LOS ANGELES - March 24, 2000 - Commenting on today's acquisition of corporate housing entity Bridgestreet Accommodations (AMEX: BDS) by Meristar Hotels & Resorts (NYSE: MMH):
"There has been a great deal of recent consolidation in the corporate housing industry, both in the U.S. and abroad. Meristar's acquisition of Bridgestreet further enhances corporate housing's profile within the hotel sector and with the investment community," says James Klein, President of Oakwood Worldwide (www.oakwood.com), the largest company in the corporate housing industry.
"The leading four companies in corporate housing are now Oakwood Worldwide, followed by three entities owned by NYSE-listed companies," adds Klein.
"Corporate housing" refers to furnished, accessorized apartments leased to extended stay travelers and relocating corporate executives. "Corporate housing" is often known by the term "serviced apartments" in Asian and European markets.
The industry has seen significant consolidation in the past two years. Houston-based Westmont Hospitality acquired the leading European chain, Citadines. In 1999, Marriott International (NYSE: MAR) entered the industry through its acquisition of Execustay (now Execustay by Marriott), and Singapore's DBS Land acquired Scotts Holdings. In January 2000, Equity Residential acquired Globe Business Resources.
In November 1999 statistics published by Lodging magazine:
As reported today by Bloomberg, Bridgestreet has 3,700 units.
Other notable companies in the industry include Singapore-based Somerset; Singapore-based Pidemco Land, and France-based Citadines, with several thousand units in Europe (owned by Houston's Westmont Hospitality).
"There is a strong demand for the service, as guests experience the comfort and value of corporate housing," says Klein. "The consolidation in the industry is creating the emergence of new global hospitality brands."
Oakwood Worldwide provides corporate housing through a variety of services.