Industry Benchmark
By Mark Harris
Regional Analysis
USA
According to the Corporate Housing
Providers Association, there were 1,095
Corporate Housing operations in 2007
compared to 932 in 2006.
However fast-growing extended stay
lodging continues to outpace the
industry with a growth rate about nine
times that of hotels overall.
Source: the Highland Group
If present trends continue, extended stay
room supply will rise by more than 7%
in 2008, the highest increase since the
10% jump in growth in 2001.
This growth has seen InterContinental
Hotel Group's Staybridge Suites open its
100th property (in Tallahassee), with
another 30 properties under construction;
Hilton's Homewood Suites set to open
its' 200th property in 2008; Marriott
with two fast-growing extended stay
brands and Residence Inn with more
than 500 properties and another 130
under construction.
Corporate housing was a $2.95 billion
dollar industry in 2007.
Source: Corporate Housing Providers Association [CHPA]
Corporate Housing Industry Report
2008) - up 20% from $2.46 billion in
2006. The industry gained over 10% in
occupied units, 11.5% in average rate
and 1.4% in inventory.
US operators predict 1.4% inventory
expansion in 2008, anticipating
economic recovery, although the pace of
the economy into 2009 may cause the
sector to contract slightly. Corporate
housing inventory increased by 1.4% in
2007 and is projected to gain about the
same in 2008 over 2007. This is in line
with growth of supply in the hotel
lodging market. According to Smith
Travel Research, US hotel supply also
gained 1.4% in 2007 over 2006.
Washington DC is the largest market with
5,734 estimated units; Los Angeles and
New York are the next largest with 4,966
and 5,213 units respectively. Chicago
and San Francisco are comparable with
approximately 3,800 to 3,900 units each.
One-bedroom units are consistently just
under half the US market.
Source: The Highland Group