The Corporate Housing Providers Association (CHPA) just released a new statistical update, Corporate Housing Industry Mid-Year Report – 2009. Profitability in corporate housing is driven by the industry’s ability to be flexible with inventory, and to move inventory following demand.
In this down economy, corporate housing contracted 24% and continues to adjust inventory geographically to meet client needs. The industry contracted further in the first half of 2009. However, occupancy remained a solid 87%, equal to the first half of 2008. As a result of its flexibility, corporate housing does not have the distressed inventory currently affecting the hotel industry and has been able to sustain relatively strong occupancies.
Value continues to be a hallmark of corporate housing. Average rates for the United States drifted down only 1.6% in 2009, as clients sought more economical accommodations. Overall average rate was $118 for the first half of 2009 in the US and $115 for Canada.
The newly released statistical update, Corporate Housing Industry Mid-Year Report – 2009, provides current data on critical industry factors such as available and occupied units, occupancy and average rates. The Mid-Year Report details essential information that allows providers to make better daily business and strategic growth decisions to run their companies profitably.
Corporate housing is a uniquely flexible lodging alternative for business travelers, relocating families, as well as providing temporary housing for those needing lodging for insurance purposes or long-term medical care. This product is offered in residential communities, complete with house wares, linens, utilities and other optional services, with a typical minimum 30-day stay.
CHPA engaged The Highland Group, an independent research firm, to conduct this comprehensive study on this important lodging sector. The report is available for $300 Complimentary copies of the report are available to the press. For more information, please contact Peggy Berg at (404) 872 4631.