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Press Release: Accor
October 27, 2005
PARIS --
- Third Quarter 2005 sales: up 7,9%
- Nine-Month: up 7,2%
(in Euros million) 2004 2005 % change % change
IFRS IFRS (reported) (like-for-like)(x)
Hotels
Upscale and Midscale 2,064 2,117 +2.6% +2.9%
Economy 937 1 027 +9.5% +4.2%
Economy US 719 728 +1.3% +4.7%
Services 378 442 +17.1% +13.0%
Other businesses 1,155 1,315 +13.9% +6.4%
Total Group 5,253 5,629 +7.2% +4.9%
(x) Based on constant scope of consolidation and exchange rates
Nine-Month revenues
Accor's consolidated revenues rose by 7.2% to Euros 5,629 million in the nine months that ended September 30, 2005.
At constant scope of consolidation and exchange rates, the increase was 4.9%.
Expansion accounted for 4.4% of revenue growth for the period, led by the Economy Hotel segment (whose contribution
to revenues was +5.2%) and Upscale and Midscale Hotels (+2.7%).
Asset disposals had a negative 2.4% impact on growth. As part of the strategy of selling non-performing Hotel assets,
31 hotels were sold, reducing segment revenues by Euros 71 million for the period.
The appreciation of mainly Brazilian real against the euro resulted in a positive 0.3% currency effect for the
period.
Third quarter
In the third quarter alone, revenues totalled Euros 1,986 million up 7.9% on a reported basis. Revenues in the
third quarter rose by 4.6% like-for-like in line with the first half's 5.0% rise. Like-for-like third-quarter revenues
were up 3.9% for Hotels, compared with 3.4% in the first half, and 13.9% for Services, versus a 12.6% rise in the
first six months.
Upscale and Midscale Hotels
Upscale and Midscale Hotel revenues rose a like-for-like 3.5% in the third quarter, slightly faster than the first
half's 2.5% increase.
The 2.9% increase in segment revenues for the first nine months was led by sharp growth in the United States, Asia
and South America.
In the United Kingdom, revenues were up 4.7% for the 9 month period, despite the impact of terrorist attacks on
third-quarter tourist traffic in London.
In France, the strategic marketing focus on business travelers drove an average 4.0% increase in room rates for
the nine-month period.
Growth remained moderate in Germany and the Benelux countries.
Economy Hotels (outside the United States)
The Economy Hotel segment continued to make solid gains, with like-for-like revenues rising 4.0% in the third quarter
alone and 4.2% for the nine-month period.
In France, the rate increase strategy led to a 4.0% rise in like-for-like revenues for the first nine months. Elsewhere
in Europe, revenues increased by 3.2% like-for-like. As in the Upscale and Midscale segment, the United Kingdom
experienced a temporary decline in tourist traffic to London during the summer.
Economy Hotels in the US
Like-for-like revenues in the US Economy Hotel segment rose by 4.6% in the third quarter alone and 4.7% over the
first nine months.
Implementation of the Red Roof Inn renovation program continued, with 86 hotels renovated as of September 30 and
19 currently in renovation.
Hurricane Katrina had no impact on revenues for the period.
Services
Revenues from the Services business rose by 13.9% like-for-like and 22.8% on a reported basis in the third quarter.
For the full nine months, they were up a strong 13.0% like-for-like and 17.1% as reported, led particularly by
favorable changes in legislation in Belgium (up 20.8% like-for-like), the United Kingdom (up 19.5%) and Venezuela
(up 56.4%).
Thanks to the appreciation of the Brazilian real against the euro, the currency effect had a positive 2.8% impact
on nine-month revenue growth.
Travel agencies
Travel agency revenues increased 2.9% like-for-like in the third quarter alone, lower than the first half's 8.7%
rise. The decline reflected a stabilisation in the positive impact of synergies from recent acquisitions, as well
as comparison base less favorable than in first half 2005.
For the full nine-month period, travel agency revenues were up 6.5% like-for-like.
Casinos
Nine-month revenues for the Casinos business rose 2.0% like-for-like, but were up a reported 47.1% due to the creation
of Groupe Lucien Barriere in December 2004.
The 5.3% increase in like-for-like revenues during the third quarter resulted mainly from non-recurring sales on
traditional games. Excluding these items, revenue growth is trending upwards at 1 to 2%.
Other businesses
Like-for-like revenues from the restaurant business were up 6.6% for the first nine months of the year.
Revenues generated by onboard train services increased 8.1% like-for-like.
Conclusion
Business in the third quarter confirmed first-half trends.
The rise in nine-month revenues was sustained in Economy Hotels outside the US (up 4.2%), US Economy Hotels (up
4.7%), Upscale and Midscale Hotels in the United States, Latin America, Asia and the United Kingdom (up 6.7%),
Services (up 13.0%) and other businesses (up 6.4%). Together, these segments account for 75% of the Accor business
portfolio.
The increase in revenues in the Upscale and Midscale Hotel segment was more moderate in Continental Europe, where
the marketing strategy in France is producing results.
With third quarter revenues in line with forecast, Accor is maintaining its full-year target of Euros 590-610 million
in profit before tax (an increase of 15 to 20%) and around Euros 300 million in net income (up 30%) as released
at first half results.
With 168,000 people in 140 countries, Accor is the European leader and one of the world's largest groups in travel,
tourism and corporate services, with two major international activities:
Contacts
Eliane Rouyer
Director Anthony Pallier
Investor Relations Investor Relations
Tel : +33(1)45-38-86-26 Tel : +33(1)45-38-86-33
All information is on www.accor.com
Quarter 1 Quarter 2
Revenues Revenues Revenues Revenues Revenues Revenues
2004 2004 IFRS 2005 IFRS 2004 2004 IFRS 2005 IFRS
HOTELS
Upscale
and Midscale 646,225 630,510 631,473 758,274 734,784 758,144
Economy 276,826 275,834 294,400 324,781 323,960 361,011
Economy US 202,220 202,220 200,753 246,658 246,658 246,767
Total HOTELS 1,125,272 1,108,564 1,126,626 1,329,714 1,305,402 1,365,923
SERVICES 121,152 123,395 139,716 127,680 130,287 150,374
Other
Businesses
Travel Agencies 92,357 92,728 113,469 111,314 111,822 125,421
Casinos 53,341 53,289 76,070 53,200 53,148 75,597
Restaurants 109,504 111,624 118,125 113,061 115,108 133,275
On-board train
services 58,669 58,669 59,638 65,049 65,049 68,842
Other 37,650 37,920 42,102 44,549 44,832 47,859
Total other
businesses 351,521 354,230 409,404 387,173 389,958 450,993
Total 1,597,945 1,586,189 1,675,746 1,844,566 1,825,647 1,967,290
September-end (YTD)
Revenues Revenues Revenues
2004 2004 IFRS 2005 IFRS
HOTELS
Upscale
and Midscale 2,116,826 2,064,305 2,117,314
Economy 940,231 937,545 1,026,551
Economy US 718,605 718,605 727,639
Total HOTELS 3,775,662 3,720,455 3,871,504
SERVICES 370,170 377,842 442,520
Other
Businesses
Travel Agencies 328,965 330,287 358,993
Casinos 161,592 161,435 237,499
Restaurants 326,110 332,790 369,204
On-board train
services 193,798 193,798 200,638
Other 135,918 136,762 148,890
Total other
businesses 1,146,383 1,155,071 1,315,224
Total 5,292,215 5,253,369 5,629,247
Quarter 1 Quarter 2 Half Year Quarter 3
Change Change Change Change Change Change Change Change
Report. L/L % Report. L/L % Report. L/L % Report. L/L %
IFRS % (x) IFRS % (x) IFRS % (x) IFRS % (x)
HOTELS
Upscale and
Midscale 0.2% 0.5% 3.2% 4.2% 1.8% 2.5% 4.1% 3.5%
Economy 6.7% 3.5% 11.4% 4.9% 9.3% 4.3% 9.9% 4.0%
Economy US -0.7% 4.5% 0.0% 5.0% -0.3% 4.8% 3.9% 4.6%
Total HOTELS 1.6% 2.0% 4.6% 4.5% 3.3% 3.4% 5.5% 3.9%
SERVICES 13.2% 11.8% 15.4% 13.4% 14.4% 12.6% 22.8% 13.9%
Other
Businesses
Travel Agencies 22.4% 7.7% 12.2% 9.6% 16.8% 8.7% -4.5% 2.9%
Casinos 42.7% 3.9% 42.2% -3.2% 42.5% 0.3% 56.1% 5.3%
Restaurants 5.8% 4.1% 15.8% 13.9% 10.9% 9.1% 11.1% 1.4%
On-board
train services 1.7% 6.2% 5.8% 10.8% 3.8% 8.6% 3.0% 7.1%
Other 11.0% 15.5% 6.8% 3.7% 8.7% 9.1% 9.1% 6.9%
Total other
businesses 15.6% 6.6% 15.7% 8.6% 15.6% 7.6% 10.7% 4.1%
Total 5.6% 3.8% 7.8% 6.0% 6.8% 5.0% 7.9% 4.6%
(x) L/L Like for Like
September-end (YTD)
Change Change
Report. L/L %
IFRS % (x)
HOTELS
Upscale and
Midscale 2.6% 2.9%
Economy 9.5% 4.2%
Economy US 1.3% 4.7%
Total HOTELS 4.1% 3.6%
SERVICES 17.1% 13.0%
Other
Businesses
Travel Agencies 8.7% 6.5%
Casinos 47.1% 2.0%
Restaurants 10.9% 6.6%
On-board
train services 3.5% 8.1%
Other 8.9% 8.2%
Total other
businesses 13.9% 6.4%
Total 7.2% 4.9%
(x) L/L Like for Like
Revpar by segment
HOTELS : RevPAR by segment
at September-end 2005 (YTD)
Occupancy Rate Average room rate
(reported) (reported)
(in %) (var in pts) (var in %)
Upscale and
Midscale Europe 63.6% -0.7 93 2.5%
Economy Europe 73.7% -0.4 49 3.8%
Economy US (in USD) 67.0% +1.0 44 3.9%
RevPAR
subsidiaries subsidiaries subsidiaries subsidiaries
reported reported like-for-like & managed
basis basis basis(1) reported
basis
Upscale and
Midscale Europe 59 1.4% 2.2% 0.7%
Economy Europe 36 3.2% 3.5% 3.4%
Economy US (in USD) 30 5.5% 5.3% 5.5%
(1) at comparable scope
Revpar by country
UPSCALE AND MIDSCALE HOTELS
Number Occupancy Rate Average room rate
of
RevPAR by country at rooms (reported) (reported)
September-end 2005 (YTD)
(in local currency) (in %) (var in pts) (var in %)
France 30,967 62.0% -1.1 100 3.9%
Germany 13,554 61.1% +0.3 72 0.1%
Netherlands 3,698 66.4% +1.4 100 1.6%
Belgium 2,230 66.8% -3.3 96 3.5%
Spain 1,993 62.8% -1.0 96 -4.6%
Italy 3,080 60.8% +2.6 113 -1.8%
UK (in GBP) 5,112 73.0% -2.2 76 6.6%
USA (in $) 3,449 74.5% +2.2 171 13.0%
UPSCALE AND MIDSCALE HOTELS
RevPAR by country at
September-end 2005 (YTD)
(in local currency)
RevPAR
subsidiaries subsidiaries subsidiaries subsidiaries
reported reported like-for-like & managed
basis basis basis(1) reported
basis
France 62 2.1% 2.4% 2.8%
Germany 44 0.6% 0.2% 4.5%
Netherlands 67 3.8% 3.8% 4.1%
Belgium 64 -1.3% -1.3% 0.3%
Spain 60 -6.1% 2.9% -10.0%
Italy 69 2.5% 4.6% 2.5%
UK (in GBP) 55 3.5% 5.8% 4.1%
USA (in $) 127 16.4% 16.4% 16.2%
ECONOMY HOTELS
Number Occupancy Rate Average room rate
of
RevPAR by country at rooms (reported) (reported)
September-end 2005 (YTD)
(in local currency) (in %) (var in pts) (var in %)
France 44,536 75.1% -0.7 42 4.4%
Germany 15,054 71.5% +0.6 51 0.8%
Netherlands 2,215 74.4% -1.0 69 1.9%
Belgium 2,474 75.4% +1.3 60 0.1%
Spain 3,315 74.1% -2.3 49 6.7%
Italy 1,189 58.8% +5.6 72 -11.1%
UK (in GBP) 6,103 75.0% -0.8 48 5.2%
USA (in $) 109,252 67.0% +1.0 44 3.9%
ECONOMY HOTELS
RevPAR by country at
September-end 2005 (YTD)
(in local currency)
RevPAR
subsidiaries subsidiaries subsidiaries subsidiaries
reported reported like-for-like & managed
basis basis basis(1) reported
basis
France 32 3.4% 3.5% 3.4%
Germany 36 1.7% 1.7% 2.1%
Netherlands 52 0.5% 3.5% 0.5%
Belgium 45 1.9% 1.9% 1.9%
Spain 36 3.5% 8.8% 3.5%
Italy 42 -1.8% 1.6% -1.8%
UK (in GBP) 36 4.1% 5.0% 3.6%
USA (in $) 30 5.5% 5.3% 5.5%
(1) at comparable scope
Source: Accor