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Corporate demand for serviced apartments on the rise

According to the Global Serviced Apartment Industry Report (GSAIR) 2022, the parent company of travel information network and Habicas Group, serviced apartment agent SilverDoor, today, the serviced apartment sector continues to increase its share of corporate housing costs.

The report, which includes more than 70 interviews with 6,000 corporate, 2,000 serviced apartment operators and 1,800 agents, as well as industry professionals, revealed that the use of serviced apartments is on the rise.

Fifteen percent of corporate serviced apartments have used more for business trips since 2021 and reported shorter hours (1-28 nights). Fifty-two percent of corporate and 60 percent of TMCOs reported an increase in the use of serviced apartments for relocation. Purpose from 2020.

Twenty-three percent of businesses surveyed said they now have a formal contract with a serviced apartment or home stay brand, and nine percent of companies have added non-hotel stay options to their travel program since the Covid-19 epidemic.

According to the report, the main reasons for choosing serviced apartments over hotels are the choice of travelers, the total cost of accommodation and the well-being of travelers.

Serviced apartments saw business growth during the epidemic because, the report said, they provided a safer option for travelers, dedicated and safe workplaces, and the ability to cook and eat privately. 68 percent of operators said they took market share from hotels in some or all locations, but rates hit one, 42 percent of the daily average published rate.

Business trips in 2022, though fewer in number, are expected to be longer, which is good for serviced apartments. According to the report, 39 percent of business trips in 2021 were eight nights or more, and the proportion of 7-14-night business trips in 2021 was double that of 2019 – a trend that is expected to continue.

The worldwide reach of the serviced apartment sector is also expanding. In 2007, 77 percent of global supply was in the United States, whereas currently only 52 percent. However, the shortage of supply in key locations and the inconsistent quality of existing supplies have become the biggest hurdle for the sector, claiming a larger share of corporate housing costs.

The ninth edition of this year’s report is the first since Habicat Group acquired The Apartment Service (TAS) in September 2021, and is a collaborative effort between TAS, the Travel Information Network and Silverdor Apartments.

Stuart Winston, CEO of Habicas Group, said: “We have exciting plans for GSAIR and look forward to ensuring that the report continues to meet the needs of clients and partners alike.”

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