These types of apartments are leased or owned by a business. There are various reasons why this is done. It could be a place for out-of-town clients to stay instead of renting a hotel room. They can be used as temporary housing for employees that have transferred to a new location to work while they are looking for permanent housing. Some businesses use corporate apartments for their salespeople or other employees who are in town temporarily conducting business for the corporation.
One of the most common reasons is to provide cost-effective living arrangements when representatives of the company frequently travel to a certain area on business. Businesses may have corporate apartments in each city where their businesses are located. These corporate apartments can be located worldwide if the business has offices overseas. If a business has a client that requires them to make several trips overseas then they may secure a corporate apartment on a temporary basis for the employee to stay instead of having to make hotel arrangements every time they have to travel overseas.
It is not unusual for media companies, television stations, and newspaper companies to have such living arrangements in key cities around the will provide immediate available housing for media personnel and journalists. Although long-term leasing is often less expensive than hotels it can also be cost effective for short-term housing. For instance, if a sales professional were sent to a place to establish a customer base in that particular area with a limited time to finish the job having a leased corporate apartment would be more cost effective than renting a hotel room. Most of these apartments have kitchens so this would save on the cost of eating meals in a restaurant. Many times a business can lease such residences for one week up to many months.
When a business has potential or established out-of-town clients coming to visit the corporation it makes a better impression on potential clients if they have an apartment to stay in instead of a hotel room. It gives them more room to relax and fewer disturbances from neighboring hotel rooms. In addition, these corporate apartments are nicer than hotel rooms. It can help to establish rapport with potential clients because the amenity of staying in a corporate apartment means that they do not have to pay for a hotel room. Having a corporate apartment also saves the business time by not having to make hotel reservations, especially if the client comes in on a special weekend when nicer hotel rooms might not be available. It may not sound cost effective if corporate apartments are not used for a month and rent is still paid but this balances out when it is used by employees and clients several times during the month.