Corporate Housing Roundup – Chicago
What You Need To Know About Recent Chicago Housing Industry News
The corporate housing and short term rental markets in Chicago continues to thrive. In fact, it is growing and competing with other markets all over the nation. In recent industry news, there is much going on. Everything from air travel tips, why to get into the business itself, five rental predictions for 2017, national comparisons to Chicago, and even hospitality technology studies.
1. Hotels vs. Corporate Lodging
Global Corporate Accommodations, a corporate housing provider down in Texas, created this infographic detailing the differences between hotels versus corporate lodging. They reported the average corporate housing stay for them is 83 days. They also argue hotels and extended stays do not save money if you end up staying longer than 30 days. Since the average meal out costs a person $12.75 and since hotels charge 15-17% more in taxes, corporate housing options seem the better deal financially especially given that apartments offer 61% more square feet than a hotel room.
2. Five Rental Predictions for 2017
1. 2017 will see a stabilization of overall rental rate appreciation.
2. As Millennial’s get older, homeownership rate will increase slowly.
3. Suburbs will see a resurgence of new renters due to Baby Boomers.
4. Due to rising construction costs, new home costs will increase in 2017.
5. 2017 will see an overall increase in interest rates.
3. Why To Invest In The Corporate Housing Business
Earlier this week the Corporate Housing By Owner (CHBO) blog reported on “Why to Invest in the Real Estate Corporate Renting Business” and there were several interesting points. Out of the gate, they claim “Corporate rental real estate is the model to consider…when looking for a solid investment with a nearly guaranteed return.” They also point out that customization makes the business more profitable. This is also something we here at Corporate Suites Network do, too: it all starts with the client’s needs. And, just like Global Corporate Accommodations, CHBO stresses corporate rental properties are more cost effective. But at the end of the day, it’s not all about the money, either. The corporate housing choice also “gives the traveling professional a far more home-like, comfortable and appealing setting.” We could not have said it better.
4. Airline Industry News
If you’re a corporate traveler used to staying in corporate housing, then you’re most likely fairly comfortable with the airline industry. Or, even more likely, fairly uncomfortable. PC Housing’s blog this week reported on some recent airline trends, some a little unsettling. Does it seem like airline computers are crashing more? Bloomberg certainly thinks so in a recent article. In the last three years, the following airlines have experienced serious technology issues: Delta, United, Southwest, Jetblue, and American. All combined they nearly come out to 10,000 canceled flights and even more delays. The cause? “Legacy hardware mixed with new technology, mergers, and the primacy of safety.” But even if you do end up in the air, there exists other problems — chiefly, the “economy fare.” The big carriers, Delta, United, and American, will soon roll out the “Basic Economy” fares. The bottom line? They’re not much of a deal after all, and you get what you pay for. Or, worse, you may get automatically stuck in the middle seat.
5. National Corporate Housing Cost Comparison
Corporate Housing recently published an article with an interesting corporate housing cost comparison. It compared New York, San Francisco, and Chicago’s hotel and corporate housing rates. For the Chicago rates, the average hotel rate went for $172 per night. Compare that with the corporate housing average rates of $112 for a studio and $133 for a one-bedroom apartment! Depending on the size of the rental, then, staying in a corporate housing option will save you 35% or 23%. Oh, and the best part? If you stay in corporate housing longer than 30 days it’s generally tax-free.
6. Why Veterans Should Get Involved With Corporate Housing
Corporate Housing Providers Association, a trade association dedicated to supporting corporate housing providers like us, traded a guest blogger from AvenueWest, Jennifer Yick, to discuss the five reasons veterans should consider employment and entrepreneurship in corporate housing and property management. Jennifer Yick, a veteran herself, broke it down into five succinct points:
1. Veterans operate well under pressure.
2. Veterans are organized and detail oriented.
3. Veterans thrive at non-traditional jobs.
4. Veterans excel at communication.
5. Veterans are trustworthy
7. Hospitality Technology Study
One of the biggest industry outlooks did not come from the ranks of corporate housing providers, but from the hospitality industry. Hospitality Technology released its annual Lodging Technology Study and many parallels to the corporate housing industry can be found from its findings. Out of all of the respondents to the study, half responded that IT budgets would increase in 2017. These budgets, however, aren’t going to the usual suspects — the monies are being spent on increasing infrastructure for increased data and analytics. A heavy focus this year in the report was the “frictionless” customer experience. “Hoteliers have realized that in order to give customers the seamless, personalized experiences they want from booking to check-in/check-out, heavier investment in analytics is warranted.” How corporate housing providers this year will response to this charge will be very interesting.