How would you sum up 2012?
Alain Ferracani - With sales growth of 6.2%, we had a generally satisfactory year in Europe in 2012, despite the prevailing economic gloom. This good result was driven upwards by the performance of our many establishments in London and Paris, international destinations par excellence. On the other hand, 2012 was more difficult in the provinces, where our residences are more dependent on the strength of the domestic market. In the end, while occupancy fell by 2 points to around 70%, the average price rose by 10%. This can be explained in particular by the upmarket nature of our establishments.
How far have you got with this move upmarket and the renovation of your European residences?
A. F. - Since 2010, we have undertaken a major programme in Europe. Ten of our residences have already been renovated and, by 2015, a total of 30 establishments will have been refurbished, representing two-thirds of our portfolio on this continent. This phase of work is taking three forms, with establishments being brought up to date with a contemporary decor, the sofa-beds in the studios being removed, and WiFi being introduced in all the residences alongside wired internet, because today's business travellers don't necessarily have tools with a cable to plug in, like the iPad. In the second model, we're taking advantage of the work to move upmarket and label the establishment Prestige. As well as a more upmarket, designer product, additional services are included, such as daily cleaning, which is à la carte in other Citadines. Finally, our latest model is the Citadines Suites, our new five-star version.
The first Citadines Suites is due to open very soon... What's the concept?
A. F. - In fact, the first residence to wear it will be the Citadines Suites Louvre in Paris, near the Palais Royal. This establishment has been closed since last June and, after nine months of work at a cost of nearly six million euros, will reopen its doors on 25 March. The Citadines Suites concept aims to offer "boutique" residences. The Citadines Suites Louvre, housed in an Art Nouveau building, will offer a blend of classic and contemporary, with 51 different flats, each with its own distinctive character.
Could your Paris Arc de Triomphe residence, which uses the top-of-the-range Ascott brand, be rebranded as Citadines Suites?
A. F. - This is a possibility that we are considering. We will be closing this establishment very shortly for 15 months of work to transform what was once the Costes K hotel by also adding an adjacent building, currently unused. The Costes brothers already had this extension project, but didn't go through with it. The residence will reopen in summer 2014 and will probably carry the Citadines Suites label, as this brand is better known than Ascott in Europe and France. In London, on the other hand, the Cavendish, a hotel we recently bought in Mayfair, is due to close in 2014 and become an Ascott. Unlike the former Costes K, the Cavendish is obviously a very upmarket product, but it is more standardised, with 230 rooms in a building dating from the 1960s with more common architecture. This does not match the tone we want to set for our Citadines Suites concept, boutique residences in historic buildings.
Citadines Prestige, Citadines Suites: why are you developing all these new versions?
A. F. - One of the current trends is to segment the product range ever more finely. You can see this in the car industry, or in the airline industry with the creation of the intermediate Premium economy class. While there are very top-of-the-range hotel products, why shouldn't there be five-star residences, with a high level of services while remaining within the canon of the residence product? In our Citadines Suites, we offer an honesty bar like in executive lounges, a limousine service, daily cleaning... Guests are looked after from before their arrival until after their departure. This product is aimed at senior executives, diplomats and professionals who are in Paris for one or two weeks. Just because you have a comfortable income doesn't mean you don't enjoy having breakfast at home or cooking for yourself rather than going to a Michelin-awarded restaurant every evening. Especially as the price of admission to our suites is equivalent to that of a hotel room of the same standard, with the added bonus of space.
