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Increased gross revenue and strong growth in management and franchise fees - First-quarter 2013 revenue stable

PR Newswire/Les Echos/ 
Press Release - Quarterly Information
Paris - April 17, 2013 


                  Increased gross revenue and strong growth 
                      in management and franchise fees
                     First-quarter 2013 revenue stable

* Cross revenue(1) up 6.4% to EUR2.6 billion, led by the expansion in emerging
  markets

* Stable first-quarter 2013 revenue, down 0.1% like-for-like, with firm
  resilience in key markets; up 1.1% excluding the impact of February 29, 2012

* Robust 18.2% growth in management and franchise fees, thanks to expansion

* 4,628 new rooms opened during the first-quarter, 85% of which under
  asset-light structures

* Ongoing roll-out of the asset management program, with binding agreements
  concerning 22 hotels for a EUR173 million impact on adjusted net debt

Revenue breakdown:
    (in EUR millions)          Q1 2012    Q1 2013
                          restated(1)   reported      Change   Change  L/L(2)
    Upscale&Midscale           781        768         -1.6%           +0.7%


Economy                    437        425         -2.7%           -1.8% 
Hotels                    1,218      1,193         -2.0%          -0.2%' 
Other activities             25         34     +36.7%(3)           +4.6% 
Total Group               1,242      1,227         -1.2%           -0.1% 
[1]Following the sale of Motel 6 to Blackstone, consolidated revenue for 2012
has been adjusted.
[2] At comparable scope of consolidation and exchange rates.
[3] Strata acquisition (Mirvac) 
(1) Gross revenue represents the revenue of owned, leased and managed hotels
plus the room revenue of franchised hotels. Change is as reported. 
Sustained improvement in business model transformation KPIs 
Lifted by the transformation of the business model, the group's gross revenue
rose by 6.4% to EUR2.6 billion in the first-quarter, with emerging markets
increasing their relative contribution by five points year-on-year, to 45% of
the total. Fees received from managed and franchised hotels stood at EUR134
million for the period, reflecting strong 18.2% organic(1) growth. 
Revenue down 0.1% like-for-like and 1.2% as reported 
Revenue amounted to EUR1,227 million in the first-quarter 2013, down 1.2% on a
reported basis due to the following factors: 
* Expansion, which added EUR53 million to revenue and 4.3% to growth, with  


    the opening of 4,628 rooms (32 hotels), of which 85% under management and 
    franchise agreements.
     * Changes in the scope of consolidation due to the asset disposal strategy,
    which reduced revenue by EUR51 million and growth by 4.1%.
     * The negative EUR16 million currency effect, which reduced growth by 1.3%,
    with the appreciation of the euro particularly against the Brazilian real 
    and the Australian dollar.

These figures reflect both the 18.2% increase in management and franchise fees,
and the 2% decline in revenue from owned and leased hotels.

At constant scope of consolidation and exchange rates, like-for-like revenue 
was stable, and up 1.1% excluding the impact of February 29, 2012.
    > Upscale & Midscale Hotels: revenue up 0.7% like-for-like


Revenue in the Upscale and Midscale segment rose by 0.7% like-for-like and
declined by 1.6% as reported in the first-quarter. 
Business was lifted by the solid performance in upscale hotels, with a 4.1%
like-for-like growth over the period, and by the firm demand in key European
cities and in emerging markets. RevPAR in Paris rose by 3% over the quarter. 
The segment's like-for-like revenue growth also reflected the sharp 17.8% 
increase in management and franchise fees. 
> Economy Hotels: revenue down 1.8% like-for-like 
Revenue from Economy Hotels declined by 1.8% like-for-like and by 2.7% as
reported in the first-quarter. While the 19.7% increase in management and
franchise fees limited the decline, the deterioration in the economic
environment in certain regions, notably Southern Europe, weighed on the
segment's overall performance. At the same time, business in the emerging
markets (except for Australia) remained stable year)on-year, with a good
performance in the Africa Middle East region. 
(1) Excluding currency and acquisitions 
Conclusion: first-quarter 2013 performance supported by the Group's strategic
transformation 
Revenue held stable over the period despite high prior-year comparatives and 
the impact of February 29, 2012. This performance was led by the solid 
resilience of the Upscale segment, sustained demand in key cities and the 
continued transformation of Accor's business model, as manifested in the 
increase in gross revenue and in management and franchise fees. 
First-quarter 2013 trends - contrasted conditions in Europe and satisfactory
business levels in the emerging markets - are expected to continue in the 
second quarter, given the lack of any observable shift in business at this 
stage. 
                                  ***** 


                           - Quarterly Information -

Significant transactions and events in the first-quarter

Expansion

A total of 4,628 new rooms were opened in the first-quarter, of which 85% under
asset-light structures and 50% in emerging markets.

Asset management

The asset management program was actively pursued over the period, with binding
agreements concerning 22 hotels to date for a total EUR173 million impact on
adjusted net debt. These transactions include the sale and management-back of
the Sofitel Paris Le Faubourg for an enterprise value of EUR113 million,
including renovations.

Bond issue

On March 15, Accor took advantage of favorable conditions in the credit markets
to successfully issue EUR600 million in six-year, 2.5% bonds.

Upcoming events
      - April 25, 2013: Annual Shareholders Meeting 
      - July 16, 2013: First-half 2013 revenue

Accor, premier opérateur hôtelier mondial, leader en Europe est présent dans
92 pays avec plus de 3 500 hôtels et 450 000 chambres. Fort d'un large
portefeuille de marques, avec Sofitel, Pullman, MGallery, Grand Mercure,
Novotel, Suite Novotel, Mercure, Adagio, ibis, ibis Styles, ibis budget et
hotelF1, Accor propose une offre étendue, allant du luxe à l'économique. Avec
plus de 160 000 collaborateurs sous enseignes Accor à travers le monde, le
Groupe met au service de ses clients et partenaires son savoir-faire et son
expertise acquis depuis 45 ans.

CONTACTS PRESSE 

Agnès Caradec                           Elodie Woillez
Directrice de la Communication et       Tél. : +33 1 45 38 87 08
des Relations Extérieures
Tél. : +33 1 45 38 87 52

CONTACTS INVESTISSEURS ET ANALYSTES

Sébastien Valentin                      Léa Ledermann
Directeur de la Communication           Relations Investisseurs
Financière et des Relations             Tél. : +33 1 45 38 86 36
Investisseurs
Tél. : +33 1 45 38 86 25
                       RevPAR excluding tax Worldwide by segment (1st quarter)
                                                        
                                        Owned & leased (O&L)
                   
                          Occupancy Rate                 Average room rate
                   (in %) (chg in pts    (chg in          (chg in %  (chg in %
                            reported)  pts L/L (1))       reported)   L/L (1))

Upscale and 
Midscale (in EUR)  57.6%     +1.1         +0.3       99     -0.4%     -1.2%

Economy (in EUR)   61.8%     -1.3         -1.3       55     -1.0%     -0.2%
                                    O&L and                   
                                    Managed
                     RevPAR          
     (chg in %                      
     reported) (like-for-like(1)) (reported)

57     +1.5%         -0.7%           +4.2%

34     -3.0%         -2.3%           -2.1%

(1) at comparable scope of consolidation and exchange rates.
                         RevPAR excluding tax by country (1st quarter)


UPSCALE AND
MIDSCALE HOTELS                                    Owned & leased (O&L) 


                     Occupancy Rate                     Average room rate
                 Nb     (in %)  (chg in pts  (chg in       (chg in %  (chg in %


          of rooms           reported)   pts L/L       reported)     L/L 
(in local                                     (1))                       (1))
currency)
France        24,924   56.4%      +1.3       +0.7    115     -1.7%     -1.4%
Germany       16,440   61.5%      -0.3       -2.0     92     +5.0%     +3.0%
Netherlands    3,314   56.9%      -0.1       +0.2     84     -3.7%     -5.5%
Belgium        1,599   66.9%      +6.7       +7.2    100     -4.3%     -5.8%
Spain          2,283   47.2%      -0.2       -1.5     72     -3.2%     -3.4%
Italy          3,772   49.6%      -0.2       -0.5     81     -3.5%     -4.0%
UK (in £)      5,850   72.0%      -0.8       -0.6     80     +0.3%     -1.1% 


                   RevPAR           O&L and
     (chg in %                      Managed
     reported) (like-for-like(1))  (reported)

65     +0.6%         -0.2%           -0.1%
57     +4.4%         -0.2%           +4.8%
48     -3.8%         -5.1%           -3.6%
67     +6.4%         +5.7%           +4.9%
34     -3.6%         -6.6%           +0.6%
40     -3.9%         -5.0%           -4.9%
57     -0.7%         -1.9%           +0.9%

(1) at comparable scope of consolidation and exchange rates.

ECONOMY HOTELS
                                     Owned & leased (O&L)
                     Occupancy Rate                      Average room rate
               Nb     (in %) (chg in pts  (chg in         (chg in %  (chg in %


        of rooms           reported) pts L/L (1))      reported)  L/L (1))
(in local
currency)
France        35,989   62.0%     -1.7       -2.0      54     -1.0%     -1.3%
Germany       15,465   62.6%     -1.7       -1.9      57     +2.6%     +2.8%
Netherlands    2,289   62.2%     +3.1       +3.1      62     -7.0%     -7.0%
Belgium        2,821   68.9%     +4.7       +4.5      61     -4.4%     -5.0%
Spain          4,973   42.0%     -4.0       -3.9      46     -3.3%     -4.5%
Italy          1,740   60.4%     +1.6       +1.6      54     -6.9%     -6.9%
UK (in £)      9,938   71.0%     -1.1       -1.0      45     +3.2%     -0.1% 


                   RevPAR           O&L and
     (chg in %                      Managed
     reported) (like-for-like(1))  (reported)

33     -3.6%         -4.4%           -2.3%
36     -0.2%         -0.2%           +0.5%
39     -2.1%         -2.1%           -2.1%
42     +2.6%         +1.7%           +4.5%
19    -11.6%        -12.6%          -10.8%
33     -4.4%         -4.4%           -8.0%
32     +1.6%         -1.5%           +1.2%

(1) at comparable scope of consolidation and exchange rates.


                  
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-0- Apr/18/2013 08:35 GMT
 
 
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