For years, businesses were relatively locked into the traditional hotel model when it came to booking accommodations for their traveling employees. This was typically true whether those employees were heading out for a few days or planning an extended stay out of the office. These days, it’s fair to say that things have changed drastically. The rise in popularity and accessibility of fully furnished corporate rentals has successfully come to the forefront of options for businesses to consider. No longer are companies strictly looking at extended stay hotel options when sending their employees out for business projects, conferences, or multi-day meetings. Instead, they are more often than not leaning into corporate vacation rentals that offer a much more personalized experience. The shift seems to be a reflection of a broader transformation across the landscape of business travel altogether, which is emphasizing a focus on finding more practical, personal, and effective housing solutions no matter where business travelers may roam. In many ways, the rise of fully furnished corporate rentals has come down to a desire among business travelers for lodging that’s comfortable, convenient, cost-effective, and welcoming. Their employers have listened, and many businesses are now getting on board with this rising trend.
What Really Defines Corporate Housing?
Before you can fully understand why corporate rentals have seen such a boost in popularity across the business world in recent years, it’s important to understand what defines a property option of this type. Unlike a traditional hotel, where business travelers would be booked into a single room for the duration of their stay with potential access to shared on-site amenities, corporate housing is made up of fully furnished homes and apartments. These are typically investments made specifically to cater to mid-term stay travelers like business professionals who would be heading into town for extended conferences, remote work, or conventions. Whether corporate travelers book a stay in a corporate rental for weeks or months at a time, the setup is typically similar. These properties stand apart from the traditional hotel model due to their fully furnished nature. Corporate housing is designed to feel like a true home-away-from-home experience for travelers with elements in place that make a stay feel as comfortable as a permanent residence. Property options often include fully equipped kitchens, comfortable and fully furnished living spaces, cozy bedrooms, and utilities and internet included in the lineup too. The idea is to make the move-in experience absolutely seamless, and the stay as inviting and customized as possible.
Who Benefits Most from Corporate Rental Options That are Out There on the Market?
The rise of corporate rentals as a preferred option among businesses for their traveling employees could be due in large part to the vast appeal of properties of this type. Corporate rentals cater to many specific, yet varying professional needs, and offer up flexibility in this respect that really sets them apart from a standardized hotel room. Corporate housing rental options work extremely well for individual business travelers who are heading out for weeks or months at a time to complete extended assignments. They’re also a terrific option for contractors and consultants who are being hired on for projects that are temporary, but need to be close to a project site and feel like a true home-away-from-home. Many traveling physicians and nurses find corporate housing to be a more welcoming and relaxing experience than a traditional hotel while these property selections appeal to film and production crews traveling to create art on the road as well. Many businesses have even leaned into corporate housing when they’re relocating employees and their families on a more permanent basis. These inviting properties that are set up with everything families might need upon arrival are great interim housing options while the employee and his or her family are on the hunt for a forever home in a brand-new city.
Why Is the Corporate Housing Business Proving to Be So Profitable in the Modern Work World?
The reasons one could point to when it comes to why businesses are choosing fully furnished corporate vacation rentals over hotels en masse are vast and varied. Overall, there seems to be an awareness around just how lucrative this business model is on the flexibility front for businesses and employees alike. Work trends are changing, and mid-term accommodations are perhaps more necessary than ever before. Project-based work is seeing a rise in popularity, which lends itself seamlessly to a growing demand for extended stay accommodations. While a hotel room can comfortably accommodate a business traveler for a few days with basic amenities in place, it’s understandably tough to compete against a corporate rental selection that has world-class amenities included on arrival and effectively gives a traveler everything they need right at their fingertips from the moment they step through the door.
Similarly, many companies post 2020 recognized the power of including a remote workforce into their business model. Whether companies support fully remote employees or are investing in hybrid models, this transition goes hand-in-hand with embracing the benefits of corporate housing options. As the demand for flexibility rises and workers move out of traditional offices into full or part-time remote work scenarios, access to temporary housing that’s comprehensive, accessible, and close to work locations across the globe becomes more important than ever.
Currently, industry analysts are firmly predicting steady growth in the corporate housing market well into 2029. The team at Global Market Estimates is pointing to a compound annual growth rate in the industry of around 6.5% during this timeframe, driven primarily by the ever-increasing demand for flexible housing accommodations among business travelers, an increase in professional relocation, and a boost in business travel trends overall.
The Cost Comparison Between Hotels and Corporate Vacation Rentals Is Key to the Rise of Corporate Rentals
While a growing demand for flexible and fully customized accommodations among business travelers is certainly one key point in the rise of corporate rental popularity over traditional hotels, the cost factor can’t be overlooked. Businesses are seeing that compared to traditional hotel stays, corporate housing is significantly more cost-effective. When booking a traditional hotel stay for an extended time, companies may enjoy a partnership discount, but a nightly rate still applies. In comparison, corporate housing options are set up to be priced out by the week or month, making them much more affordable for companies and employees over time.
Yet another cost benefit to consider with corporate vacation rentals is the fact that many come with internet access and utilities included, effectively cutting costs upfront. When companies book a stay for their employees in a corporate rental with a kitchen included, the cost of having to dine out or utilize a hotel restaurant daily is minimized as well as employees can serve up home-style meals instead. In general, it’s estimated that booking an extended stay in a corporate rental can save companies up to 25% compared to a traditional hotel booking. Depending on the location of the corporate rental, there’s a chance that 30+ night stays are also exempt from occupancy taxes, which can bring costs down for guests even further.
Productivity & Comfort: How the Environment A Company Books Affects Employee Performance
The environment an employee works in day in and day out can have a huge impact on their overall mindset and, ultimately, their professional performance. This is the reason companies invest in keeping their offices in top shape, and the same reason more businesses than ever before are depending on corporate rentals over hotels when they send employees out on the road for extended periods of time. Far too often, an uncomfortable hotel that doesn’t have the basics in place can leave a business traveler feeling less than their best for important meetings, conferences, and gatherings. Companies that want their employees well rested, feeling confident in their workspace, and able to find their peace of mind in their surroundings are quickly discovering they can accomplish this by choosing corporate rental solutions. Business travelers who have a comfortable and well-equipped living space to enjoy are typically more productive overall and equally more focused on what they’re in town to accomplish. There’s no energy wasted on trying to find a place to work and live that’s comfortable and convenient. Instead, they can make the most of an authentic home-away-from-home experience from the moment they arrive. Options to customize a stay further that’s close to public transportation, has on-site laundry facilities, includes high-end furnishings, or comes with an inspiring view only further enhance employee satisfaction and long-term engagement in their projects.
What Companies Can Look for in a Corporate Stay
Yet another factor that plays into the rise of corporate rentals in the modern work world is the fact that, unlike standardized hotels, corporate housing comes with options to pick and choose the amenities that work specifically for your employees. Companies are invited to book corporate rental options for their team members that feature fully equipped living spaces complete with plush sofas and loveseats as well as inviting dining sets, quality beds throughout, and bedroom furniture that makes it even easier to settle in such as bedside tables, dressers, walk-in closets, and windows with evening coverings in place. Corporate rentals are tastefully decorated throughout, and often come with starter toiletries and linens too such as shampoo, toilet paper, soap, kitchen towels, and high-quality linens. Booking a corporate rental for employees that includes a full kitchen can also mean providing them with access to a culinary space complete with a coffee maker, toaster, full-sized refrigerator, oven, and dishwasher. Glassware, utensils, cutting boards, cutlery, and cookware are often part of the corporate rental experience for employees too.
While hotels and corporate rentals have housekeeping services in common, the difference is often that in a corporate rental, employees have options to pick and choose service dates so as not to be distracted when working on projects in their home-away-from-home. Many corporate rentals also come with dedicated and convenient parking options in place as well as electricity, gas, and water already included in their stay. From the fact that cleaning supplies are provided in many corporate rentals to options to book a stay with a gym or pool within easy reach, making it a place where employees feel at home is easier than ever.
Privacy and Security Can Be Prioritized in Corporate Rentals
With the increase in business travel and the growth of a remote workforce comes the need for an enhanced focus on privacy and security across accommodation options too. Part of the rise in popularity of corporate rental options across businesses comes down to the fact that corporate housing excels on this front. Because hotels serve guests in large numbers on a daily basis, there are always people coming and going. Alternatively, corporate housing typically sits in smaller communities or within safe, residential neighborhoods that are quiet, inviting, and dedicated to serving professional business travelers. There’s also a lot to be said for knowing your employees will be enjoying a private home-away-from-home to work and live in, with dedicated security systems set up and no sharing of amenities required. Oftentimes, corporate rental communities even come with 24/7 on-site management, which provides business travelers with that peace of mind they’re looking for while out of the office.
The Future of Business Travel Accommodations Is Looking Bright
There’s a good chance that the greater landscape of business travel will continue to evolve throughout the duration of 2025 and well into the future, leaning even more heavily into the benefits of corporate vacation rentals over traditional hotels. As hybrid and remote work models grow in popularity, business travelers will understandably continue to look for housing options out of the office that are flexible, convenient, and focused on overall well-being. At iHost, we’re excited to be a part of this ever-growing industry and proud to provide premium corporate housing solutions to a wide variety of relocating employees, business travelers, and project teams year-round. Reach out today to learn more about our convenient, fully furnished, and refreshingly comfortable accommodations that will give you the opportunity to focus on work, feel welcome in your temporary home, and remain close to the places you need to reach when you’re out of the office for weeks or even months at a time.
