ACRFF Accor SA Ltd (PK)

Sustained Growth in the Fourth Quarter: Up 6.9% Like-For-Like PARIS, January 15 /PRNewswire-FirstCall/ -- Accor's consolidated revenue totalled EUR8,121 million in 2007, an increase of 6.8% compared with the previous year. Based on a comparable scope of consolidation and at constant exchange rates, the like-for-like increase was 6.5%. Revenue 2006(1) 2007 Reported change Like-for- like change(2) (in EUR millions) Hotels 5,410 5,830 +7.8% +5.8% Upscale and 2,927 3,370 +15.1% +7.2% Midscale Economy 1,492 1,618 +8.4% +6.1% Economy US 991 841 -15.1% +1.5% Services 760 885 +16.5% +11.9% Other businesses 1,437 1,406 -2.1% +6.0% Total 7,607 8,121 +6.8% +6.5% (1) In accordance with IFRS 5, CWT revenue has been classified in Results from discontinued operations until its disposal in August, 2006. (2) Based on a comparable scope of consolidation and at constant exchange rates. The Group's expansion strategy boosted revenue for the year by 7.9%, while the disposals carried out under the ongoing asset right strategy and divestments of non-strategic businesses led to a 6.5% reduction. The currency effect for the year was a negative 1.1%. Revenue for the fourth quarter of 2007 came to EUR2,002 million, up 1.9% over the year-earlier period. Reported growth takes into account the divestment of Red Roof Inns and the Italian Food Services business, which were removed from the scope of consolidation effective August 31, 2007 and September 30, 2007 respectively. The like-for-like increase in revenue for the quarter was 6.9%, versus 6.6% in the third quarter and 6.1% in the first half. This very good fourth quarter performance reflects: - Sustained demand in the Hotels business, with revenue up 6.9% like-for-like compared with increases of 6.1% in the third quarter and 5.2% in the first half. Growth was led by Europe, where all segments performed well. Revenue in this region rose 7.9% like-for-like in the fourth quarter - compared to a 6.9% increase in worldwide Hotels revenue - reflecting a significant improvement in occupancy rates and average prices. - The Services business also enjoyed sustained growth, with fourth quarter revenue up 11.5% like-for-like. The expansion strategy lifted revenue for the quarter by 8.6%, while divestments (mainly of Red Roof Inns, Go Voyages and the Italian Food Services business) had a negative impact of 12.6%. The currency effect for the quarter was a negative 1.1%, mainly reflecting the euro's appreciation against the dollar. Services Reported 2007 revenue up 16.5% Revenue from the Services business in 2007 increased 16.5% on a reported basis and 11.9% like-for-like, in line with the Group's medium-term organic growth target for the business of 8% to 16% a year. The Group's assertive expansion strategy in the Services business - including the acquisition of Kadéos, France's leading gift card and voucher company - drove 6.0% revenue growth, while the depreciation of certain South American currencies against the euro led to a negative currency effect of 0.9%. Services revenue for the fourth quarter was 20.6% higher on a reported basis and 11.5% like-for-like. In Europe, fourth quarter revenue increased 9.7% like-for-like, on the back of 14.3% growth in the third quarter and 13.5% in the first half, translating into a 12.5% increase over the year. Registered growth in the fourth quarter reflects a more modest increase in France for products other than Meal Vouchers and also in the United Kingdom for Childcare Vouchers business after several years of strong revenue increase. In Latin America, revenue for the quarter was up 12.3% like-for-like, compared with 8.4% in the third quarter and 8.6% in the first half, driving a 9.5% increase over the year. The sustained growth observed in the fourth quarter attests to the improved situation in Brazil, where revenue grew 4.1% like-for-like after dipping 0.6% in the third quarter, and to continued strong gains in other South American markets, where revenue was 24.2% higher (excluding Brazil). Hotels Reported 2007 revenue up 7.8% Hotels revenue for the year rose 7.8% on a reported basis and 5.8% like-for-like, reflecting the upturn in the European hotel cycle observed since mid-2005, which led to improved occupancy rates and higher average prices. "Dynamic pricing" policy implemented by Accor combined with its "marketplace policy" also led to improved RevPAR. The 2007 Rugby World Cup generated EUR16 million in revenue for the Hotels business. Excluding this event, the Hotels business's revenue would have increased by 5.5% like-for-like, compared with the actual like-for-like increase of 5.8%. In addition, Germany's Dorint was consolidated for the first time and 28,400 new rooms were opened. In all, the Group's Hotel expansion strategy boosted annual Hotels revenue by 9.5%. During the year, the Group continued to sell hotel properties under its "asset right" strategy. These transactions, which included outright sales and sales under management-back and franchise-back agreements, reduced Hotels revenue for the year by 6.0%. The currency effect in the Hotels business was a negative 1.6%, mainly due to the euro's appreciation against the dollar. Hotels revenue for the fourth quarter rose 6.0% on a reported basis and 6.9% like-for-like. Excluding the effect of the Rugby World Cup, the like-for-like increase was 6.5%. In Europe, fourth quarter Hotels revenue increased 7.9% like-for-like, on the back of 6.7% growth in the third quarter and 5.4% in the first half, leading to a 6.4% increase over the year. Upscale and Midscale Hotels Revenue from upscale and midscale hotels rose 8.8% like-for-like in the fourth quarter, compared with increases of 7.7% in the third quarter and 6.0% in the first half, translating into annual growth of 7.2%. In France, which accounts for over 36% of revenue from this segment, growth came to 10.6% like-for-like in the fourth quarter and 9.0% over the full year. This performance was attributable to a sharp 12.8% rise in RevPAR, reflecting the efficiency of Accor's "dynamic pricing" policy, with the French transport strikes having only a limited impact on fourth quarter business. Northern Europe also performed well in the fourth quarter, particularly the United Kingdom and Germany where like-for-like revenue was up 10.7% and 5.0% respectively, compared with a 6.7% increase and a 0.4% decline in the third quarter, and rises of 8.1% and 1.2% in the first half. Over the full year, revenue was up 8.5% like-for-like in the United Kingdom and 1.7% in Germany, where 2006 activity had been boosted by the Football World Cup. Economy Hotels (outside the United States) Revenue from economy hotels outside the United States rose 6.6% like-for-like in the fourth quarter, compared with increases of 6.2% in the third quarter and 5.7% in the first half, leading to annual growth of 6.1%. In France, which contributes 42% of the segment's revenue, like-for-like growth in the fourth quarter came to 5.6%, versus 6.0% in the third quarter and 3.6% in the first half, leading to a 4.7% increase over the year. In the United Kingdom, revenue increased 8.0% like-for-like in the fourth quarter, compared with 10.2% in the third quarter and 12.4% in the first half, representing annual growth of 10.6%. In Germany, fourth quarter revenue was 4.9% higher like-for-like, compared with increases of 3.0% in the third quarter and 0.6% in the first half. Over the full year, like-for-like revenue growth in Germany stood at 2.3%. US Economy Hotels Like-for-like revenue from economy hotels in the United States was up 1.5% for the year. Growth slowed to 0.7% in the fourth quarter, from 1.6% in the third quarter and 1.9% in the first half. The 15.1% decline in reported revenue for the year reflects the early-September divestment of Red Roof Inns, which was removed from the scope of consolidation effective August 31, 2007, and the dollar's weakness against the euro. Motel 6's like-for-like revenue rose 0.7% in the fourth quarter, compared with increases of 1.6% in the third quarter and 1.2% in the first half, translating into 1.2% growth over the full year. The modest growth in the fourth quarter reflects the gaz price per gallon surge and the slowdown of housing starts. Other businesses Reported revenue from other businesses contracted 22.8% in the fourth quarter, following divestment of the Italian Food Services business (removed from the scope of consolidated effective September 30, 2007) and of Go Voyages (removed from the scope of consolidation effective April 30, 2007). Like-for-like growth in revenue from other businesses was 4.7% for the fourth quarter and 6.0% for the year. Amongst these activities, Lenôtre annual reported revenue rose 5.6%, reflecting the positive impact of the Rugby World Cup (bringing EUR2 million additional revenue) and Pré Catelan Restaurant's obtaining of a third Michelin Star. 2007 earnings objective Dynamic growth in the European hotel market in the fourth quarter and ongoing sustained growth in the Services business led to higher-than-expected revenue for the last three months of the year. As a result, the Group has upgraded its 2007 earnings forecast and now expects to report Operating Profit before tax and non-recurring items slightly above EUR900 million, compared with the target of EUR870 million to EUR890 million announced in August 2007. Accor, the European leader and a major global group in hotels, the global leader in services to corporate clients and public institutions, operates in nearly 100 countries with 170,000 employees. It offers to its clients over 40 years of expertise in its two core businesses: - Hotels, with the Sofitel, Pullman, Novotel, Mercure, Suitehotel, Ibis, All Seasons, Etap Hotel, Formule 1 and Motel 6 brands, representing more than 4,000 hotels and nearly 500,000 rooms in 90 countries, as well as strategically related activities, such as Lenôtre. - Services, with 23 million people in nearly 40 countries benefiting from Accor Services products in human resources, marketing services and expense management. Revenue Quarter 1 Quarter 2 In Euros thousand 2,006 2,007 2,006 2,007 HOTELS Upscale and Midscale 667,354 752,525 765,185 866,144 Economy 323,411 355,053 393,521 416,412 Economy US 231,601 215,940 260,157 245,286 Total HOTELS 1,222,367 1,323,519 1,418,863 1,527,843 SERVICES 179,360 206,984 185,118 210,783 Other Businesses Casinos 76,980 78,172 80,759 80,619 Restaurants 141,609 151,766 141,505 164,521 On-board train Services 59,343 59,704 65,572 70,568 Other 53,551 67,292 65,202 72,771 Total other businesses 331,483 356,935 353,038 388,480 Total 1,733,210 1,887,437 1,957,020 2,127,106 Table Continued... Revenue In Euros thousand HOTELS Quarter 3 Quarter 4 2,006 2,007 2,006 2,007 Upscale and Midscale 730,509 857,846 764,168 893,879 Economy 402,604 439,038 372,629 407,511 Economy US 278,115 242,971 220,808 137,184 Total HOTELS 1,411,227 1,539,856 1,357,605 1,438,574 SERVICES 178,503 206,261 216,570 261,146 Other Businesses Casinos 86,099 91,942 92,474 95,437 Restaurants 130,816 147,666 161,600 109,352 On board train services 73,360 75,109 66,410 67,418 Other 70,899 43,818 70,909 30,035 Total other businesses 361,173 358,534 391,393 302,242 Total 1,950,904 2,104,651 1,965,568 2,001,962 Table Continued... Revenue In Euro thousands December-end (YTD) 2,006 2,007 HOTELS Upscale and Midscale 2,927,217 3,370,394 Economy 1,492,165 1,618,015 Economy US 990,681 841,383 Total HOTELS 5,410,062 5,829,792 SERVICES 759,552 885,174 Other Businesses Casinos 336,311 346,170 Restaurants 575,530 573,306 On-board train services 264,685 272,798 Other 260,562 213,917 Total other Businesses 1,437,088 1,406,191 Total 7,606,702 8,121,156 Quarter 1 Quarter 2 Change Change Change Change Reported % L/L % Reported % L/L % (*) (*) HOTELS Upscale and midscale 12.8% 8.2% 13.2% 4.1% Economy 9.8% 7.9% 5.8% 4.0% Economy US -6.8% 2.0% -5.7% 1.8% Total HOTELS 8.3% 7.0% 7.7% 3.7% SERVICES 15.4% 14.1% 13.9% 10.0% Other Businesses Casionos 1.5% 3.5% -0.2% 1.2% Restaurants 7.2% 9.1% 16.3% 15.2% On-board train services 0.6% -2.3% 7.6% 4.3% Other 25.7% 13.2% 11.6% -1.4% Total other businesses 7.7% 6.4% 10.0% 6.9% Total 8.9% 7.6% 8.7% 4.8% Table Continued... Quarter 3 Quarter 4 Change Change Change Change Reported L/L % Reported L/L % % (*) % (*) HOTELS Upscale and Midscale 17.4% 7.7% 17.0% 8.8% Economy 9.0% 6.2% 9.4% 6.6% Economy US -12.6% 1.6% -37.9% 0.7% Total HOTELS 9.1% 6.1% 6.0% 6.9% SERVICES 15.6% 12.3% 20.6% 11.5% Other Businesses Casinos 6.8% 8.2% 3.2% 3.9% Restaurants 12.9% 10.6% -32.3% 7.4% On-board train services 2.4% 2.3% 1.5% -1.8% Other -38.2% -0.9% -57.6% 5.5% Total other businesses -0.7% 6.1% -22.8% 4.7% Total 7.9% 6.6% 1.9% 6.9% Table Continued... December-end (YTD) Change Change Reported % L/L % (*) HOTELS Upscale and Midscale 15.1% 7.2% Economy 8.4% 6.1% Economy US -15.1% 1.5% Total HOTELS 7.8% 5.8% SERVICES 16.5% 11.9% Other Businesses Casinos 2.9% 4.3% Restaurants -0.4% 10.4% On-board train services 3.1% 0.8% Other -17.9% 3.6% Total other businesses -2.1% 6.0% Total 6.8% 6.5% * Based on constant scope of consolidation and exchange rates 2007 RevPAR by segment and by Country (December-end, YTD) HOTELS : RevPAR by segment at at December-end 2007 (YTD) Occupancy Rate Average room rate Subsidiaries Subsidiaries (reported) (reported) (in %) (chg in pts) (chg in %) Upscale and Midscale Europe (in EUR) 67.5% +2.5 103 +5.8% Economy Europe (in EUR) % 74.0% +1.3 55 +4.3% Economy US (in $) 65.6% +0.7 47 +0.6 Table Continued... 2007 RevPAR by segment and by Country (December-end, YTD) HOTELS : RevPAR by segment at at December-end 2007 (YTD) RevPAR Subsidiaries Subsidiaries Subsidiaries & managed reported) (chg in %) (like-for-like(1)) (reported) Upscale and Midscale Europe (in EUR) 70 +10.0% +8.8% +11.0% Economy Europe (in EUR) 41 +6.1% +5.9% +6.2% Economy US (in $) 31 +0.0% +1.8% -6.8% (1) at comparable scope of consolidation and exchange rate UPSCALE AND MIDSCALE HOTELS RevPAR by country Number of Occupancy Rate Average room rate at December-end rooms Subsidiaries Subsidiaries 2007 (YTD) (reported) (reported) (in local currency) (in %) (chg in pts) (chg in %) France 30,097 67.3% +4.2 110 +5.5% Germany 21,056 65.0% +0.4 90 +13.9% Netherlands 4,249 68.5% +2.0 14 +2.1% Belgium 2,206 71.5% +2.7 102 +3.8% Spain 2,259 66.5% +4.8 99 +4.5% Italy 3,027 63.9% -0.2 118 +2.8% UK ( in GBP) 5,346 78.3% +1.4 85 +6.4% USA (in $) 510 92.7% +20.0 248 +14.4% Table Continued... UPSCALE AND MIDSCALE HOTELS RevPAR by country at RevPAR December-end 2007 (YTD) Subsidiaries Subsidiaries Subsidiaries (reported) & managed (in local currency) (chg in %) like-for-like(1)) (reported) France 74 +12.6% +10.8% +11.4% Germany 59 +14.6% +6.0% +8.7% Netherlands 78 +5.1% +6.0% +4.6% Belgium 73 +7.9% +7.7% +8.9% Spain 66 +12.7% +12.7% +12.8% Italy 75 +2.5% +5.0% +2.5% UK ( in GBP) 67 +8.4% +6.9% +0.4% USA (in $) 230 +45.9% +20.3% +22.0% (1) at comparable scope of consolidation and exchange rates ECONOMY HOTELS Number of Occupancy Rate Average room rate RevPAR by country rooms Subsidiaries Subsidiaries at December-end (reported) (reported) 2007 (YTD) (in %) (chg in pts) (chg in %) (in local currency) France 43,881 73.5% +0. 747 +4.1% Germany 15,122 71.2% +0.1 56 +4.0% Netherlands 2,209 82.0% +1.3 77 +5.2% Belgium 2,564 78.1% +2.1 65 +3.3% Spain 4,069 77.9% +1.7 54 +4.4% Italy 1,395 66.0% +6.3 74 +3.6% UK ( in GBP) 7,361 77.1% +3.0 53 +5.1% USA (in $) 97,638 65.7% +0.7 47 +0.6% Table Continued... ECONOMY HOTELS RevPAR by country at RevPAR December-end 2007 (YTD) Subsidiaries Subsidiaries Subsidiaries (reported) & managed (in local currency) (chg in %) like-for-like(1)) (reported) France 35 +5.1% +4.6% +5.0% Germany 40 +4.2% +4.2% +4.4% Netherlands 64 +6.9% +6.7% +6.9% Belgium 51 +6.2% +8.1% +6.2% Spain 42 +6.7% +5.8% +6.7% Italy 49 +14.5% +15.5% +14.5% UK (in GBP) 41 +9.3% +10.6% +9.4% USA (in $) 31 +1.7% +1.8% +1.7% (1) at comparable scope of consolidation and exchange rates Fourth Quater 2007 RevPAR by Segment and by Country (fourth quater) HOTELS : RevPAR by segment Occupancy rate Average room rate Q4 2007 Subsidiaries Subsidiaries (reported) (reported) (in %) (chg in pts) (chg in %) Upscale and Midscale Europe (in EUR) 67.8 +3.3 106 +7.2% Economy Europe (in EUR) 72.2 +2.0 56 +4.1% Economy US (in $) 61.8 +1.1 44 -5.1% Table Continued... Fourth Quater 2007 RevPAR by Segment and by Country (fourth quater) HOTELS : RevPAR by segment Q4 2007 RevPAR Subsidiaries Subsidiaries Subsidiaries (reported) & managed (chg in %) (like-for-like(1)) (reported) Upscale and Midscale Europe (in EUR) 72 +12.6% +11.5% +12.4% Economy Europe (in EUR) 40 +7.1% +7.1% +7.0% Economy US (in $) 27 -3.3% +0.4% -3.3% (1) at comparable scope of consolidation and exchange rates UPSCALE AND MIDSCALE HOTELS RevPAR by country Q4 2007 (in local currency) Number Occupancy Rate Average of room rate rooms Subsidiaries Subsidiaries (reported) (reported) (in %) (chg in pts) (chg in %) France 29 683 67.5 +4.5 116 +7.4% Germany 20 601 66.6 +1.6 92 +19.5% Netherlands 4 164 67.3 +2.0 117 +2.9% Belgium 2 126 72.2 +2.2 107 +5.7% Spain 2 259 65.1 +4.6 101 +8.1% Italy 2 901 66.7 +5.1 115 +3.3% UK (in GBP) 5 342 78.1 +1.1 89 +6.6% USA (in $) 480 95.2 +17.8 319 +19.5% Table Continued... UPSCALE AND MIDSCALE HOTELS RevPAR RevPAR by country Q4 2007 Subsidiaries Subsidiaries Subsidiaries (in local currency) (reported) & managed (chg in %) (like-for-like(1)) (reported) France 78 +15.1% +12.8% +11.6% Germany 61 +22.5% +12.9% +14.8% Netherlands 79 +6.1% +7.5% +5.3% Belgium 77 +9.0% +7.9% +9.8% Spain 66 +16.3% +16.3% +16.3% Italy 77 +11.8% +13.4% +11.8% UK ( in GBP) 69 +8.1% +6.8% -1.8% USA (in $) 303 +47.1% +19.0% +20.5% ECONOMY HOTELS Number Occupancy Rate Average room rate RevPAR by country of Subsidiaries Subsidiaries Q4 2007 rooms (reported) (reported) (in local currency) (in %) (chg in pts) (chg in %) France 43 274 71.1 +1.5 48 +4.3% Germany 15 050 69.9 +0.9 57 +5.7% Netherlands 2 193 77.0 -2.8 78 +5.5% Belgium 2 560 80.6 +3.7 66 +3.9% Spain 4 323 74.9 +2.9 55 +3.8% Italy 1 351 69.2 +10.6 75 +8.3% UK ( in GBP) 7 512 76.6 +2.0 54 +5.5% USA (in $) 80 092 61.8 +1.1 44 -5.1% Table Continued... ECONOMY HOTELS RevPAR by country Q4 2007 (in local currency) RevPAR Subsidiaries Subsidiaries Subsidiaries (reported) & managed (chg in %) (like-for-like(1)) (reported) France 34 +6.5% +5.5% +6.5% Germany 40 +7.1% +7.7% +6.8% Netherlands 60 +1.9% +1.2% +1.9% Belgium 53 +8.9% +9.7% +8.9% Spain 41 +8.0% +5.5% +8.0% Italy 52 +27.9% +30.2% +27.9% UK (in GBP) 42 +8.4% +9.5% +8.8% USA (in $) 27 -3.3% +0.4% -3.3% DATASOURCE: Accor CONTACT: Media Contacts: Armelle Volkringer, Senior Vice President, Corporate Communications and External Relations, Phone: +33-1-45-38-84-85; Emmanuelle Baumgartner, Director, Media Relations Department, Phone: +33-1-45-38-84-77; Anne--Sophie Sibout, Media Relations Officer, Phone: +33-1-45-38-84-84: Investor Contacts: Eliane Rouyer, Senior Vice President, Investor Relations and Financial Communications, Phone: +33-1-45-38-86-26; Solène Zammito, Deputy Director, Investor Relations, Phone: +33-1-45-38-86-33

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