Corporate housing provider Forenom’s success is based on location
Forenom has grown to become the market leader in its field. By offering apartment, hostel and hotel accommodation in prime locations, the company has seen its annual revenue increase from EUR 4.2 million to EUR 82 million over a period of just 10 years. What are the reasons behind rapid growth?
An industrial company informs us that they need accommodation for six months for 900 employees, with just two weeks’ notice. An Asian IT company says they need accommodation in three months’ time for 10 technical specialists who are moving to Finland with their families for one year.
“We provide employees with convenient and home-like accommodation in locations that make sense for our customer companies.”
These are examples of typical orders from Forenom’s customers. According to Ilkka Ylilauri, Category Director for Forenom’s aparthotel segment, the globalisation of the market has led to distinct changes in customer needs.
“Accommodation services are now often required on very short notice, even more so than before, and the expectations concerning the quality of accommodation have also increased. In addition to serving corporate customers in the industrial and construction sectors, we are increasingly working with international expert, consulting and IT companies,” Ylilauri says.
“We are offered several hotel properties every week, so we choose our properties very carefully.”
Forenom has responded to the changes in demand by diversifying its offering. Furnished apartments are now complemented by hostels and aparthotels, with each segment having three service levels: budget, smart and premium.
“Our broad range of accommodation solutions gives us the capacity to act fast. We can accommodate larger groups in our hotels while we look for an ideal housing solution for them in the vicinity of the workplace. Our large hotel properties also increase our visibility and provide us with credibility in international competitive tendering,” Ylilauri explains.
What is the secret behind Forenom’s popularity?
Forenom’s growth has been exceptionally fast. The company’s annual revenue has gone from EUR 4.2 million to EUR 82 million over a period of just 10 years. With high-quality housing now available in all major cities in the Nordic region, the company accommodates more than 100,000 travellers per year.
“Our strength lies in our ability to provide accommodation in locations that make the most sense for our customers. A sensible location means not only good transport connections, but also parking space and services that suit the customer’s needs,” Ylilauri says.
According to Ylilauri, home-like living is another important success factor for Forenom. Longer-term guests value being able to cook and having an apartment that looks more like a home than a hotel.
Ylilauri highlights the ease and convenience of Forenom’s accommodation solutions as a third success factor and points out that it stems from the company’s technology-oriented approach and extensive partner network.
Flagship hotel on Väritehtaankatu in Tikkurila
Forenom’s latest flagship property in Finland is a smart-level aparthotel that was recently opened at a property connected to the Tikkurila train station and the Dixi shopping centre. Forenom occupies the top three floors of the Sponda-owned Väritehtaankatu office property.
“We are offered several hotel properties every week, so we choose our properties very carefully. This Sponda property ticks all the boxes for us. It has an ideal location in a business hub, our guests can get to the airport without having to take a single step outdoors and the area has plenty of parking and various services available. Our premises at the property are also easily adaptable,” Ylilauri adds.
Responsibility is another key consideration in Forenom’s location decisions.
“We value Sponda’s experience and responsibility as a property developer. Operating at a property that enables responsible and sustainable practices makes it easy for us to steer our customers towards energy-efficient living,” Ylilauri concludes.
Premises customised to Forenom’s needs
The premises at Väritehtaankatu were customised according to Forenom’s wishes in cooperation with the construction company Lehto Group. According to Sponda, the owner and developer of the property, the accommodation service provider is a good addition to the range of services available in the area.
“It has an ideal location in a business hub, our guests can get to the airport without having to take a single step outdoors and the area has plenty of parking and services available.”
“Väritehtaankatu is a good example of how Forenom’s accommodation concept makes it possible to operate at a property that might not be profitable for traditional hotel operators due to its relatively small size. Forenom’s accommodation solutions are a valuable service to other companies at the property and in the area in general, and they also bring domestic and international travellers to Tikkurila,” says Kari Autio, Project Manager at Sponda.
Forenom in a nutshell:
- Established in 2000 to provide furnished apartments for corporate customers.
- Provides accommodation in Finland, Sweden, Norway and Denmark, in locations selected based on customer needs.
- The service offering includes furnished apartments, hostels and aparthotels in several different price categories.
- Annual revenue has grown in 10 years from EUR 4.2 million to EUR 82 million.
- Employs approximately 500 people.
- Accommodates more than 100,000 travellers per year.
- With some 6,500 rooms, boasts the largest selection of furnished apartments in the Nordic countries.