In Hospitality, the most accessible extended stay properties are found in suite hotels, extended stay hotels, corporate apartments and various vacation rentals. Since the mid 90's suite hotels have increased to over 400,000 units while other sectors in extended hospitality, specifically vacation rentals and corporate apartments have grown at a much lesser pace.
What could be the reasons for the aggressive changes in suite hotels over other sectors? Many reasons may show why, but availability to the public, streamlined reservations and on-line booking pose a serious challenge to this sector in the industry.
As technology continues to increase new marketing and branding opportunity continue to present providing a much needed increase and marketing push to corporate apartments. New services such as Citi-Link.com are providing new opportunity to find and book corporate rental services on-line. Booking comparable to finding and reserving hotels.
Corporate apartments are an extremely viable resource for anyone needing to stay for 30 days or longer with an extended travel or real estate needs. Offering double the space of hotel rooms, full kitchens, actual bedrooms and a home line atmosphere, corporate apartments crush suite hotels in both price and amenities.
Other than a continental breakfast and additional flexibility to come and go as you please with short notice corporate housing offers more on all levels. Even so, flexibility of short notice is costly and in the end you pay more.
When looking at total cost of corporate apartments vs. hotels corporate apartments rates are all inclusive; however hotels and suite hotels often have hidden costs that don't look so good after they all add up.
For example: A suite hotel may cost $85 per night, but after adding $10 per day in taxes, $10 in parking the rate for a 400 sq ft hotel adds up to $95 per night. Corporate companies also are typically required to provide employees daily per diem on top to cover for food with lack of cooking capability. By the time all these costs add up you are spending $125 - $150 per day for 400 sq ft where a corporate apartment may cost you $85 to $95 per day all inclusive for 800 sq ft.
The benefits begin to outweigh suite hotels very quickly when once starts to add up hidden costs that really hit the pocket book.
by: Andrew Gaona
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