News for the Hospitality Executive
– April 5, 2011 – The Corporate Housing Providers Association
(CHPA) is pleased to
announce the release of the annual report on the state of the corporate
industry. This anticipated report, the Corporate Housing Industry
Report – 2011,
indicates the corporate housing industry has rebounded from the
is a $2.47 billion industry. This is an
approximate revenue increase of 7.4% over 2009.
“This report illustrates significant gains in the corporate housing industry over 2009,” says CHPA President Kimberly Smith, CCHP, AvenueWest Corporate Housing. “Corporate housing is poised on the brink of even larger a growth opportunities as business travel continues to increase.
The report estimates there were approximately 65,396 units in the US corporate housing marketing in 2010. Corporate housing provider companies project a 3% increase in units in 2011. However, in the 2009 report, providers projected a 3% inventory increase but the actual inventory increase was 4.7%. If the early indications of another strong increase in lodging demand continue in 2011, corporate housing can be expected to increase inventory by more than 3% in 2011.
“Corporate housing has the unique ability to release inventory when not in use and add as quickly as needed,” says CHPA Executive Director Mary Ann Passi, CAE. “This allows companies to adjust to the demand and operating margins were better than the overall lodging industry during the recession. This has significantly impacted companies’ abilities to maximize the opportunity of the market as demand has increased.”
According to the report, restricted financing for new hotel development means the growth rate in hotel room supply will slow considerably in the foreseeable future and corporate housing’s market share should increase as a result. This trend occurred during the last post recessionary period as well.
“This is a critical opportunity for corporate housing,” comments Smith. “Managing this spill-over demand to introduce more individuals and companies to corporate housing will be a great source of new business going forward and will help the industry acquire more of the lodging industry market share.”
The numbers at a glance:
CHPA is the only trade association dedicated exclusively to the corporate housing industry. The association continually strives to uphold the highest standards in business and professionalism; provide valuable insight, knowledge and resources to the industry; and increase visibility among related industries. Along with networking, education, certification, and information sharing, CHPA members grow their business and expand their reach through an international network of partners. Find out more about corporate or furnished apartments at www.chpaonline.org.
Amanda Cook, CHPA
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