PARIS—Since Barry Sternlicht’s Starwood Capital Group (SCG) acquired Société du Louvre in 2005, the lion’s share of the attention has gone to the premier assets in the portfolio such as Crillon and Baccarat. In addition, SCG has launched its green 5-star brand, 1. Under the radar has been Concorde Hotels & Resorts, Paris, which still includes the Crillon until it rolls out as its own brand (SCG hopes to develop 12 to 15 Crillons), as well as 13 owned and managed properties and 20 affiliate hotels

Often viewed as a somewhat neglected portfolio despite a strong presence in Paris (seven hotels), Chief Operating Officer Marie-Beatrice Lallemand was hired away from IHG France just before the SCG acquisition and has spent the past two years “cleaning house.” As a result, she believes she is now prepared to grow the Concorde brand from 33 properties today to about 100 hotels—mostly managed and perhaps 10 to 15 affiliated—by 2013.

Going forward, hotels that fit the Concorde profile will include those with at least 150 rooms, “A” locations in primary cities, “A+” locations in secondary cities and sites within three hours of the source market for resorts.

New deals will focus on management, says Lallemand, but the company will look at joint ventures where it makes sense. Lallemand likes the brand’s prospects in Eastern Europe (Russia, Kazakhstan, Ukraine), North Africa (Morocco), the Middle East (Bahrain, Riyadh) and Asia.

“I am working on 50 deals at the moment,” says Lallemand, who at press time was recruiting a director of development. In many instances, Lallemand says, Concorde is the one being approached by owners with one or two properties because they have heard of the group and don’t want to get lost in the shuffle of working with the larger hotel groups. “The combination of being Concorde with its strong roots and knowing Barry Sternlicht is the shareholder creates security among owners,” she adds.

Lallemand has spent a lot of time restructuring the organization, investing between €3 million and €4 million in technology and infrastructure systems, as well as hiring top executives to create a stronger property management profile.

While not a cost-cutter, Lallemand says she is good at reducing waste, and that is what she has done to the Concorde system, which was family run and didn’t adhere to the strictest requirements. For example, she created synergies in purchasing (previously there were 400 dry food suppliers) and implemented a staff forecasting system.

The brand also has invested €800,000 on a new Web site with state-of-the-art functionality for groups and meeting planners; launched a free WiFi program in the 15 European hotels; is in the process of installing 3,200 “Beautyrest effect” beds; and created a “Meet In Style” department to more personally handle client’s meeting needs.

“The company has been around for more than 100 years, so it is not like we were born three years ago. We own incredible assets and have developed a strong sense of where we should go next.” — Marie-Beatrice Lallemand, COO, Concorde Hotels & Resorts

Renovations are under way at hotels, including the brand’s Paris icons—the Concorde Lafayette and the Crillon—as it prepares for further branding. There are also plans to renovate the Hotel Lutetia and Hotel du Louvre in Paris. Since Concorde has a long-standing reputation for culinary excellence, that will remain a focus and selling point going forward, as evidenced by the hiring of New York-based food and beverage impresario Steve Hanson to create concepts at the Lafayette.

The results of refocusing on the Concorde brand have been good. In Lallemand’s two years, revenues have increased 24% thanks to strong focus on revenue management practices, and EBITDA is up 66%.

All of this cleanup creates a new sales pitch going forward, which according to Lallemand, includes Concorde being a well-known brand, especially in the Middle East, where 40% of its clientele resides, and in North Africa. “The company has been around for more than 100 years, so it is not like we were born three years ago,” she says. “We own incredible assets and have developed a strong sense of where we should go next.”

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