In an era where the concept of work and life has become increasingly blurred, the demand for flexible housing solutions has skyrocketed. Among the companies that have risen to meet this challenge is Blueground, a pioneering short-term furnished apartment rental company founded by Alex Chatzieleftheriou in 2013.
A Problem Born Out of Personal Experience
The idea for Blueground was born out of Alex’s own frustrations as a consultant traveling extensively across Europe. Living almost exclusively in hotel rooms for months on end proved to be not only expensive but also unfulfilling, with costs reaching as high as €15,000 for a single room in Amsterdam. The lack of space and basic amenities like a kitchen made life even more challenging.
A Solution to His Own Problem
Determined to find a better solution, Alex set out to create a business that would provide him with the flexibility and comfort he needed during his travels. By renting apartments for periods of one month or longer, he was able to alleviate some of the issues he faced in hotel rooms. However, this approach came with its own set of challenges, including difficulties in finding landlords willing to invest in furnishing the properties.
The Turning Point
Fast forward to 2020, when the COVID-19 pandemic struck, changing the way people lived and worked overnight. As governments imposed lockdowns and restrictions on movement, many individuals found themselves forced to work from home. This sudden shift led to a surge in demand for temporary housing solutions.
For Blueground, this was a turning point. The company’s category of short-term furnished apartment rentals experienced explosive growth as people sought out flexible accommodation options that would allow them to maintain their productivity and quality of life while working remotely.
The Rise and Fall of the Market
However, with the return of employees to offices, the demand for temporary housing plummeted. Many competitors in the space failed to adapt quickly enough, resulting in a significant contraction in market size. Some companies, like Zeus Living and WanderJants, were forced to shut their doors due to declining sales.
Blueground’s Strategic Expansion
In contrast, Blueground has continued to thrive through strategic acquisitions and partnerships. In 2022, the company made a major move by purchasing Tabas, an operator of over 9,000 furnished apartments in Brazil. This acquisition marked a significant milestone for Blueground as it expanded its reach into Latin America.
Further Consolidation
In the following year, Blueground continued to expand its portfolio through strategic partnerships and acquisitions. The company acquired Travelers Haven, a provider of on-demand housing solutions in nearly 20,000 cities across the United States. This acquisition not only increased Blueground’s presence in the US market but also provided it with access to an extensive network of partners offering furnished apartments.
Recent Developments
In 2023, Blueground further solidified its position as a leader in the short-term furnished apartment rental market through the acquisition of Nestpick, a marketplace for operators like Kasa and Placemakr. This move enabled Blueground to create a partner network, providing customers with access to an additional 18,000 apartments worldwide.
Global Reach
Today, Blueground operates a global network of move-in-ready homes for stays of a month or more, managing over 15,000 apartments in 32 markets across 17 countries. The company’s commitment to offering high-quality furnished apartments has resonated with customers seeking flexible and comfortable living arrangements.
Raising the Bar
Blueground’s focus on delivering exceptional customer experiences through its network of partners and in-house managed properties sets it apart from competitors. The company continues to innovate, investing in cutting-edge technologies that enhance the booking process and provide seamless check-in services for its customers.
The Future Ahead
As the demand for flexible housing solutions remains strong, Blueground is well-positioned to capitalize on this trend. With a growing portfolio of properties and an expanding network of partners, the company is poised to continue leading the way in short-term furnished apartment rentals.
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