Corporate housing

According to American Express, spending on business travel has already shown a marked improvement in 2010 over 2009. And corporate housing is proving an attractive option for those on extended stays.

Corporate housing is sprouting up across the US. While construction and engineering firms have long needed to provide temporary corporate housing for employees, it has only recently become widespread in other industries too, particularly as mergers and acquisitions become more commonplace. For the most part, corporate America is short on talent and moving that talent around has become an increasingly viable – and preferable – option.

Intended as an alternative to cramped hotel rooms for employees relocating, on a temporary assignment or for general business travel, corporate housing consists of apartments leased to companies that furnish and equip them with linen and crockery. While apartments, townhouses and condominiums are the most popular varieties of corporate housing, single-family homes are on the rise too, as corporate housing providers are increasingly looking to please families by providing items such as cribs and highchairs – and some facilities even allow pets.

Companies are increasingly finding that in many instances, placing their employees in corporate housing is a more cost-effective option than a hotel and that it is well received by employees looking for flexibility and more space as well as kitchens and laundry facilities, alongside the same service-orientated features as hotels, such as fitness and business centers.

Corporate housing ensures an easier transition between the old location and the new one for those employees looking to make a more permanent move. In this particular situation, a corporate apartment is designed to assist a transferring employee and his or her family, allowing them to adjust to the new town or city and find the right location for them.

With businesses looking at what is truly valuable in this current economic climate analysts have found that one of the more interesting trends in the search for better return is on the business travel industry. And because employee work/life balance has a positive impact on productivity and efficiency, it makes sense that companies that require a certain amount of location flexibility would want to ensure that their employees are in the best environment possible.

Indeed, for employees it can be a huge step to called to temporarily relocate in order to do complete a current assignment – having to be away from family, friends and home can be difficult, which means it is vital that the stay away is as comfortable as possible.

And while the employee is enjoying benefits such as more living space, an easier commute to job sites and more business amenities, the employer is also seeing increased benefits. A corporate housing solution savings to the bottom line – according to K&M Relocation network, the cost of a fully furnished apartment is typically 30 to 50 percent less than the cost of a hotel room. Many corporate housing companies take care of the whole package, offering streamlined billing and spend visibility through advanced reporting. 

Indeed, the Corporate Housing Providers Association (CHPA) released its annual statistical study earlier this year, revealing that corporate housing is a $2.36 billion industry and the market is set for growth in 2010, despite industry revenue peaking in 2007 and softening in 2008 and 2009. “This much anticipated 2010 report summarizes what really happened in the corporate housing industry in 2009. The report highlights key business indicators for 55 US and Canadian metropolitan areas and illustrates how our industry fared better than other segments of the lodging industry,” reports Adam Sherer, CCHP of Marriott ExecuStay and CHPA President.

The Atlas World Group confirms that overall businesses are significantly optimistic regarding relocation volumes and budgets – with more than one in five firms expecting relocation to increase in 2010.