Accor speaks with ONCF the Palais Jamai
The Palais Jamai is managed for ten years, exactly 1997 by Accor under a lease agreement with ONCF, owner of the property. During the signing, reviews rocket had among professionals who disputed the level of rent "too low" to them. This is completely false, Dominique Colliat replies, Director of Operations Sofitel Southern Europe and Maghreb. What is certain, however, "is that we have not made much profit on this hotel," she says mischievously.
The rate of hotel occupancy has risen indeed, but there is still modest, remember that Fez is a niche market for this type of product, and it takes several years to develop it. So, the rent might be interesting at a time, but still, we did not win much money. "If he had been much higher, Accor would have lost money, and this would have been a good deal for anyone," said Colliat.
As part of the repositioning of the Sofitel brand, Accor has proposed to his partner ONCF processing Palais Jamai in "New Sofitel Legend," the concept with which he intends to tackle the lucrative segment of the hotel very luxurious. "This unit is our legendary hotel that you want to return to the category of palaces," says Dominique Colliat. After an upgrade in depth, the Palais Jamai is part of a closed circle of a handful of hotels that are the backbone of the Accor Group in the market for high customer contribution.
Discussions with the pledged ONCF especially the financing of the renovation work. Who should pay for this upgrade? The owner of course, as is done in the lease of the walls in the hotel. The project is heavy and will require between 20 and 30 million euros (220 to 330 million dirhams), drops the Director of Operations Sofitel Southern Europe and North Africa, without saying more.
If there is no point blocking the negotiations with the owner, however, proved more difficult than expected because it is a financial issue. "These are not things that are concluded in two days, it is normal that each Party shall ensure its interests," says the half-term leader of the group Accor. In any case, the components of the renovation project presented to the ONCF seem to accept and are in perfect harmony with the personality of this legendary hotel.
On the world market of luxury, the French hotel industry, which Accor is the representative has a delay time from the U.S. competition. The household is in the portfolio of brands including the restructuring of the Sofitel brand launched two years ago is precisely to bridge this gap and to give greater coherence to the whole. All units that could not get into the luxury category were taken out of the portfolio. For the French group, the direct competition for future Sofitel New Legend consists of Hyatt International, etc..
Regarding a possible impact of the crisis on attendance Sofitel units in the area supervised, Spain, Italy, England and Greece are at low ebb, recognizes the responsibility for Accor. Paradoxically, Morocco is much less affected because the activity tourism will suffer unless the corporate segment. But in Marrakech, the arrival of luxury brands American promises a fight to the luxury customer. However, the question for Accor to launch promotions in the bidding, "our strategy is to resist and try to play on other drivers, including the quality of service," said Dominique Colliat.
In the region, and despite the downturn in the market for business travelers, the Sofitel Algiers seems for the moment on another planet. Neither his attendance or performance do not seem to suffer from the crisis in Europe. He did not face the same competition as in other cities. In Algiers, the Sofitel is "sharing" quiet market with two other institutions.
Source: The Economist
