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This research has been commissioned and paid for by the company and does therefore not constitute an inducement caught by the prohibition under MiFID II

COURBET

CR
Bloomberg   MLCOU FP
Hotels & Motels  /  France  Web Site   |   Investors Relation
A new hotel offering responding to tomorrow's demand

Sustainability score
Company (Sector)
1.5 (5.2)

Sustainability is made of analytical items contributing to the E, the S and the G, that can be highlighted as sustainability precursors and can be combined in an intellectually acceptable way. This is the only scale made available

  Score Weight  
Governance   
Independent directors rate 0/10 25%More ...
Board geographic diversity 5/10 20%
Chairman vs. Executive split 5%
Environment   
CO² Emission 1/1025%More ...
Water withdrawal 2/1010%
Social   
Wage dispersion trend0/105%More ...
Job satisfaction0/105%
Internal communication0/105%


Sustainability score 1.5/10 100%  
Sustainability matters
Sustainability of the activity

By extension the development model can be considered sustainable. In run rate a hotel consumes few incremental resources. Courbet has the opportunity to promote sustainable tourism by favouring green tourism by nature (type of accommodation) or proximity (limitation of carbon emissions).

Courbet’s reporting

As Courbet has no activity, the company does not publish an environmental report and has not communicated its intention to publish one. When renovating the assets it acquires, Courbet wishes to develop alternative heating methods to fossil fuels. The modernisation of the Cannes hotel will involve the greening of the roof, while the Grand Hôtel de La Bourboule will benefit from a communal wood-fired boiler. The commune of La Bourboule has a heating network supplying 70 buildings. Geothermal energy will be considered in the most appropriate cases.


Environmental score
Company (Sector)
1.5 (3.9)
Data sets evaluated as trends on rolling calendar, made sector relative
ParametersScoreSectorWeight
CO² Emission1/105/10 30%
Water withdrawal2/104/10 30%
Energy1/104/10 25%
Waste2/103/10 15%
Environmental score1.5  100%
Environment matters
Direct impact

As a service business (hotel industry), the impact on the environment scope 1 & scope 2 is limited to operations: energy (electricity or even fossil fuels for heating, essentially) and miscellaneous (water consumed by customers, waste generated). We also consider that the entire environmental responsibility lies with the final consumer. At this stage, Courbet has not announced a strategy to take into account the reduction of its environmental footprint in its project to upgrade its assets (thermal insulation, heating, waste recycling, etc.).

Indirect impact

The takeover of an existing asset to be upgraded is in itself carbon neutral vs. the construction of a new accommodation facility. This avoided expenditure is not valued here. This strategy could by extension be considered to have a positive impact on the environment. Conversely, the “grandfather” carbon expenditure resulting from the original construction of the assets (concrete, metals, soil artificialisation, etc.) is not accounted for. In the long term, we do not anticipate that this original expenditure will have to be compensated.

Due to its location, Courbet will promote by nature a local accommodation model frequented by an essentially national clientele, with the correlative low environmental impact vs. distant destinations.

Courbet’s environmental reporting

As Courbet’s activity is embryonic, the Company does not publish an environmental report and does not communicate on its intention to publish one. It does not publish forecasts for emissions of any kind. The production of waste and the consumption of water in scopes 1 & 2 can nevertheless be anticipated as low in mass, even in the mature phase of the project.

Environmental metrics

n/a
Energy (GJ) per €m in capital
employed

CO² tons per €m in capital
employed
n/a
Cubic meter water
withdrawal per €m in capital
employed
n/a
Tons waste generated per €m in
capital employed
COURBET Hotel, Catering & Leisure
Sector figures
Company CountryEnvironment
score
Energy
(total,
in GJ)
CO2
Emissions
(in tons)
CO2
Compensation
(in tons)
Water
Withdrawal
(in m3)
Waste
(total,
(in tons)
        
AccorHotels 2/1049,363,2003,643,000 105,000,000200,000
Compass 6/102,831,762196,996   
COURBETCR 1/10n/a  n/an/a
Elior 7/10433,78654,000 260,723 
Entain 10/10418,36931,318 n/a4,123
Flutter Entertainment 6/10178,94218,342 n/an/a
Intercontinental Hotels Group 2/1051,426,3242,662,434 123,587,331829,424
J D Wetherspoon 5/101,617,932114,883  52,781
La Française des Jeux 9/1075,8141,494 14,965 
Melia Hotels International 7/101,623,368139,509 8,578,00019,863
Minor Hotels Europe & Americas 7/101,965,92483,9533,0263,783,67220,550
Mitchells & Butlers 5/102,704,406160,227   
OPAP 10/1035,9213,352 67,5911,219
Sodexo 8/101,841,940104,184 3,411,298 
TUI Group 1/1081,337,5505,953,187   
Whitbread 8/102,571,942152,965 5,659,000n/a

Social score
Company (Sector)
1.7 (6.3)
Social matters
Team

Apart from the Board, there is currently no management team in place. The number of direct employees of the Company is nil as of June 2022. With the launch of the La Bourboule hotel, excluding Cannes, we anticipate an increase in the number of employees to around 65 people by 2028 (130 rooms). This figure includes the equivalent of staff that could be subcontracted in the future within the OTT group for support functions (marketing, back office, accounting etc.). With a platform of 10-12 hotels, the group will have several hundred employees.

Courbet’s social reporting

As Courbet has no activity at this stage, the Company does not publish a social report. The remuneration policies are not known at this time, nor their structure (internal/external to Courbet). To our knowledge, there are no specific regulated agreements.

Quantitative metrics (67%)
Set of staff related numerical metrics available in AlphaValue proprietary modelling aimed at ranking on social/HR matters
ParametersScoreWeight
Staffing Trend5/10 20%
Average wage trend1/10 35%
Share of added value taken up by staff cost1/10 25%
Share of added value taken up by taxes1/10 20%
Wage dispersion trend0/10 0%
Pension bonus (0 or 1)0
Quantitative score1.8/10 100%
Qualitative metrics (33%)
Set of listed qualitative criterias and for the analyst to tick

ParametersScoreWeight
Accidents at work0/10 25%
Human resources development4/10 35%
Pay0/10 20%
Job satisfaction0/10 10%
Internal communication0/10 10%
  
Qualitative score1.4/10 100%


Sector figures
CompanyCountrySocial Score Quantitative scoreQualitative scoreStaffing
      
J D Wetherspoon 7.96.910.041,786
Sodexo 7.56.79.3444,129
Minor Hotels Europe & Americas 7.36.29.712,610
Mitchells & Butlers 7.27.17.650,259
Compass 7.15.99.7605,712
Whitbread 7.06.58.339,795
TUI Group 6.86.57.669,338
Melia Hotels International 6.85.69.319,377
AccorHotels 6.14.39.7353,190
Flutter Entertainment 5.84.78.323,699
Intercontinental Hotels Group 5.65.06.829,519
Entain 5.55.06.630,638
Elior 4.85.63.3136,103
La Française des Jeux 4.64.05.93,338
OPAP 4.03.74.71,884

Sustainability / ESG by AlphaValue:

Doubt driven, focused on dynamics


AlphaValue was set up in 2009 as an ESG native firm: since inception, no research could be published without filling up the ESG relevant items. ESG has always been there as a natural building block of the research effort.

Without much pretence, AlphaValue has accumulated 11 years of proprietary, practical data in a consistent way that has been made to “talk” with financial data. The efforts have been aimed at solving the main conundrum of ESG analytics: avoiding useless and noisy data. AlphaValue ESG data is intimately connected to the fundamental research work and its continuous updating process. In other words, AlphaValue ESG data can be made to resonate at will in terms of financial implications for those investors with the willingness to do so.

Over the last 3 years, this data, or rather the dynamic of this data, has been put at work so that it impacts directly and consistently on valuations across AlphaValue’s 450 + stocks universe. This is considerable progress vs. the dominant “consumption” of ESG raw data: ESG-type conclusions are sitting next to valuation fundamentals but hardly any investor is in a position to bridge effectively the two in a consistent and repeatable way. It takes more than a spreadsheet to get stable and auditable results that work 100% of the time.

AlphaValue reckons that it currently is the only equity research provider in Europe to have reached this stage: a perfectly smooth on-boarding of ESG data, on a continuing basis, impacting valuation fundamentals day and night.

This is available on every stock, every sector, every stock selection, every day.


Heretical ESG opinions?


ESG is a contradiction in terms. Without a good Governance, the Social and Environment items will never show progress. Social is for stakeholders and thus unlikely to please shareholders. The long-term view that good pay/working conditions are ultimately good for shareholders is, like any promise, better left to those who want to believe in it. It does not work for normal investment horizons

Environmental gains will not happen without good Governance but this is not enough as environmental progress will not happen without coercion from governments/supra-governments. There is no reason why a corporate will spend more for a possible collective gain tomorrow when it can have better returns now for its shareholders.

The environment is a cost of massive complexity and a universal one as data improves and allows for intricate tracking of what corporates are up to. There is no practical way a corporate can be valued through a web of changing definitions of environmental data. AlphaValue holds the view that all corporates are made to pay through lower GDP growth expectations resulting from friction costs. The only dimension that really matters from an investment perspective is whether a given corporate makes an extra effort vs. peers. A good ‘E’ rating shall not be driven by absolute levels but by the dynamic of emission controls relative to peers. Dumping cement stocks because they spit out carbon is a narrow view of what ESG implies.

Sustainability scores only

AlphaValue always refused to supply a pecking order of its coverage along some improbable ESG scale. It just does not make sense to mix opposing signals in a single ranking.

Sustainability is a different proposition where analytical items contributing to the E, the S and the G can be highlighted as sustainability precursors and combined in an intellectually acceptable way. This is the only scale made available by AlphaValue.

Sustainability impacts target prices

From 1-12-2020, AlphaValue substituted sustainability metrics for its Governance and Social ones when it comes to impacting valuations;

Indeed since 2019, all DCF (or DCF equivalents for Financials) have been impacted by Governance and Social metrics to connect directly ESG-type findings into share price targets and bring consistency across the board. The impact is driven by adjusting the small ‘g’ conventionally used to assess the growth to infinity. This is being tweaked to recognise, say, that good governance ultimately pays off.

The same procedure is now stemming from Sustainability metrics instead.

For the record, this has been made possible as AlphaValue has finalised its proprietary E scoring, now extended to 4 items (GHG, Waste, Water, Energy) on which a degree of data stability seems to emerge.