Posted by ray@lcorn on April 26, 2000 at 22:24:44:
You might want to try questions like this on the new Commercial Newsgroup. I’ll answer this question here, and invite you to check out our commercial discussions at http://www.creonline.com/commercial-real-estate/wwwboard5/index.html
Corporate apartments can be a very lucrative business is you are in the right market. The hotel industry is in this market in a big way via extended stay products such as Homewood Suites, Residence Inn, and MainStay Suites. I am most familiar with the MainStay brand from Choice Hotels. There are also many budget operations such as Extended Stay America. These operations can run a 65% NOI when in the right market and run properly.
Check with the local hotel managers (if they will talk to you, desk clerks and housekeepers are a better bet) about the number of long term stays in the hotels in the area. That will give you a clue as to the demand in the market. Rates will be a function of services provided. It can be anything from nothing to daily maid and food service.