ACRFF Accor SA Ltd (PK)

PARIS, October 15 /PRNewswire-FirstCall/ -- In an economic environment that has seen no significant improvement, - Prepaid Services revenue rose by 3.6% like-for-like despite rising unemployment and the steep decline in interest rates worldwide. - Hotel revenue retreated by 10.7% like-for-like, with the Economy segment showing relatively good resilience, particularly in France. Consolidated revenue for the first nine months of 2009 totaled EUR5,258 million, down 8.2% like for like and 8.9% on a reported basis from the prior-year period. (in EUR millions) 2008 2009 (9 months) (9 months) % change % change as reported like-for-like(1) Hotels 4,317 3,891 -9.9% -10.7% Upscale and Midscale 2,554 2,248 -12.0% -12.2% Economy 1,310 1,216 -7.2% -6.8% Economy US 454 427 -5.8% -13.6% Prepaid Services 693 687 -0.8% +3.6% Other businesses 766 681 -11.1% -4.9% Total 5,775 5,258 -8.9% -8.2% (1) At constant scope of consolidation and exchange rates. (2) Impact of the retrospective application of IFRIC 13 - Customer Loyalty Programs from January 1, 2008. Consolidated revenue performance for the period was shaped by the following factors: - The expansion strategy, which increased revenue by EUR251 million (4.3%), of which EUR106 million from the consolidation of Orbis and EUR51 million from the consolidation of 49% of Groupe Lucien Barriere's revenue since July 1, 2009. - The refocusing strategy, which reduced revenue by 3.8% (EUR220 million), reflecting the disposal of the Brazilian foodservice business (EUR71 million), the loss of the onboard train services contract (EUR54 million) and the impact of a number of real estate transactions (EUR76 million). - The 1.3% negative currency effect, which reduced revenue by EUR74 million, primarily due to the euro's appreciation against the British pound, the Brazilian real and the Australian dollar. The euro/US dollar exchange rate had a positive 0.9% impact. - Like-for-like, revenue was down by 8.2% for the period. Revenue for the third quarter alone totaled EUR1,848 million, a decline of 8.4% as reported and like-for-like. Prepaid Services revenue up 3.6% like-for-like in the first nine months Revenue from the Prepaid Services business in the first nine months declined by 0.8% to EUR687 million as reported, reflecting the following factors: - The currency effect, which reduced revenue by 3.8% (EUR27 million), mainly due to the decline against the euro of the Brazilian real (down 2.1%), the British pound (down 0.6%) and the Mexican peso (down 0.6%). - At constant scope of consolidation and exchange rates, Prepaid Services revenue rose by 3.6% over the period. Revenue for the third quarter alone totaled EUR222 million, a decline of 4.9% as reported and 0.6% like-for-like. Despite the rise in unemployment, especially in Europe, operating revenue growth held firm at 3.0%, but financial revenue fell by 21.8% due to the decline in interest rates in both Europe and Latin America. In Europe, revenue stood at EUR116 million, down 1.5% like-for-like. Operating revenue rose by 2.0% during the quarter, while the falloff in financial revenue accelerated to 20.3%, following a 5.1% increase in the first quarter and a 10.8% decline in the second. In Latin America, revenue totaled EUR90 million, a 0.6% increase like-for-like. Operating revenue, which was less affected than in Europe by the rise in unemployment, rose by 4.5%. However, total revenue growth was considerably dampened by the ongoing decline in financial revenue, which fell by 22.9% in the third quarter, following a 26.3% rise in the first quarter and a 16.5% decline in the second. Hotels revenue down 10.7% like-for-like in the first nine months Hotels revenue amounted to EUR3,891 million, a decline of 9.9% on a reported basis compared to the prior-year period. It reflected the following factors: - The expansion strategy, with in particular the opening of 18,700 rooms during the first nine months attesting to the business' strong growth dynamic and driving a 3.5% increase in revenue for the period, and EUR75 million from the consolidation of Orbis hotels division. - The sale of hotel properties under the asset-right strategy, which reduced growth for the period by 2.0%. - The negative 0.8% currency effect. - At constant scope of consolidation and exchange rates, Hotels revenue was down 10.7% like-for-like. Revenue for the third quarter alone totaled EUR1,357 million, a decline of 10.4% as reported and 9.3% like-for-like. Upscale and Midscale Hotels Revenue in the Upscale and Midscale segment for the first nine months of 2009 declined by 12.0% as reported and 12.2% like-for-like. Third-quarter revenue was down 10.1% like-for-like. The slower decline in revenue compared with the second quarter was due to the positive impact of changes in the customer mix during the summer, with leisure customers accounting for nearly 54% of the total for the period, versus 36% in the first half. In France, regions outside Paris (RevPAR down 5.8%) held up better than the Paris area (RevPAR down 17.1%). In the United Kingdom, unlike in France, business in London (RevPAR down 6.0%) withstood the recession more effectively than in other parts of the country (RevPAR down 16.4%). Economy Hotels Revenue in the Economy segment declined by 7.2% as reported and 6.8% like-for-like. As during the first two quarters of the year, Economy hotels continued to demonstrate their resilience in the third quarter. Revenue declined 5.8% like-for-like, led by a relatively solid performance in France, where revenue eased just 2.5% like-for-like. In France, regions outside Paris (RevPAR down 1.9%) held up better than the Paris area (RevPAR down 8.0%). Economy Hotels in the United States Motel 6's nine-month revenue contracted by 5.8% on a reported basis and by 13.6% like-for-like. Third-quarter revenue was down 15.0% like-for-like, reflecting the ongoing decline in business in the US, where RevPAR has trended steadily lower over the past 18 months. Quarterly Report Financial position and results In the absence of any visibility in the economic environment, the target for operating profit before tax and non-recurring items has been based on the following assumptions: In Prepaid Services: - A more than 25% decline in financial revenue in the second half, causing like-for-like revenue to show only a slight gain for the year. - An operating margin of more than 40% for the year. In the Hotels business: - No major improvement in business expected in the second half. - A step-up in the plan to reduce operating costs in the owned/leased hotels to EUR150 million from EUR120 million, to ensure that the response ratio holds steady at 35%. Consolidated earnings: - An EUR80-million reduction in support costs over the year. As a result, the target for operating profit before tax and non-recurring items is confirmed at between EUR400 million and EUR450 million. Significant transactions and events of the period Accor has announced to conduct a review of the potential benefits of demerging the businesses Given the depth and speed of the changes ahead, the transformation and development of the two core businesses will be stepped up. As part of this process, during its meeting on August 26, the Board of Directors has approved Chairman and CEO Gilles Pelisson's recommendation to conduct a review of the potential benefits of demerging the two businesses into two independent companies, each with their own strategy and resources for growth. A major real estate transaction in the Budget segment in France In line with its ongoing asset-right strategy, Accor announced in late September a major real estate transaction in the Budget segment in France, with the sale of 158 hotelF1 properties, representing a total of 12,300 rooms. This sale and variable leaseback transaction was carried out with a consortium of leading French institutional investors through a property investment trust (OPCI). With the sale of the hotel units for EUR272 million, Accor signed a 12-year business lease, renewable six times at Accor's option. The variable rents are based on an average 20% of revenue with no guaranteed minimum. Based on 2008 revenue, the variable rent would have been EUR21.3 million. The transaction will enable Accor to reduce its adjusted net debt by approximately EUR187 million in 2009, of which EUR130 million will be added to the Group's cash reserves. In addition, it will have a positive impact of roughly EUR5 million on profit before tax. Accor Services gains leadership of the meal voucher market in the Czech Republic with the acquisition of local operator Exit Group As part of its growth strategy, Accor Services announced in early October that it had acquired Exit Group, the fourth largest provider of meal vouchers in the Czech Republic. With a strong position among small and mid-sized businesses, Exit Group reported issue volume of EUR77 million in 2008. With this acquisition, Accor Services has widened its share of the meal voucher market and will also gain access to Exit Group's 165,000 end users for its value-added products and services. The transaction was finalized at a price of EUR15 million. Accor Services Czech Republic's post-acquisition issue volume is estimated at EUR250 million. Upcoming events - January 19, 2010: Fourth-quarter 2009 revenue Accor, a major global group and the European leader in hotels, as well as the global leader in services to corporate clients and public institutions, operates in nearly 100 countries with 150,000 employees. It offers to its clients over 40 years of expertise in two core businesses: - Hotels, with the Sofitel, Pullman, MGallery, Novotel, Mercure, Suitehotel, Ibis, all seasons, Etap Hotel, Formule 1 and Motel 6 brands, representing 4,000 hotels and nearly 500,000 rooms in 90 countries, as well as strategically related activities, such as Lenotre. - Services, with 32 million people in 40 countries benefiting from Accor Services products in employee and public benefits, rewards and loyalty, and expense management. Revenue Quarter 1 Quarter 2 in EUR thousand 2008 2009 2008 2009 HOTELS Up & Midscale 756,767 687,180 914,442 784,760 Economy 388,094 358,017 456,406 422,484 Economy US 137,254 137,235 149,573 143,833 Total HOTELS 1,282,115 1,182,432 1,520,421 1,351,077 PREPAID SERVICES 226,637 231,163 232,368 233,620 Other businesses Casinos 86,253 82,994 83,470 80,513 Restaurants 100,937 22,161 32,605 27,940 On-board train services 69,461 66,802 78,795 57,122 Holdings & Other 21,919 30,816 22,887 43,505 Total OTHER BUSINESSES 278,569 202,773 217,756 209,081 TOTAL 1,787,321 1,616,368 1,970,546 1,793,778 (continued) First-Half 2009 Quarter 3 September end(YTD) in EUR thousand 2008 2009 2008 2009 2008 2009 HOTELS Up & Midscale 1,671,209 1,471,940 882,421 776,235 2,553,629 2,248,175 Economy 844,500 780,501 465,029 435,017 1,309,529 1,215,518 Economy US 286,828 281,068 166,729 146,012 453,557 427,080 Total HOTELS 2,802,536 2,533,509 1,514,179 1,357,264 4,316,715 3,890,773 PREPAID 459,005 464,783 233,571 222,038 692,576 686,821 SERVICES Other businesses 169,723 163,507 87,513 137,576 257,236 301,084 Casinos 133,542 50,101 24,792 19,677 158,334 69,778 Restaurants 148,256 123,924 82,804 65,168 231,059 189,092 On-board 44,805 74,321 74,383 46,537 119,189 120,859 train services Holdings & Other 496,326 411,854 269,492 268,958 765,818 680,812 Total OTHER BUSINESSES 3,757,867 3,410,146 2,017,242 1,848,260 5,775,108 5,258,406 Quarter 1 Quarter 2 in EUR thousand Change Change Change Change reported L/L reported L/L (1) (1) HOTELS Up & Midscale -9.2% -9.2% -14.2% -16.6% Economy -7.7% -6.8% -7.4% -7.7% Economy US 0.0% -11.5% -3.8% -14.1% Total HOTELS -7.8% -8.7% -11.1% -13.7% PREPAID SERVICES 2.0% 8.3% 0.5% 3.2% Other businesses Casinos -3.8% -6.3% -3.5% -5.4% Restaurants -78.0% -7.3% -14.3% -8.0% On-board train services -3.8% 4.7% -27.5% 2.9% Holdings & Other 40.6% -4.7% 90.1% 24.5% Total OTHER BUSINESSES -27.2% -3.8% -4.0% 0.3% TOTAL -9.6% -5.8% -9.0% -10.1% (continued) in EUR thousand First-Half 2009 Quarter September end 3 (YTD) HOTELS Change Change Change Change Change Change reported L/L(1) reported L/L (1) reported L/L(1) Up & Midscale -11.9% -13.3% -12.0% -10.1% -12.0% -12.2% Economy -7.6% -7.3% -6.5% -5.8% -7.2% -6.8% Economy US -2.0% -12.8% -12.4% -15.0% -5.8% -13.6% Total HOTELS -9.6% -11.4% -10.4% -9.3% -9.9% -10.7% PREPAID SERVICES 1.3% 5.7% -4.9% -0.6% -0.8% 3.6% Other businesses Casinos -3.7% -5.9% 57.2% -3.2% 17.0% -5.0% Restaurants -62.5% -7.5% -20.6% -16.9% -55.9% -9.0% On-board train services -16.4% 3.7% -21.3% 0.4% -18.2% 2.5% Holdings & Other 65.9% 10.2% -37.4% -27.8% 1.4% -13.5% Total OTHER BUSINESSES -17.0% -2.0% -0.2% -10.2% -11.1% -4.9% TOTAL -9.3% -8.1% -8.4% -8.4% -8.9% -8.2% (1) At constant scope of consolidation and exchange rates. RevPAR by segment (September YTD 2009) HOTELS : RevPAR by segment Occupancy Rate Average room rate Subsidiaries Subsidiaries (in %) (chg in (chg (chg in % (chg pts in reported) in % reported) pts L/L L/L (1)) (1)) Upscale and Midscale Europe (in EUR) 59.0 -7.2 -6.1 96 -8.7 -5.6 Economy Europe (in EUR) 66.2 -6.9 -7.0 57 -0.7 0.9 Economy US (in $) 59.9 -6.4 -6.8 44 -4.3 -4.9 (continued) HOTELS : RevPAR by segment RevPAR Sept YTD 2009 Subsidiaries Subsidiaries Subsidiaries & managed (chg in % (like-for- (reported) reported) like(1)) Upscale and Midscale Europe (in EUR) 57 -18.6 -14.2 -18.6 Economy Europe (in 38 -10.1 -8.7 -10.4 Economy US (in $) 26 -13.6 -14.7 -13.6 (1) at comparable scope of consolidation and exchange rates. RevPAR by segment (Q3 2009) HOTELS : RevPAR by segment Occupancy Rate Average room rate Q3 Subsidiaries Subsidiaries (in %) (chg in (chg (chg in % (chg pts in reported) in % reported) pts L/L L/L (1)) (1)) Upscale and Midscale Europe (in EUR) 63.9 -3.8 -4.0 93 -8.4 -6.7 Economy Europe (in EUR) 70.3 -6.2 -6.3 56 -1.7 -0.4 Economy US (in $) 62.2 -7.6 -8.2 45 -4.7 -5.4 (continued) HOTELS : RevPAR by segment RevPAR Q3 Subsidiaries Subsidiaries Subsidiaries & managed (chg in % (like-for-like(1)) (reported) reported) Upscale and Midscale Europe (in EUR) 59 -13.5 -12.2 -13.7 Economy Europe (in EUR) 40 -9.7 -8.5 -10.3 Economy US (in $) 28 -15.1 -16.6 -15.1 (1) at comparable scope of consolidation and exchange rates. RevPAR by country (September YTD 2009) UPSCALE AND MIDSCALE HOTELS Nb of Occupancy Rate RevPAR by country Sept YTD rooms Subsidiaries 2009 (in %) (chg in (chg in pts L/L pts (1)) (in local currency) reported) France 29.809 60.4 -7.0 -7.1 Germany 19.655 58.6 -5.1 -5.3 Netherlands 3.977 61.0 -6.2 -6.2 Belgium 1.801 64.1 -6.8 -6.8 Spain 2.351 52.5 -12.4 -11.3 Italy 3.583 56.7 -2.4 -2.0 UK ( in GBP) 5.432 75.2 -3.3 -3.6 (continued) UPSCALE AND MIDSCALE HOTELS Average room rate RevPAR by country Sept YTD 2009 Subsidiaries (chg in % (chg in % (in local currency) reported) L/L (1)) France 113 -1.8 -2.1 Germany 89 -6.5 -6.9 Netherlands 93 -14.1 -14.1 Belgium 102 -6.2 -6.2 Spain 81 -18.4 -18.1 Italy 105 -10.9 -9.6 UK ( in GBP) 83 -6.8 -8.0 (continued) UPSCALE AND MIDSCALE HOTELS RevPAR RevPAR by country Sept YTD 2009 Subsidiaries Subsidiaries Subsidiaries & managed (chg in % (like-for-like(1)) (reported) (in local currency) reported) France 68 -12.0 -12.4 -12.5 Germany 52 -13.9 -14.6 -13.8 Netherlands 57 -22.0 -22.0 -22.0 Belgium 65 -15.1 -15.1 -13.5 Spain 43 -34.1 -32.4 -28.3 Italy 60 -14.5 -12.6 -12.2 UK ( in GBP) 62 -10.7 -12.2 -10.9 (1) at comparable scope of consolidation and excahange rates. ECONOMY HOTELS Nb of Occupancy Rate RevPAR by country rooms Subsidiaries Sept YTD 2009 (in %) (chg in pts reported) (chg in pts L/L (in local currency) (1)) France 41.925 68.3 -4.9 -5.6 Germany 15.041 64.5 -6.1 -6.2 Netherlands 2.308 66.4 -9.8 -9.2 Belgium 2.562 69.2 -8.2 -8.2 Spain 4.662 57.2 -16.5 -16.9 Italy 1.550 57.2 -5.8 -5.8 UK ( in GBP) 8.871 67.8 -8.7 -8.0 USA (in $) 77.596 59.9 -6.4 -6.8 ECONOMY HOTELS Average room rate RevPAR by country Subsidiaries (chg in % (chg in % (in local currency) reported) L/L (1)) France 54 6.1 5.3 Germany 59 0.3 0.1 Netherlands 80 -3.6 -4.4 Belgium 67 -2.6 -2.6 Spain 54 -4.2 -5.0 Italy 69 -6.5 -6.5 UK ( in GBP) 53 -6.0 -2.7 USA (in $) 44 -4.3 -4.9 ECONOMY HOTELS RevPAR RevPAR by country Sept YTD 2009 Subsidiaries Subsidiaries Subsidiaries & managed (chg in % (like-for-like(1)) (reported) (in local currency) reported) France 37 -1.0 -2.7 -1.2 Germany 38 -8.3 -8.6 -7.4 Netherlands 53 -16.0 -16.0 -16.0 Belgium 46 -12.9 -12.9 -12.9 Spain 31 -25.7 -26.8 -25.7 Italy 40 -15.1 -15.1 -15.1 UK ( in GBP) 36 -16.6 -12.8 -16.2 USA (in $) 26 -13.6 -14.7 -13.6 (1) at comparable scope of consolidation and excahange rates. RevPAR by country (Q3 2009) UPSCALE AND MIDSCALE HOTELS Nb of Occupancy Rate RevPAR by country Q3 rooms Subsidiaries (in %) (chg in pts (chg in reported) pts L/L (in local currency) (1)) France 29.874 64.7 -4.5 -4.9 Germany 19.634 60.5 -5.1 -5.2 Netherlands 4.011 65.0 -2.8 -2.8 Belgium 1.801 66.7 -6.0 -6.0 Spain 2.385 59.6 -6.9 -5.1 Italy 3.704 61.8 +0.0 -0.4 UK ( in GBP) 5.432 81.0 -0.8 -1.3 (continued) UPSCALE AND MIDSCALE HOTELS Average room rate RevPAR by country Q3 Subsidiaries (chg in % (chg in % L/L (in local currency) reported) (1)) France 108 -3.3 -4.2 Germany 86 -8.4 -8.7 Netherlands 86 -13.4 -13.4 Belgium 92 -7.3 -7.3 Spain 75 -16.5 -16.1 Italy 110 -10.1 -8.5 UK ( in GBP) 80 -8.3 -9.5 (continued) UPSCALE AND MIDSCALE HOTELS RevPAR RevPAR by country Q3 Subsidiaries Subsidiaries Subsidiaries & managed (chg in % (like-for (repor- (in local currency) reported) -like(1)) ted) France 70 -9.7 -11.0 -10.8 Germany 52 -15.6 -15.9 -15.5 Netherlands 56 -17.0 -17.0 -16.5 Belgium 61 -15.0 -15.0 -13.6 Spain 45 -25.2 -22.5 -8.2 Italy 68 -10.1 -9.1 -5.9 UK ( in GBP) 65 -9.2 -10.9 -8.9 (1) at comparable scope of consolidation and excahange rates. ECONOMY HOTELS Nb of Occupancy Rate RevPAR by country rooms Subsidiaries Q3 (in %) (chg in pts (chg in reported) pts L/L (in local currency) (1)) France 41.890 71.0 -5.2 -5.7 Germany 15.019 70.4 -4.5 -4.6 Netherlands 2.410 68.2 -8.5 -8.5 Belgium 2.562 74.6 -4.8 -4.8 Spain 4.731 60.3 -15.0 -15.6 Italy 1.550 62.1 -3.5 -3.5 UK ( in £) 8.900 71.3 -8.0 -7.8 USA (in $) 77.125 62.2 -7.6 -8.2 (continued) ECONOMY HOTELS Average room rate RevPAR by country Subsidiaries Q3 (chg in % (chg in % L/L (1)) (in local currency) reported) France 53 3.9 3.3 Germany 58 -0.2 -0.6 Netherlands 79 -1.9 -1.9 Belgium 62 -5.1 -5.1 Spain 54 -4.1 -5.5 Italy 65 -6.6 -6.6 UK ( in GBP) 53 -6.2 -3.0 USA (in $) 45 -4.7 -5.4 (continued) ECONOMY HOTELS RevPAR RevPAR by country Subsidiaries Subsidiaries Subsidiaries Q3 & managed (chg in % (like-for-like(1)) (repo- (in local currency) reported) rted) France 37 -3.2 -4.3 -3.5 Germany 41 -6.2 -6.8 -6.4 Netherlands 54 -12.8 -12.8 -12.8 Belgium 46 -10.8 -10.8 -10.8 Spain 32 -23.2 -25.1 -23.2 Italy 41 -11.6 -11.6 -11.6 UK ( in GBP) 38 -15.6 -12.5 -14.9 USA (in $) 28 -15.1 -16.6 -15.1 (1) at comparable scope of consolidation and excahange rates. DATASOURCE: Accor CONTACT: MEDIA CONTACT: Alain Delrieu, Phone: +33-1-45-38-84-85, Aurelie Langevin, Phone: +33-1-45-38-84-76; INVESTORS CONTACTS, Eliane Rouyer-Chevalier, Senior Vice President, Investor Relations and Financial Communications, Phone: +33-1-45-38-86-26; Solene Zammito, Deputy Director, Investor Relations, Phone : +33-1-45-38-86-33

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