This week, the Corporate Housing Providers Association announced highly encouraging news regarding the corporate housing industry. The fully furnished apartment suite continues to grow as the choice of preference for people needing short-term accommodations.
The Corporate Housing Industry Report 2012 Illustrates Continued Recovery; Outpaces Other Lodging Markets
— Just-released Corporate Housing Industry Report 2012 reports $2.49 billion industry
Indianapolis, Indiana (PRWEB) April 06, 2012 — The Corporate Housing Providers Association’s (CHPA) release of the annual report on the state of the corporate housing industry, Corporate Housing Industry Report – 2012, shows a 9.5% increase in revenue over 2010. This anticipated report indicates the corporate housing industry continues to rebound from the recession and is a $2.49 billion industry.
“These continued increases illustrate significant strength within the corporate housing industry,” says CHPA’s Chairman of the Board, Brad Laspe, CCHP, CRP, VIP Corporate Housing. “Although corporate housing often follows the same cycles as the overall lodging industry, corporate housing revenue actually outpaced overall hotel room revenue.”
The report estimates there were approximately 62,204 units in the US corporate housing market in 2011. While this is a decrease from 2010, corporate housing providers are able to successfully adjust inventory to respond to client demand. This inventory flexibility enables the industry to maintain operating margins better than the overall lodging industry during recessions. Despite the decline in inventory, corporate housing providers forecast a 2.7% increase in units in 2012.
“All of the gain in corporate housing room revenues in 2011 came from an increase in average rates, which rose 6.8%,” says CHPA Chief Executive Officer, Mary Ann Passi, CAE. “This was significantly stronger than the overall hotel average rate, which is why corporate housing outpaced hotel room revenue.”
Restricted financing for new development means that the growth rate in hotel room supply will be relatively slow in the foreseeable future and corporate housing’s market share should increase as a result. However, the increase in market share of inventory might not be as rapid as during the previous expansionary period because of a relative shortage of available apartment units for corporate housing companies to lease. According to the report, lack of inventory was a common concern among corporate housing providers.
“This data is critical information for corporate housing providers,” says Laspe. “Increasing market share by introducing more individuals and companies to corporate housing will be a great source of new business going forward and will help the industry acquire more of the lodging industry market share.”
Fast Facts on the State of the Industry:
- Revenues increased by approximately 9.5% to $2.49 billion annually.
- The corporate housing average rate grew 6.8% in 2011 to $123.81.
- In 2011, the US corporate housing market is estimated at approximately 62,204 units.
- Corporate housing provider companies project a 2.7% increase in units in 2012.
- For the first time, Los Angeles is now the largest market with 5,223 units, followed by Washington DC, New York and Houston, respectively.
- Overall occupancy in the US corporate housing was 88.6%, nearly flat over the last four years.
- The average stay in the US corporate housing market was 86 nights in 2011, up from 83 nights in 2010.
The complete report is available complimentary to members of the media. CHPA representatives are available for comments regarding the data and its application to the corporate housing industry. Please contact Amanda Cook, acook(at)chpaonline(dot)org or (317) 328-4631 for more information on interviews and article opportunities.
CHPA is the only trade association dedicated exclusively to the corporate housing industry. The association continually strives to uphold the highest standards in business and professionalism; provide valuable insight, knowledge and resources to the industry; and increase visibility among related industries. Along with networking, education, certification, and information sharing, CHPA members grow their business and expand their reach through an international network of partners. Find out more about corporate or furnished apartments at http://www.chpaonline.org.