REPORT FROM FRANCE—Two years after the French government announced a new hotel rating system, a deadline has been set before it comes into full force and the old system passes into hotel history.
Hotels have until July 2012 to complete the required modernization process, pass inspections and apply for their stars.
From then on, two new signs will appear on officially accredited hotels: a red one for 1-star to 4-star establishments and a gold one for 5-star hotels.
The ratings will be managed by the future Agence Nationale de Développement Touristique (National Agency for Tourist Development), according to a government statement. “The plaque will show the year of the award and the expiry date, because it is attributed for five years. The brand name ‘France’ at the bottom of the sign will emphasize the official state character of the rating.”
The race is now on for what some see as urgently needed upgrades, particularly of low- to mid-market French hotels. They have to shape up, or ship out if they want to hang on to their current ratings.
Hotel entrepreneur Olivier de Geffrier, who a fortnight ago announced his plans for a new group of 4-star boutique business and leisure hotels in Paris, said the current rating system—introduced in 1986—was never updated.
“It is true that many foreign tourists thinking they have reserved a 3-star hotel find themselves in an establishment of an inferior category, which doesn’t come close to responding to their expectations as far as services, comfort and price are concerned.
“There is often a real gap between French and foreign standards ... The new system will force French hotels to measure up to international norms and allow overseas visitors to choose a hotel according to impartial, real criteria,” de Geffrier said.
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New system’s critics
The reform has some virulent critics. The Committee for the Modernization of French Hotels (Comité pour la modernisation de l’hôtellerie française, www.comitemodernisation.org) which unites 700 hotel and tourism industry professionals has denounced the measures as a “trompe l'œil,” illusory despite its vigorous lobbying for hotel improvements.
While acknowledging a general “backwardness in modernity denounced by guests”, committee president Mark Watkins said the new classification would not help modernize the French hotel industry, “because its criteria are too limited and ill-adapted to the expectations of French and foreign tourists.”
Far from “revolutionizing” the hospitality industry as intended, the standards did not go nearly far enough and were drawn up without any proper consultation with either hotel management or guests, he said.
In an open letter to the tourism minister in February, the committee emphasized the fact that en-suite bathrooms and TV were not compulsory for 2-star hotels, while 5-star hotels could offer rooms as small as 20 square meters—bathroom included—sold for above €300 Euros (USD$392) a night.
Upgrades are needed
Most industry observers seem to agree with the government’s claim that 85% of France’s 17,487 classified hotels were in need of upgrades.
Classement Hôtelier offers hoteliers a self-evaluation checklist to review compliance in the new scheme.
Marketing consultant Serge-Henri Saint-Michel said the old rating system urgently needed overhauling. “The hotel industry classification dating to 1986 is dead. The new classification will give rise to new investments—for the consumer and for brand-establishments, either way it’s positive.”
The revamped star system significantly tightens standards: hotels must fulfill 50% of 210 criteria in the areas of equipment, services, accessibility and sustainable development.
Some smaller, independent hotels are outraged at what they see as exorbitant investment costs and the fact that they have to cough up every five years for an official audit.
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Nicolas Alquié |
Unlike high-end hotels which have largely implemented and completed the work required to earn their five stars, many such establishments still have a lot of work on their hands.
In November, incoming Tourism Minister, Frederic Lefebvre, pledged to maintain cuts in Value Added Tax for hotel restoration.
Notwithstanding, the built-in support (bank loans, etc.) offered to 1-star to 3-star hotels for necessary upgrades, Watkins forecast the closing of up to 4,000 hotels during the next three years in the wake of the changes.
“With its discouraging administrative process and cost for hoteliers, it will only raise the number of non-classified hotels and reduce the number of classified hotels,” he said. “The new officially classed hotels will not necessarily be good hotels. Likewise, the establishments (currently) without stars are not necessarily poor service providers in the eyes of the client.”
Reforms are a ‘veritable revolution’
On the other hand, he conceded the future is bright for upscale and big hotels.
“Without a doubt, an increasing professionalization of the hotel business is underway, with a future set aside uniquely for the most solid, the biggest hotel businesses and those hoteliers who manage to adapt to clients needs.”
Hotel industry consultant Nicolas Alquié called the reforms a “veritable revolution” in hotel classification. He said the government is ushering in a far more flexible and dynamic system.
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“The new classification standards have been enacted to strengthen the competitiveness of French hotels. Gone are the old and rather unsalable 0-star category and the 4-star luxury category because of its lack of transparency to the international clientele. To avoid lapsing into demoded ways, when standards were revised once every 20 years on average, it is envisaged that the frame of reference will be reviewed every five years, so as to better take into account the demands of the client and adapt to new market developments.”
The majority of 2-star to 5-star hotels believe the investments in renovations are a fair price to pay for an unquestionable lift to the overall quality of French hotels.
“The classification is in harmony with international norms and puts an end to the ‘French exception’ which limits the highest rating to 4-stars luxury,” said Sofitel in a news release following the award of a fifth star to the Hôtel Scribe Paris in June.
Sofitel said it would pursue the top-notch rating for all its 11 French establishments. So far six have earned it.
Whether you are a 1-star hotel or 5-star luxury palace, you have to invest to hold on to your ratings in an increasingly competitive market, said François Delahaye, the Dorchester Collections operations director. “At the Hôtel Plaza Athénée we have spent millions of euros on upgrading two entire floors of rooms and bathrooms, building new suites and changing the air conditioning system.”
And just in the past three years, one of the largest economy brands in the country put its money where its mouth is.
“Our clientele spoke to us, we listened,” said Steve Jacobs, former president of Louvre Hôtels Eco of the €200 million (US$263.52 million) spent on the renovation of Campanile’s 326 French hotels between 2007 and 2009.