Corporate housing is a term in the travel industry meaning renting out a furnished apartment, condo, or house on a temporary basis to individuals, military personnel, or corporations as an alternative to a traditional hotel or an extended hotel stay. According to Corporate Housing Providers Association (CHPA), the industry's trade organization, corporate housing revenue was $2.36 billion in 2009 and $2.47 in 2010. The corporate housing industry has been a significant growth segment of the lodging industry for the past 20 years.
Corporate housing and extended stay hotels are two different types of accommodations that often are thought to be interchangeable. While both offer short-term, furnished accommodations, it is important to understand that the similarities between the two lodging types end there.
Corporate housing typically offers larger square footage, costs less than hotels, offers full customer service, and is used for stays averaging one month or more (the average corporate housing stay is 83 days, according to the 2011 Highlands Group Corporate Housing report; more than 100 days for Managed Corporate Housing Companies and 13% of CHBO property owners report their properties were rented for a year or longer, according to the 2012 "by Owner" Annual Report).
Corporate housing provides complete temporary housing solutions within a stable residential setting unlike extended stay hotels, which are surrounded by an open parking lot and are filled entirely by transient guests. Understanding these unique and sometimes subtle differences between corporate housing and extended stay hotels can save a company thousands of dollars and provide guests with a more pleasant and positive stay.
Local vs. national corporate housing companies
Most corporate housing companies have a flexible number of apartment units they manage in the city they reside. These apartment units are furnished and the corporate housing companies rotate clients in and out of the furnished apartments and clean them between guests. Local corporate housing providers can be found by doing an internet search for the city in which you need temporary housing and the words "corporate housing" or "executive rental". National corporate housing companies provides corporate housing services in more than their local city. National corporate housing providers are very helpful in managing military or corporate contracts or housing inventories which involve housing occupants in more than one city.
Service Companies. These companies rent apartments, furnish and equip them, then offer the apartments as corporate housing rentals.
Apartment Companies. These companies own or manage large apartment complexes. These companies use some of their inventory as furnished corporate housing units.
Management Companies. These companies are real estate property management companies that manage properties owned and furnished by individual real estate investors.
By Owner. These are real estate investors who provide their individually owned properties as furnished corporate housing rentals.
More on local markets
In cities such as New York the corporate housing industry has expanded exponentially. This tremendous growth has allowed a few entrepreneurs to become strong key players within the local market. The limited real estate available on the island, in addition to an increased demand for furnished apartments, has not only allowed the local corporate housing industry to expand, but also to become more efficient. The quality of the product available, offered by reputable companies in New York City, rivals the quality of the product available at some high-end hotels. In New York City, there is a minimum required stay of thirty consecutive nights for those that would like to lease a furnished apartment.
In other parts of the world, corporate housing has also experienced a rapid expansion.
Housing for government workers
A growing market for corporate housing is for government workers. This includes military personnel, federal workers, and government contractors.
Industry accreditation
The Corporate Housing Providers Association has created the first industry accreditation for the corporate housing industry. The designation of CCHP (Certified Corporate Housing Professional) establishes clear, objective standards for measuring an employees knowledge of the corporate housing profession. The designation reflects a professionals dedication to the highest standards in the corporate housing industry and gives clients the assurance they will receive professional and courteous service from trained, highly knowledgeable, and skilled professionals.
See also
- Vacation rental
- Serviced apartment
References
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