Resilience, franchise development, lifestyle: interview with Ngor Houai Lee (Ascott)

What lessons can you draw from the crisis for long-stay accommodation?

Ngor Houai Lee - During this difficult period for tourism, it is interesting to see that hotel residences have proved their worth much more resilient than traditional hotels. For example, three quarters of our European establishments have remained open, which is quite substantial when you consider what has happened globally. Similarly, from the second half of 2021, the recovery was strong and rapid. We were even surprised by the level of activity at our luxury residences in Paris. Last May, we were still reluctant to open our three The Crest Collection establishments during the summer, because of their dependence on international tourists. In the end, we believed in it, and I have no regrets whatsoever. these residences outperformed compared with our 3* and 4* establishments, and received many American and Middle Eastern customers. Because of the autonomy and comfort they offer, the residences are well suited to the contingencies that may have arisen during this pandemic. In Asia, some of them have been used as quarantine centres or drop-off points while awaiting test results.

Has the fifth wave, which is now hopefully coming to an end, affected this recovery?

N. H. L. - The momentum is admittedly a little less strong than at the end of last year, but the trend is still good. We are achieving our budgets. We are no longer in the situation we were in previously, there is no sign of a collapse in demand. In the UK, since the measures were lifted, our residences are doing very well. The Netherlands, Spain and Ireland are all in the process of reducing their restrictions. The climate will become increasingly positive. Let's hope, of course, that we don't see any new problem variants arriving.

You mentioned resilience. Has this greater resistance to a major shock such as the pandemic we've been through changed the way we look at long-stay accommodation?

N. H. L. - In a way, the pandemic has pushed our segment into another dimension. We can see this firstly in all the projects signed by our group, with Ascott recently announcing a new record with 15,000 new units expected worldwide, and secondly in our appeal to alternative clienteles who were able to discover us during the health crisis. But above all, it's the number of requests we're receiving from investors, and their growing interest in our apart-hotel brands. Before, out of 10 projects, only one was a hotel residence. Today, this demand has risen to 3 or 4 projects out of 10.

You had already embarked on a new phase of development by turning to franchising before the crisis. Has this new interest strengthened your strategy?

N. H. L. - This is one of the major areas of our development worldwide, and especially in Europe, where this model is enjoying real dynamism. Today, we have six residences operating under franchise, and four more under development. We will continue to focus on this growth modelMany operators have told us that they want to franchise the Citadines brand. Most of them already work with major international hotel chains and, given the resilience we have been able to demonstrate, they are now looking to have apartment hotels in their portfolio.

In a way, the pandemic has pushed our segment into another dimension

At the same time, this will enable you to expand your network beyond the major metropolitan areas where you are mainly present.

N. H. L. - Indeed, franchising will enable us to explore new territories where, with our investment strategy, we didn't go before. It will also enable us to strengthen our network in France. For example, we have opened franchised outlets in Nantes and Paris. Strasbourg under the Citadines brand, and we expect another in Toulouse in 2023. We are also looking at other projects in regional cities. My wish is that our development in the years to come will be 601TP1 based on this model.

Does this franchise strategy replace your investment plans?

N. H. L. - We still have a healthy appetite for investment and this axis will also be strengthened. The Ascott group has structured itself in such a way as to raise funds to continue investing in major cities, on premium locations. In this way, we will continue to set up new flagships for our various brands. What's more, we're developing our first lyf residence in Europe in Paris, thanks to the acquisition of a former printing works in the 20th arrondissement, which is in the process of being converted into a lifestyle residence.

What are the strengths of this new lifestyle and coliving brand?

N. H. L. - Many brands are now tapping into this modern, lifestyle demand, with establishments that offer the chance to live an experience. With lyf, We are part of this trend, but this lifestyle dimension is still connected to our apartment-hotel DNA. The lyf concept, launched a few years ago, aims to offer a hybrid hosting solution which offers the best of apartment hotels, hotels or co-living flats, and is designed for the new generation of travellers looking for flexibility and community aspects. lyf Gambetta Paris will offer double rooms, twin rooms, studios with fully equipped kitchens, and twin rooms with private bathrooms and shared kitchens. The lyf offer is based around many common areas like, for example, a shared kitchen where customers can prepare a meal together, but also a bar and a gym. The idea of community and the word 'sharing' are very important in this experience...

The aim of the lyf concept is to offer a hybrid accommodation solution that combines the best of apartment hotels, hotels and co-living flats.

This differs from the traditional model of residences, which emphasise the comfort of the flats and the "home away from home" aspect.

N. H. L. - A little different from the Citadines concept, the aim of the lyf concept is to allow our guests to leave their rooms to come and work and live in the communal areas, but also to attend events and activities, such as conferences, yoga classes and other activities. And all this in conjunction with the neighbourhood and local players. Via the our ASR loyalty programme (Ascott Star Rewards), people from outside the hotel will be able to consult the schedule of events and register for them, as well as offering to organise them. This is how life is created, as the name lyf (pronounced laïf) emphasises.

However, lyf's offering is not that of a new-generation youth hostel, but is positioned at the top end of the market. So the concept is aimed at business customers?

N. H. L. - We saw this with our first lyf to open in Singapore in 2019. The establishment receives a lot of business travellers, but also project groups attracted by the idea of coliving and coworking. The lyf concept comprises flats with three or four bedrooms, all with private bathrooms to guarantee travellers' privacy, grouped around a shared lounge and kitchen. Employees can work in groups and dine together. The concept is very popular. These solutions are always snapped up by our business accounts. The lyf brand is going from strength to strength, with 17 operational addresses planned worldwide between now and 2025.

Employees can work in groups and dine together. The concept is very popular.

How is the Ascott Group tackling today's major trends, whether coworking, sustainable development or digital?

N. H. L. - With the health crisis, more and more business travellers have moved and worked remotely, and the notion of "remote" working has emerged. Telecommuting does not necessarily mean "working from home", but from a distance, and therefore potentially within a residence. This idea is well integrated into the development of our products. For example, the lyf Gambetta Paris will offer a coworking space and meeting rooms, as well as 'cabins' where you can get away from it all for a quiet chat. Another important point we're focusing on in our development is sustainable development. Today, all our projects aim for excellent environmental certifications. The support of technology helps us to optimise consumption. For example, the Citadines Islington in London, one of our pilot sites, has sensors that detect the presence of customers in the rooms or windows that are open, to automatically adjust the heating or air conditioning. We can also monitor water consumption. These are things that will be deployed on all our projects. And we will be upgrading existing residences in these areas as we carry out renovations, four of which are planned for this year in Europe: the Citadines Kurfürstendamm Berlin and London Holborn, and two Citadines in Paris, those at La Défense and Les Halles, which will become one of our flagship residences.

What new digital products are you offering?

N. H. L. - The Ascott Group has taken advantage of the year 2021 to redesign its website. Thanks to an improved and more intuitive user experience, customers can easily find their "home away from home with Ascott" while discovering their next travel destination. Today, the booking process is much smootherin just a few clicks. And more, customers can find all our establishments hereAll our brands have been brought together under a single global booking platform: discoverasr.com. This is a revolution for Ascott, as the site is now accompanied by an app to which new features have recently been added. Check-in can now be done directly from the app. In lyf establishments and the new Citadines residences, customers can even activate a mobile key to access their flats. And this will be the case in all our new establishments as well as the other residences as they are renovated. Through these digital tools, members of the Discover ASR loyalty programme can also benefit from preferential rates and manage their points. Our loyalty programme also allows business customers to benefit from advantages and be rewarded for their loyalty.