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Glossary

ERP (établissement recevant du public)

An ERP (établissement recevant du public) is the French legal term for a building open to the public: one to which people from outside the business are admitted, freely or by invitation, whether or not they pay. ERPs are subject to fire-safety and accessibility rules set by the French Construction and Housing Code (Code de la construction et de l’habitation) and its implementing texts.

In the hotel sector

ERPs are classified by type, according to their activity, and by category, from 1 to 5, according to the number of people they can admit. A hotel is type O. A restaurant or meeting rooms open to outside customers may add other types: N for restaurants, L for meeting and function rooms. The category determines the applicable requirements and how often the safety commission inspects. Its opinion, favourable or unfavourable, goes to the mayor, who is the competent authority.

The operator keeps a safety register, has its installations checked (alarm, smoke extraction, electrics, lifts) and must demonstrate accessibility for disabled people, through an accessibility certificate or a scheduled accessibility programme (Ad’AP).

In a transaction

ERP compliance is a standard due diligence item. The buyer asks for:

  • the building’s classification, type and category
  • the minutes of the latest safety commission inspections and follow-up of its requirements
  • the safety register and inspection reports
  • the accessibility position

An unfavourable opinion, outstanding requirements or accessibility works still to be done translate into CAPEX, conditions precedent or price negotiation. They are best identified and disclosed before going to market.

Not to be confused with

The hotel star rating, which follows Atout France’s criteria and has nothing to do with safety.

A hotel valuation takes these points into account before the hotel is presented to buyers.

Written by

Richarde Riehm

President of RR Hôtels & Finance

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