Cost Savings: Corporate Housing vs. Hotels
Managing a traveling workforce is a significant operational expense. From transportation and per diems to lodging, the cost of a long-term hotel stay can add up quickly. Many companies default to booking extended hotel stays for their employees, assuming it’s the simplest option. However, this common practice can lead to a leaking budget, with hidden fees and daily expenses chipping away at your bottom line.
When your project requires employees to be on-site for weeks or months, it’s crucial to compare the costs of a hotel vs. corporate housing. While hotels serve a purpose for short trips, a more strategic approach can unlock substantial savings, improve employee morale, and simplify your administrative workload.
Corporate Housing vs. Hotels: What’s the Real Difference?
Before diving into the numbers, it’s important to understand the fundamental differences between these two lodging options.
- Hotel Stays:Â Designed for short-term, transient guests. You get a room with a bed and a bathroom, usually charged at a daily rate plus significant occupancy taxes. Space is limited, and amenities like kitchens are rare, forcing employees into a temporary, often inconvenient, lifestyle.
- Corporate Housing:Â Specifically designed for stays of 30 days or more. This category includes fully furnished apartments, extended-stay setups, and specialized workforce lodges or “man camps.” These accommodations are move-in ready and include amenities designed for genuine living: full kitchens, in-unit or on-site laundry, and separate living and sleeping areas.
The core distinction is purpose. Hotels are for visiting; corporate housing is for living.
Cost Comparison: How Much Does Corporate Housing Cost?
While pricing varies by location and season, the financial advantage of corporate housing becomes clear over a longer stay.
- Long-Term Hotel Stays: A mid-range hotel room can average $120 to $200+ per night. Over 30 days, that’s $3,600 to $6,000+ per employee, before factoring in daily parking fees, resort fees, and high local and state taxes that don’t apply to longer-term leases.
- Corporate Housing: The average monthly cost for a one-bedroom corporate apartment often ranges from $2,500 to $4,500. This rate typically includes utilities, high-speed Wi-Fi, laundry facilities, and full kitchen access—all things that cost extra at a hotel.
For work crews, the savings multiply. A three-bedroom workforce lodge unit can house multiple employees far more affordably than three separate hotel rooms, dramatically lowering the per-person cost.
Hidden Costs of Living in a Hotel for Work
The sticker price of a hotel room is only the beginning. When an employee is living in a hotel for work, numerous hidden costs emerge that inflate your total spend:
- Dining Out: Without a kitchen, employees are forced to eat at restaurants for every meal. This expense, whether covered by a per diem or reimbursed, can easily add $50-$100+ per day.
- Laundry Costs:Â Hotel laundry services are notoriously expensive.
- Parking Fees:Â Daily parking at hotels in many areas can add hundreds of dollars to a monthly bill.
- Facility & Resort Fees:Â Many hotels add mandatory daily fees for access to amenities like the gym or pool.
- Peak Season Surcharges:Â Hotel rates can skyrocket during holidays, local events, or peak seasons, making budgeting unpredictable.
- Productivity & Morale:Â A cramped hotel room is not conducive to long-term comfort or productivity. Employee burnout is a real, though less tangible, cost.
Why Corporate Housing Is Often the More Affordable Option
When you look at corporate housing vs. hotel costs, it’s clear why affordable corporate housing is the superior choice for extended assignments.
- Lower Monthly Rates:Â A fixed monthly rate is almost always lower than the cumulative cost of 30 nights at a hotel.
- Kitchens Reduce Meal Costs:Â A full kitchen empowers your team to cook their own meals, drastically reducing food expenses.
- All-Inclusive Pricing:Â Utilities, internet, and other essentials are typically bundled into one predictable price, eliminating surprise fees.
- More Space, Better Value:Â More square footage, separate living areas, and a comfortable environment lead to better-rested, more productive employees.
This makes corporate housing the ideal solution for long-term projects, employee relocations, and rotational crew assignments.
Corporate Housing Benefits for Business Travelers & Crews
Beyond the corporate housing vs. hotel cost debate, the practical benefits for your team are immense.
- A Home-Like Environment:Â A comfortable, private space helps employees rest and recharge, boosting morale and job satisfaction.
- Greater Productivity: Separate living and sleeping areas provide a proper workspace that isn’t a hotel bed.
- Scalable for Crews:Â Companies like CHS can provide centralized man camps to accommodate small or large crews, complete with dining halls, recreation centers, and 24/7 security.
- Consistency and Reliability:Â You get a reliable, standardized setup every time, ensuring your team has everything they need to settle in quickly.
FAQs about the Cost Benefits of Corporate Housing
Is corporate housing cheaper than hotels?
For stays of 30 days or more, corporate housing is almost always cheaper once you factor in the lower monthly rates and savings from included amenities like kitchens and laundry.
How much does corporate housing cost?
Corporate housing pricing varies by location, size, and amenities but typically ranges from $2,500 to $4,500 per month for a one-bedroom unit, with multi-bedroom and crew options offering a lower per-person cost.
Is it better to live in a hotel or an apartment for work?
For short trips of a few days, a hotel is convenient. For anything longer than a couple of weeks, a corporate apartment or lodge provides far more comfort, space, and value, making it the better choice for both the employee and the company’s budget.
What are the cost advantages of corporate housing for long-term stays?
The main advantages are lower base rates, no daily hotel taxes, bundled utilities and Wi-Fi, and significant savings on food and laundry costs.
Why Companies Choose CHS for Corporate Housing
Juggling lodging logistics for multiple employees across different locations can be a full-time job. Corporate Hospitality Services (CHS) simplifies the entire process. We work for you, not the hotels, to find the best solutions for your budget and needs.
Here’s how we make a difference:
- Consolidated Billing:Â Forget juggling dozens of invoices. We provide one simple, itemized invoice for all your lodging needs, whether your team is in hotels, apartments, or our own workforce lodges.
- One Vendor for Everything: We can book hotel rooms for your executives, apartments for project managers, and lodge accommodations for your crews—all managed through a single point of contact.
- 24/7 Human Support: Our online portal makes management easy, but when you need help, you’ll reach a real person dedicated to solving your problem, day or night.
- Flexibility and Scale: With broad coverage across Texas and New Mexico, we handle rotating crews and shifting project timelines with ease. Learn more about our company-owned man camp housing solutions.
Contact CHS for Custom Corporate Housing Solutions
Stop overspending on inefficient hotel stays. With CHS, you can experience the ease of housing your entire workforce with just one call. Let us handle the corporate housing details, so you can concentrate on what you do best.
Contact us today to discuss your project needs and get a custom lodging quote.
