A new top-of-the-range urban residence in Paris: opened at the end of last summer, theAppart'City Collection Paris Gare de Lyon illustrates in many ways the evolution of the French leader in urban apartment hotels. Not least because this establishment is, as is often the case, perfectly located for business travellers. Business travellers still account for more than 60% of our customer base, even though the leisure segment is becoming increasingly important. " The aparthotel product is in step with the times, meeting the expectations of everyone, from corporate customers to families and leisure travellers, for short, medium or long stays." says Vincent Compagnon, CEO of Appart'City.
But above all, this new establishment of 109 studios and flats - all equipped with kitchenettes, bedding with mattress toppers, Nespresso machines and 4K televisions with Chromecast, among other features - will strengthen the four-star offering. This expansion is in line with our strategy of general move upmarketThis is supported by a policy of investment in renovating the network. Around sixty residences have been redesigned over the last two years. " In other words, two thirds of our homes, those that were in serious need of upgrading" says Vincent Compagnon.
As a result, around fifteen entry-level Appart'City Classic residences have been upgraded to the Comfort range as part of the new segmentation presented at the beginning of the year. " We now have 45 Classic hotels, 43 Comfort hotel apartments and 7 Collection hotels.Richard Perdu, Group Marketing Director. The repositioning of our scales towards the mid-range, whereas just a short while ago the entry-level represented 60% of our offering" .
With establishments offering a wider range of services - such as 24-hour reception and business corners - this evolution of the network has had a mechanical effect on customer satisfaction, which has risen sharply. The same is true of the Group's average prices, which rose significantly in 2023, while apartment hotel occupancy increased by 2 points, and is now close to pre-Covid levels. " Appart'City is in great shapesays a delighted Vincent Compagnon. Our ambition was to do 20% better by 2023. And that's what we should achieve on a like-for-like basis, bearing in mind that we sold off around ten residences at the end of last year that no longer met our criteria." .
On the strength of these good results, Appart'City has been able to devote a larger renovation budgetThis will involve an investment of 38 million euros over the period 2022-2023, compared with the 26 million initially planned. This policy will continue next year, with a further €16 million dedicated to improving the quality of our apartment hotels. " What's more, while half of our fleet has already been awarded the Green KeyA further 25 have just been added. All that remains is the last quarter, which will be completed by 2024-2025.. "
Paris rhymes with Appart'City
However, the Appart'City Collection Paris Gare de Lyon reflects the group's development, not least because of its location in the Paris region. The group is already well established in the regions, Appart'City has made the Paris region its top priority of its development. Although the group is looking at projects in Lyon and Bordeaux, " as a French leader, we can expand our presence in Paris and the Paris region" explains Vincent Compagnon, who sees the current crisis in office property as opening up new opportunities for conversion. These opportunities for development are in addition to the likely concentration of players in the hotel apartment sector that the CEO of Appart'City sees coming: " It's in line with history" .
Around ten residences are due to open in the next few years, "Several projects are currently being finalised, including some wonderful surprises in Paris." warns Vincent Compagnon. A top-of-the-range apartment hotel is already expected to open in the first quarter of 2024. near Paris CDG airportin the allée du Verger hotel zone in Roissy. With 265 flats, this Appart'City Collection will have a real restaurant for travellers and local corporate customers, as well as meeting rooms and a coworking space.
This new establishment will open just in time for the major event of the year, the Olympic Games, for which Appart'City's management is confident, prices will not skyrocketwith prices in line with those charged at major trade shows. " You have to keep your wits about yousays Vincent Compagnon. And we'll still have room for our usual corporate clients." .
