How do you react to the changes taking place in the hotel industry?
Alfred Ong - The market as a whole is being driven by new players and new consumer trends, which means we have to keep moving. Just because we're number one in the residential hotel market doesn't mean we're here to stay. Look at what happened to Blackberry or Kodak... At the turn of the century, the residences themselves broke away from the traditional hotel industry. Today, collaborative economy platforms are playing this 'disruptive' role. Of course, this is new competition, but in a way, the emergence of Airbnb is also strengthening customers' perception of the residential offer. Before, it was sometimes difficult to explain to travellers what a hotel residence was. Now it's much simpler.
What are the advantages of hotel residences in the face of competition from players in the collaborative economy?
A. O. - For business travellers, it's all about a quality experience and a consistent offering. As Airbnb does not manage its offer, travellers cannot be sure of finding the flat they like, either because it has already been booked or because the rental company does not put it online. On the other hand, let's take Paris as an example: we have 14 Citadines and three La Clef establishments there, all well located, all offering around a hundred flats and all offering similar services. This is a insurance for corporate customers.
we have just launched the Lyf brand, aimed at millenials
What is your response to the expectations of the new generation of travellers?
A. O. - We have already formed a partnership with Tujia (Editor's note: the Chinese equivalent of Airbnb), from which the Tujia Somerset. We manage the establishments and they contribute their technological expertise. But above all, at the end of the month, we have just launched the Lyf brand, aimed at millenials. This product is specially designed for customers attracted by the collaborative economy, travellers who are young at heart or in spiritThis brand will be entirely dedicated to them. This brand will be entirely dedicated to them and will not encroach on the positioning of our other brands, Ascott, Citadines and Somerset, which are aimed more at generations X and Y. These establishments will be both design, non-standardised and will offer a multitude of opportunities for interaction between residents, from coworking spacesfor example. The first will be based in Singaporebut it is quite likely that this brand will also appear in Europe, whether in Paris, London or Milan, in attractive neighbourhoods for millennials.
[newsletter]
What are your ambitions for worldwide development?
A. O. - From 48,000 flats today, we plan to increase this to 80,000 by 2020. And we're well on the way to achieving that goal. We have a large number of projects underway in Asia, as well as in the Middle East and Europe. In London, for example, we have bought a property in Islington that will become a Citadines in 2019. Despite the uncertainties linked to Brexit, there are still opportunities in this market, especially as the pound is low and, moreover, we have just seven residences in the UK capital, compared with 17 in Paris. It's part of our strategy to strengthen our offer where we already have a presence. In Germany, we have establishments in the four main cities and intend to expand further. The same goes for Barcelona, where we only have one residence. We also plan to expand into other markets such as Madrid, Vienna and Amsterdam, as well as the United States. We have acquired two establishments in New Yorkcurrently managed by the Starwood group, which could become Citadines or Ascott in the near future.
Is your attachment to France as strong as ever?
A. O. - Of course it is. In fact Paristhe capital of fashion and lifestyle, and not in Singapore, that we have chosen to launch our Crest CollectionThe La Clef group is made up of five-star residences with a luxury, boutique feel. Two La Clef residences in Paris are part of this group, and soon there will be three, as our establishment La Clef Champs Élysées to open in 2018. We have also invested heavily in updating and upgrading our Citadines in Europe. 70% of them have now been renovated. Since we acquired this original French brand in 2002, we have exported its concept around the worldAsia already has around thirty establishments.
Key dates:
|
