Corporate housing vs hotels for long assignments in Luxembourg: real cost comparison

For short business trips of three to five days, a hotel is the undisputed champion. But when an assignment stretches to three months (a common duration for project consultants or relocating executives in Luxembourg) the economics change drastically.

Finance and HR teams often overlook the "Total Cost of Assignment" (TCA), focusing only on the nightly rate. However, the incidental costs of living in a hotel for 90 days can inflate the final bill by up to 40%.

Below is a transparent cost comparison for a standard 3-month assignment in Luxembourg City in 2026.

The 3-month financial breakdown

We compared a standard 4-star business hotel in Kirchberg against a premium StaysCo one-bedroom apartment.

Option A: 4-Star Business Hotel

• Room Rate: €175/night (Corporate rate average)
• Monthly Accommodation: €5,250
• Dining: €1,500 (Based on €50/day for dinner and lunch not covered by per diems. Without a kitchen, every coffee, snack and meal is a transaction.)
• Laundry & Services: €300 (Hotel laundry prices are premium.)
• Total Monthly Cost: €7,050

Option B: StaysCo Corporate Apartment

• Fixed Monthly Rate: €2,800 (Premium 1-bedroom, all-inclusive)
• Utilities & Wi-Fi: €0 (Included in rate)
• Dining: €450 (Groceries for cooking at home. A full kitchen drastically reduces food spend.)
• Laundry: €0 (In-unit washer/dryer)
• Total Monthly Cost: €3,250

The Bottom Line

Over a 3-month assignment, choosing corporate housing saves approximately €3,800 per month, or €11,400 total. That is a 53% reduction in direct spend per employee.

The productivity tax

Beyond the invoice, there is a hidden cost to hotel living: employee burnout.

Living in a 25m² room for 90 days affects mental health and performance. The lack of separation between "sleeping" and "working" areas, combined with the inability to cook a healthy meal, leads to "road warrior" fatigue.

Corporate housing offers an average of 50m²-60m² of space, separate living areas and the autonomy of a real home. Industry data suggests that employees in furnished housing report higher satisfaction and productivity rates compared to those in long-term hotel stays.

The VAT advantage

In Luxembourg, tax efficiency plays a role. While hotel stays attract a specific VAT rate (3% for accommodation), the high base cost of the room means the absolute tax amount is significant.

Furthermore, ancillary hotel services (laundry, room service, alcohol) are often taxed at higher standard rates. A consolidated invoice from a corporate housing provider simplifies VAT recovery and expense reporting, reducing the administrative burden on your finance team.

How StaysCo helps

We help Finance Directors and HR Managers optimize their mobility budgets without sacrificing employee comfort.

• Fixed budgeting: No seasonal rate spikes or surprise operational costs.
• Volume efficiency: Scalable solutions for project teams that drive costs down further.
• Employee wellbeing: Higher retention and satisfaction for your assignees.

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