Demand for corporate housing on the West Coast of the US has risen 44% year-on-year (YOY), indicating a geographical shift in travel habits from the East Coast, according to SilverDoor’s latest Quarterly Market Update.
The update indicates that the average daily rate (ADR) in New York has soared by 41%. Coupled with uncertainty relating to legislation changes and November’s mayoral elections, that has resulted in a decline in corporate demand.
Enquiries for New York City were down by 29% for the first half of 2025 compared to the same period last year. SilverDoor booking data shows that it has been replaced by Dubai in the top five cities for corporate demand.
London, Singapore, Madrid and Amsterdam also rank ahead of the Big Apple. Relocations from the financial, law and pharmaceutical sectors, which are investing in the Middle East, and extended stays are factors in Dubai recording 65% YOY growth for the last quarter.
Corporate demand and mobility are growing from the advancing technology sector, which is continuing to increase its footprint across the West Coast and towards the US’s southern states. The advance of AI and machine learning investment is spearheading the combined 44% growth in demand.
Further south, Houston offers comparatively lower operating costs, more favourable tax rates and a significantly lower ADR compared to New York. With corporates continuing to diversify operations beyond core cities, bookings in Houston are up 58% YOY this quarter.
Growth in AI investment is also having a ripple effect across the Pacific. Demand in Singapore remains high but is softening, with a 10% decline in demand YOY and ADR also following suit with a 13.5% fall.
AI sector growth has boosted semiconductor manufacturing, notably in Taiwan. Tech sector and cloud service growth are impacting demand in Tokyo. Both destinations are reporting triple-figure growth in bookings, of 600% and 154% respectively, for this quarter YOY.
Across EMEA the renewable energy sector has delivered significant growth to more coastal locations. Investment in solar power and offshore wind farms, particularly in Spain, has resulted in a shift in corporate demand. Bookings have risen in Bilbao (50%), Valencia (380%) and Zaragoza (fivefold).
Martin Klima, Chief Customer Officer at SilverDoor, said, “These latest demand trends reflect a continuing wider shift in both corporate travel and operating policies. As businesses continue to balance their own growth plans against wider geopolitical and economic landscapes, diversifying operations and locations can be one way to achieve just that.”
“Growth in serviced apartment usage also comes with a shift in how corporate travellers are choosing their accommodation. Guests are increasingly keen to return to a particular apartment or operator if and when budgets and policy allow, particularly for longer stays where assignees have come to know and trust a specific operator. Pointing to more brands now having a strong presence in different markets and delivering consistent levels of service and quality throughout their portfolio, this brings with it the potential for increased loyalty across the sector,” he added.
