MAY 2, 2008. The Corporate Housing Providers Association (CHPA) has released its annual statistical study, Corporate Housing Industry Report – 2008, finding for the second year in a row, that the industry has experienced double digit growth in revenue. The $2.95 billion industry posted the industry’s highest revenue year on record in 2007, and is projected to gain again in 2008. National revenues increased 20% over 2006.
“Corporate Housing’s growth out-paced the lodging industry in 2007, including increases in the average daily rate and demand,” says Ned Scharpf, CHPA President. "These increases in addition to expanding inventory led to a successful and profitable year for corporate housing providers."
The industry also saw growth in occupancy, average rate, and inventory indicating a strong demand for corporate housing. Flexible inventory is the hallmark of corporate housing, and permits the strong 90% occupancy nationwide. Overall, the average rate was $116 in 2007, up 11.5% from the prior year. The US corporate housing market is estimated at a total of 77,739 units on an average day in 2007, up from 76,729 units in 2006. First year numbers from the Canadian market contribute an additional 2,505 units from Toronto and Vancouver. Corporate housing inventory gained an estimated 1.4% in 2007 and is projected to gain about the same in 2008 over 2007.
“This report tracks industry trends, making it a key strategic tool for providers to use in successfully managing their companies.” says Scharpf. “This is also the first year we’ve reported on several Canadian markets; we hope to further expand this report internationally in the future.”
Corporate housing is fully furnished apartments with housewares, linens, utilities and other optional services with a typical minimum 30-day stay. The average stay in 2007 was 81 days. 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.
CHPA engaged The Highland Group, an independent research firm, to conduct this comprehensive study on this important lodging sector. The report is available for $395. Complimentary copies of the report are available to the press. For more information, please contact Peggy Berg at (404) 872 4631.
