A change in clientele. In the wake of the pandemic, the apartment-hotel sector has continued to win over leisure travellers. Families in particular, attracted by this practical accommodation solution with its larger rooms and, above all, its fully-equipped kitchens that allow guests to dine in their flats after a long day's sightseeing. So much so that leisure customers now account for the majority of Adagio's business. On their side, business travellers now account for only 45% of customers, compared with 55% before covid. And probably even more so before, as the extended stay model was originally aimed at professionals on long-term trips, from one week to several months.
Even so, the Group, which enjoys the support of its two shareholders, Accor and Pierre&Vacances, has made business customers one of the focuses of its 2025-2030 strategic plan. This new impetus, called FIRST, reflects the Group's determination to remain market leader in Europe with its 130 establishments. In this context, Adagio has set itself the target of increasing sales generated by the business target from 29% to 35% in five years. This will be achieved by increasing direct sales, with Adagio able to draw on the distribution strength of Accor, but also by conquering new sectors.
" Individual corporate customers are still thereexplains Xavier Desaulles, CEO of Adagio. Professionals continue to come, because they know the quality of the Adagio product, the advantage of our sliding scale of charges, and they can be sure of finding establishments close to their head offices or their place of work. On the other hand, they come less frequentlyThis is particularly true for those who have moved to the provinces, where the cost of travel, including the TGV, is increasing".
" Thereforecontinues Xavier Desaulles, we are working to look for sectors who didn't consider us before, like the media or production companies. Not only in France, but also in Scotland and Hamburg, where we host film crews for several weeks at a time. We also continue to work with the building and public works industry, the construction sector in the broadest sense of the term.. " Attracting others is important if we are to curb the structural decline in the length of stays, with those of business customers averaging 5.5 nights, compared with less than 3 nights for leisure customers.
But the FIRST plan goes far beyond this focus on a customer base that remains as strategic as ever. It also involves developing the network, enhancing its quality and ensuring its sustainability. From 130 establishments with just over 14,500 flats today, the group expects to open around ten new properties a year in the coming years. 180 sites by 2030. The aim is to have 20,000 flats in 96 Adagio Original establishments, the mid-range brand at the heart of the Group's offering, 81 for the budget version Adagio Access, and six establishments for the Adagio Premium version, deployed in Morocco and the Middle East.
From 16 countries today, Adagio plans to extend its offer to 25 countries over the next few years. While France, already covered by around forty aparthotels in Paris and its suburbs and another forty in the provinces, will see further developments, notably in Dunkirk, the emphasis will be on strengthening Adagio's network in its other strongholds, the United Kingdom and the DACH region (Germany-Austria-Switzerland). These two areas will host the next openings of Adagio Original London East and Stuttgart Neckar. At the same time, Adagio will be expanding through Southern and Eastern Europeand even further afield, in Africa, where the brand has recently set up shop in Abidjanin a joint project with Novotel.
The desire to remain the market leader, at least on the European continent, is also reflected in the fact that the company has taken a number of measures to improve its competitiveness. refurbishment of the existing offer. The percentage of sites renovated within the last 8 years is set to rise from 25% today to 75% in five years' time, to give the network greater consistency, supported by the in-house design team. Other changes will also be made to Adagio's offering, with a healthier breakfast and a new concept for communal areas expected next year, based on the idea of the current Le Cercle concept and updated to reflect new decorating trends. The low-cost Adagio Access range, meanwhile, will see its flats move upmarket, offering greater ergonomics and more living space.
Logically, Adagio's 2025-2030 strategic plan includes a broad CSR component with several labelling initiatives underway. From around sixty Green Key establishments today, the total should rise to 100% in the network by the end of the period. The Accueil Vélo label, which has been awarded to around fifteen sites, should also be extended. And on the employer brand front, Adagio is aiming for Great Place To Work recognition.
" With FIRST, our ambition is quite simply to be "best in class of our sector, in all our businesses. This means expanding our locations, while maintaining our absolute commitment to ensuring they are always in the heart of the city, and embodying the spirit of service that sets us apart. We believe in the hotel business as a relationship, in other words, teams who are there for our customers, who are always "Here for you". "commented Xavier Desaulles, CEO of Adagio.
