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Opportunistic Elegancia marches to unique Parisian beat

“In France, we’re not known as being welcoming to foreigners – it’s not true,” chuckled Elegancia Hotels co-founder Christophe Sauvage. In fact, he and partner Philippe Vaurs have capitalized on that misconception in a city known more for classic hotelkeeping by focusing more on service and unique style to drive business over the past 10 years at their Paris-based company.

With a portfolio of 15 Paris hotels with some 500 rooms operating under a creative and increasingly successful structure somewhat unique to France, the duo – one coming from an independent, family-owned hotel business and the other a veteran of Accor – since 1999 has been leasing smaller hotels in physically horizontal Paris.

After refurbishing what are usually outdated hotels or converting other types of spaces into 32- to 35-room properties, they are able to grow rate and occupancy with their design- and service-led approach. Generally, within three to four years they sell the leases at between four and six times the yearly turnover. Then, because the taxman in France tends to be greedy, the French “fonds de commerce” system under which they operate allows them to reinvest in new hotel leases. Sometimes they retain management after a sale, but not often, and currently they own and operate one of their 15 properties.

Philippe Vaurs (l.) and Christophe Sauvage own and operate 15 distinct hotels around Paris.
Philippe Vaurs (l.) and Christophe Sauvage own and operate 15 distinct hotels around Paris.

Sauvage recently told HOTELS once they obtain a new lease, they generally invest from €2 million to €25 million (US$2.3 million to US$28.6 million) and increase turnover in a big way. In 2015, the lowest occupancy stood at 78% and the highest was 92%; average rate ranged from €104 to €215 (US$119 to US$246) without breakfast and including tax.

What Sauvage said makes Elegancia truly unique is that not one hotel they create or re-create is similar. Each comes with its own story and fresh lifestyle design. Spaces range from artistic and modern to contemporary or even a refurbishment of a wooden home. There is no restaurant, per se, but they do serve breakfast and try to create a great bar environment.

Because they are not a big business or supported by the likes of a sovereign wealth fund, Elegancia grows by finding solutions without constraints of the price usually paid for being inside a great city like Paris. To that end, their next project opening this summer will be the country’s first floating hotel, with 58 rooms on the River Seine, called Off Paris Seine located near the Pont Charles de Gaulle.

The opportunistic group tends to find two or three new projects a year and lately has been moving into bigger projects, including unoccupied office buildings authorized to transform into hotels. In fact, Sauvage said Elegancia has three such buildings under renovation.

Bath at Hôtel Crayon, located in the very center of Paris
Bath at Hôtel Crayon, located in the very center of Paris

A 40-room project where all rooms have a view of the Eiffel Tower is set for next month, while two projects are progressing for September and November. More ambitiously, in addition to two renovations, an 80-room, 5-star hotel with two restaurants is in the works for 2018-2019.

And next up, said Sauvage, is a plan to buy 100 chateaux in France and develop a fractional destination club.

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