AI and renewable energy investment impacting corporate travel as demand for US West Coast grows

SilverDoor shares insights from latest Quarterly Market Update.

Martin Klima, Chief Customer Officer, SilverDoor

5 September 2025

Corporate travellers are switching from the East to the West Coast with demand for US West Coast corporate housing across key locations including California, Washington, Seattle and Silicon Valley rising by 44% YOY for the last quarter. At the same time, ongoing legislation changes and uncertainty ahead of the upcoming mayoral election scheduled for November coupled with average daily rate (ADR) rising 41% YOY for the last quarter, are also impacting the decline in corporate demand for New York.These are some of the findings in SilverDoor’s latest Quarterly Market Update report published today. With enquiries for New York City down by nearly a third – 29% - for the first half of 2025 compared to the same period last year, it has been replaced by Dubai in the top five cities for corporate demand according to the latest SilverDoor booking data:

London
Singapore
Madrid
Amsterdam
Dubai

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 southern states. The advance of AI and machine learning investment is spearheading the combined 44% growth in demand YOY for this quarter across Seattle and California’s Silicon Valley. Likewise further south, Houston in particular continues to offer comparatively lower operating costs, more favourable tax rates and a significantly lower ADR compared to New York such that as corporates continue to diversify operations beyond core cities, bookings for the popular Texas city are up 58% YOY this quarter.

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The ever-advancing growth in AI investment is also having a ripple effect across the Pacific into the APAC region. Whilst Singapore demand remains high, it is starting to soften, with a 10% decline in demand YOY and ADR also following suit with a similar 13.5% decline YOY for the last quarter. Conversely, growth in AI demand globally has meant growth in demand for semiconductor manufacturing particularly in Taiwan. Likewise tech sector and cloud service growth is impacting demand in Tokyo – both destinations are reporting triple figure growth of 600% and 154% increase in bookings respectively for this quarter YOY. Across EMEA it is the renewable energy sector that has delivered significant growth in destinations to more coastal locations. Investment in solar power and offshore wind farms, particularly in Spain, has resulted in a marked shift in corporate demand as bookings for a number of destinations including Bilbao, Valencia and Zaragoza are all on the rise. Bilbao bookings have increased by 50% in the last quarter compared to the same period in 2024, Zaragoza bookings are up five-fold, and the number of room nights booked in Valencia in the last quarter is up 380% YOY.An increase of bookings by 65% YOY for the last quarter has seen Dubai claim a place in the top five with growth in demand for the region primarily coming from not only an increase in extended stays but also an increase in relocation assignees from the financial, law and pharmaceutical sectors, all of which are increasing investment across Dubai and the Middle East.Commenting on the report, Martin Klima, SilverDoor Chief Customer Officer, 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 regions beyond the more traditionally popular hubs like New York City towards cities in western and southern US states, and likewise the significant APAC demand growth in Taiwan, indicate where corporates are committing to investing their funds and placing their people.“As AI, technology, and renewable energy investment continues, it will be interesting to watch how the diversification trend evolves in the coming months and the impact it will have on demand across both the serviced apartment and wider accommodation sector both, from a short-term and longer-term perspective.“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.” The full SilverDoor Market Update is now available to read here*Figures from SilverDoor’s own booking data. All QOQ comparisons are May - July 2025 vs May – July 2024

About SilverDoor 

SilverDoor is a world leading corporate serviced accommodation agent, working with a network of more than 2,600 global property operators to source accommodation for business travel and mobility professionals worldwide.Since 2000, SilverDoor has been helping corporate travellers find their ideal accommodation wherever their business takes them. Our reputation for service excellence comes from our warmth, integrity, 25 years of experience, and our commitment to helping people - complemented by our cutting-edge online booking tool and innovative proprietary technology. Our technology and service save businesses time, reduce their accommodation spend, and improve the experience of travelling employees. Whether it’s a full global travel or mobility programme, a one-off relocation, a complex group, or a fast-turnaround business trip, SilverDoor delivers the highest standards of safety, security, and exceptional service through proven partnerships, cutting-edge technology and experienced impartial advice.

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