Now that the recovery has begun after these months of confinement, what is the current status of the Ascott Group's residences in France and Europe?
Ngor Houai Lee - We are now in the phase of reopening our residences and implementing health protocols. In July, 85 % of our establishments in Europe will have resumed their activities and 100 % of our residences will be open in September, with the probable exception of some residences in Paris. We can see that the recovery in Paris is much slower than in the regions, where some residences have even reached 50% occupancy. We can feel a dynamic in the provincesIn the French provinces, we are seeing a return of corporate clients, but above all of our cultural clientele, as film shoots pick up again. In the provinces, since the deconfinement, we are seeing a return of corporate customers, but above all our cultural customers, as film shoots are starting up again. Pick-ups are also of interest in the leisure segment for the summer season. With the exception of the UK, the dynamic is the same throughout Europe. Germany is recovering well, as are Spain and Belgium. In Ireland, we are reopening our Dublin residence this week. I'm keeping my fingers crossed that there won't be a second wave, but for the time being, business is back at an interesting level.
What health measures have you put in place to manage these reopenings?
N. H. L. - We recently launched the Ascott Cares programme, which reinforces our commitment to our customers and staff. This Group-wide programme redefines the way we do business. health protocols at every stage of our customers' journey. In addition to implementing measures that have become widespread - freezing, masks, physical distancing - we have increased the frequency of cleaning of critical points of contact, such as common areas or lift buttons, which are disinfected four times a day. In our flats, the frequency of cleaning remains the same, but long-stay guests can modulate it, more or less often according to their expectations. As far as breakfast is concerned, if our rooms are closed, we have organised a "grab & go" offer and those who wish can come and get it and take it up to their room or take it with them.
Respect for physical distance also leads to greater use of technology?
N. H. L. - Yes, we are. That's why we're also focusing on digitalising our processes, for example by doing away with newspapers in flats and replacing them with a digital offer included in the room rate. This type of contactless services which we want to develop. Similarly, in order to minimise the need to pay by credit card or in cash at reception, we are working on implementing Apple Pay, Samsung Pay and Alipay solutions. For corporate customers, in addition to invoicing, we also have certified and secure email systems for paying online, developed with our partner Red Dot.
Contactless seems set to become the new norm.
N. H. L. - Before the crisis, we used to talk a lot about the fluid experience. Today, on top of that, we need a contactless experience. Limiting formalities and all the red tape is therefore essential. These things were already on our agenda, but programmes have been accelerated because of the pandemic. Mobile check-in has been introduced in one of our Paris residences, Citadines Bastille Marais, and will be rolled out across all our residences in Europe. I tested this system a few weeks ago. Previously, you could check in at a terminal when you arrived at the residence. Now, you'll receive a link on your phone, and once you've pre-registered, you'll receive an e-ticket with a QR Code. You'll need to present this QR Code at the terminal to receive your flat access card.
In terms of technology, do you have any other initiatives underway?
N. H. L. - We will soon be launching a mobile application for Citadines, probably in September-October, which will enable customers to book directly via their smartphone. This will a firstThere was no Citadines app before. The website had already been overhauled last year, at the same time as the launch of our loyalty programme, to improve our customers' experience. In the wake of this crisis, we have continued to work to make booking and using our products more flexible. Recovery will be slow. So we need to be creative about how our customers can use our spaces.
We will soon be launching a mobile application for Citadines, probably in September-October, which will enable customers to book directly via their smartphone.
In other words, flats converted into offices?
N. H. L. - We have adapted our reservation systems to allow the room to be used as a day office. An offer is ready and can be booked. The way in which customers use residences is set to expand. In the Middle East, an Ascott residence sees its converted rooms as satellite classes to relieve overcrowding in schools. In Asia, some schools are using their flats for yoga and pilates classes or for gamers. The flat concept, with its living and working space and high-speed internet connection, makes it possible to combine different activities with accommodation.
Could the rise of teleworking revolutionise working habits?
N. H. L. - I don't have a crystal ball to predict the future, but a lot of things are going to change. But one thing is certain, teleworking is a successThe teleworking-office mix will undoubtedly be more balanced. In this context, we receive a lot of requests from our key accounts asking if they can group their staff together in our residences, to turn them into satellite offices of sorts without having to travel to head office.
Could business travel suffer as a result?
N. H. L. - Clearly, business travel will be affected. Companies see that technology now makes it easy to communicate without having to travel. However, I think that travel will always exist. But, with the current awareness, there will probably be fewer of them, but there will be more of them. of longer duration. Instead of staying for one or two evenings, or even travelling back and forth during the day, people will stay for five to seven days and have multiple appointments. In a way, this gives even more strength to the apartment-hotel concept.
Instead of staying for one or two evenings, or even travelling back and forth during the day, people will stay for five to seven days and have multiple appointments. In a way, this gives even more strength to the apartment-hotel concept.
In a way, has your residential offering been strengthened by this crisis?
N. H. L. - Of course, we can't go so far as to say that the crisis, which has been extremely hard on the entire tourism sector and the global economy, has done us any good. Far from it, because we, like all our colleagues, have suffered. However, this crisis has a positive point for apartment hotel operators, that of revealing the relevance of our accommodation concept. She underlined the advantages of this product, the space it offers for living and working in complete tranquillity, the autonomy it allows with the possibility of cooking in your flat when the restaurants were closed, as well as an assurance of quality and safety.
So the urban residence is a solid model?
N. H. L. - In my opinion, long-stay hotels have a greater capacity to recover than traditional hotels. In the current context, its model makes it more resilient and therefore attractive. Investors are increasingly aware of this and are coming to us for help in entering this market. This wasn't the case before, when we had to explain our business model over and over again. These are obviously very difficult times, but there is a real awareness of the relevance of our hosting product.
Could your growth rate be affected by the current crisis?
N. H. L. - It has not put the brakes on our growth strategy, nor limited our appetites in Europe and around the world. The stated objective was to double our European portfolio in five years in order to from 5,000 to 10,000 units. In 2019, a very good year, we were on a pace of 1,000 flats a year. This year, we will no doubt be delayed by Covid, with a six to eight month delay. But many of the projects started at the beginning of the year will resume after the summer. In addition, the Citadines Islington London residence will open at the end of August. We are confident that we will achieve our targets.
