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 establishment. At the signing, critics had fuse among professionals who objected to the level of rent "too low" in their eyes. This is completely false, Dominique Colliat retorts, Director of Operations Sofitel Southern Europe and Maghreb. What is certain, however, "is that we have not made much profit on this hotel," she adds mischievously.
The rate of hotel occupancy has risen indeed, but there is still modest, do not forget that Fez is a niche market for this type of product, and it takes years to develop. Therefore, the rent might be interesting at a time, but despite everything, we did not win much money. "If he had been far higher, Accor would have lost money, and this would have been a good deal for anyone," says 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 it intends to address the lucrative hotel segment great luxury. "This unit is our legendary hotel that you want included in the category of luxury hotels," said 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 customer market high contribution.
Discussions with ONCF have committed especially the financing of the renovation. 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 sticking point, negotiations with the owner are, by contrast 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 official word half of the Accor group. 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 American competition. The household is in the portfolio of brands including 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 region supervised, Spain, Italy, England and Greece are at low ebb, recognizes the responsibility of 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 on luxury customers. However, the question for Accor to launch promotions in one-upmanship: "Our strategy is to resist and try to play on other levers, such as quality of service," explains 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" the market quietly with two other institutions.
Source: The Economist
