[#PAFh19] "The human component is not a quantifiable value today, but if neglected it can be fatal."

What is the reading grid for developing a property?

Olivier Chopin (OC): It is quite simple.

I would like to say that I am able to set up an independent hotel, but it is not in my DNA, it needs a premium location, and it can scare the banks. We have a franchisee's DNA so we're going to choose a franchise. Today, what has changed the most for me is that the franchisor/franchisee relationship has become less complex on both sides. Five years ago, a hotelier was historically linked to a group and there were no questions asked either way. Today, on both sides there are opportunity strategies. On the franchisor side, there may be a desire to favour a better opportunity in the same market. De facto on the franchisee side, this determination to move towards what is more attractive, has the most notoriety, best corresponds to the market, and offers more advantageous fees, has also developed.
Complexes have thus been removed and the relationship is healthy. So the reading grid is in relation to notoriety, innovation. Another notable fact is that today we see that voluntary chains increasingly invade the territory of incorporated chains. Independent brands that previously concerned secondary markets and hotel rebranding are now being introduced in new buildings. Beyond the know-how and notoriety I also look at the technical expertise in a construction that a franchisor will be able to bring me.

What is the maximum return on investment?

OC : Five years ago, we didn't do a hotel with fewer than 45 rooms, today that figure is maybe 60 and we are climbing quickly to 90 or 100 to find ratios similar in terms of profitability to those of a few years ago.

What major challenges have you faced in your hotel collection? Free...