing revenue increased 12.9%, to $3.62 billion in 2017.
  • S. corporate housing inventory is estimated at 71,201 units.
  • Occupancy in the U.S. was down slightly to 86.4% in 2017.
  • Overall, U.S. corporate housing average daily rate (ADR) increased to $161 in 2017.

The report further expands on the make-up of this revenue as:

Reason for renting: Percentage
of total revenue
Corporate Relocation 33%
Projects and Training 21%
Insurance / Emergency 10%
Government / Military 9%
Interns 8%
Other 19%

 

Business industry breakouts were:

Business industry: Percentage
of total
Technology 17%
Professional Services 12%
Government / Military / Defense 9%
Insurance 7%
Manufacturing 7%
Finance and Banking 6%
Healthcare 5%
Entertainment 5%
Hospitality / Restaurants 4%
Oil / Gas / Energy 4%
Construction 3%
Retail 2%
Education 1%
Other 16%

 

2018 Corporate Housing Report [1]

2017 Average Daily Rate ……….. $161 Night

2017 Average Length of Stay ……….. 78 Nights

2017 US Units……….. 61,492

[1] The Highland Report

The Future of Corporate Housing

One of the most discussed items in the corporate housing industry is the control over inventory.

According to the CHPA’s Corporate Housing Industry Report issued March 2017, “Because corporate housing supply is dynamic, the number of room nights corporate housing accommodates has greater variability when compared to hotels.”

“Obtaining inventory at acceptable rents is highly correlated with the residential apartment market. It is very unlikely that the true demand for corporate housing was lower in 2012 compared to 2011, but units occupied declined because corporate housing providers could not get inventory.”

This pressure has eased in more recent years as residential apartment construction has increased, but corporate housing companies are still looking at ways to be able to control their inventory.

2018 CHPA Stay2018 CHPA Units

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