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The Global Serviced Apartments

Industry Report 2008/09

a TIN report

Contents

2-5
About The Apartment Service

6-9
What is a Serviced Apartment?

10 - 23
Industry Overview

24 - 37
Industry Benchmark

38 - 41
Rates Analysis

42 - 47
Chain of Fools

48 - 50
Duty of Care

51 - 53
Tomorrows World

54 - 55
Global Apartment Listings

56 - 60
Ask the Expert

61 - 62
Appendices

24

The Apartment Service Industry Benchmark

Industry Benchmark

by Mark Harris

The Apartment Service estimates that worldwide, in 2008, there are around 452,000 serviced apartments operating in over 7,000 locations, typically with around 60 units per property. Based on average achieved sector occupancy levels, the annual size of the global serviced apartment sector is over USD $18.5 billion.

Market drives 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 of serviced 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 bed nights 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.

In many organisations, apartments now handle half of all bed nights generated for stays of seven nights or more

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

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Corporates Overall Accommodation Usage

Hotels S/Apartments Other

Source: The Apartment Service Global Survey 2008

Hotel v Apartment - Corporate Bookings 120% 1-6 nights 100% 7-14 nights 15-30 nights 1-3 months 60% 3-6 months 6 months - 1year 40% 1 year + 20% 0%
Hotel Aparts Global Hotel Aparts Australasia Hotel Aparts Europe Hotel Aparts N. America Hotel Aparts S. America

80%

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.

26

The Apartment Service Industry Benchmark

Why Serviced Apartments - Corporates by Region Other

Privacy

Asia Aus/Nz

Entertainment at Home India Cook for self M/East S. America Independence N. America Europe

More Comfort Price


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

Source: The Apartment Service Global Survey 2008

Why Serviced Apartments - agents


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

Privacy The option to entertain

The option to cook for oneself Independence

More comfortable environment

More space Price

Source: The Apartment Service Global Survey 2008

Serviced Apartments - selection criteria (buyers by country)

Asia Aus/NZ India Africa M/East Location S. America N. America Europe Global
0 1 2 3 4 5

Recommendation Facilities Price

A brand I trust

Source: The Apartment Service Global Survey 2008

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Serviced Apartments - selection criteria (agents)
0% 5% 10% 15% 20% 25% 30% 35%

Recommendation

Facilities

Price

Location

A brand I trust

Source: The Apartment Service Global Survey 2008

Serviced Apartments booked by type (agents)

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


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

Two bedroom (2 bedrooms with separate lounge) One bedroom (1 bedroom with separate lounge) Studio (room with kitchette)

Source: The Apartment Service Global Survey 2008

Serviced Apartments booked by type (corporates) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
Global Europe N. America S. America M/East India Aus/Nz Asia

Studio (room with kitchenette) One bedroom (1 bedroom with separate lounge) Two bedroom (2 bedrooms with separate lounge)

Source: The Apartment Service Global Survey 2008

28

The Apartment Service Industry Benchmark

% of all stays by average duration - apartment operators

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


30+ nights 90+ nights Global 30+ nights 90+ nights Europe 30+ nights 90+ nights N. America

5-25% 26-50% 51-75% 76-100%

Source: The Apartment Service Global Survey 2008

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.

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

1 year + 6 months - 1 year 3-6 months 1-3 months 15-30 nights 7-14 nights 1-6 nights
0 10% 20% 30% 40% 50% 60% 70% 80%

N. America Europe Global

Source: The Apartment Service Global Survey 2008

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 to 11,963 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-onyear 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 leases in 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) Riverside 1.4% Rama III 6.9% Others 15.8% Sukhumvit 40.7%

CBD

Sathorn, Rajdamri, Langsuan, Saladaeng, Tonson, Silom, Wireless Road, Ploenchit, Suanplu and Rama IV.

CBD 35.2%

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

Total supply of Bangkok serviced apartments (2001-2008F) 16,000 14,000 20% 12,000 10,000 8,000 6,000 4,000 5% 2,000 0%
2001 2002 2003 2004 2005 2006 2007 2008F

25% Total Supply % growth

Units

10%

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

Total supply of Bangkok serviced apartments (2001-2008F) 14,000 12,000 Total Rooms Occupied 10,000 85% Occupancy Rate 8,000 80% 6,000 4,000 2,000 70%
2003 2004 2005 2006 2007

90% Total Supply

75%

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

Occupancy Rates

Units

% Y-O-Y Growth

15%

30

The Apartment Service Industry Benchmark

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.

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 to suit 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 despite the 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 units while Vancouver reports 52%. Extendedstay hotels are less common in Canada than in the US, where they are active in

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 month period 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 is expanding with rooms under construction

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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 a move 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 leasing requirements. 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 attempt to change the bylaws so that furnished housing providers are not allowed to lease for short periods of time.

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.

Canada has a more static inventory than the US due to more stringent leasing requirements

32

The Apartment Service Industry Benchmark

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 players such 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 venture managing some 180m. The Ascott Group operates three distinct brands to capitalise on different target markets: the exclusive Ascott, the upscale Somerset and the mid-market, familyoriented 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 Accor Suitehotel Adagio * Ascott Group Ascott Somerset Citadines 45 4,944 France - 3,522 units UK - 851 units Belgium - 322 units, Spain 131units Germany - 118 units Fraser Hospitality Fraser Suites Fraser Place Fraser Residence Marriott Executive Apartments Orco Group MaMaison Prem Group Premier Apartments Premier Suites Toga Hospitality Adina Apartments
Source: HVS Research

Properties

Units

Locations

20 16

2,566 2,300

Germany, Austria, Switzerland - 6hotels France - 14 hotels France and Italy

633

London, Paris

265

London, Budapest, Prague, Brussels

144

Bratislava, Prague, Warsaw, Budapest

12

600

UK, Dublin, Antwerp

350

Copenhagen, Budapest, Berlin

* In a joint venture with Pierre & Vacances

Comparison of Pro Forma Operating Performance Factor Number of units Occupancy Average Rate ()* Room Nights Sold DOF Length of Stay Room Revenue () F & B Revenue Total Revenue Operating Expenses GOP (Gross Operating Profit) Full Service 100 70% 100 25,550 1.3 2 days 2,555,000 higher higher 45-65% 25-45% Extended Stay 100 75% 100 27,375 1.3 10 days 2,737,500 lower lower 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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India
Average Room Size

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 rate of 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 available in 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 the active demand from multinationals, some of which have relocated their corporate base outside New Delhi.

250 Studio 200 1 Bedroom 2 Bedrooms

Square metres

150 3 Bedrooms 100 4 Bedrooms

50

0
Beijing Phillipines Bangkok Bombay

Major Asian Cities


Source: HVS International Research

The graph below shows an interesting split of types of apartment in Asia, a demonstration of the stage of the development of the serviced apartment industry in each location which will be interesting to track in future Global Reports.

Average Number of Rooms 90 80 70 60 Studio 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms

Number

50 40 30 20 10 0
Beijing Phillipines Bangkok Bombay

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 minimum seven-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. 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

Major Asian Cities


Source: HVS International Research

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.

34

The Apartment Service Industry Benchmark

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 77,872 rooms 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.

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 a lucrative 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 accommodation 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.

Up to 2004, Marriott Executive Apartments 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 cannot find 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 Airline entered 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 suites and one to three-bedroom apartments.

Central London Manchester Birmingham Leeds Bristol Edinburgh Cardiff


Source: Savills

UK Serviced Apartment Market Units Average Units per bldg 6,234 45 338 66 268 32 143 36 125 31 207 19 42 21

Management agreements are one of the key ways operators have grown in the UK. Of shorter duration than most hotel management 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.

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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 from US 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 of tourist board grading will help bring some uniformity

36

The Apartment Service Industry Benchmark

USA
US Historic and Projected Inventory Trend

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

80,000

60,000
70,735 76,729 77,789 78,849

40,000

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 InterContinental Hotel 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]

20,000

0
2005 2006 2007 2008

Source: The Highland Group

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 business opportunities 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 Association were to provide education to providers, to strengthen the industrys professionalism 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 accurately 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 visibility among related industries. The Association continues to mature in both its services to members and its dedication to the professionalism 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 to the 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 industry 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

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% in 2007 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.

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Unit Mix

Studio 1 Bedroom 39% 48% 2 Bedrooms 3 Bedrooms 6%

7%

Source: The Highland Group S

Average stay in days (USA) 2005 2006 Total USA 82 77 Boston 85 79 Chicago 89 68 Denver 89 71 Minneapolis 76 61 Northern New Jersey 79 79 Philadelphia 81 91 San Francisco 108 77 Seattle 63 59 Washington DC 99 110
Source: The Highland Group

2007 81 76 85 82 76 89 77 76 56 86

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, 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 stay in 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.

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.

Welcome
by Chris McCrow

A final message from Charles McCrow Managing Director The Apartment Service

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 our network 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

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