Canadian senior living operator Le Groupe Maurice has built a portfolio of high-performing communities geared toward active older adults in Quebec, setting the stage for a much wider expansion in the years ahead.
As of this moment in 2024, the company’s average occupancy lies at about 98%, with waitlists at most of its communities. With that momentum behind it, the Quebec-based senior living – which is backed by real estate investment trust (REIT) Ventas (NYSE: VTR) – is planning to expand beyond its old stomping grounds and into other markets in Canada, according to CEO Alain Champagne.
Though it has not announced any concrete plans to that end, first on the company’s radar screen is the province of Ontario.
“Our ambition is to position LGM as the leading operator in Canada,” Champagne told Senior Housing News. “A lot of my focus, time and attention is on making sure that this expansion is successful.”
Champagne took the reins in 2022, succeeding longtime leader and founder Luc Maurice. He is no stranger to health care, having formerly chaired Canadian drugstore chain Jean Coutu Group and is the former president of healthcare company McKesson’s Canadian arm.
Since joining Le Groupe Maurice two years ago, Champagne and the company’s other leaders have laid the groundwork for a new chapter of growth via ground-up development.
According to Champagne, Le Groupe Maurice is currently finalizing partnerships to secure the financing for its expansion and putting the last pieces in place to scale up its operating platform beyond its current 37-community footprint.
“It’s a breakthrough year for LGM going beyond our current boundaries,” he said.
Inside LGM’s ‘secret sauce’
Le Groupe Maurice has for years outperformed many of its peers in both the U.S. and Canada.
The company has helped drive average occupancy results in Canada to an “all-time high” for landlord and majority owner Ventas in the third quarter of 2024, according to the REIT’s executive vice president of senior housing, Justin Hutchens. The REIT originally purchased an 85% ownership stake in LGM in 2019 for $1.8 billion, and has since made it among its biggest operating partners in Canada.
A typical Le Groupe Maurice community has between 350 and 400 units and is geared toward residents in search of an active lifestyle. The communities usually are equipped with a range of amenities including golf simulators, bocce ball courts, large fitness centers, outdoor gardens and bowling alleys. They are also built with ground-floor space for restaurants, grocery stores, salons and other kinds of businesses.
Communities typically have more than 60 activities for residents per week, and an average of about 40 residents volunteering their time to facilitate them.
“Folks tell me that they’re just too busy to allow for their sons and daughters to come and visit,” Champagne said. “Every time I hear that comment, I chuckle. But it’s very reflective of our culture and what we’re trying to put together.”
Champagne added that lifestyle focus is also reflected in the company’s net promoter score, which currently stands at 59. The score – which is measured on a scale of -100 to 100 – is directly tied to how the company “puts the resident at the center of everything we do,” he said.
At the same time, the operator is able to charge relatively modest rates of about $2,000 per month for independent living and up to about $5,000 for assisted living services.
“Our positioning is very much one of high quality at an affordable price – that hasn’t changed, that will not change,” he said. “Mind you, inflation has put a fair bit of pressure on every player in the industry.”
But the operator’s “secret sauce” does not stem only from its community designs, amenities or rates, Champagne said. Instead, he said the company’s differentiator are its five values: Conviction, leadership, kindness, integrity and collaboration, and how they “come to life through our team’s behavior and their focus on our residents.”
“It’s fairly easy to put together the product … in terms of the quality of buildings. All you need is money, really,” he said. “What’s very hard to replicate is the corporate culture and values.”
Values are sometimes hard to translate from the corporate level into senior living communities. That is why Le Groupe Maurice holds frequent training and check-ins. Values are among the very first topics an employee learns about when being onboarded, and Champagne added that he personally has made 150 community visits since he assumed the CEO role two years ago.
“We take this business of caring for people very seriously, and our employees embrace it,” he said. “We put the resident at the center of everything we do, and we know that the actual financial rewards will flow from that.”
Expansion on tap
Le Groupe Maurice has revised its strategic outlook in the last year, with a focus now on growing beyond Quebec. Through market studies, the company has determined that there is a demand for its lifestyle-oriented senior living model in other parts of Canada, specifically Ontario.
Previously, in 2020, founder Luc Maurice had hinted at the possibility of a U.S. expansion for Le Groupe Maurice. Today, a U.S. expansion is still potentially in the cards, but not for the near- or mid-term future, Champagne said.
“We’re really about local expansion and becoming the leading senior housing operator in Canada,” he explained.
He added that the higher regulatory environment in Canada and a lack of workers has led to smaller operators “dropping like flies.” Add to that the tough landscape for new construction and the prospect of growth becomes even tougher. But Champagne is not daunted, and believes that Le Groupe Maurice is well-positioned to weather current challenges.
“The larger operators like us, through critical mass, can still make it work,” he said.
For now, ground-up development will be the company’s primary avenue of growth, but Champagne said the company may consider acquisitions if the opportunity is right.
“Our preferred growth trajectory is through our own design, development and management,” he said.
