Adagio Aparthotels is Accor’s extended stay brand. It opened its first UK property in Liverpool in March and already operates 90 aparthotels in European cities such as Berlin, Brussels, Geneva, Marseilles, Munich, Paris, Rome, Strasbourg and Vienna.
Porikis,Adagio's director for central and northern Europe,talks to Tom Otley about the brand's strategy and growth plans
Tell us how Adagio Aparthotels was formed?
Adagio was created in 2007, so it’s a young company initiated by the two CEOs of Accor and Pierre & Vacances which had a small network of apartment hotels in France in addition to their big network of apartments throughout Europe. They had discussions with Accor which was strong in a lot of markets but lacking in extended stay. Accor could see that the market in this segment in Europe was young and had a high potential, so they created a joint venture to invest a lot of energy and money. From that start of 14 properties, Adagio now has 90 properties.
What’s different about Adagio from other providers?
Well we have a fully-equipped kitchen, with dishwasher and microwaves. But it’s the attitude as demonstrated by the name - in Italian, it means being at ease, doing things at your own rhythm, you own pace, autonomy, and Accor had this brand which had already been registered and it fitted well with the physical product. We offer a flexibility in terms of low administration costs but with the security of the hotel, reception, support and a rate including internet connection.
What sort of locations can people expect?
We are looking for strategic locations: extended stay has to be in the centre of the city for the advantage of the guest. We opened in the centre of Vienna which fits in with our strategy.
There are two Adagio brands – what’s the difference between them?
Yes, there is Adagio which is upper midscale and offers bigger spaces - the standard in Europe for studios is 26sqm or 30sqm. But it does vary - in Liverpool, which is a conversion building, the studios are 25sqm and the one-bedrooms are 40sqm minimum. They are located in the key cities, including the metropolis of Europe and abroad. Adagio Access is a more economic solution. They are located in some important cities but also in business areas. The studio apartment is 20sqm and we don’t have a lot of one-bedroom apartments. There are different demands from extended-stay customers and Adagio Access is more accessible price-wise.
What is your unique selling point compared to traditional hotels?
An aparthotel uses fewer services with less food and beverage options. We have an area for breakfast; for example: in Liverpool, it is the former restaurant of the department store. We use less space for the reception, there’s a nice lounge, but there’s less infrastructure. We also have a different housekeeping system. We have a daily housekeeping for short stays up to four nights, but beyond that it is once a week which means we can pass those savings on to the customer. We offer 24-hour check-in and check-out.
What sort of saving do you calculate customers make staying with you?We did a study which shows that if you take a monthly stay, and take away the food and beverage you use in the restaurant you can save up to 50 per cent. If we are talking about rate only on the accommodation for short stay then the average short stay in Liverpool is from £55-65 per night (for a minimum 4 nights). A one-night stay would be £75. The highest price would be £250 for a studio apartment for one night at the peak time of the year. So we think it is a saving of 35 per cent.
Do you think customers have heard of Adagio?
Well we have 90 locations today so while our brand awareness in the UK is not very high yet, we are doing a lot of work in other countries, we did a television campaign in France and Germany, and in Switzerland with Linkedin we tried to attract the business travellers to increase our brand awareness. We are number one in Europe in terms of rooms on offer and coverage, we are in seven countries, and we will enter new markets like Russia by the end of this year and in Abu Dhabi. This will increase awareness of our brand and also an awareness of the concept.
Do you compete with the other Accor brands?
In one sense, but we use the Accor sales team and we would be on the RFP for negotiating rates. We only quote for four night-plus accounts so we’re not competing with the Novotel or Ibis in Liverpool. We are offering them a different type of hotel. We anticipate some extended stay global RFPs as well. Buyers are now starting to be aware of this concept. Five years ago they were not very aware. They know there is a demand but it is not organised well – it is done by different departments – by project teams or HR departments, so now buyers want to consolidate the business. Next year we will open Birmingham in the Bull Ring Shopping Centre which will have 108 apartments.
So do you have a restaurant?
We are trialling a bar in the UK in the reception area selling bottles of beer and wine and we have a large public space on the third floor where people can enjoy a drink. In the mornings we offer a full cooked English breakfast for £12.50 per person.
adagio-city.com