Where to Stay When Away Corporate Apartments Rise in Popularity
By Brad B. Laspe
Employee travel and relocation are a large part of the hospitality industry. Many employees travel throughout the year and live out of suitcases. However, for longer trips, many businesses prefer to put employees in an extended stay arrangement as it is more comfortable for the employee and can cost considerably less in the long run than a standard hotel.
Long-term housing arrangements are a predicament that was swept up by the hotel industry and tackled in the form of the extended stay hotel. However, the industry responded with another solution that is often cheaper and more accommodating to employees: the temporary housing apartment.
According to the Corporate Housing Industry Mid-Year Report, corporate housing was a $2.77 billion industry in the United States in 2008. With almost 74,000 temporary housing units, this sector of the hospitality industry is not only growing, but booming. Occupancy rates have remained close to 90% for the past several years. And the average corporate housing stay was 80 days. These numbers not only reflect that the industry is stable, but that more and more companies are switching to this type of housing arrangement because of the financial and employee comfort benefits.
Stating the facts
One industry myth is that extended stay hotels are the cheapest option for traveling or relocating executives. However, this is not always the case when human resources departments take into account all the traveling costs that are associated with an out-of-town stay. The amenities and resources available in a temporary housing apartment can cut down on fees that often add up quickly.
Another myth is that only large corporations use corporate housing facilities. Smaller companies have just as much need for corporate housing. Consultants and specialists are often engaged in longer term projects and a temporary housing apartment is the perfect solution for this type of arrangement. Additionally, temporary housing can often be built directly into a compensation package.
Most corporate housing providers offer fully furnished, move-in ready apartments that include all the necessities in order to actually live in the apartment. The amenities often include a fully stocked kitchen with full-sized appliances, pots and pans, plates, glasses, utensils and other cooking supplies. Eating out every meal while in a hotel can add up to thousands of dollars if an employee is given a per diem for food. By eating in a couple of times a week, this expense is greatly reduced.
One of the most difficult parts of living away from home is laundry. Hotels offer pricey cleaning services or some have coin-operated laundry facilities. Most corporate housing apartments have washers and dryers in each apartment. By giving employees the ability to do their own laundry, not only do you eliminate the worry associated with shipping out your laundry, but it also eliminates the costly fees that come with laundry services.
All the extras
Temporary housing apartments also offer other amenities that most people take for granted. For example, wireless Internet is built into the daily rate for most corporate housing apartments. However, the majority of hotels charge a daily rate for Internet that can add up to almost $500 a month. Want to order in? Use a hotel phone for that local call and there will be a charge. Corporate housing apartments typically include local phone calls as part of the utility package that is included in the base rate.
For employees that want the hotel experience but with a homier atmosphere, most temporary housing companies offer a la carte amenities that can be added to the standard options, including laundry and dry cleaning services, housekeeping, gym memberships, car rentals and more. That way, when the bill comes, it is a flat fee all wrapped up into one. The employee doesn’t even see it as it goes straight to the employer. As a result, long expense reports are a thing of the past.
Temporary housing apartments tend to be much larger than extended stay hotels; some apartments are three bedrooms and can accommodate a family and pets. Most corporate housing companies have facilities in leading metropolitan cities and areas. Because of their contacts, if a facility doesn’t exist in a certain location, many times arrangements can be made in order to meet someone’s exact needs.
When an employee has all the comforts of home while traveling, he or she tends to be better rested and more productive than if crammed into a standard hotel room and living out of a suitcase. That, coupled with the financial benefits of corporate housing, is expected to lead to more companies adopting this sector of the hospitality industry as the go-to solution for long-term stays. As the economy continues to rebound in 2010, the corporate housing industry is destined to grow and gain a larger percentage of the industry.
Author: Brad B. Laspe, CRP, CCHP, is vice president of Missouri-based VIP Corporate Housing. He can be contacted at (888) 249-5719 or www.vipcorporatehousing.com
