2017 LARGEST PROVIDERS The quarterly decrease in occupancy correlates with providers’
aggressive pursuit of new building projects, so “inventory outpaced a change in net absorption,” Mace says. “The increase in inventory was the most in a single quarter since NIC began reporting the data in 2006. It’s notable that inventory growth has been ramping up for a much longer period for assisted living than for independent living, and as of the second quarter, annual inventory growth for assisted living reached its highest level since 2006—5.9 percent.” While demand was strong, it wasn’t quite “strong enough” to in- crease occupancy levels, according to Mace. Still, at 4.3 percent, the annualized pace of absorption was the highest rate since NIC began reporting the data, she says. One thing is certain, with 10,000 baby boomers turning 65 every
day, according to the U.S. Census Bureau, the need for long-term care isn’t going away. “The sheer numbers of seniors and their individualized desires are expanding at very well publicized rates,” says Discovery Senior Living (No. 16) chief executive officer Rich- ard Hutchinson, adding that “the general marketplace acceptability of our industry and the understanding of the options it provides to live well is growing exponentially.”
Usual Suspects in Top 10 While exact comparisons to 2016 aren’t feasible due to changes in ranking criteria, the top 10 largest providers remain unchanged with the exception of Five Star Senior Living moving to the No. 3 spot and Enlivant eclipsing Affinity Living for No. 10. Five Star reported 14 acquisitions and expansions in the 12 months prior to March 31, while Enlivant grew by 3,000 units. “Our business model has evolved in a few different ways,” says
Five Star vice president of sales and marketing Rob Poyas, discuss- ing how the company’s approach to growth has changed over the past five years. “We have reduced our reliance on government re- imbursement and focused on the private pay market. Our primary focus will always be the quality of clinical services. Next is our continued evolution to a hospitality-based company,” he continues. “This will be crucial over the next 10 years as our residents’ expecta- tions change dramatically. It’s all about building a customer service culture within the company.” Growth is a common theme among senior living providers sur-
veyed for the 2017 list. Integral Senior Living (No. 22), founded just 17 years ago, opened 11 properties in the past year and a half and has five more planned for 2017. “We have had a number of new developments open in the past 12 months with not only tremendous pre-leasing activity, but also fill rates,” says Integral chief executive officer and chief operating officer Collette Valentine-Gray. “The key is finding markets that are not saturated and specific pockets that have demand, yet unmet supply. We have a slick heat map tool we have developed that allows us to look at particular sites and gauge supply and demand within a specific radius.” Erickson Living (No. 6) is investing $1 billion for 4,000 ad-
ditional units this year. Pacifica Senior Living (No. 15) acquired 12 buildings totaling 1,100-plus units in the past year. American House Senior Living Communities (No. 19) has five residences under development or construction. Senior Resource Group (No. 20, up from No. 26 in 2016) acquired 14 communities late last year and has more in the works. Spectrum Retirement Commu-
8 SENIOR LIVING EXECUTIVE / ISSUE 5 2017 TOP 10 LARGEST INDEPENDENT LIVING PROVIDERS
Rank 1
2 3 4 5 6 7 8 9
10 Provider
Holiday Retirement Brookdale
Life Care Services Erickson Living
Five Star Senior Living Atria Senior Living Merrill Gardens*
Hawthorn Retirement Group Capital Senior Living Senior Lifestyle Corp.
Independent Living Units
35,641 30,471 19,307 18,473 10,769 8,845 5,991 5,575 5,284 4,703
*Provider licenses all buildings for assisted living Y CM TOP 10 LARGEST ASSISTED LIVING PROVIDERS
Rank 1
2 3 4 5 6 7 8 9
10 Provider Brookdale
Sunrise Senior Living Five Star Senior Living Enlivant
Atria Senior Living
Senior Lifestyle Corp. Capital Senior Living Merrill Gardens* Life Care Services Elmcroft Senior Living
Assisted Living Units
53,122 14,301 12,673 10,424 8,020 7,917 7,300 5,991 5,004 4,858
*Provider licenses all buildings for assisted living
nities (No. 26, up from No. 34 in 2016) has 13 properties under construction that will add another 2,000-plus units. Pathway to Living (No. 38, up from No. 56 in 2016) will open four residences this year. Within the past 12 months, Koelsch Communities (No. 56) has had six properties under development. Ridgeline Manage- ment Company (No. 68) recently acquired two communities in Utah, expanded a campus in Texas, is building a new community in Oregon, acquired a hotel conversion in Arizona, and has several other projects in the works. The list of companies experiencing significant growth is substantial. Discovery Senior Living (No. 16, up from No. 22 in the 2016 list) has “grown at an average pace in excess of 30 percent annually
MY CY CMY K
C M
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