Accor: First-Quarter 2006 Revenue Up 10.4%
26 Abril 2006 - 1:50PM
PR Newswire (US)
PARIS, April 26 /PRNewswire-FirstCall/ -- - Good Overall
Performance The overall first-quarter performance was good. In
Upscale and Midscale Hotels, growth was driven by the favorable
impact of the shift in the Easter vacation calendar and by business
in Germany. The Economy segment in Europe continued to expand. In
the United States, the Economy segment was lifted by a favorable
market environment. The Services business posted sharp increases.
The Group is continuing to implement its strategic initiatives, as
reflected in the asset disposal and expansion programs. (in EUR
millions) 2005 2006 % Change % Change (reported) like-for-like*
Hotels 1,127 1,233 +9.5% +5.2% Upscale and Midscale 632 680 +7.8%
+5.5% Economy 294 321 +9.2% +3.6% Economy US 201 232 +15.4% +6.6%
Services 140 179 +28.4% +15.9% Other businesses 409 438 +6.8% +4.4%
Total 1,676 1,850 +10.4% +5.9% * At constant scope of consolidation
and exchange rates Accor's consolidated revenue rose 10.4% to
EUR1,850 million in the first three months of 2006. At constant
scope of consolidation and exchange rates, the increase was 5.9%.
In the Hotels business, the solid 5.2% like-for-like increase in
revenue was due partly to a shift in the Easter vacation dates in a
number of European countries, which had a positive 0.6-point impact
on growth. Fees from management and franchise contracts for the
quarter were up 13.3% at constant exchange rates. The Services
business posted a substantial 15.9% like-for-like increase in
revenue. Business expansion accounted for 3.4% of reported growth.
Expansion in the Hotels business represented 3.8% of revenue
growth, with the opening of 57 hotels, whereas in Services, it
accounted for 5.3% of growth, mainly through four acquisitions:
Hungastro in Romania, Delicard in Sweden, Stimula in France and
Commuter Check in the United States. Asset disposals had a negative
2.9-point impact on growth. As part of the disposal of 200
non-priority hotels, 52 hotels were sold during the past 12 months,
as well as two non strategic activities: facilities management
business in Brazil and public catering operations in Luxembourg.
The currency effect added 3.9 points to revenue growth and
primarily reflected the appreciation of the Brazilian real and the
US dollar against the euro. Upscale and Midscale Hotels Revenue in
the Upscale and Midscale segment rose by 7.8% as reported and 5.5%
like-for-like. Excluding the impact of the shift in the Easter
holiday period, revenue was up 4.5% like-for-like for the period.
In Europe (excluding France), the trend was favorable, with revenue
rising 8.1% like-for-like. Germany reported a 10.9% like-for-like
increase, thanks to an improved economy, the favorable impact of
the Easter holidays, and the fact that business seminars and
conventions were moved forward because of the FIFA World Cup to be
held, beginning of June. Revenue in the United Kingdom was up 9.5%
like-for-like, reflecting a still favorable business cycle. Growth
was led by an increase in business customers and a strong
performance by hotels in London. In Italy, the 13.3% like-for-like
increase was due mainly to the Winter Olympics. In France,
like-for-like growth in revenue, which was just 0.9%, was affected
by the program to renovate 128 hotels as part of the Fonciere des
Murs transaction. Growth was greater in Paris (up 1.8%) than in
other regions (up 0.3%). In the rest of the world, the 8.5%
like-for-like increase in revenue was led by strong demand,
especially in North America, where revenue grew by 4.7% (11.5% when
restated to take into account the Sofitel Los Angeles, currently
being fully renovated), and in emerging markets, where the increase
was 9.7%. Economy Hotels (outside the United States) In the Economy
segment (excluding the US), revenue rose by 9.2% as reported and
3.6% like-for-like. The segment was relatively unaffected by the
shift in the Easter vacation calendar, which had a positive but
modest 0.4-point impact on growth. In Europe (excluding France),
the strong 4.9% like-for-like increase was led by Germany, which
reported 6.0% growth due to the same reasons as already mentioned
(more favorable economy and positive impact of the Easter holiday
schedule). In France, revenue growth (1.8% like-for-like) was held
back by a three-point decline in the Formule 1 and Etap Hotel
occupancy rate, specially outside the Greater Paris area. Economy
Hotels in the US The sharp rise in revenue was confirmed during the
period, with a like-for-like increase of 6.6%. The currency effect
accounted for 9.6 points of the 15.4% increase in reported revenue.
Like-for-like revenue was up 6.6% for Motel 6 and 5.2% for Red Roof
Inn. Fees from franchise contracts for the quarter were up 29.8% at
constant exchange rates Implementation of the Red Roof Inn
renovation program continued, with 107 hotels completed and 16
underway. Services Revenue from the Services business climbed by
15.9% like-for-like and 28.4% as reported. This strong performance,
especially in Belgium (up 22.1% like-for-like), the United Kingdom
(up 27.4%) and Venezuela (up 33.7%), was led by favorable changes
in regulations and new product launches over the past months.
Like-for-like revenue increased by 12.5% in Europe and 21.5% in
Latin America. The currency effect, mainly linked to the
appreciation of the Brazilian real, was a positive 9.2%. Other
businesses For the period, travel agency revenue was up 4.3% as
reported and 4.1% like-for-like. Revenue from the casino business
rose by 0.8% like-for-like and 1.2% as reported. Revenue from the
restaurant business increased 8.9% like-for-like and 19.9% as
reported. Revenue in the onboard train service business declined by
0.1% like-for-like and by 0.5% as reported. 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: - Hotels, with the Sofitel,
Novotel, Mercure, Suitehotel, Ibis, Etap Hotel, Formule 1, Motel 6
and Red Roof Inn brands, representing more than 4,000 hotels and
470,000 rooms in 90 countries, as well as such strategically
related businesses as restaurants and food services (notably
Lenotre), casinos and travel agencies. - Services to corporate
clients and public institutions: 21 million people in 35 countries
use a broad range of services engineered and managed by Accor
Services, including restaurant and food vouchers and cards, people
care and services, incentive programs and loyalty programs.
Contacts Eliane Rouyer Anthony Pallier Senior Vice President
Investor Relations Investor Relations and Financial Communications
Tel: +33(0)1-45-38-86-33 Tel: +33(0)1-45-38-86-26 For further
information about Accor, visit http://www.accor.com/ Revenue
Quarter 1 Quarter 1 In Euros thousand 2,005 2,006 Change Change
Reported L/L % % (*) HOTELS Upscale and Midscale 631,473 680,442
7.8% 5.5% Economy 294,400 321,437 9.2% 3.6% Economy US 200,753
231,601 15.4% 6.6% Total HOTELS 1,126,626 1,233,480 9.5% 5.2%
SERVICES 139,716 179,360 28.4% 15.9% Other Businesses Travel
Agencies 113,469 118,344 4.3% 4.1% Casinos 76,070 76,980 1.2% 0.8%
Restaurants 118,125 141,609 19.9% 8.9% On-board train services
59,638 59,343 -0.5% -0.1% Other 42,102 41,022 -2.6% 5.6% Total
other businesses 409,404 437,298 6.8% 4.4% Total 1,675,746
1,850,138 10.4% 5.9% * Based on constant scope of consolidation and
exchange rates RevPAR by segment HOTELS : RevPAR by segment
Occupancy Rate Average room rate at March-end 2006 (YTD)
subsidiaries (reported) subsidiaries (reported) (in %) (var in pts)
(var in %) Upscale and Midscale Europe 56.7% +1.0 97 4.4% Economy
Europe 65.0% -1.0 51 6.0% Economy US (in $) 61.7% +0.1 45 6.7% (1)
at comparable scope HOTELS : RevPAR by segment RevPAR at March-end
2006 (YTD) subsidiaries subsidiaries subsidiaries subsidiaries
(reported (reported (like-for-like & managed basis) basis)
basis(1)) (reported basis) Upscale and Midscale Europe 55 6.2% 4.5%
6.2% Economy Europe 33 4.4% 3.9% 4.1% Economy US (in $) 28 6.8%
6.5% 6.8% (1) at comparable scope RevPAR by country UPSCALE AND
MIDSCALE Number Occupancy Rate Average room rate HOTELS of
subsidiaries subsidiaries RevPAR by country at rooms (reported)
(reported) March-end 2006 (YTD) (in %) (var in pts) (var in %) (in
local currency) France 30,387 55.2% -0.6 105 2.7% Germany 13,598
59.9% +5.7 76 3.5% Netherlands 3,696 52.5% -3.0 103 5.9% Belgium
2,230 57.6% -0.7 103 4.3% Spain 2,241 51.8% -3.8 101 7.0% Italy
2,935 58.1% +6.2 107 1.4% UK ( in GBP) 5,145 71.1% +3.2 79 4.2% USA
(in $) 3,449 68.8% -2.3 179 11.9% UPSCALE AND MIDSCALE HOTELS
RevPAR RevPAR by country at subsidiaries subsidiaries subsidiaries
subsidiaries March-end 2006 (YTD) & managed (reported (reported
(like-for-like (reported basis) basis) basis(1)) basis) France 58
1.7% 1.2% 1.6% Germany 46 14.3% 11.1% 12.7% Netherlands 54 0.2%
0.2% 0.2% Belgium 59 3.1% 3.1% 7.4% Spain 52 -0.4% 8.5% -0.6% Italy
62 13.6% 13.6% 13.6% UK ( in GBP) 56 9.1% 9.4% 9.1% USA (in $) 123
8.2% 8.2% 8.6% ECONOMY HOTELS Number Occupancy Rate Average room
rate of subsidiaries subsidiaries RevPAR by country at rooms
(reported) (reported) March-end 2006 (YTD) (in local currency) (in
%) (var in pts) (var in %) France 44,333 66.2% -2.2 45 6.0% Germany
15,187 65.3% +1.8 53 3.6% Netherlands 2,215 62.7% +3.0 67 2.3%
Belgium 2,477 65.5% -1.5 63 6.8% Spain 3,623 68.7% +1.5 51 6.6%
Italy 1,339 51.2% +1.7 77 1.9% UK ( in GBP) 6,566 66.3% -5.1 51
6.6% USA (in $) 108,072 61.7% +0.1 45 6.7% (1) at comparable scope
ECONOMY HOTELS RevPAR RevPAR by country subsidiaries subsidiaries
subsidiaries subsidiaries at March-end & managed 2006 (YTD)
(reported (reported (like-for-like (reported (in local currency)
basis) basis) basis(1)) basis) France 30 2.6% 2.5% 2.7% Germany 35
6.5% 6.4% 6.4% Netherlands 42 7.4% 7.4% 7.4% Belgium 42 4.4% 4.4%
4.4% Spain 35 9.0% 9.8% 9.0% Italy 40 5.4% 10.8% 5.4% UK ( in GBP)
34 -1.0% 0.2% -0.3% USA (in $) 28 6.8% 6.5% 6.8% (1) at comparable
scope DATASOURCE: Accor CONTACT: Contacts: Eliane Rouyer, Senior
Vice President, Investor Relations and Financial Communications,
Tel: +33(0)1-45-38-86-26; Anthony Pallier, Investor Relations, Tel:
+33(0)1-45-38-86-33
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