24. tas industry benchmark final

7/27/2019 24. TAS Industry Benchmark FINAL

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The Global Serviced Apartments

Industry Report 2008/09

a TIN report


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Contents

6 - 9

What is a Serviced Apartment?

10 - 23

Industry Overview

24 - 37

Industry Benchmark

38 - 41

Rates Analysis

42 - 47

Chain of Fools

2 - 5

About The Apartment Service

48 - 50

Duty of Care

51 - 53

Tomorrows World

54 - 55

Global Apartment Listings

56 - 60

Ask the Expert

61 - 62

Appendices


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The Apartment Service estimates thatworldwide, in 2008, there are around452,000serviced apartments operating in over 7,000 locations, typically with around 60unitsper property. Based on averageachieved sector occupancy levels, the annual size ofthe global serviced apartment sector is over USD $18.5 billion.

Marketdrives changing demand

Research by the UK & Irelands Institute

of Travel Management in April 2008

found that the majority of UK corporate

buyers have reacted to rising hotel rates

by seeking alternative content for their

accommodation programmes.

At one end of the spectrum, 71%

of corporate buyers have increased their

usage of traditional budget hotels, whilst

at the other 48% reported greater use ofserviced apartments.

Asked to explain why they are using

serviced apartments more, 38% responded

that there was no change in their use of

apartments for stays of 5 days or more;

35% advised that they were using

apartments to reduce costs across all stay

types and 22% were using apartments as

a direct alternative to hotels

The Apartment Services Global Survey

2008 confirms these trends, and provides

a detailed analysis of how corporates both

in the UK and internationally are using

apartments, and why.

Market share

As the ITM survey highlights, serviced

apartments share of the corporate

accommodation (as opposed to relocation)

budget is on the up. In many organisations,

apartments now handle half of all bednights generated for stays of seven nights

or more.

The popularity of apartments for long

stays peaks at 1 3 months, where

serviced apartments enjoy 87.1% of the

global market, compared to 24.4% for

stays of 6 nights or less.

Industry Benchmark byMark Harris

Inmany organisations,apartments nowhandlehalf of all bed nightsgenerated for stays ofseven nights ormore

The Apartment Service Industry Benchmark24

Whilst every ef fort has been made to ensure accuracy, The Apartment Ser vice,Travel Intelligence Network nor Creativo can be held responsible for any errors or omissions.


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Hotel

Global

120%

100%

80%

60%

40%

20%

0%

Aparts Hotel

Australasia

Aparts Hotel

Europe

Aparts Hotel

N. America

Aparts Hotel

S. America

Aparts

Hotel v Apartment - Corporate Bookings

1-6 nights

7-14 nights

15-30 nights

1-3 months

3-6 months

6 months - 1year

1 year +

Source: The Apartment Service Global Survey 2008

Why apartments?

85% of agents clients and 65% of

corporates overall now have travel and

relocation policies in place, with a fixed

nightly budget operable in 65.9% of cases.

The three principal reasons why

corporates generally book apartments

over hotels are comfort (68.9%), space

(65.6%) and the ability to cook for oneself

(63.9%, rising to 84.6% in Australasia).

Price is most important to buyers in

the US (62.5%), although the overall

environment of the apartment is perhaps

the key. As one respondent expressed,it is not nice to expect someone to be in

an environment where there is nothing

more than a bed and bath available to

them.

In terms of specific purchases, location

is the most important criteria in selecting

a serviced apartment, followed by price

and facilities. Brand trust was not felt to

be a key purchasing criterion in any of

the regions surveyed.

Hotels

S/Apartments

Other

Corporates Overall Accommodation Usage


25


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0% 20% 40% 60% 80% 100%

Other

Privacy

Entertainment at Home

Cook for self

Independence

More Comfort

Price

Why Serviced Apartments - Corporates by Region

Asia

Aus/Nz

India

M/East

S. America

N. America

Europe

0%

Privacy

The option to entertain

The option to cook for oneself

Independence

More comfortable environment

More space

Price

10% 20% 30% 40% 50% 60% 70% 80%

Why Serviced Apartments - agents

0 1 2 3 4 5

Asia

Aus/NZ

India

Africa

M/East

S. America

N. America

Europe

Global

Serviced Apartments - selection criteria (buyers by country)

Recommendation

Facilities

Price

Location

A brand I trust






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0 10% 20% 30% 40% 50% 60% 70% 80% 90%

Asia

Aus/Nz

India

M/East

S. America

N. America

Europe

Serviced Apartments booked by type (agents)

Two bedroom(2 bedrooms with separate lounge)

One bedroom(1 bedroom with separate lounge)

Studio(room with kitchette)

Global Europe N. America S. America M/East India Aus/Nz Asia

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Serviced Apartments booked by type (corporates)

Studio(room with kitchenette)

One bedroom(1 bedroom with separate lounge)

Two bedroom(2 bedrooms with separate lounge)

0%

Recommendation

Facilities

Price

Location

A brand I trust

5% 10% 15% 20% 25% 30% 35%

Serviced Apartments - selection criteria (agents)

27





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30+ nights 90+ nightsGlobal

30+ nights 90+ nightsEurope

30+ nights 90+ nightsN. America

80%

70%

60%

50%

40%

30%

20%

10%

0%

% of all stays by average duration - apartment operators

5-25%

26-50%

51-75%

76-100%

0 10% 20% 30% 40% 50% 60% 70% 80%

1 year+

6 months - 1 year

3-6 months

1-3 months

15-30 nights

7-14 nights

1-6 nights

Length of stay as % of all serviced apartment bookings - corporates by region

N. America

Europe

Global

According to the 100+ agents who participated in The Apartment Service Global Survey,the average length of stay for bookings in the country of origin is 41.57 nights, compared

to 36.32 for international bookings. Overall, the average length of stay is shown below.

Regional Analysis

Asia

Hong Kong is in the midst of a continuous

7-8% year-on-year growth in the financial,

insurance and real estate sectors, so

demand for serviced apartments continues

to remain healthy with nearly 100%

occupancy rates being driven by limited

supply. Source: Harvest Capital Partners.

By the end of 2007, Bangkoks serviced

apartment sector had increased supply to11,963 units; a year-on-year growth of 11%.

Average rental rates of 5-star serviced

apartments in CBD and in Sukhumvit areas

at end of 2007 were Baht 1,370 ($40) per

square metre and Baht 1,394 per square

metre, respectively.

The average occupancy rate of Bangkok

serviced apartments decreased from 85%

in 2006 to 83% in 2007, facing a year-on-

year decrease of 2.4%.

There is still a lot of demand for serviced

apartments despite current global economic

turmoil. However, in-line with a general

decrease in the duration of expat relocations,companies are starting to move long-term

expatriates on long leasesin villas, bungalows

and condominiums to serviced apartments

with flexible leases.

It is predicted that some key serviced

apartments will focus more on long-term

stay guests and family guests to improve

occupancy rate.

Singapore's Frasers Hospitality plans to

add 5,000 serviced apartments by 2010

to 8,478 units by 2010. China, India and

Vietnam are also on Frasers' radar for

growth given the continued rise in foreign

direct investments and sustainable

expansion in gross domestic product.At least half of its serviced apartments

will be operated under management

contracts, from one-third currently.





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Supply share of Bangkok serviced apartments classified by zone (2007)

CBD

35.2%

Sukhumvit

40.7%

Riverside

1.4%

Rama III

6.9%

Others

15.8%

2001 2002 2003 2004 2005 2006 2007 2008F

14,000

16,000

Units

%

Y-O-YGrowth

Period

12,000

10,000

8,000

6,000

4,000

2,000

0%

5%

10%

15%

20%

25%

Total supply of Bangkok serviced apartments (2001-2008F)

Total Supply

% growth

2003 2004 2005 2006 2007

14,000

Units

OccupancyRates

Period

12,000

10,000

8,000

6,000

4,000

2,000

70%

75%

80%

85%

90%

Total supply of Bangkok serviced apartments (2001-2008F)

Total Supply

Total Rooms Occupied

Occupancy Rate

CBD Sathorn, Rajdamri, Langsuan, Saladaeng,

Tonson, Silom, Wireless Road, Ploenchit,

Suanplu and Rama IV.

29

Source: Knight Frank Newmark: Bangkok Serviced Apartment Market Annual Report




9/18

In a number of takeovers during 2007,

Stella has acquired Avalon Riverfront

Apartments and Lumiere Apartments.

Quest Serviced Apartments is Australasias

largest provider of serviced apartments tosuit the extended-stay corporate traveller,

with 125 properties across Australia,

New Zealand and Fiji.

Quests average occupancy rate in 2007

was 78% compared to hotels at 70.6%,

and serviced apartments in general, at

69.8%.

Canada

Canadas economy is doing well despitethe slowdown in the US; there is a strong

resource industry and Canadian real

estate prices seem to be holding,

so the short term outlook is good.

The key Canadian markets are Toronto

(82% occupancy) and Vancouver

(88% occupancy), followed by Calgary,

Ottawa and Montreal.

One-bedroom units are more dominant

in the Canadian mix than in the US.

Toronto reports 65% one-bedroom unitswhile Vancouver reports 52%. Extended-

stay hotels are less common in Canada

than in the US, where they are active in

Australia

Extended stay operators who have

developed serviced apartment product as

a preference over hotels have been more

successful in the Australasian market.Source: Jones Lang LaSalle Hotels' annual

Top Operator Survey.

This has been the main growth engine

for the Australian accommodation market

over the last seven years but there are

signs that hotels are coming back into

favour.

Australia's accommodation development

pipeline is expanding with rooms under

construction and likely proposed

increasing by 10% in the six monthperiod since November 2007; 86% of

proposed rooms are now hotels compared

to 77% of rooms under construction

being serviced apartments.

In 2007, Australia's largest hotel operators,

Accor Asia Pacific Corporation (AAPC,

owned by Accor) and Stella Hospitality

Group both increased rooms under

management by concentrating on the

serviced apartment sector - both primarily

in the 4-star arena.

AAPC introduced 12 new Mercure

properties during 2007, many of which

were apartments in regional destinations.

Australia's accommodation

development pipeline isexpandingwith rooms underconstruction



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the one-bedroom market. Corporate

housing may be satisfying a larger share

of this niche in Canada as a result.

Source: CHPA

Over the last few years there has been amove to more extended stay or project

work and less permanent relocation,

due partly to more dual income earning

families, communications technology

and people being less willing to move

permanently then they were previously.

Around 75% of bookings taken by

Canadian serviced apartment operators

originate indigenously.

Canada has a more static inventory than

the US due to more stringent leasingrequirements. Its difficult to get a short

term lease; most landlords in Canada

require at 1 year lease minimum, making

it harder for operators to maintain high

occupancy.

A lot of the corporate housing in Canada

is in residential condominiums. There is

typically a property management company

and board of directors to cooperate with

which represents potentially hundreds of

owners who own a share of the building.

One wrong move and they may attemptto change the bylaws so that furnished

housing providers are not allowed to

lease for short periods of time.

Canada has a more staticinventory than the US due

tomore stringent leasingrequirements

Corporate housing inventory in Toronto

and Vancouver is estimated at 2,505

units; total estimated inventory for

Toronto was 1,847 units in 2007 whilst

Vancouver has an estimated inventory

of 658 units.

Some providers are likely to expand their

operations to other cities in order to grow,

however there is increased competition

from the extended stay hotel sector.

The industry in Canada is dominated by

local or regional providers: - Delsuites

and Minto in Toronto (the latter also in

Ottawa), High Street Corporate Rentals

in Vancouver, Exec Suite in Calgary and

Enville in Montreal.

31


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Europe (excluding UK)

Although the serviced apartment sector

in Europe is relatively small compared to

the US market, it is growing at an ever

faster pace. In addition to global playerssuch as Marriott Executive Apartments

and Singapore-based Ascott Group, some

local players such as Adina Apartments

and MaMaison Residences have emerged.

Adina has set up its first hotels in

Copenhagen and Budapest, and is now

actively looking into the German market,

with two definite projects in the pipeline

to challenge Derags market-leading

position with over 3,000 apartments.

MaMaison, owned by the Orco Group,has a portfolio of full service hotels and

extended stay residences in central and

Eastern Europe.

Accor has developed dedicated extended

stay products in Europe; the company is

expanding strongly in Europe with the

Suitehotel brand and the Pierre & Vacances

joint venture Adagio. The latter will see

22 midscale and upscale properties

developed, and by 2012 the companies

expect to have 50 hotels (6,500 apartments)

in operation, with the joint venturemanaging some180m.

The Ascott Group operates three distinct

brands to capitalise on different target

markets: the exclusive Ascott, the upscale

Somerset and the mid-market, family-

oriented Citadines. And when Staybridge

opened their first European externded

stay hotel in Liverpool, this marked the

first in a planned 14 openings across the

EMEA region to take the chain to a

targeted 180 properties worldwide.

Major Extended Stay Brands in Europe

Brands Properties Units Locations

Accor

Suitehotel 20 2,566 Germany, Austria, Switzerland - 6hotels

France - 14 hotels

Adagio * 16 2,300 France and Italy

Ascott Group

Ascott 45 4,944 France - 3,522 units

Somerset UK - 851 units

Citadines Belgium - 322 units, Spain 131units

Germany - 118 units

Fraser Hospitality

Fraser Suites 8 633 London, Paris

Fraser Place

Fraser Residence

Marriott

Executive Apartments 4 265 London, Budapest, Prague, Brussels

Orco Group

MaMaison 4 144 Bratislava, Prague, Warsaw, Budapest

Prem Group

Premier Apartments 12 600 UK, Dublin, Antwerp

Premier Suites

Toga Hospitality

Adina Apartments 3 350 Copenhagen, Budapest, Berlin

* In a joint venture with Pierre & Vacances

Source: HVS Research

Comparison of Pro Forma Operating Performance

Factor Full Service Extended Stay

Number of units 100 100

Occupancy 70% 75%

Average Rate ()* 100 100

Room Nights Sold 25,550 27,375

DOF 1.3 1.3

Length of Stay 2 days 10 days

Room Revenue () 2, 555, 000 2,737,500

F & B Revenue higher lower

Total Revenue higher lower

Operating Expenses 45-65% 25-45%

GOP (Gross Operating Profit) 25-45% 45-65%

* The difference between the full service and the extended stay product is highly

dependent on market conditions

Source: HVSs Estimates



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Beijing Phillipines Bangkok Bombay

Squaremetres

Major Asian Cities

0

50

100

150

200

250

Average Room Size

Studio

1 Bedroom

2 Bedrooms

3 Bedrooms

4 Bedrooms

India

Since January 2007, the price of real

estate in India has increased by more

than 40% in some parts of the country.

The countrys GDP grew at a robust rateof 8.4% during 2005/06 and this level of

growth is expected to be sustained in the

coming years. The supply of hotel rooms

in certain key cities in the country does

not and will not meet demand in the

short term.

Despite the ongoing expansion of the

Indian economy, increasing number of

multinationals coming into India, and

a surge of single woman travellers,

serviced apartment are currently availablein only a few Indian cities.

In Mumbai however there is an abundance

with players like Taj Wellington Mews,

Lakeside Chalet Marriott Executive

Apartments, the Grand Hyatt Residences,

and the Grand Residences attached to the

InterContinental, with a total of 400 units.

Serviced apartments are starting to open

in secondary cities like Gurgaon and Noida

in the National Capital Region (NCR) due

to availability of large land parcels and theactive demand from multinationals, some

of which have relocated their corporate

base outside New Delhi.

Along with Gurgaon and Noida,

Bangalore and Hyderabad have surfaced

as major markets for serviced apartments;

these cities have also seen a few

independent, unbranded serviced

apartment players active.

Unlike Singapore, where a minimumseven-day requirement is mandatory for

a product to be classified as a serviced

apartment, the rule of length of stay is

non-existent in India, and it is possible to

stay in many serviced apartments on a

daily basis.

ThegraphbelowshowsaninterestingsplitoftypesofapartmentinAsia, a demonstration of the stage of the development ofthe serviced apartment industry in each locationwhichwill be interesting to track in futureGlobal Reports.

Beijing Phillipines Bangkok Bombay

Number

Ma or Asian Cities

0

10

20

30

40

50

60

70

80

90

Average Number of Rooms

Studio

1 Bedroom

2 Bedrooms

3 Bedrooms

4 Bedrooms

Increased demand is prompting

international and Indian property

developers to cash in on the growing

need for one-bedroom, one-kitchen

service apartments in cities like Pune,

Bangalore, Chennai and Kolkata.

Many southern India-based real estate

companies, including Hindu Properties

and Puravankara, are also evaluating the

potential of serviced apartments.

Oakwood Asia Pacificthe worlds largest

rental housing solution company,

opened a portfolio of luxury, serviced

apartments in Mumbai, Bangalore and

Pune during 2007 and will have done

so in Chennai by the end of 2009.

33

Source: HVS International Research

Source: HVS International Research


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Middle East

2008 research by TRI Consulting reveals

a 23% annual growth in serviced

apartment and hotel developments in

the Gulf, This will mean an extra 77,872rooms coming on stream in the region

by 2010, an increase in room supply of

86% in just three years.

By November 2007, 125 serviced

apartment blocks were registered with

Dubais Department of Tourism &

Commerce, representing 10,202 units;

an annual rise of 11%. By 2010, this

figure will have risen by another

73 blocks, and 12,235 units.

In the UAE, serviced apartments are

growing in popularity especially for

business travel due to the shortage of

hotel bed space. In Dubai, for example,

the average length of stay in a serviced

apartment in 2007 was just 4.29 nights.

Source: Dubai Department of Tourism & Commerce.

Up to 2004, Marriott Executive Apart-

ments were the only player of note and

targeted the longer stay guest. Four years

on, apartments are catering for people

staying for shorter periods who cannotfind hotel rooms.

Another consequence of this under-supply

has been a sharp price rise for serviced

apartments in the region. The average

monthly rate in an extended stay hotel is

$8,000+; however the comparable hotel

rate would be 150% higher.

In May 2008 Emirates Hotels & Resorts,

the premier hospitality management

division of Dubai-based Emirates Airlineentered the serviced apartments sector

with the opening of the Green Lakes

Serviced Apartments, comprising 283

one, two, and three bed apartments.

Dusit is following suit with several

developments in the region. The Dusit

Residence on The Palm comprises 180

two bedrooms, three bedrooms and

townhouses. The Dusit Residence at Dubai

Marina has 151 units and offers penthouse

suitesand one to three-bedroom apartments.

The expansion in Dubai and volume

of expats in the community means

that there is already a large stock of

independent apartment operators

of all types. The main international

players will continue to see this as alucrative market for expansion for both

the corporate and leisure market

In Abu Dhabi, plans are underway to

launch the Dusit Thani hotel with 593

rooms and suites, complemented by over

400 apartments by Dusit Residences, to

offer a complex of over 1,000 accomm-

odation options.

UK

According to PwC, compared to almost

240,000 rooms in the extended stay

hotel sector in the US alone, in 2007 the

branded UK sector comprises mainly

serviced apartments and residences and

accounts for around 3,400 rooms.

Management agreements are one of the

key ways operators have grown in the

UK. Of shorter duration than most hotelmanagement contracts (10 years),

operators obligations cover the appearance

of the property, maintenance of the

business, standards of the operation,

quality of service, repairs and maintenance,

fixtures & fittings. The operator will

normally charge a management fee

equating to 3% of total revenue

and 10% of Gross Operating Profit.

UK Serviced ApartmentMarket

Units Average Units per bldg

Central London 6,234 45

Manchester 338 66

Birmingham 268 32

Leeds 143 36

Bristol 125 31

Edinburgh 207 19

Cardiff 42 21

Source: Savills



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Management agreements allow operators

to increase the size of their inventory at

relatively low risk, whilst for the buildings

owner; the units are operated under a

recognised brand name enhancing

occupancy and returns.Source: Savills UK Serviced Apartment Market 2008

Some commentators believe that

branding will be key to raising the profile

and appeal of serviced apartments in the

UK, and by widening the appeal of the

product will open the sector up to new

sources of demand and expansion. At

the moment however branding does not

appear to be the major attraction for

agents nor bookers in choosing a serviced

apartment.Source: The Apartment Service 2008 Global Survey

The increased adoption of tourist board

grading will help bring some uniformity,

and is likely to bolster demand from the

leisure sector.

Although the continued slowdown in

the US economy may have implications

for serviced apartment demand in the

UK, the potential business from the

emerging economies of China and India

may counteract any fall in demand fromUS corporates. The economic situation

will also encourage corporate buyers to

look at serviced apartments within their

mobility programmes as potential means

to save on their transient spends.

increased adoption oftourist board grading willhelp bring some uniformity

35


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USA

According to the Corporate Housing

Providers Association, there were 1,095

Corporate Housing operations in 2007

compared to 932 in 2006.

However fast-growing extended stay

lodging continues to outpace the

industry with a growth rate about nine

times that of hotels overall.

Source: the Highland Group

If present trends continue, extended stay

room supply will rise by more than 7%

in 2008, the highest increase since the

10% jump in growth in 2001.

This growth has seen InterContinentalHotel Group's Staybridge Suites open its

100th property (in Tallahassee), with

another 30 properties under construction;

Hilton's Homewood Suites set to open

its' 200th property in 2008; Marriott

with two fast-growing extended stay

brands and Residence Inn with more

than 500 properties and another 130

under construction.

Corporate housing was a $2.95 billion

dollar industry in 2007.

Source: Corporate Housing Providers Association [CHPA]

Corporate Housing Industry Report

2008) up 20% from $2.46 billion in

2006. The industry gained over 10% in

occupied units, 11.5% in average rate

and 1.4% in inventory.

US operators predict 1.4% inventory

expansion in 2008, anticipating

economic recovery, although the pace of

the economy into 2009 may cause the

sector to contract slightly. Corporate

housing inventory increased by 1.4% in2007 and is projected to gain about the

same in 2008 over 2007. This is in line

with growth of supply in the hotel

lodging market. According to Smith

Travel Research, US hotel supply also

gained 1.4% in 2007 over 2006.

Washington DC is the largest market with

5,734 estimated units; Los Angeles and

New York are the next largest with 4,966

and 5,213 units respectively. Chicago

and San Francisco are comparable with

approximately 3,800 to 3,900 units each.

One-bedroom units are consistently just

under half the US market.

2005 2006 2007 2008

80,000

60,000

40,000

20,000

0

US Historic and Projected Inventory Trend

70,735 76,729 77,789 78,849

Corporate Housing Providers Association

The Voice of the Corporate Housing Industry

The Beginning

The National Interim Housing Network (NIHN)

was the first national organization

established to bring temporary/interim housing

providers together for the primary purpose of

marketing the industry. Led by Ken Hixon and

Bob Greenwald, both from the Dallas, TX area,

the organization attempted to unify marketing

for all member companies to expand businessopportunities for all. Inherently, NIHN was

challenged with marketing an industry of

small business owners managing bottom line

realities and needing an immediate and

specific return on their marketing investment.

With some consolidation of the industry and

some providers expanding faster than others,

the premise of the organization was difficult to

achieve. The organization disbanded after a

few years, however, the foundation of

camaraderie and unity of the industry survives

even today.

The New Beginning

The Association of Temporary Housing

Providers (ATHP) was established in 1996 as a

trade association. The purposes of the Associa-

tion were to provide education to

providers, to strengthen the industrys profes-

sionalism for the betterment of the industry,

and a venue in which members could take off

their competitive hats and work together to

gain recognition for the overall industry. The

founding board consisted of a wide range

of providers from the industrys largest at that

time to a host of smaller and mid-range

providers. As NIHNs membership dwindled,the organization merged with ATHP and

the name changed to The Association of

Interim Housing Providers (AIHP). Changing

the Associations name to incorporate interim

recognized the contributions and history

of NIHN. In 2002, AIHP again changed its

name to the current international trade

association known as the Corporate Housing

Providers Association (CHPA) to more accu-

rately reflect the current industry terminology.

CHPA Today

CHPA continually strives to uphold the highest

standards in business and professionalism,

provide valuable insight, knowledge and

resources to the industry, and increase visibil-

ity among related industries. The Association

continues to mature in both its services to

members and its dedication to the profession-

alism and ethics of the industry. More than

180 corporate housing companies worldwide

currently belong to CHPA. In addition, there

are more than 50 CHPA member companies

worldwide that offer goods or services tothe industry as invaluable partners to the

industrys success.

Over the last 3 years, membership has grown

by 25% new members annually on average.

The high annual retention rate reflects the

value and need for the Association. Today, the

Association serves its members and the indus-

try through:

- a professional certification program,

Certified Corporate Housing Professional

(CCHP)

- an annual conference and awards program,

recognizing excellence in the industry- limitless networking events throughout

North America

- a Code of Ethics


Source: The Highland Group


16/18

In 2007, occupancy in the US corporate

housing industry was 90% and has been

holding at or close to this level for some

time. Source: Corporate Housing Providers

Association [CHPA] Corporate Housing Industry

Report 2008. Nationally, the average stayin a corporate housing unit was 81 days

in 2007.

Accors Studio 6 brand currently flags

910 hotels (92,000 rooms) in the USA

and Canada, whereas Choice pursues a

multibrand strategy with its Comfort

Suites, MainStay Suites and Suburban

brands.

More than 220 Homewood Suites

properties, totalling more than 20,000

suites, are operated by Hilton in the USA.

Summerfield Suites was originally

operated by Wyndham and was acquired

by Hyatt in 2006. By March 2008,

30 Summerfield Suites are in operation

and will shortly be joined by Hawthorn

Suites who are being re-branded

Starwood launched its Element brand in

Lexington, Massachusetts, in early 2008.

Marriott Internationals Executive

Apartments are an extended stay

pioneer, with a handful of successful

properties in European capitals. In many

instances, the apartment building is

adjacent to a Marriott-operated hotel.

Marriott operates two other extended

stay brands in the USA; Residence Inn

and TownePlace Suites. Source: HVS A Home

for the Modern Nomad

In 2007 The Lightstone Group paid

The Blackstone Group $8 million for

Extended Stay Hotels, which owns 683

properties in 44 states and Canada

operating fewer than five brands:

Extended Stay DeLuxe, Extended Stay

America, Homestead Suite Studios,

StudioPlus and Crossland.

Unit Mix

6%

39%

7%

48%

Studio

1 Bedroom

2 Bedrooms

3 Bedrooms

Average stay in days (USA)

2005 2006 2007

Total USA 82 77 81

Boston 85 79 76

Chicago 89 68 85

Denver 89 71 82

Minneapolis 76 61 76

Northern New Jersey 79 79 89

Philadelphia 81 91 77

San Francisco 108 77 76Seattle 63 59 56

Washington DC 99 110 86


37



17/18

A final message fromCharles McCrowManaging DirectorThe Apartment Service

Welcomeby Chris McCrow

I hope you have found this report

informative, interesting and useful from

whichever perspective you are viewing

it - as a buyer or a provider.

This is an exciting time for the Serviced

Apartment sector both in meeting the

challenges of the current global economic

situation and in capitalising on the

growing acceptance that serviced

apartments are viable alternatives to hotels

especially when it comes to longer stays.

We invite you to provide us with your

feedback on this report by visiting the

blog area of our website and, indeed,

if you or a colleague would like to

download any of the articles in the

report, please log on to:

www.apartmentservice.com

At The Apartment Service, we have

some exciting plans for the coming year

to allow bespoke apartment programmes

and data feeds to meet your individual

business rules.

If you are a Travel Manager; Travel

Management Company; Travel Agent;

Web Portal; Letting or Relocation Agent

or a Hotel Booking Agent, we can offer

you real time availability link for online

bookings through an XML link to ournetwork of worldwide serviced

apartments. In addition to this API we

also offer a personalised extranet area.

We aim to build upon our position

as Europes leading booking service for

serviced apartments worldwide and we

welcome your valuable feedback.

Charles McCrow

Managing Director

The Apartment Service


18/18

Established 1981Members of:

Voted BestServiced Apartment

Company 2007

THE BEST OF BOTH WORLDSThe comforts of home when you are away on business

0870 0802303www.apartmentservice.com

The Apartment Service is the largest European booking agent for extended

stay hotels and serviced apartments worldwide.

We offer cost savings and convenient locations to suit every individualbusiness traveller, many SMEs and large corporate clients needs.

The Apartment Service is your gateway to a greater world of choice visit ournew look website, call us directly or email: [email protected]

24. tas industry benchmark final

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