PARIS, July 17 /PRNewswire-FirstCall/ -- Accor's consolidated
revenue rose 8.8% to 4,015 million euros in the first six months of
2007. At constant scope of consolidation and exchange rates, the
like-for-like increase was 6.1%, confirming that the environment
remains favorable in the Services and Hotels businesses. The
Group's expansion strategy accounted for 7.5% of revenue growth for
the period, while disposals carried out as part of the ongoing
asset-right strategy in the Hotels business reduced revenue by
3.6%. The currency effect was a negative 1.3% for the period. (in
million euros) First-Half First-Half % change % change 2006 2007 as
like-for reported -like (1) Hotels 2,666 2,896 +8.6% +5.2% Upscale
and 1,457 1,663 +14.1% +6.1% Midscale Economy 717 772 +7.7% +5.8%
Economy US 492 461 -6.2% +1.9% Services 364 418 +14.6% +12.0% Other
businesses 660 701 +6.2% +6.5% Total 3,690 4,015 +8.8% +6.1% (1) At
constant scope of consolidation and exchange rates. Services: up
14.6% Revenue from the Services business increased by 14.6% as
reported and by 12.0% like-for-like, in line with Accor's
medium-term organic growth target of 8 to 16% a year between 2006
and 2010. In Europe, revenue was up 13.5% like-for-like for the
period, reflecting organic growth of 16.0% in the first quarter and
11.1% in the second. In Latin America, like-for-like growth totaled
8.6%, with 10.7% in the first quarter and 6.6% in the second.
Second-quarter performance was shaped by strong growth in the
United Kingdom (up 13.8%) and Belgium (up 23.4%), but also by
persistently tough competition in Brazil (where revenue declined
1.2% like-for-like) and the non-renewal of certain contracts in
Romania and Venezuela. In line with the Group's medium-term
objectives, acquisitions accounted for 4.8% of first-half revenue
growth. In particular, the acquisition of the Kadeos gift vouchers
and cards business in France added 2.4%. The currency effect on the
first six months was a negative 1.5%, primarily attributable to the
declines of the Mexican peso (down 0.5%) and the Venezuelan bolivar
(down 0.7%) against the euro. Hotels: up 8.6% The 8.6% reported
increase in Hotels revenue confirms the continuing uptrend in the
European hospitality industry cycle underway since fourth-quarter
2006. Growth in Europe was led by increases in both the occupancy
rate (up 1.1 point) and the average room rate (up 6.9%). At
constant scope of consolidation and exchange rates, the
like-for-like increase was 5.2%, comprising organic growth of 7.2%
in the first quarter and 3.6% in the second. Most of the
second-quarter slowdown was due to non-recurring events that skewed
comparisons, specifically the FIFA World Cup in Germany in June and
July 2006 and the decline in demand in France during the May 2007
presidential election. Excluding the comparative impact of these
non-recurring events, hotel revenue in Europe was up 5.5% for the
period, confirming the upturn in the hotel industry cycle in the
region, which accounts for 70% of Accor's hotel revenue. Business
expansion represented 9.5% of revenue growth, with the
consolidation of 52 Dorint hotels in Germany accounting for 6.1% of
the increase and the opening of 13,824 rooms during the period for
2.3%. In line with the asset-right strategy, the Group is
continuing to dispose of hotel properties, in most cases under sale
and management-back or franchise-back agreements. This process is
reducing revenue, by 4.5% in first-half 2007. The currency effect
was a negative 1.6%, mainly due to the appreciation of the euro
against US dollar. Upscale and Midscale Hotels Revenue in the
Upscale and Midscale segment rose 14.1% as reported and 6.1%
like-for-like. Growth was 8.5% in the first quarter and 4.0% in the
second. In France, revenue rose 7.0% like-for-like during the half,
with second-quarter performance shaped by slower demand in May due
to the presidential election. June, on the other hand, was
particularly vibrant, with a 16.6% surge in RevPar attesting to the
positive underlying trend. During the second quarter alone, RevPAR
was up 11.7% at Sofitel and 11.1% at Novotel. In the United
Kingdom, revenue rose 8.1% like-for-like during the half, led by a
strong performance in London (RevPar up 11.5% in the second
quarter, versus 9.9% in the first). In Germany, revenue declined by
4.5% in the second quarter, but the comparison is not very
significant in light of the strong prior-year performance, driven
by the World Cup. Adjusted for the comparative effect of
non-recurring events in France and Germany, revenue in the Upscale
and Midscale segment was up 5.7% in the second quarter, instead of
the 4.0%. Economy Hotels (outside the United States) In the Economy
Hotel segment, revenue rose by 7.7% as reported and 5.8%
like-for-like in the first half. Over the period, like-for-like
growth was 3.6% in France, 0.6% in Germany and 12.4% in the United
Kingdom. For the same reasons of comparison noted above for Germany
and France, growth slowed in the second quarter to 4.0% (5.2%
excluding the comparative effect) from 8.0% in the first three
months. US Economy Hotels In the US Economy Hotel segment, revenue
ended the first half up by 1.9% like-for-like, but down 6.2% as
reported due to the dollar's weakness against the euro. Revenue
rose 3.5% at Red Roof Inn and 1.2% at Motel 6, whose business was
hurt by the surge in gasoline prices, which particularly affects
leisure customers. Conclusion The first half confirmed the uptrend
in the Hotels business in Europe and saw sustained organic growth
in Services, in line with the Group's target of 8 to 16% a year.
Accor, the European leader in hotels and tourism, and a global
leader in corporate services, operates in nearly 100 countries with
170,000 employees. It offers to its individual and corporate
clients 40 years of expertise in its two core businesses: - Hotels,
with the Sofitel, Novotel, Mercure, Suitehotel, Ibis, All Seasons,
Red Roof Inn, Etap Hotel, Formule 1 and Motel 6 brands: with nearly
3,800 hotels and 450,000 rooms in 90 countries, as well as
strategically related activities, such as Lenotre ; - Services to
corporate clients and public institutions: 23 million people in 38
countries benefit from Accor Services products - meal and food
vouchers, people care, incentive and loyalty programs. Revenue
Quarter 1 In Euros thousand 2006 2007 HOTELS Upscale and 678,568
774,932 Midscale Economy 323,411 355,471 Economy US 231,601 215,941
Total HOTELS 1,233,580 1,346,344 SERVICES 179,360 206,984 Other
Businesses Casinos 76,980 78,172 Restaurants 141,609 151,766
On-board 59,343 59,704 train services Other 42,338 44,467 Total
other 320,270 334,109 businesses Total 1,733,210 1,887,437 In Euros
thousand HOTELS Quarter 2 Half Year Upscale and 2006 2007 2006 2007
Midscale Economy Economy US 778,605 887,727 1,457,173 1,662,659
Total HOTELS 393,521 416,654 716,932 772,125 260,157 245,286
491,758 461,227 SERVICES 1,432,283 1,549,667 2,665,863 2,896,010
Other Businesses 185,118 210,783 364,479 417,767 Casinos
Restaurants On-board 80,759 80,619 157,739 158,791 train services
Other 141,505 164,521 283,114 316,287 Total other 65,572 70,568
124,915 130,272 businesses 51,783 50,947 94,121 95,414 Total
339,619 366,655 659,889 700,765 1,957,020 2,127,106 3,690,231
4,014,543 Quarter 1 Quarter 2 Change Change Change Change Reported
% L/L % Reported % L/L % (*) (*) HOTELS Upscale and 14.2% 8.5%
14.0% 4.0% Midscale Economy 9.9% 8.0% 5.9% 4.0% Economy US -6.8%
2.0% -5.7% 1.8% Total HOTELS 9.1% 7.2% 8.2% 3.6% SERVICES 15.4%
14.1% 13.9% 10.0% Other Businesses Casinos 1.5% 3.5% -0.2% 1.2%
Restaurants 7.2% 9.1% 16.3% 15.2% On-board 0.6% -2.3% 7.6% 4.3%
train services Other 5.0% 9.1% -1.6% -1.3% Total other businesses
4.3% 5.7% 8.0% 7.2% Total 8.9% 7.6% 8.7% 4.8% Half Year Change
Change Reported % L/L % (*) HOTELS Upscale and 14.1% 6.1% Midscale
Economy 7.7% 5.8% Economy US -6.2% 1.9% Total HOTELS 8.6% 5.2%
SERVICES 14.6% 12.0% Other Businesses Casinos 0.7% 2.3% Restaurants
11.7% 12.1% On-board 4.3% 1.2% train services Other 1.4% 3.4% Total
other businesses 6.2% 6.5% Total 8.8% 6.1% *Based on constant scope
of consolidation and exchange rates RevPAR by segment HOTELS :
RevPAR Occupancy Rate Average room rate by segment Subsidiaries
(reported) Subsidiaries (reported) at June-end 2007 (in %) (chg in
pts) (chg in %) (YTD) Upscale and 65.3% +2.1 103 +4.6% Midscale
Europe (in EUR) Economy Europe 71.7% +0.7 54 +4.3% (in EUR) Economy
US (in $) 64.5% -0.2 47 +2.9% HOTELS : RevPAR RevPAR by segment
Subsidiaries Subsidiaries Subsidiaries & at June-end 2007
(reported) managed (YTD) (chg in %) (like-for-like(1)) (reported)
Upscale and 67 +8.0% +7.4% +10.7% Midscale Europe (in EUR) Economy
Europe 39 +5.2% +4.9% +5.5% (in EUR) Economy US (in $) 31 +2.6%
+2.1% +2.6% (1) at comparable scope of consolidation and exchange
rates. RevPAR by country UPSCALE AND Number of Occupancy Rate
Average room rate MIDSCALE HOTELS rooms Subsidiaries Subsidiaries
RevPAR by (reported) (reported) country at June-end 2007 (YTD) (in
local (in %) (chg in pts) (chg in %) currency) France 30,062 65.0%
+3.6 109 +4.2% Germany 21,322 63.0% -0.8 91 +14.9% Netherlands
4,302 67.8% +3.0 115 +1.1% Belgium 2,232 69.0% +2.7 105 +2.8% Spain
2,259 66.3% +6.3 103 +3.9% Italy 3,021 62.1% -2.2 115 +1.5% UK ( in
GBP) 5,349 76.6% +2.2 84 +6.5% USA (in $) 540 90.1% +19.5 216 +9.6%
UPSCALE AND RevPAR MIDSCALE HOTELS RevPAR by Subsidiaries
Subsidiaries Subsidiaries country at (reported) & managed
June-end 2007 (YTD) (in local (chg in %) (like-for (reported)
currency) -like(1)) France 71 +10.4% +9.0% +10.8% Germany 57 +13.4%
+4.4% +6.7% Netherlands 78 +5.8% +6.1% +5.3% Belgium 72 +7.0% +7.0%
+9.2% Spain 68 +14.8% +14.8% +14.9% Italy 71 -2.0% -1.0% -2.0% UK (
in GBP) 65 +9.6% +7.8% +3.2% USA (in $) 194 +40.0% +23.0% +22.3%
(1) at comparable scope of consolidation and exchange rates.
ECONOMY HOTELS Number of Occupancy Rate Average room rate RevPAR by
rooms Subsidiaries Subsidiaries country at (reported) (reported)
June-end 2007 (YTD) (in local (in %) (chg in pts) (chg in %)
currency) France 44,297 71.8% -0.1 47 +3.8% Germany 15,187 68.8%
-0.6 57 +3.3% Netherlands 2,215 81.5% +4.4 77 +4.7% Belgium 2,569
74.4% +0.3 66 +3.0% Spain 3,910 76.7% +2.4 54 +4.8% Italy 1,436
62.2% +3.0 74 -1.0% UK ( in GBP) 7,329 74.5% +3.2 53 +4.8% USA (in
$) 106,563 64.5% -0.2 47 +2.9% ECONOMY HOTELS RevPAR RevPAR by
Subsidiaries Subsidiaries Subsidiaries country at (reported) &
managed June-end 2007 (YTD) (in local (chg in %) (like-for
(reported) currency) -like(1)) France 33 +3.6% +3.2% +3.6% Germany
39 +2.4% +2.1% +2.8% Netherlands 63 +10.6% +10.6% +10.6% Belgium 49
+3.5% +6.2% +3.5% Spain 41 +8.2% +8.6% +8.2% Italy 46 +4.0% +4.1%
+4.0% UK ( in EUR) 39 +9.5% +11.7% +9.8% USA (in $) 31 +2.6% +2.1%
+2.6% (1) at comparable scope of consolidation and exchange rates.
DATASOURCE: Accor CONTACT: Media Contacts, Armelle Volkringer,
Senior Vice President, Corporate Communications and External
Relations Tel.: +33-(0)1-45-38-84-85; Sandrine Guendoul,
Anne-Sophie Sibout, Press Officers, Tel.: +33-(0)1-45-38-84-76 /
84; Investor Contacts, Eliane Rouyer, Senior Vice President,
Investor Relations and Financial Communications, Tel.:
+33-(0)1-45-38-86-26
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