Well, we’ve said it again and again. We know others are saying it too, and we would never want to simply toot our own horn, but the 2011-2012 Global Serviced Apartments Industry Report was recently released and the data speaks for itself.
A New Market for a New World
Perhaps it is due in part to the changing landscape of the global economy that has been seeing more people accepting short-term contract work and relocating to new cities for brief stay, but the length of stay for corporate housing is on the rise, with an international average of around 80 nights. Indeed, corporate housing units on the whole have been on the rise in the last 3 years, with an increase from 40,000 in 2009 to over 60,000 in 2011.
“The corporate housing sector has unique characteristics to those found in the hotel world…In that respect, corporate housing is more recession-proof than extended stay hotels”
Despite the overall lull in the American economy, a poll of the furnished apartment sector shows that there is no shortage of optimism about the future.
“A staggering 90% of respondents to our survey believe that business will continue to improve in 2012 and beyond”
Hey, Who Invited Those Guys?
With business booming, there are some concerns that the industry will become proliferated with low-quality operations that could potentially damage reputations in the eyes of consumers. Current legislature makes the process of converting residential properties into serviced apartments decidedly simple.
“However the Corporate Housing Providers Association, the Association of Serviced Apartment Providers (ASAP) and its regional counterparts are now bringing much-needed clarity to both the corporate housing and extended stay sectors”.
As the industry on the whole sees more growth through 2012, you can be sure that the current process will be amended to ensure transparency and regulation of newcomers wishing to make a quick buck the easy way.
With so much to look forward to in the upcoming year, we thought we would leave you with one final takeaway from the report that truly summarizes how we feel about the industry as a whole and represents our outlook for the future.
“We are a growing sector and the market is becoming increasingly educated as to the benefits we offer over a traditional hotel room. We know we are onto something because the hotel sector is moving towards serviced apartments either by acquiring or developing their own brands or by offering certain service elements that we already provide.”
Have a great weekend travelers!