— Just-released Corporate Housing Industry Report 2011 states $2.47 billion industry —
April 4, 2011 — The Corporate Housing Providers Association (CHPA) is pleased to announce the release of the annual report on the state of the corporate housing industry. This anticipated report, the Corporate Housing Industry Report – 2011, indicates the corporate housing industry has rebounded from the recession and is a $2.47 billion industry. This is an approximate revenue increase of 7.4% over 2009.
The report estimates there were approximately 65,396 units in the US corporate housing marketing in 2010. Corporate housing provider companies project a 3% increase in units in 2011. However, in the 2009 report, providers projected a 3% inventory increase but the actual inventory increase was 4.7%. If the early indications of another strong increase in lodging demand continue in 2011, corporate housing can be expected to increase inventory by more than 3% in 2011.
“Corporate housing has the unique ability to release inventory when not in use and add as quickly as needed,” says CHPA Executive Director Mary Ann Passi, CAE. “This allows companies to adjust to the demand and operating margins were better than the overall lodging industry during the recession. This has significantly impacted companies’ abilities to maximize the opportunity of the market as demand has increased.”
According to the report, restricted financing for new hotel development means the growth rate in hotel room supply will slow considerably in the foreseeable future and corporate housing’s market share should increase as a result. This trend occurred during the last post recessionary period as well.
“This is a critical opportunity for corporate housing,” comments Smith. “Managing this spill-over demand to introduce 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.”
The numbers at a glance:
- Revenues increased by approximately 7.4% to $2.47 billion annually.
- The corporate housing average rate was 1.3% higher than in 2009, at $115.88 in 2010.
- In 2010, the US corporate housing market is estimated at approximately 65,396 units.
- Corporate housing provider companies project a 3% increase in units in 2011.
- The Washington DC Metropolitan Statistical Area (MSA) remains the largest market with 5,962 estimated units including Washington DC and its sub-markets, followed by Los Angeles, New York and Houston, respectively.
- Overall occupancy in the US corporate housing industry increased to 89.2% in 2010, up from 88.1% in 2009.
- The average stay in a US corporate housing unit was 83 nights in 2010, down from the all-time high of 92 nights in 2009.
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, firstname.lastname@example.org or (317) 328-4631 for more information on interviews and article opportunities.