PERSONALITIES
Retail sales have averaged triple expectations at the Fauchon property in Kyoto . are encouraging , he says , with Paris running above 70 % occupancy and a buoyant € 500 ( US $ 566 ) rate . Kyoto was running at about 40 % but was getting an even higher rate than Paris .
“ After three years [ in Paris ] we are in a position to assess the situation and try to give a vision for the 10 years to come ,” Chauvin says . “ Number one , it ’ s a successful hotel … We have chosen a position which is a bit original in Paris , more of a highend boutique hotel like a Firmdale or Connaught in London as opposed to aiming to become a 5-star palace hotel – this is not our dream . We want to remain this intimate , private , bit of a kept secret hotel .”
But naturally , especially today , growth is not without its challenges . Chauvin points to a need to find investors with brains and heart who also understand that it ’ s a great long-term venture . “ But at the same time , it should also come from an element of irrationality because any brand is irrational at its core . There is a lot of goodwill in a brand . He should understand that it is long term and about establishing cultural bridges and bonds – but for the sake of generating value . It ’ s not a charity , of course , but it goes beyond the usual private equity venture .”
SECRET SAUCE Even with the pandemic , Chauvin says he has learned to make business profitable .
“ I used to be told that you cannot make money in hospitality below 40 % occupancy ,” he says . “ I can tell you that you can make money with 20 % occupancy .” The likely reason is strong F & B sales through the Fauchon brand name . It is known for providing luxury contemporary food for restaurants , gourmet cafes , retail boutiques , and 6-star hotels . The company ’ s signature products include haute patisserie , macarons , chocolate , tea , fine foods , and gourmet gifts via 100 franchise shops and 400 points of sale in over 50 countries . But what has made even more of a difference in its hotels , Chauvin says , is a proper approach to monitoring costs and dedicating funds to what really matters .
“ One thing which has been very much under considered in the hospitality industry is productivity ,” Chauvin continues . “ We want a PMS that saves time , and that is a very different kind of approach in a 5-star hotel … Take bath amenities – it takes 10 minutes to arrange them properly , so they look good . But no , this is not what people care about . So , we took our SOP book and classified it by what really matters , and it gives you a very different kind of approach to operations .”
But having a great reputation for F & B has truly helped Fauchon drive revenue during the pandemic . Normally known as a break-even department , Chauvin says the pandemic has guests and locals who come in splurging . “ When it comes to celebrating life in a hotel today , having a great wine list matters . You cannot imagine the kind of bottles people have bought ; it ’ s the kind of wine you would drink on the last day of your life .”
The 54-room Paris property also went as far to take an entire guest floor
72 hotelsmag . com March / April 2022