Before turning to the latest news from the Best Western network in France, let's start with a review of the year 2023. Was the business clientele there?
Olivier Cohn - Clearly. We have seen a real willingness to travel on the part of both large groups and SMEs. Business customers returned last year, and they are still very much present in our hotels in 2024. Coming back to 2023, it was a very good year overall, with revenue per room up 11%, driven by a rise in occupancy of just over 2 points and average prices that continued to drive results. However, it is worth taking a closer look at the year 2023, which was marked by a number of different factors. First, there were two very good quarters, followed by a rollercoaster summer, although results remained stable from one year to the next, with some coastal destinations suffering a little. Then we had another two very good months in September and October, as business customers combined with the hosting of the Rugby World Cup, before experiencing a slight slowdown in November and December, no doubt linked to a slightly sluggish French economy.
Is this loss of momentum continuing today?
Olivier Cohn - Growth since the start of the year has been fairly slight. In January, we managed to achieve +1% compared with last year, but that was a bit of a struggle. In March, as in February, we should achieve +3%/+4% growth. Several factors explain these results, including a later recovery in January, holidays in the Paris region in February, and the weather effect, which shows that the hotel industry is still dependent on the performance of the leisure market. April looks a little soft, but that can change very quickly. May, on the other hand, should be very good, with the "viaducts" favourable for leisure customers.
And then there are the Olympic Games soon after that. What are you looking forward to?
Olivier Cohn - It's still too early to say what impact it will have on France as a destination. Will there be an additive effect, with JO customers adding to the usual holiday clientele, or a replacement effect, with travellers switching to Italy or Spain? In any case, I'm not worried about Paris. It will be a strong period, with high average prices, but within a reasonable range compared with what we hear in the press, far from the reported rates of €1,500 to €2,000 a night. Our hoteliers are independent and manage their pricing policy as they see fit, but we recommend a price range of between €250 and €550 depending on the establishment and its location. From exorbitant prices would damage the destination. The idea is that the Olympic Games will help to strengthen Paris's image and drive volume over the next few years.
You are announcing sales of 22 million euros in 2023 for business customers. This represents growth of +52% achieved, among other things, through reinforced strategic actions. What have you put in place?
Olivier Cohn - We strengthened our B2B marketing last year by almost doubling the size of the teams dedicated to the business and MICE market. Thanks to our global network, we are fortunate to be able to offer a comprehensive corporate range at all levels. We have both programmes dedicated to large groups that travel all over the world and contracts that are more specific to France, for smaller companies that rarely go beyond the borders of France. This strengthening of our sales department has also resulted in the signing of new clients. As for the MICE market, while the momentum was not felt in the figures for 2023, as we had time to recruit and train our teams, we expect it to pick up in 2024. October also saw the launch of an overhauled website, with the B2B and B2C offers now aligned in terms of graphics, navigation, etc. This has resulted in a healthy increase in bookings. As a result, Internet bookings in these two markets have risen sharply.
Has your corporate distribution also changed?
Olivier Cohn - It remains stable. What we are seeing, and this is nothing new, is this famous multi sourcing where, in the end, everyone distributes everyone else at all prices. The important thing is to offer availability. So if the negotiated price is no longer available, it will switch to a chain price, a direct price or a partner's price. Finding out where a booking comes from is quite complex. Hence the need for our hoteliers to have a very coherent pricing policy in order to avoid having leisure rates that arrive on corporate rates.
Let's move on to your offer. Has the Best Western France network expanded yet?
Olivier Cohn - We added a record 27 new hotels last year. And we expect to add just as many this year. The network continues to grow. We ended 2023 with 317 establishments and, with the classic game of entries and exits, we should pass the 330 mark at the end of this year. New destinations will be added. For example, we are reopening hotels in Martinique this year, and also in Cayenne, a very corporate destination where we have been absent for several years.
Is this growth supported by your extensive brand portfolio?
Olivier Cohn - In fact, until 2006 and the launch of Best Western Premier, we only had one brand, Best Western. Then we introduced Best Western Plus in 2011, followed by other brands until today, including Sure, AidenIn addition, we will be acquiring Worldhotels in 2019. With these brands, which range from budget to top-of-the-range, we have a broad offering that allows us to establish ourselves just about anywhere, whether to complement an existing offering or in new markets where we were not present because we did not have the appropriate brands.
What are your arguments for attracting new members to your cooperative?
Olivier Cohn - Having a global brand and a strong presence in France gives us strong arguments in terms of our ability to bring them an international clientele, primarily American, as well as French. Few groups can boast the ability to do both at the same time. Other groups of American origin, for example, find it harder to penetrate the French market.
How far do you intend to take the number of hotels in France?
Olivier Cohn - At this rate of 25 new hotels a year, we should reach the target of 400 hotels that we had set ourselves. But, over and above the number of hotels, this will above all enable us to have a highly coherent network, with a presence in all destinations where there is volume, with good complementarity between our brands, for example Best Western in city centres, Best Western Premier in upmarket destinations, Sure Hotels in industrial zones. Then, when asked if there is a maximum number of hotels that we could reach, we realise that there isn't, given the Accor group and its 1,200-1,300 hotels in France.
(c) Maud Delaflotte
Which of your brands are supporting your growth in particular?
Olivier Cohn - Sure Hotels now represents 30% of our development. The brand is young, only five years old, but it has found its place in the market by demonstrating that there was a gap between a highly standardised budget offer and a very unstructured, independent hotel industry. Sure Hotels entered this market with a desire to offer the best of both worlds: independence in decision-making, but also the support of a large group with management and distribution tools, etc. At the same time, Best Western is still a major player in the hotel industry. At the same time, Best Western is still a very strong growth driver, accounting for more than 25% of our development. But, on the whole, none of our brands is standing still. We're managing to develop them all.
Within your hotels, you have also launched the MyWo range of coworking spaces. How far have you got?
Olivier Cohn - 2023 was the year of its deployment, with almost 95% from our hotels now have one. Two years ago, we decided to make this offer compulsory, either through a free, open coworking space close to reception, or with a 'closed' space for a fee, offering more comfort and more peace and quiet. The majority of establishments have opted for an open space to test the market potential. Then, depending on the number of bookings, we start looking at hotels that can accommodate a closed area, which generates more sales. It's starting to take off.
I assume that these hotels are located close to stations or other major transit areas?
Olivier Cohn - Of course, a city centre, train station or airport is more attractive. But with the bleisure trend, we can see that, even by the sea, customers need to take an hour out to make a call or write a few e-mails without disturbing their loved ones. It's a real service complement. That's why we've made MyWo spaces compulsory, even in leisure hotels.
At the same time, the Green Key label is also being rolled out across your network. It's worth noting, however, that Best Western France has been doing this for a long time.
Olivier Cohn - In fact, it began a very long time ago, with the first hotels awarded the label as early as 2006. Today, 50% of the fleet is certified. Green Keywhich puts us among the leaders in France. The aim is to reach 75% by the end of the year and 85% of the fleet by the end of 2025. The hoteliers who are convinced have already obtained this label, now it's up to us to get the others. In any case, there is no choice. As far as companies are concerned, we no longer receive an RFP without a request for an explanation of all the ecological measures implemented in a particular hotel or throughout the network. This is both a necessary commitment and a response to a market need.
Do you have any other CSR initiatives?
Olivier Cohn - We can't limit ourselves to ecolabelling. We are working on other elements, such as certification of our head office and day-to-day training for our hotel teams. Another thing is that this year we are being supported by ADEME to determine our carbon trajectory between now and 2050 and to define intermediate targets. To do this, we are building on work already underway to calculate the carbon footprint of our hotels in scope 3, which is the most complex to manage. Not least because we have to try and understand where the customer comes from, and how they got to the hotel. Around thirty hotels in the network took part in this work with us last year, and around twenty more will do so this year. This will give us a very good idea of the carbon footprint of all our hotels.
