The group is made up of nine hotels scattered along the Côte d’Azur. Six establishments are located in Nice, two in Menton, and the last one in Cannes. Laurent Rossi, the group’s executive director, tells us how he is coping with the crisis currently affecting the tourism sector.
Why establish in Nice?
Because we are hoteliers from Nice. I’ve been working in the Nice hotel industry for twenty years. Along with Mr. Bernard Leng, the owner of the group, we are passionate about the Côte d’Azur. We are confident in its economic potential.
The location is super central, and it has a capacity of sixty-four rooms. It’s a beautiful property that deserves to be renovated like the other eight hotels in the group. As a group, we aim to double to at least twenty to twenty-five hotels within five years between Nice, Cannes, and Menton.
What differentiates you from other hotels?
We have a true DNA at Summer Hotels, both in terms of the team where quality, hospitality, and the human element are crucial for us. The second aspect is that we renovate our hotels. They are beautiful and high-quality. This goes from the bedding to the complete renovation of the rooms, including the breakfasts. With our nine hotels, we have more than 600 rooms on the Côte d’Azur. We are completely independent. It belongs to one person.
How did the lockdown go for the group?
It was complicated. We had to close our hotels like everyone else. During the closure, we were fortunate to continue renovations. We did good commercial monitoring. We hit rock bottom like everyone else.
And the recovery?
Our reservations were canceled, but they have resumed a little since May 11th. The reopening of restaurants in June was beneficial for us. We have seen an increase in reservations since the opening of intra-European borders on June 15th. Finally, since July 1st, we have the opening of international borders, although our main markets like the USA remain closed.
As of today, what is your situation?
We closed on March 19th. The Masséna hotel reopened on May 18th and the last on June 29th. Three months of closure is a significant loss of revenue. We are very angry with our insurers. They dodge their responsibilities and obligations to compensate at least 15% of our operating rates.
We are relying on our commercial strength. Here at the headquarters of Summer Hotels, you have the marketing, commercial, and financial management. We know that usually, our hotels perform well. In Nice, we have an occupancy rate of 93% throughout the year.
This year, we won’t achieve that, but we know that our commercial offer will enable us to fill the hotel. Summer Hotels focuses on three-star+ and four-star hotels. We aren’t keen on five-star. We are unsure if the five-star clientele will be present.
Why?
We cannot go in every direction. We have targeted the three and four-star markets, which are promising with a very significant existing clientele and incomparable profitability rates.
In your opinion, what is the state of the hotel sector?
The hotel sector is in distress. Summer Hotels is financially stable, but I am concerned for the profession itself and my colleagues. There are people working hard who may face difficulties in October. A company facing difficulties is often due to a management error. However, there are people who make no mistakes and will still be impacted.
What is your strategy to stand out?
To attract customers back, we need to do our job as merchants. Offer quality services, smile, and be close to our clients.
We work with the city of Nice and the CRT (Regional Tourism Committee). We are trying, like all regions, to advertise. Our strength is the proximity between the sea and the mountains. The Nice hotel industry is of high quality, but we have competitors.
Do you plan on making any layoffs?
We have not made any layoffs, and today with partial unemployment, there is no reason to do so. It is thanks to its implementation that there haven’t been any layoffs in the hotel and restaurant sector so far.
When it ends, the question will arise. I am fortunate to have a high occupancy rate in the group. We will bring back all of our staff. Today, only a few are still on partial unemployment, often at their request because the school year is ending.
Are you confident for the future?
The season will be short, very average, and far from past seasons. We will fight through 2020 and hope that everything will restart in 2021. The forecasts for July and August are weak. It’s worth noting that Cannes and Menton are slightly ahead of Nice. The reason could be that they attract slightly more international clientele than Cannes or Menton.
As long as the airports remain closed, we will have a real problem. As long as international population flows do not resume, we will be in real difficulty.
How is your clientele reacting to these new norms?
They ask us a lot of questions. There are far more phone calls before their stay. They want information and are often reassured afterward. It encourages them to consume. When they are in the hotel, we feel they are more relaxed.
