The Hapimag success story Hapimag AG, which became the first company in the world to launch a points-based right-of-residence product in 1963, celebrated its 50th anniversary in 2013. Initially founded with a profit-oriented business concept, Hapimag has switched to a cooperative model and has developed into the most successful provider of rights of residence in Europe. Today, 140 000 members have access to over 5300 apartments in 57 resorts and residences, which are located in the most beautiful parts of Europe, the USA and Morocco.
The founding phase (1963 to 1968) On 24 September 1963, Alexander Nette from Germany and Dr. Guido M. Renggli, a lawyer from Zug, found the company under the name of 'Hapimag Hotel- und Apartmenthaus Immobilien Anlage AG'. It is later renamed to 'Hapimag AG'. The company is registered on the commercial register of Zug (CH). The first president of the Board of Directors is co-founder Alexander Nette.
The idea is captivating: Alexander Nette wants to give people, who cannot afford a holiday apartment of their own, the opportunity to spend their holidays in their 'own four walls' at various locations in Europe at a reasonable cost. Dr. Guido M. Renggli advises him to found a public limited company whose shares are contractually tied to usage rights for the holiday apartments of the company. In order to enable a flexible choice of holiday location, the points system is developed: For every share purchased, the shareholder receives an annual points credit which he or she can use for individual stays in the holiday apartments. This represented the birth of a completely new concept, which since then has often been imitated: a points-based timeshare model.
The business model is initially profit-oriented when the company is founded: All of the major business activities are outsourced to the companies of Alexander Nette, who aims to profit from them. For example, Alexander Nette earns money by selling shares and by building holiday apartments which he sells to Hapimag at a fixed price.
Hapimag AG
Neuhofstrasse 8 CH-6340 Baar
Tel. 00800 3030 8080 Fax +41 (41) 7 67 89 05
[email protected] www.hapimag.com
The transformation (1968 to 1971) The business model of Alexander Nette encounters increasing opposition from a shareholders' group. They claim, for example, that the fixed prices for the holiday apartments are too high, the construction quality of the apartments is poor and also that some of them are in unpopular locations.
The opposition causes Alexander Nette to resign from the Board of Directors of Hapimag in 1968. The newly appointed Board of Directors cancels the contracts with Alexander Nette and the new Board of Directors is largely occupied by members of the opposition. They include Eberhard Fellmer, a German celebrity who played a lawyer in a legal television series. During this crucial phase for Hapimag, he serves as President of the Board of Directors for a good eleven years. In 1971 Dr. Hans Schalch is appointed Chief Executive Officer. He builds up a modern corporate organisation in Baar, near Zug. Hapimag thus obtains its current structure as an independent, cooperative provider of rights of residence which is only responsible to its shareholders.
The consolidation and growth phase (1971 to 2000) In the following years, Dr. Hans Schalch makes his mark on business operations as 'Mr. Hapimag': In 1972 Hapimag releases a points product without shares for the first time and in 1973, the company's tenth year of operation, Hapimag already boasts around 10 000 members. However, the greatest growth in membership takes place in the 1980s: During this period the growth rate ranges from 10 to 19 percent per year. In 1994 the number of members exceeds the 100 000 mark.
The membership base becomes increasingly international: A growing number of members come from Great Britain and Italy. The diversity of member nationalities represents an ongoing challenge with respect to operating the resorts and communication.
Additional members generate additional demand for accommodation space, which has to be met by building up resort capacity. While the company only purchased individual apartments in existing facilities at the beginning, Hapimag is soon purchasing entire apartment buildings, the first of which is located on the Adriatic coast of Italy. From 1972 Hapimag starts building holiday resorts on its own account. The first resort which Hapimag develops itself is located in Porto Heli (Greece). Hapimag AG
Neuhofstrasse 8 CH-6340 Baar
Tel. 00800 3030 8080 Fax +41 (41) 7 67 89 05
[email protected] www.hapimag.com
Hapimag also starts building up accommodation capacity in cities - the first provider of rights of residence worldwide to do so. The first city apartments are purchased in London and Rome. Today Hapimag owns city residences in twelve large cities such as London, Paris and Berlin with a capacity of 463 apartments. Two more city residences are in planning in Lisbon and Hamburg.
Under the leadership of Dr. Hans Schalch, Hapimag develops into a full-service tourist company: Its offering is not only limited to the use of apartments. The in-house Service Center at the headquarters in Baar organises flights, transfers to resorts, ferries, hire cars and also offers travel insurance to members. The services and the infrastructure of the resorts are developed further: The larger resorts are equipped with restaurants, swimming pools, tennis courts and other leisure facilities. Member excursions are organised under the Tandem Tours brand – generally in combination with a stay at a Hapimag resort.
The locations of the resorts are oriented towards the needs of Hapimag members, who are mostly upper middle class and tend to arrange their holidays largely on an individual basis. As a result, great value is placed on sustainability, a high standard of construction and regional architecture when building new resorts. Protected features of historical significance, as found at the two resorts in Tuscany (Tonda and Pentolina) and the residences in London, Dresden, Prague and Budapest are valued as enriching aspects.
In 1994 Hapimag enters completely unknown territory with the Sea Garden Hotel & Resort in Bodrum on the Aegean coast of Turkey. The largest Hapimag resort is built on three wonderful coastal bays. It consists of a village with 351 apartments, a 5-star hotel with 285 hotel rooms and countless shops, restaurants and leisure facilities. It became necessary to build a resort of this size because of the large increase in membership in the 1980s.
Leadership change and attempted coup (2000 and 2004) At the Annual General Meeting of 2000 the entire Board of Directors, of which co-founder Dr. Guido M. Renggli was still a member, decides not to stand for re-election in order to make way for a younger generation with new ideas. Dr. Marisabel Spitz is elected to the Board of Directors and takes over as president two years later. She acquires Kurt Scholl as CEO. He had previously worked with Hapimag as a consultant. Hapimag AG
Neuhofstrasse 8 CH-6340 Baar
Tel. 00800 3030 8080 Fax +41 (41) 7 67 89 05
[email protected] www.hapimag.com
The new Board of Directors faces one of its first challenges at the Annual General Meeting in 2004: A previously unknown shareholder by the name of Schreiber, who belongs to a clique with a criminal background and acts under the auspices of the so-called 'Committee for Hapimag Shareholders', uses stolen data to write to all German-speaking Hapimag shareholders and asks them to issue him authorisation to act on their behalf at the Annual General Meeting on the basis of sweeping allegations about the Board of Directors. Thanks to the cooperation of many Hapimag shareholders, the members of the clique are identified and their intentions are uncovered - namely to sell valuable Hapimag properties to an investment fund which the clique is involved in. The most significant attack on Hapimag's independence is thus repulsed. At the Annual General Meeting the Board of Directors is approved with 95% percent of the votes.
The renewal of Hapimag (2004 to present) The change in leadership under Dr. Marisabel Spitz and Kurt Scholl creates a new dynamic. Extensive renovations are started in order to continuously improve the quality of the accommodation offering and adjust it to changing leisure requirements. Thanks to new cooperation ventures with worldwide partners, the offering for members is developed even further. Under the title of 'Worlds of Experience', the leisure offerings and resorts focus on the four themes of 'Family, Discover, Active and Relax'. Hapimag is made even more attractive with the founding of an in-house golf club for golfers. New features are also added to the range of services: An extensive share buyback programme is initiated for members who need to dispose of their shares due to age. The new HapimagCard rewards particularly loyal members and the service organisation is reorganised in 2012. In the most important countries decentralised Service Points are opened to take care of all of the members' issues.
The whole year 2013 revolves around the big anniversary: The major birthday is celebrated under the motto 'sharing & caring' with 50 anniversary weeks and a great anniversary celebration on 24 September 2013. On their journeys across the Hapimag world, six cyclists report on their experiences, and children and youths with handicaps or from difficult social situations enjoy carefree holidays in the Hapimag resorts within the framework of the charity project 'Giving experiences'. All of the relevant information can be found at www.hapimag.com/50.
Hapimag AG
Neuhofstrasse 8 CH-6340 Baar
Tel. 00800 3030 8080 Fax +41 (41) 7 67 89 05
[email protected] www.hapimag.com
Hapimag adjusts to changing requirements and the spirit of the times. In 2014 an online opinion platform is opened at www.hapitalk.com. Here members can express their opinions on specific questions. In the same year, Hapimag launches the 'Options' product range. This provides the opportunity to adapt membership even better to individual requirements. Thus, membership can now be interrupted or terminated promptly without complication.
Baar, May 2014
Hapimag AG
Neuhofstrasse 8 CH-6340 Baar
Tel. 00800 3030 8080 Fax +41 (41) 7 67 89 05
[email protected] www.hapimag.com
