Aparthotels: not quite home, but almost...

Executives on long-term assignments, researchers, employees on secondment, business people away from home for periods ranging from ten days to several months: the urban residence promises them a familiar setting and an atmosphere "just like home". And it works! Just look at the occupancy rates: over 77 % in 2006, according to the tourist residences union.

The cocooning spirit alone does not explain the growing success of this type of accommodation. Whether you're staying in a two-, three- or four-star hotel, the price argument comes into its own. For a few days, a night's stay is not necessarily cheaper than in a hotel, but the flats are much larger and their fully-equipped kitchens mean substantial savings, not to mention the comfort of not having to go out for dinner after a hard day's work. What's more, the residences have often developed a sliding scale of charges according to the length of stay. And that's what makes all the difference to the final bill. "Depending on our establishments, the variation between each block of 7, 28 and 90 nights ranges from 25 to 35 %, and even from 35 to 45 % for a three-month period", explains Luc Mazoé, Sales Director of Resid Home. In conclusion, we have gone from 131 to 379 urban residences in France alone in the space of a decade.

Broader segmentation

Inaugurations and plans for new openings abound, while the concept is evolving. After starting out, for the vast majority of operators, with entry-level or mid-range products, specialist chains are now positioning themselves at the top end of the market, and even in the luxury segment. "We're slowly starting to segment into two-, three- and four-star establishments. While in hotels, service makes the difference, in residences it's the product that does it all: from the quality of the facilities to the location. Four stars means capitals or prestige cities, surface area, high-tech equipment, particularly in terms of communication to keep in touch with your tribe", explains Laurent Basnier, director of the Pierre & Vacances City brand, which has just inaugurated Paris Tour Eiffel.

Opened in March in the Beaugrenelle district, the sixteenth P&V City overlooks the River Seine and offers uninterrupted views of the capital's monuments. This 32-storey tower houses 375 top-of-the-range flats with designer decor and warm colours, including 150 studios for one or two people, 213 two-room apartments for four people and twelve three-room apartments for six people, all equipped with flat-screen televisions and high-speed internet access. Reception is open 24 hours a day and offers a multilingual service with staff who speak English, German and Spanish, as well as Japanese and Arabic. Residents receive their daily newspapers and can count on the concierge to book shows, taxis or even baby-sitters.

Refocusing on Europe

But Europe's largest urban residence is not just the flagship of P&V City. It seals the merger with Accor and the expansionist ambitions of the two new partners: 50 units in Europe by 2010. "We have already signed contracts in Basel, Vienna and Brussels, which are due to open in 2008. We are at an advanced stage in Edinburgh and Barcelona, and have projects in London, Budapest and Munich", says Laurent Basnier.

However, Citadines is not prepared to relinquish its position as European leader, or to confine itself to its 41 residences in the main French, British, German, Spanish and Belgian cities. After exporting to Asia, it is now refocusing its attention on the European market, and Russia in particular. "We plan to open 1,000 homes between Moscow and St Petersburg by the end of next year," says Sym Lee, the company's chairman. At the same time, Ascott Group, its parent company, is looking for opportunities in Eastern Europe for its eponymous brand.

Upmarket

For its second French establishment and fifth in Europe, Frasers Hospitality has opted for a renowned address and listed façade. After opening Paris-La Défense in 2005, it bought the Claridge and transformed its rooms into 110 classically decorated flats, ranging from 35m2 studios to 140m2 four-bedrooms. "For any group, the Champs-Élysées is a prestigious address. Having a brand there is an opportunity that only Marriott and we have," says Guus Baker, Managing Director Europe of the Singapore luxury chain. And he has no intention of stopping there. "We would like to have 1,500 flats in Europe by the end of 2010, or between thirteen and fifteen establishments", he continues. Already, for summer 2009, two openings are planned in Geneva - 151 flats in a new building - and in Edinburgh - 75 flats located in the historic heart of the city. Frasers is also eyeing up Berlin, Frankfurt, Munich, Barcelona and Madrid, not forgetting Eastern Europe "as far afield as Moscow".

Residhome is well-established, particularly in the provinces, with its Confort (two-star) offering, and is aiming to move upmarket. Over the last two years, the chain has opened three-star Privilège residences in Metz and Nancy, and four-star Prestige residences in Paris-Opéra, Val d'Europe, Courbevoie and Massy-Palaiseau in the Paris region. "We had a backlog of three- and four-star hotels, which we are now catching up on. Until now, our residences have been classified mainly on the basis of their location, but we are starting to align ourselves with the hotel industry. Particular care is being taken to furnish the residences: Metz and Nancy have been furnished by Ligne Roset, and we are also calling on the services of interior designers", stresses Philippe Nicolet, Chairman of Residence Etudes, which is also preparing to launch a new product: Relais Spa. The first establishment is currently under construction at Val d'Europe and will be equipped, as its name suggests, with a spa with swimming pool, hammam, whirlpool bath, fitness centre and dietetic bar. Residents will have everything they need to pamper themselves.

For its part, Mysuiteapparthotel has chosen to diversify with a brand new 'campound' concept, also imported from the United States. Located on the outskirts of major urban centres, these landscaped My Suite Villages bring together around a hundred fully-equipped villas or small type 3 and type 4 houses.

Village spirit

Services are the same as in a traditional hotel residence, with the added bonus of a swimming pool with sun deck and solarium, a hairdresser and even shops. The first village opened last year in Rousset, on the outskirts of Aix-en-Provence, in Saint-Simon, on the outskirts of Toulouse, and in Monsevrain, near Paris. Other villages are under construction near Bordeaux, Toulon, Toulouse and Versailles. "We're targeting business travellers who prefer to live in real houses, families of executives on assignment or newly transferred expatriates who want to search quietly for their new home and need a transitional residence," explains Éric Blanc, Managing Director of Mysuiteapparthotel.

Known for its mountain and waterfront parks, Lagrange is now moving into urban residences. In February, it announced the creation of a range aimed at business travellers in search of well-being, with balneotherapy, fitness, swimming pool and restaurants. The first Lagrange City is due to open in 2009 in Boulogne, opposite the Ile Seguin, and by 2010 a dozen establishments should be marketed under the same brand, notably in Lyon, Marseille, Montpellier, Nice and Toulouse, as well as Barcelona and Brussels.

International destiny

Lagrange will thus join the club of apartment hotel chains with an international destiny. A club, it has to be said, that is still very closed. Unlike the traditional hotel industry, the long-stay industry is not very consolidated. Apart from Citadines, Pierre&Vacances City, Canada's Bridgecity and Asia's Frasers, Ascott and Summerset, few specialists venture beyond their own borders. For the time being.