AvenueWest Arizona Corporate Housing vs. Hotels Break-Even

by | Nov 9, 2021 | Franchise Feature

As a corporate housing provider, we often get asked “When does it make sense to stay in a 30+ day furnished rental versus using a hotel?” In other words, what is the financial break-even when you commit to a 30-day lease versus paying for the exact number of nights you need at a hotel?


While many factors come into play with this type of analysis; time of year, location, quality of property, number of bedrooms, etc. So we are doing a quick comparison of 3 of our major markets by comparing 2 similar, like-kind hotels that are closest to property being compared. To keep it simple, all we are considering in this analysis are the daily rental or hotel rate and related tax rates.


What we are not considering in this specific analysis are the variety of other factors to be considered when making the ultimate decision like; larger square footage, savings on preparing meals at “home” vs. eating out all the time, quality of life during the stay by having separate living and sleeping quarters and a more peaceful residential setting as compared to a transient hotel experience.… but we’ll leave those discussion for a future article.


So, let’s look at the numbers: (NOTE: Rates as of July 2021)


South Scottsdale/Tempe:

Hotel #1:         $140 + 14.02% = $159.63 total

Hotel #2:         $136 + 14.02% = $155.07 total

AvenueWest: $110 + 1.75% Tax = $111.93 total

Break-even:     21 Nights


Midtown Phoenix:

Hotel #1:         $146 + 12.57% = $164.35

Hotel #2:         $149 + 12.57% = $167.73

AvenueWest:  $90 + 2.3% Tax = $ 92.07

Break-even:     17 Nights


Downtown Phoenix:

Hotel #1:         $189 + 12.57% = $212.76

Hotel #2:         $180 + 12.57% = $202.63

AvenueWest:  $125 + 2.3% = $ 127.88

Break-even:     19 Nights


Essentially this analysis shows us that if your anticipated stay is longer than 17 to 21 days Corporate Housing makes more financial sense. If you start to factor in related savings, like assuming only a $50/day savings on meals (being prepared at home vs. in a restaurant) that break-even point drops to: 13 to 16 days.


Bottom line: if you think you’re going to be here for more than two weeks corporate housing may be for youCALL US!