From extended stay to serviced apartments, options abound to make employee transitions easier and more productive
As companies seek greater flexibility and increased value around business travel, one area offering new potential is extended stay alternatives. Increasingly housing that features separate living and sleeping areas, conveniences to support in-room cooking, and more overall space offers choices that many employees and contractors find attractive.
“These conveniences provide a better stay experience for the traveler who seeks a more home-like environment and a more residential location,” says David Holt, director of sales for Oakwood Worldwide. They can also help companies extend their corporate culture into the housing experience with a variety of customized offerings ranging from furnishings to technology support for their business travel executive.
With economic growth prompting business expansion, resulting in new hires and transfers, providers of extended stay options are seeing an uptick in interest. “In many markets, we are continuing to see a steady increase of relocation business in extended stay hotels as the economy has recovered,” says Robert Radomski, vice president, Staybridge Suites & Candlewood Suites, the extended stay brand of InterContinental Hotels Group.
These and other extended stay brands cater to those who are away from home for weeks or months at a time. By offering apartment style suites with kitchens where guests can prepare their own meals, they allow employees in the relocation process to enjoy a more home-like experience.
Equally, travel managers are finding that such options provide an economical alternative to traditional hotel stays.
“Extended stay hotels offer tremendous value not only based on a rate structure that offers incentives for longer stays, but also because of the built-in savings,” says Bill Duncan, global head, Homewood Suites and Home2 Suites by Hilton. He notes that complimentary amenities offered by these brands include free WiFi, full daily breakfast; evening dinner and in some cases drinks Monday through Thursday, as well as a grocery shopping service. All this translates to lower living costs, with savings that Duncan estimates at $30 to $50 a day compared to a full-service hotel catering to the transient traveler.
The combination of potential savings and a better experience for relocated personnel can be a winning one. For example, Staybridge Suites hotels offer “The Social,” a complimentary evening reception, three nights a week, with customizable food options such as sliders, flatbread pizzas and quesadillas and a fresh salad bar option, as well as beer and wine. The brand also offers free hi-speed wireless Internet, free guest laundry and a complimentary daily hot breakfast.
Similarly, IHG’s Candlewood Suites properties feature the “Candlewood Cupboard” where guests can purchase snacks, entrees and other sundries day or night on the honor system. They also offer the “Lending Locker” that lets guests borrow household items to use during their stay such as blenders, crock pots, extra lighting and sporting equipment.
At the same time, staff are encouraged to foster positive interactions. “Staff members often recognize guests that are staying at the hotel for weeks or months at a time by name and create a special sense of family,” Radomski says. “It isn’t uncommon for a guest to borrow a crock pot, make a large meal and share it with others guests and even staff members.”
Holt agrees that when comparing costs among options, more than just the rate should be taken into account. Factors to consider include food, transportation, parking and laundry services, while bearing in mind just what environment will allow the traveler to settle in quickly and be most productive.
As an example of the latter, he notes that proximity to the office is not just a time issue due to the length of the commute. “Location can also be a political choice based on local optics of the corporate impact to everything from traffic to the local rental market,” Holt says. “We see a lot of that in the Bay Area. We have corporate customers who are willing to pay more to be closer in order to support the density of their employee base, create an easier living experience, and remove themselves from local conflict.”
Expanding Presence
Historically, a typical setting for an extended stay facility might be a suburban location near office parks and government buildings with few dining or entertainment options nearby. But other alternatives seem to be gaining in popularity.
“Today, we are seeing significant development in more urban locations to meet the needs of guests who desire extended stay accommodations for longer stays through relocation, training or project work,” Radomski says.
Duncan says that the focused service segment, and specifically extended stay hotels, are now enjoying something of an urban renaissance. With smaller land parcels available for development and owners seeking reduced financial exposure, one result has been the opening of new extended stay hotels in downtown areas where traditionally there were fewer options for long-term stays.
For Homewood Suites and Home2 Suites, that has included opening new hotels in New York, Chicago, Dallas, Atlanta and Denver over the past two years. And this year additional properties in Miami, Los Angeles, Palo Alto and Washington, DC, are scheduled to open.
Recent developments have also seen a growing international focus, both in terms of firms sending employees to the US and in overseas options for employees of US companies. “Over the past couple of years, we’ve seen more and more companies expanding outside the borders of their home country,” Holt says. “Globalization is driving a demand for extended stays in established and emerging markets.”
For IHG, the Staybridge Suites brand in particular is showing international growth potential. The company is now targeting the Middle East, Africa and Europe where the goal is to be an extend-stay segment leader.
The international angle may give added emphasis to the demand for attractive housing options. “Recruiting, retaining, and developing talent in a truly competitive environment means corporations need an edge, especially for global assignees,” Holt says. “We are hearing our clients use the phrase ‘over-caring’ when referring to their associates on extended assignments. This rings true for the Millennial generation who expect an overall stellar assignment experience.”
Such an approach may find its value in competing with the on-site job perks many companies now offer employees, such as barber shops and free dry cleaning. In supporting higher quality off-site housing experiences, travel managers can help achieve greater alignment with the overall experience for global employee.
Multiple AdvantagesHolt points out that the corporate housing option can help conscientious travel managers take the guesswork out of securing long-term lodging.
“Serviced apartments are often in close proximity to work sites, saving time and transportation costs, which results in greater staff productivity,” he says. “Depending on the needs of the company and the regional offerings, corporate housing providers offer customers solutions ranging from studios to three-bedroom apartments, and in some locations even villas or guesthouses.”
Other possible advantages include advanced security and fewer errors with up-front housing arrangements. In making choices, travel managers will want to consider the benefit of mitigating potential risks and minimizing the impact of unanticipated challenges that may arise.
“Communication is of paramount importance,” Holt says. “This would include such things as a pre-travel briefing, travel confirmations, access to information while in transit and a back-up plan to ensure business continuity.” Such factors are more likely to be considered by an experienced corporate and serviced apartment provider, he adds, who will be committed to delivering cost-effective solutions while keeping the assignees satisfied and productive.
For travel managers, expanded options also include opportunities for potentially beneficial partnerships. “Companies should strive to provide employees with the flexibility to choose from a range of housing options and amenities that best meet their needs and preferences,” Holt says. “Partnering with a global housing provider can help you provide a customized solution within a wide array of housing options and budget parameters.”
He adds that travel managers may wish to consider streamlining their travel operations by partnering with a provider that can help manage both shorter-stay business accommodations and longer-stay corporate housing needs, together under one convenient umbrella.
For travel managers, the key is to focus on total living cost and the ability to easily manage the stay, says Duncan. “Extended stay hotels offer the guest convenience, and the employer built-in value, reliability, and the benefit and proven track record of working with a major hotel operator,” he says.
On the other hand, Holt maintains that once companies realize the benefits of corporate housing and serviced apartments and include them in the array of choices offered to their travel employees, things may not be as simple as, “if you build it they will come.”
“There is a robust middle step involved for companies to socialize the inclusion of serviced apartments into travel programs to help employees understand the benefits to them,” he says. “Travel managers can collaborate with their global housing provider to help educate employees and develop customized solutions that inform them of tradeoffs with different types of lodging in order to change behavior and business results.”
Regardless of the approach, extended stay arrangements provide travel managers – and through them employees on the move – with a range of desirable options.
“There is a huge opportunity with extended stay hotels to offer accommodations for employees relocating or traveling for weeks or months at a time,” Radomski says. “These properties are able to accommodate guests relocating and meet those specific needs in many ways that a traditional hotel cannot do.”