why invest in adagio€¦ · £7.8 million 63% - £4.9 million 53% - £4.2 million £488 highly...

0BRAND PRESENTATION

WHY INVEST IN ADAGIO

ACCOR GLOBAL DEVELOPMENT

FEBRUARY 2020

1

LEASE; FRANCHISE; MANAGEMENT

3 BRANDS + 3 OPERATING MODES

2023 ADAGIO PLAN:DOUBLE THE PORTFOLIO

GREAT DEVELOPMENT

INTELLIGENT INVESTMENT

HIGH PROFITABLE BUSINESS MODEL

ACCOR + PIERRE & VACANCES - CP-> STRONG COVENANTS

EXPERTISE OF 2 WORLD LEADERS

NEW GENERATION OF APARTMENTS;PROTOTYPES IN DEVELOPMENT

VERY DYNAMIC BRAND

RENOVATIONS OF OURCOMMON AREAS

« LE CERCLE » CONCEPT

ADAGIO IN ONE SLIDE

113 APARTHOTELS13 000 APARTMENTS 13 COUNTRIES

A STRONG NETWORK

ADAGIO - BRAND PRESENTATION

POSITIONING

VIDEO

ADEVRTSING

VIDEO

ADAGIO PARIS PORTE DE VERSAILLES - RENOVATED APRIL 2019

5

113 APARTHOTELS

13 000 APARTMENTS

13 COUNTRIES

2019 NETWORK

6

2019

2020UNITED KINGDOMLeicester Stratford /Sutton

FRANCEVannes /Saint-Louis Bâle

BELGIUMBrussels

GERMANYFreiburg

FRANCESaclay / Montpellier/ Lille / Paris

GERMANYBremen

MOROCCOCasablanca

SAUDI ARABIAJeddah

+17 OPENINGS 2019 / 2020


1

4MOROCCO

1

UAEDubai

QATARDoha

SAUDI ARABIAAlesayi Plaza

5FRANCE

GERMANY

QATAR

GERMANY

UK

SAUDI ARABIA

2

3

1

7ADAGIO - BRAND PRESENTATION

ADAGIO LONDONWHITECHAPEL

147 apartments

ADAGIO GLASGOWCUSTOM HOUSE

162 apartments

ADAGIO ACCESSHAMBURG

149 apartments

ADAGIO SOCHILE ROND

457 apartments

OPENINGS TO COME - 2021


ADAGIO TOULOUSE LA GRAVE

114 apartments

ADAGIO ACCESSANTWERP

69 apartments

and more to come !

OPENINGS TO COME - 2022

ADAGIO LILLE CENTRE GRAND PLACE – OPENED 2019

10

APARTHOTELS COMPETITION

UPSCALE

MIDSCALE

LUXURY

ECONOMY


11

CHECK-IN APARTMENTS

PUBLIC AREAS


A DAY WITH ADAGIO

ENTRANCE CHECK-IN BEDROOM BATHROOM WORK PLACE

SHARED KITCHEN

KITCHEN

SHOP @ADAGIO GAMING BREAKFAST LIBRARY OF OBJECTS LAUNDRY FITNESS

12

ADAGIO STUDIOS

Facelift Adagio

2 people -> 25 sqm


13

79 apartments including studios for 2, apartments for 4 and duplex

Ex: Adagio Lille Grand Place Centre inaugurated September 2019

Opened September 2019

ADAGIO LILLE CENTRE GRAND PLACE


ADAGIO APARTMENTS

14

Facelift Adagio

4 people -> 35m2

ADAGIO APARTMENTS

ADAGIO LILLE CENTRE GRAND PLACE – OPENED 2019

ADAGIO LILLE CENTRE GRAND PLACE - OPENED SEPTEMBER 2019

17

110 apartments including 77 studios 2 people and 33 studios for 4

Ex: Access Palaiseau Saclay inaugurated January 2019

ACCESS APARTMENTS

Opened January 2019

ACCESS PALAISEAU SACLAY


18

Mock-up room at Adagio Paris Bercy Village

New interpretation of our current concept

NEW ACCESS CONCEPT


19

Some business travellers feel motivated by this welcoming space, while others find that it encourages interaction

with table football, wide variety of board games, piano…

A grocery store to find practical or gourmet products

& free provision of drinks in the lobby

COWORKING SPACES

ENTERTAINMENT

« LE CERCLE » 6 DIMENSIONS

A welcoming and informal table for guests, staffed by receptionists

in a more casual attire

RECEPTION: LARGE TABLE D’HOTES

For guests to cook during The day and share with others

+ can be booked by a chef for a special occasion

SHARED KITCHEN

FUN & PRACTICAL SERVICES

To personalise their apartment, guests have access to a free library with 3 types of objects:

- ICONIC: local trinkets & memorabilia- EMOTIONAL: plants, frames, books- FUNCTIONAL: kitchen utensils…

LIBRARY OF OBJECTS


20

URBAN CASUAL

AN AMBITIOUS PROGRAMOF RENOVATIONS

2018

2019

2020

#22

#70

#44

2017#4

ADAGIO PARIS BERCY VILLAGE

ADAGIO LA DEFENSE COURBEVOIE

ADAGIO TOUR EIFFEL

ADAGIO PARIS PORTE DE VERSAILLES

NUMBER OF REFURBISHED PUBLIC AREAS

CLASSIC CHIC

METROPOLITAN

MIX AND MATCH

FRESH

MEDITERRANEAN

+ FLAGSHIP EDITIONS

GRID

7 DIFFERENT LE CERCLE CONCEPTS

21

YUMMY FACTORY - Since January 2018 for the Adagio; January 2019 for Adagio access


Bowls Bar Granolas, fruit salad, muesli

Toasts Bar Fresh eggs, jams, honey

Sweet Bar pastries, sweet cakes

ADAGIO BRUSSELS GRAND PLACE – RENOVATED OCTOBER 2019

23

GOP > 60%* HIGH ROI


OPERATIONAL

PROFITABILITY

RETURN ON

INVESTMENT

HIGHLY PROFITABLE BUSINESS MODEL 1/4

✓ High occupancy✓ Optimised ARR✓ Low operating costs

✓ Efficient space usage (FOH vs. BOH)

✓ Limited BOH areas✓ Optimized construction costs

(-10% / 4* hotel)

Source: Adagio Data on a sample of properties

24

When the stays in a classic hotel last 1-3 nights the ones in an aparthotel last 1-90 nights


J F M A M J J A S O N D J F M A M J J A S O N D

HOTEL APARTHOTEL

0%

25%

50%

75%

100%

0%

25%

50%

75%

100%

*Source: Adagio Data 2018 on a sample of aparthotels

29% (1-3 nights)

46% (4-27 nights)

25% (>28 nights)

LONGER STAYS ENABLE THE MAXIMIZATION OF OCCUPANCY

Reach up to 90% average

occupancy*

Hotel schedules tend to be polarised

Longer-stay business is more stable throughout the year

occupancy occupancy


1-3NIGHTS

4-9NIGHTS

10-27NIGHTS

28-90NIGHTS

91+NIGHTS

Typically 10% higher than a midscale hotel price of Accor with similar

location

Typical aparthotel

price

Typically 15% less than 4-9

nights

Related to rental price in destination. Typically 10% higher

than 91+

Related to rental price in destination.

Typically 1.5 to 2x rental price in location

10088 79 65 60

-12% -21% -35% -40%

Source : Adagio Data 2018

Adagio uses a tiered pricing scheme which limits discount levels


26

C

O

S

T

S

Decreasing operating costs with extended stays

1-4NIGHTS

4-27NIGHTS

+28NIGHTS

AVERAGE

14

22

8

14 14 14

6

7

5 9

4


Based on a sample of Adagio properties (internal data, 2016)


Energy, payroll, fix costs, bank charges

Housekeeping, laundry, front desk

Commissions


Aparthotel vs. Hotel – P&L comparison1

1 WATG Report 2015

OCC. RATE

AVERAGE DAILY RATE

REVPAR

ROOM REVENUE %

TOTAL REVENUE

GOP

NOI

PROFIT/SQM

4* HOTEL 4* APARTHOTEL

80%

£145

£116

72%

£9.5 MILLION

49% - £4.6 MILLION

40% - £3.8 MILLION

£442

88%

£135

£119

93%

£7.8 MILLION

63% - £4.9 MILLION

53% - £4.2 MILLION

£488


28

ADAGIO TOULOUSE CENTRE RAMBLAS

Guests are satisfied by our service

BRAND RECOGNITION

86.1%1 satisfied and very satisfied guests

1TrustYou Survey- Sept. 2018 to August 20192Sept. 2019

ADAGIO CASABANCA CITY CENTRE

ADAGIO PARIS VINCENNES

Several aparthotels Adagio with 9/10 on Booking.com2:

Renovated public areas March 2019

ADAGIO PARIS CENTRE TOUR EIFFEL& a lot more!

29

ADAGIO DISTRIBUTION SOLUTIONS POWERED BY ACCOR


STRONG SALES CHANNELS TARGETING EXTENDED STAY

18%HOTEL

PMS

82%OF ADAGIO ROOM

REVENUE COMES

THROUGH ACCOR

CENTRAL

RESERVATION

SYSTEM

CALL CENTERS, INFLUENCED HOTEL DIRECT*

*HOTEL & CLUSTER SERVICES

ACCOR WEB

WEBSITES, MOBILE

SITES & APP

WEB PARTNERS

(OTAs)

GDS / IDS

41% DIRECT SALES

41% INDIRECT SALES

27%

14%

36%5%

2019 Figures

764K ROOM NIGHTS

€93M ROOM REVENUE

FOCUS WEB(ACCOR WEB + WEB PARTNER)

50%

30

NEW BOOKING ENGINE & APP

ADAGIO - BRAND PRESENTATION2019 Figures

▪ 300M Website + App visits

▪ 2,200 Destinations

▪ 18 Languages

1 MULTIBRAND PORTAL 1 LIFESTYLE COMPANION APP 18 BRAND.COM WEBSITES

▪ 56% Mobile and App visits*

▪ 1 Download every minute

▪ Plugged to ALL.ACCOR.COM

ALL.ACCOR.COM

*year 2019 + from dec 2019-to Mid Feb 2020, sincelaunch of ALL

31

NEW LOYALTY PROGRAM

ADAGIO - BRAND PRESENTATION2019 Figures

NEW LIMITLESS EXPERIENCES ANDEXTENDED OPPORTUNITIES TO EARN & REDEEM POINTS

NEW BENEFITS

▪ 2 New tiers (diamond & limitless hidden tier)

▪ 34 Brands and +

▪ Suite Night Upgrade

▪ F&B outside a stay

NEW PARTNERSHIPS

▪ PSG – Games / Net media value +€200m to ALL

▪ AEG – Worldwide arenas & festivals

▪ IMG – Taste festivals

THE ONLY LIFESTYLE

LOYALTY PROGRAM

THE FAST GROWING

LOYALTY PROGRAM

THE MOST GLOBAL

LOYALTY PROGRAM

32 40 53 644 4,770

100120

150

2016 2017 2018 2019

ALL FRS Huazhu

214M

▪ 64M Loyalty members worldwide

▪ 31% Loyalty contribution rate

▪ X 2 Members stay twice more

▪ X 2 Members spend twice more

Central Europe

6%

ASPAC31%

Other Europe,

Middle-East & Africa

20%

France12%

Nothern Europe

12%

North & Central

America, Caribbean

11%

South America

8%

ADAGIO MUNICH CITY – RENOVATED OCTOBER 2019

33

DEVELOPMENT CRITERIAS

Key destinations cities

TARGETED

COUNTRIES

AND MORE…

Major domestic destinations

Smaller cities& attractive

touristic destinations

Prime location Secondary locations Suburbs

3 OPERATING MODES:

- Fixed Lease

- Management contract

- Franchise


34

- GREAT CONNECTION TO PARIS CITY CENTER


I/ INTERNATIONAL METROPOLIS

PARIS- MAJOR CITY

- MANY LEISURE AND CORPOCRATE OPPORTUNITIES

- DYNAMIC ENVIRONMENT

- CORPORATE DISTRICT

- CLOSE TO THE TRANSPORTATION

NETWORK CAPITAL CITY

LA DEFENSE

BUSINESS DISTRICT

SAINT-DENIS

PARIS SUBURBS

- PARIS EXAMPLE

ADAGIO DEVELOPMENT SCENARIOS (1/3)

35

- DYNAMIC ENVIRONMENT

- CORPORATE DISTRICT

- CLOSE TO THE TRANSPORTATION

NETWORK

- IN FRONT OF THE UNDERGROUND STATION

- 15 / 20 MINUTES FROM THE CITY CENTER

- HQs AROUND

- RESTAURANTS AND BARS NEXT DOOR


MUNICH

MUNICH SUBURBS

MUNICH

CORE CITY CENTER

II/ REGIONAL CAPITAL

- MUNICH EXAMPLE


36

- CITY CENTER LOCATION

- 5 MINUTES FROM THE TRAIN STATION

- RESTAURANTS AND BARS NEXT DOOR

- NOT FAR FROM THE CORPORATE POTENTIAL


NANCY

CITY CENTER

III/ SECONDARY CITY

- NANCY EXAMPLE

105K INHABITANTSWESTERN FRANCE


BENELUX

1. Brussels / Amsterdam / Luxembourg 2. Anvers / Gent / Rotterdam / The Hague

DACH REGION

1. Berlin / Munich / Hamburg / Zurich / Vienna2. Frankfurt / Stuttgart / Cologne / Düsseldorf / Hannover

FRANCE

1. Paris & Grand Paris / Lyon & Grand Lyon 2. Lille / Strasbourg / Bordeaux / Aix-En-Provence3. Annecy / Beausoleil – Monaco / Nice

SOUTHERN EUROPE

SPAIN - Madrid / Barcelona / Valencia / Sevilla / Malaga / Bilbao ITALY - Roma / Milan / Turin / BolognaPORTUGAL - Lisbon / Porto

UNITED KINGDOM / IRELAND

1. London / Manchester / Edinburgh / Dublin / Cardiff / Cambridge / Oxford (Lease)

2. Belfast / Bristol / Glasgow / Greater London / Leeds / Newcastle (Franchise / Management)

KEY DEVELOPMENT CITIES

*non exhaustive

*

38

KEY BUILDING CRITERIAS (EU)ADAGIO

NUMBER OF KEYS

80 - 140 apartments

TGFA / 100 APTS

4,400m2 / 4,600m2

TYPOLOGY

70% (studios 2p)30% (1 bed-apt 4p)

PRIVATE AREA

25 sqm (studio 2p)35 sqm (1 bed-apt 4p)

PUBLIC AREAS

350m2 / 100 apts(Reception, business Corner, fitness, breakfast room, laundry, luggage room)

Combo with Accor & mixed-used projects are possible

Flexible to specific needs:

NEW-BUILD / TAKEOVER / CONVERSION

ACCESS

NUMBER OF KEYS

90 - 120 apartments

TGFA / 100 APTS

3,200m2 / 3,400m2

TYPOLOGY

70% (studios 2p)30% (studios 4p)

PRIVATE AREA

19 sqm (studio 2p)25 sqm (studio 4p)

PUBLIC AREAS

290m² / 100 apts(Reception, breakfast room, laundry, luggage room)

Opened April 2019

ADAGIO CASABLANCA CITY CENTER

39

Adagio Construction and Renovation StandardsCan be used after HCSA is signed

Adagio Concept GuidelinesCan be used after HCSA is signed

Adagio GuidelineCan be used after HCSA is signed

Adagio Schedule of AreasCan be used before HCSA is signed

DESIGN & TECHNICAL SERVICES

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why invest in adagio€¦ · £7.8 million 63% - £4.9 million 53% - £4.2 million £488 highly...

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