ACRFF Accor SA Ltd (PK)

PARIS, January 19 /PRNewswire-FirstCall/ -- In a business environment still severely hit by recession: - Prepaid Services revenue was up 1.4% for the year, in line with the objective set last August, but was down 3.8% in the final quarter - Hotels revenue declined by 10.1% over the year and 8.3% in the fourth quarter, which showed a slight improvement compared with previous quarters, mainly due to the first signs of stabilization in occupancy rates in December in Europe Full-year 2009 target for operating profit before tax and non-recurring items confirmed at between EUR400 million and EUR450 million Consolidated revenue for 2009 totaled EUR7,065 million, down 7.9% like-for-like and 8.5% on a reported basis compared with 2008. (in EUR millions) 2008 2009 % change % change as reported like-for-like(1) Hotels 5,749 5,186 -9.8% -10.1% Upscale and Midscale 3,427 3,026 -11.7% -11.5% Economy 1,723 1,626 -5.7% -6.1% Economy US 600 534 -10.9% -13.8% Prepaid Services 978 943 -3.6% +1.4% Operating Revenue 849 840 -1.0% +3.9% Financial Revenue 129 103 -20.3% -15.0% Other businesses 995 935 -6.0% -4.6% Total 7,722(2) 7,065 -8.5% -7.9% (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. 2009 revenue performance was shaped by the following factors: - A 7.9% like-for-like decline in revenue; - The expansion strategy, which increased revenue by EUR337 million, adding 4.4% to reported growth. The increase was led by the consolidation of Orbis and the opening of 27,300 rooms over the year, as well as by the EUR103 million impact of consolidating 49% of Groupe Lucien Barriere's revenue since July 1, 2009. - The impact of refocusing on Hotels and Prepaid Services (which led to the disposal of the Brazilian foodservice business), the ongoing deployment of the asset-right strategy and the loss of the onboard train services contract in France. All these factors reduced revenue by EUR271 million and reported growth by 3.5%. - The 1.4% negative currency effect, which trimmed EUR111 million from revenue and was primarily due to the euro's appreciation against the British pound and the Brazilian real and to the 50% devaluation in the Venezuelan bolivar. On the upside, the euro/US dollar exchange rate had a positive 0.4% impact on reported growth. Fourth quarter revenue came to EUR1,806 million, down a reported 7.2% on the year-earlier period. On a like-for-like basis, revenue was down 7.1% year-on-year, reflecting an 8.3% contraction in the Hotels business and a 3.8% decline in Prepaid Services. Prepaid Services: Revenue up 1.4% like-for-like for the year Revenue from the Prepaid Services business stood at EUR943 million for the year, down 3.6% as reported, reflecting the following factors: - The slight 1.4% like-for-like growth in revenue over the year, as a 3.9% increase in operating revenue offset a 15.0% drop in financial revenue. - The negative currency effect, which reduced reported revenue by EUR50 million or 5.2%. Of the total negative effect, 2.1% stemmed from the recent devaluation of the Venezuelan bolivar, 0.8% from the weakness of the Brazilian real, 0.6% from the decline of the Mexican peso against the euro and 0.5% from the decline of the British pound against the euro. Revenue for the fourth quarter alone totaled EUR256 million, a decline of 10.2% as reported and 3.8% like-for-like. Operating revenue edged up 0.2%, supported by the business' strong growth drivers, which were impacted during the quarter by a sharp rise in unemployment, especially in Europe. Interest income fell by 31.1%, hard hit by the decline in interest rates around the world. - In Europe, like-for-like revenue was down 2.2% year on year at EUR165 million. The contraction reflected the net impact of a 1.8% increase in operating income and a 31.7% drop in interest income, whose decline has gained momentum with every quarter (up 5.1% in Q1, down 10.8% in Q2 and down 20.3% in Q3). - In France, revenue contracted 6.9% like-for-like in the fourth quarter, including declines of 2.8% in operating revenue and 36.1% in interest income. Operating revenue for the period reflected both a solid performance in Ticket Restaurant meal vouchers and CESU human services vouchers (up 3.5%) and weaker demand for gift vouchers during the holiday season (down 10.7%). - Revenue in the United Kingdom rose 2.3% like-for-like during the final quarter, with a 4.4% increase in operating revenue offsetting a 19.9% fall-off in interest income. Operating revenue was shaped by the combined impact of strong demand for childcare vouchers, up 6.3%, and weak demand for gift cards, down 10.4%. - In Latin America, revenue declined 5.2% like-for-like to EUR76 million during the quarter. Operating revenue edged back 0.9%. Revenue growth is being dragged down by the sustained drop in interest income, which after rising 26.3% in the first quarter began a steady decline in the second (down 16.5%), third (down 22.9%) and fourth (down 29.4%). - Revenue in Brazil declined by 6.7% like-for-like in the fourth quarter. An exceptionally high 2008 comparable base pushed operating revenue down 3.7%. Like-for-like operating revenue was up 22.3% in Q4 2008 versus a full-year increase of 13.2%. Interest income fell a much steeper 25.3%. - Hispanic Latin America saw a 3.6% like-for-like decline in revenue, reflecting a 2.3% increase in operating revenue and a 33.3% collapse in interest income Hotels: Revenue down 10.1% like-for-like for the year Hotels revenue for the year amounted to EUR5,186 million, down 9.8% as reported, reflecting the following factors: - A 10.1% like-for-like contraction in revenue illustrates the firmer resistance of the European economies compared with the US economy. - The impact of the Group's expansion strategy, with 1) the opening of 27,300 rooms in 2009, attesting to the sustained expansion momentum despite the recession in the hospitality industry, and 2) the consolidation of Orbis hotels, which added 3.0% to reported growth. - A negative 1.8% impact from the sale of hotel properties under the asset-right strategy. - A negative 0.9% currency effect. Revenue for the fourth quarter alone totaled EUR1,296 million, a year-on-year decline of 9.6% as reported and 8.3% like-for-like. December saw signs that occupancy rates were beginning to stabilize in every segment except Motel 6. Upscale and Midscale Hotels In 2009, revenue in the Upscale and Midscale segment declined by 11.7% as reported and 11.5% like-for-like. While falling back 9.4%, fourth-quarter revenue showed a slight improvement in business compared with previous quarters as occupancy rates began to stabilize in December. - The fourth-quarter improvement was less perceptible in France than in the rest of Europe, where revenue fell 11.7% during the period, compared with declines of 8.8% in the third quarter, 14.8% in the second and 10.1% in the first. Note that in France third-quarter revenue was lifted by relatively sustained demand from leisure guests during the summer. December RevPAR (down 5.3% like-for-like versus like-for-like declines of 9.3% in November and 19.7% in December) nevertheless showed the first signs that occupancy rates are beginning to level off, with a decline of just 1.0-point compared with declines of 4.7 points and 8.1 points in the prior two months. - Compared with the rest of the year, Upscale and Midscale Hotel performance improved considerably in Germany (like-for-like revenue down 6.0% versus declines of 14.0% in the third quarter and 11.6% in the first half) and in the United Kingdom (up 2.1% in the fourth quarter versus declines of 8.6% in the third quarter and 10.2% in the first half). In Germany, like-for-like RevPAR turned sharply upward month after month in the final quarter, from a decline of 12.1% in October to a decline of 1.9% in December, with a swing to growth in the occupancy rate in December (up 0.6 points). - In the United Kingdom, RevPAR rose a strong 9.3% in December (versus declines of 0.2% in November and 4.2% in October), while the occupancy rate increased 3.8 points during the month (versus a decline of 0.2 points in November and a gain of 2.3 points in October). These figures demonstrate the firm resistance of operations in the leading European countries in this segment, particularly in comparison with operations in North America. Economy Hotels In the Economy Hotels segment, 2009 revenue was down 5.7% as reported and 6.1% like-for-like, reflecting the economy segment's solid resilience in Europe. Fourth quarter revenue, which was down 4.0% like-for-like, offers an even more compelling demonstration of the segment's resistance, as the like-for-like decline slowed to 3.3% in France, 4.4% in Germany and 2.4% in the United Kingdom. Like the Upscale and Midscale segment, Economy Hotels began seeing the first signs of stabilization in occupancy rates in December. Year-on-year, these rates were down just 2.0 points in France, 1.0 points in Germany and 0.5 points in the UK in December, compared with declines of 5.3 points, 3.6 points and 3.1 points respectively in November and 7.2 points, 5.9 points and 2.5 points respectively in October. Economy Hotels in the United States Motel 6's revenue for 2009 fell by 10.9% year-on-year on a reported basis and by 13.8% like-for-like. During the year, the chain opened a record 67 new hotels under franchise agreements, driving a 21.1% increase in franchise revenue at constant exchange rates over the period. Fourth-quarter revenue was down 14.4% like-for-like, reflecting the lack of any signs of improvement in the hospitality business environment in the United States, contrary to Europe. In this challenging environment, Motel 6 continued to gain market share from the competition. Conclusion and 2009 earnings guidance In 2009, the Prepaid Services business reported a slight 1.4% like-for-like increase in revenue, in line with the target set last August. In the fourth quarter alone, operating revenue was up 0.2% like-for-like, while interest income, hard hit by the steep drop in interest rates, was down 31.1% like-for-like. In the Hotels business, the fourth quarter saw an improvement in business compared with previous quarters, with the occupancy rate showing the first signs of stabilizing in December. Revenue for the quarter has demonstrated the firmer resistance both of the Hotels business in Europe compared with the United States and of the Economy segment compared with the Upscale and Midscale segment. Accor confirms its target for 2009 operating profit before tax and non-recurring items of between EUR400 million and EUR450 million, as indicated last August, despite the negative EUR40 million impact from the 50% devaluation in the Venezuelan bolivar announced on January 8, 2010. Upcoming events - February 24, 2010: publication of 2009 annual results ***** 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 40years of expertise in two core businesses: - Hotels, with the Sofitel, Pullman, MGallery, Novotel, Mercure, Suitehotel, Adagio, ibis, all seasons, Etap Hotel, Formule 1, hotelF1 and Motel 6 brands, representing 4,000 hotels and nearly 500,000 rooms in 90 countries, as well as strategically related activities, Accor Thalassa, Lenotre, CWL. - Services, with 32 million people in 40 countries benefiting from Accor Services products in employee and constituent benefits, rewards and incentives, and expense management. Revenue in EUR thousand Quarter 1 Quarter 2 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 1 49,573 143,833 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... in EUR thousand Quarter 3 Quarter 4 2008 2009 2008 2009 HOTELS Up & Midscale 882,421 776,235 872,887 778,220 Economy 465,029 435,017 413,647 410,077 Economy US 166,729 146,012 145,988 107,284 Total HOTELS 1,514,179 1,357,264 1,432,522 1,295,581 PREPAID SERVICES 233,571 222,038 285,445 256,304 Other businesses Casinos 87,513 137,576 88,728 139,503 Restaurants 24,792 19,677 28,800 28,298 On-board train services 82,804 65,168 75,289 59,248 Holdings & Other 74,383 46,537 36,132 27,209 Total OTHER BUSINESSES 269,492 268,958 228,949 254,258 TOTAL 2,017,242 1,848,260 1,946,916 1,806,143 Continued... in EUR thousand FY 2009 2008 2009 HOTELS Up & Midscale 3,426,517 3,026,395 Economy 1,723,176 1,625,595 Economy US 599,544 534,364 Total HOTELS 5,749,237 5,186,354 PREPAID SERVICES 978,021 943,125 Other businesses Casinos 345,964 440,586 Restaurants 187,133 98,076 On-board train services 306,348 248,340 Holdings & Other 155,321 148,068 Total OTHER BUSINESSES 994,766 935,070 TOTAL 7,722,025 7,064,549 Quarter 1 Quarter 2 in EUR thousand Change Change Change Change reported L/L (1) reported L/L (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 -27.2% -3.8% -4.0% 0.3% BUSINESSES TOTAL -9.6% -5.8% -9.0% -10.1% Continued... in EUR thousand Quarter 3 Quarter 4 Change Change Change Change reported L/L (1) reported L/L (1) HOTELS Up & Midscale -12.0% -10.1% -10.8% -9.4% Economy -6.5% -5.8% -0.9% -4.0% Economy US -12.4% -15.0% -26.5% -14.4% Total HOTELS -10.4% -9.3% -9.6% -8.3% PREPAID SERVICES -4.9% -0.6% -10.2% -3.8% Other businesses Casinos 57.2% -3.2% 57.2% -4.1% Restaurants -20.6% -16.9% -1.7% -9.0% On-board train services -21.3% 0.4% -21.3% 3.7% Holdings & Other -37.4% -27.8% -24.7% -14.3% Total OTHER BUSINESSES -0.2% -10.2% 11.1% -3.8% TOTAL -8.4% -8.4% -7.2% -7.1% Continued... FY 2009 Change reported Change L/L(1) HOTELS Up & Midscale -11.7% -11.5% Economy -5.7% -6.1% Economy US -10.9% -13.8% Total HOTELS -9.8% -10.1% PREPAID SERVICES -3.6% 1.4% Other businesses Casinos 27.4% -4.8% Restaurants -47.6% -9.0% On-board train services -18.9% 2.8% Holdings & Other -4.7% -13.7% Total OTHER BUSINESSES -6.0% -4.6% TOTAL -8.5% -7.9% RevPAR by segment (FY 2009) HOTELS : RevPAR Occupancy Rate Average room rate by segment Subsidiaries Subsidiaries FY 2009 (in %) (chg in (chg (chg in % (chg pts in pts reported) in % reported) L/L (1)) L/L (1)) Upscale and Midscale Europe (in EUR) 58.8 -6.0 -5.1 96 -8.4% -5.9% Economy Europe (in EUR) 65.3 -6.3 -6.3 57 -0.6% +0.7% Economy US (in $) 58.1 -6.3 -6.6 43 -4.6% -5.2% (1) at comparable scope of consolidation and exchange rates. Continued... HOTELS : RevPAR RevPAR by segment FY 2009 Subsidiaries Subsidiaries Subsidiaries (chg in % (like-for-like(1)) & managed reported) (reported) Upscale and 57 -16.9% -13.3% -16.9% Midscale Europe (in EUR) Economy Europe 37 -9.4% -8.2% -9.8% (in EUR) Economy US (in $) 25 -13.9% -14.9% -13.9% (1) at comparable scope of consolidation and exchange rates. RevPAR by segment (Q4 2009) HOTELS : RevPAR Occupancy Rate Average room rate by segment Q4 Subsidiaries Subsidiaries (in %) (chg in pts (chg in (chg in % (chg in reported) pts L/L reported) % L/L (1)) (1)) Upscale and 58.3 -2.4 -2.5 96 -7.7% -6.8% Midscale Europe (in EUR) Economy Europe 62.7 -4.5 -4.5 58 -0.5% -0.1% (in EUR) Economy US (in $) 52.8 -5.7 -5.8 41 -5.5% -6.1% Continued... HOTELS : RevPAR RevPAR by segment Q4 Subsidiaries Subsidiaries Subsidiaries (chg in % (like-for-like(1)) & managed reported) (reported) Upscale and 56 -11.5% -10.6% -11.6% Midscale Europe (in EUR) Economy Europe (in 36 -7.1% -6.7% -7.8% EUR) Economy US (in $) 22 -14.7% -15.5% -14.7% (1) at comparable scope of consolidation and exchange rates. RevPAR by country (FY 2009) UPSCALE AND MIDSCALE HOTELS RevPAR by country FY 2009 (in local currency) Occupancy Rate Average room rate Subsidiaries Subsidiaries Nb of (chg in pts (chg in (chg in % (chg in rooms (in %) reported) pts L/L reported) % L/L (1)) (1)) France 29,674 59.8 -6.4 -6.5 113 -2.5% -2.9% Germany 19,644 59.4 -4.3 -4.4 90 -6.0% -6.3% Netherlands 3,986 60.8 -4.6 -4.6 92 -14.9% -14.9% Belgium 1,801 65.7 -5.4 -5.4 102 -6.1% -6.1% Spain 2,359 52.5 -9.8 -8.8 81 -17.2% -16.7% Italy 3,552 56.6 -2.0 -1.8 104 -10.6% -9.5% UK ( in GBP) 5,466 75.2 -2.1 -2.2 84 -5.6% -6.4% (1) at comparable scope of consolidation and exchange rates. Continued... UPSCALE AND MIDSCALE HOTELS RevPAR RevPAR by country FY 2009 (in local currency) Subsidiaries Subsidiaries Subsidiaries (chg in % (like-for-like(1)) & managed reported) (reported) France 68 -11.9% -12.4% -12.1% Germany 53 -12.3% -12.8% -12.2% Netherlands 56 -20.9% -20.9% -20.7% Belgium 67 -13.3% -13.3% -12.2% Spain 43 -30.1% -28.5% -24.5% Italy 59 -13.7% -12.3% -12.3% UK ( in GBP) 63 -8.2% -9.0% -8.8% (1) at comparable scope of consolidation and exchange rates. ECONOMY HOTELS RevPAR by country FY 2009 (in local currency) Occupancy Rate Average room rate Subsidiaries Subsidiaries Nb of (in %) (chg in (chg in (chg in (chg in % rooms pts pts % L/L (1)) reported) L/L (1)) reported) France 41,873 67.1 -4.8 -5.4 54 +5.5% +4.7% Germany 15,078 64.3 -5.5 -5.5 59 +0.4% +0.0% Netherlands 2,334 65.2 -8.6 -8.3 79 -4.5% -4.9% Belgium 2,548 70.2 -6.8 -6.8 67 -2.4% -2.6% Spain 4,667 55.4 -14.8 -15.3 54 -4.3% -5.3% Italy 1,550 56.0 -5.5 -5.5 69 -5.7% -5.7% UK ( in GBP) 8,899 67.6 -6.7 -6.3 53 -4.7% -2.4% USA (in $) 77,398 58.1 -6.3 -6.6 43 -4.6% -5.2% Continued... RevPAR ECONOMY HOTELS RevPAR by country FY 2009 (in local currency) Subsidiaries Subsidiaries Subsidiaries (chg in % (like-for-like(1)) & managed reported) (reported) France 36 -1.6% -3.1% -1.8% Germany 38 -7.4% -7.9% -6.9% Netherlands 51 -15.7% -15.6% -15.7% Belgium 47 -11.0% -11.2% -11.0% Spain 30 -24.5% -25.9% -24.5% Italy 39 -14.2% -14.2% -14.2% UK (in GBP) 36 -13.3% -10.7% -12.9% USA (in $) 25 -13.9% -14.9% -13.9% RevPAR By country (Q4 2009) UPSCALE AND MIDSCALE HOTELS RevPAR by country Q4 (in local Occupancy Rate Average room rate currency) Subsidiaries Subsidiaries (chg in (chg in (chg in (chg in Nb of (in %) pts pts % % rooms reported) L/L (1)) reported) L/L (1)) France 29,274 58.0 -4.3 -4.6 114 -4.9% -5.5% Germany 19,612 62.0 -1.9 -1.7 90 -4.6% -4.8% Netherlands 4,012 60.3 -0.1 -0.1 89 -17.3% -17.3% Belgium 1,801 70.2 -1.5 -1.5 102 -5.9% -5.9% Spain 2,385 52.5 -1.8 -1.2 81 -12.2% -11.2% Italy 3,459 56.1 -1.1 -1.1 99 -9.4% -9.4% UK (in GBP 5,568 75.2 +1.2 +2.0 87 -2.1% -1.8% (1) at comparable scope of consolidation and exchange rates. Continued... UPSCALE AND MIDSCALE HOTELS RevPAR by country Q4 RevPAR Subsidiaries Subsidiaries Subsidiaries (in local (chg in % (like-for-like(1)) & managed currency) reported) (reported) France 66 -11.5% -12.5% -11.0% Germany 56 -7.4% -7.3% -7.3% Netherlands 54 -17.4% -17.4% -16.4% Belgium 72 -7.8% -7.8% -8.3% Spain 43 -15.0% -13.3% -10.0% Italy 56 -11.1% -11.1% -12.7% UK (in GBP) 66 -0.4% +0.9% -2.4% (1) at comparable scope of consolidation and exchange rates. ECONOMY HOTELS RevPAR by country Q4 (in local Occupancy Rate Average room rate currency) Subsidiaries Subsidiaries Nb of (chg in pts (chg in pts (chg in % (chg in % rooms (in %) reported) L/L (1)) reported) L/L (1)) France 41,709 63.5 -4.5 -4.8 55 +3.3% +2.9% Germany 15,189 63.6 -3.6 -3.5 59 +0.7% -0.1% Netherlands 2,410 61.0 -5.9 -5.9 76 -6.5% -6.5% Belgium 2,507 73.1 -2.8 -2.6 69 -1.8% -2.8% Spain 4,679 50.3 -10.2 -10.6 53 -4.5% -6.1% Italy 1,550 52.2 -4.9 -4.9 68 -2.8% -2.8% UK (in GBP) 8,984 67.1 -1.6 -2.0 55 -0.8% -1.2% USA (in $) 76,808 52.8 -5.7 -5.8 41 -5.5% -6.1% (1) at comparable scope of consolidation and exchange rates. Continued... ECONOMY HOTELS RevPAR RevPAR by country Q4 (in local Subsidiaries Subsidiaries Subsidiaries currency) (chg in % (like-for-like(1)) & managed reported) (reported) France 35 -3.5% -4.4% -3.7% Germany 38 -4.8% -5.3% -5.3% Netherlands 46 -14.7% -14.7% -14.7% Belgium 50 -5.5% -6.1% -5.5% Spain 27 -20.6% -22.5% -20.6% Italy 36 -11.1% -11.1% -11.1% UK (in GBP) 37 -3.1% -4.1% -3.0% USA (in $) 22 -14.7% -15.5% -14.7% (1) at comparable scope of consolidation and exchange rates. DATASOURCE: Accor CONTACT: MEDIA CONTACT Armelle Volkringer, Senior vice president corporate communications and external relations, Phone : +33(0)1-45-38-87-52, Charlotte Bourgeois-Cleary, Phone. : +33-1-45-38-84-84 ; 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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