Strong 5.1% Growth in the Hotels Business, Particularly in France and Germany
Very Robust 11.8% Growth in Services
Favorable Outlook for Both Services and European Economy Hotels (70% of 2007 consolidated EBIT)
Revenue First-half First-half Change Change
2007 2008 as reported like-for-like(1)
(in EUR millions)
Hotels 2,850 2,810 -1.4% +5.1%
Upscale and 1,596 1,681 +5.3% +6.2%
midscale
Economy 793 842 +6.3% +6.1%
Economy US 461 287 -37.8% -0.4%
Services 418 459 +9.9% +11.8%
Other businesses 747 496 -33.5% +2.0%
Total 4,015 3,765 -6.2% +5.2%
(1) At constant scope of consolidation and exchange rates.
First-half 2008 revenue performance was shaped by the following factors:
- The solid 5.2% increase in revenue at constant scope of
consolidation and exchange rates, reflecting growth of 4.8% in the first
quarter and 5.6% in the second.
- The impact of the Group's expansion strategy, which added
3.4% to revenue growth.
- The negative 12.6% impact of asset disposals, including Go
Voyages, the Italian and Brazilian food services businesses, Red Roof Inn
In the United States, and property as part of the 'asset-right' strategy.
- A negative 2.2% currency effect resulting from the
appreciation of the euro against the dollar, the pound and most South
American currencies.
Services revenue up 11.8% like-for-like
Revenue from the Services business increased by 9.9% as reported.
Like-for-like growth for the period amounted to 11.8%, of which 10.4% in the
first quarter and 13.3% in the second. Restated from the impact of the loss
of the Titres-Services contract in
Acquisitions added 4.0% to growth. However, the currency effect was a negative 2.8%, mainly due to the weakness of Latin American currencies.
In
- Strong 16.2% like-for-like growth in France, led by the
implementation of a sales force action plan to increase meal voucher
sales.
- 12.8% like-for-like growth in the United Kingdom.
- 13.6% growth in Belgium, restated from the loss of the ONEM
contract, compared to a reported decline of 16.4%.
In
- Revenue in Brazil continued to climb, gaining 12.0% compared
to 5.1% in the first three months of the year.
- The other Latin American countries saw revenue rise an
aggregate 21.0% like-for-like, even after taking into account the negative
10.2% decline in Argentina revenue following changes in tax legislation.
Hotels revenue up 5.1% like-for-like
Hotels revenue amounted to
- Like-for-like growth of 5.1%, of which 3.7% in the first
quarter and 6.3% in the second. Restated from the shift in Easter
vacation to March (2008) from April (2007) in most European countries
(mainly Germany, the United Kingdom, Benelux and Spain), growth in both
the first and second quarters would have been 5.1%.
- The expansion strategy, which led to the opening of 11,000
rooms during the first six months of the year and added 3.3% to growth.
- The sale of Red Roof Inn and other hotel units as part of
changes in ownership structures ('asset-right' strategy), which reduced
first-half revenue growth by 7.0%.
- The currency effect, mainly due to the weakness of the
dollar and the pound, which was a negative 2.8%.
Upscale and Midscale Hotels (Sofitel, Pullman, Novotel, Mercure and Suitehotel): up 6.2% like-for-like
In the upscale and midscale segment, revenue rose by 6.2% like-for-like in the first half, including 3.9% in the first quarter and 8.2% in the second. The second quarter was shaped by:
- Sustained 7.0% like-for-like revenue growth in France, led
by the very robust performance of the Novotel and Mercure brands, whose
RevPAR rose 9.0% and 9.2% respectively. Performances were more contrasted
In the upscale segment due to re-brandings and renovations at certain
Sofitel and Pullman hotels.
- 12.6% like-for-like growth in Germany.
- 7.2% revenue growth in the United Kingdom.
Economy Hotels outside the US (Ibis, all seasons, Etap Hotel and Formule 1): up 6.1% like-for-like
In economy hotels, revenue rose by 6.1% like-for-like in first-half 2008, of which 5.3% in the first quarter and 6.8% in the second. During the second quarter, revenue rose by:
- A strong 5.9% like-for-like in France, lifted by the good
performance of the Ibis brand, which reported RevPAR up 11.0%.
- 8.1% like-for-like in Germany.
- 9.8% like-for-like in the United Kingdom.
Economy Hotels in the US (Motel 6 and Studio 6): down 0.4% like-for-like
In a market impacted by a slowing economy and rising gas prices, like-for-like revenue in the US economy hotels segment slightly declined by 0.4% in the first half of the year, reflecting a stable performance at +0.1% in the first quarter and a 0.8% modest decline in the second.
The 37.8% reported drop in the division's revenue for the period was
mainly attributable to the disposal of Red Roof Inn in
Outlook
After reporting a solid set of figures in first-half 2008, Accor will leverage its operating performance in its Services and European Economy Hotels businesses. These two businesses represented nearly 70% of consolidated EBIT* in 2007:
- In Services, Accor holds a global leadership position with
major market shares in 40 countries. The Group will continue to pursue
sustained organic growth in this business, which has demonstrated strong
resilience to economic cycles.
- In the European Economy Hotels business, Accor will benefit
from its large market shares in countries where, furthermore, hotels
supply growth has been limited over recent years. This will enable the
Group to drive sustained growth and effectively resist cyclical
downturns.
* Pro forma 2007 EBIT, after the disposal of Go Voyages, Red Roof Inn and the Italian and Brazilian food services businesses.
Accor, the European leader and a major global group 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, 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 30 million people in 40 countries benefiting
from Accor Services products in employee and public benefits, rewards and
loyalty and expense management.
Revenue
in EUR thousand
Quarter 1 Quarter 2 First Half
2008
2007 2,008 2007 2,008 2007 2,008
adjusted(1) adjusted(1) adjusted(1)
HOTELS
Up & 742,364 761,765 853,963 919,504 1,596,326 1,681,269
Midscale
Economy 364,770 387,196 427,857 455,013 792,627 842,209
EconomyUS 215,940 137,255 245,286 149,573 461,227 286,827
Total
HOTELS 1,323,074 1,286,216 1,527,106 1,524,089 2,850,180 2,810,305
SERVICES 206,984 226,635 210,783 232,372 417,767 459,007
Other Businesses
Casinos 78,172 86,252 80,619 83,471 158,791 169,723
Rest- 151,766 100,937 164,521 32,605 316,287 133,543
aurants(3)
On-board 59,704 69,461 70,568 78,795 130,272 148,256
train
services
Holding & 67,737 21,919 73,507 22,887 141,245 44,805
Other(4)
TOTAL 357,380 278,569 389,216 217,758 746,595 496,327
OTHER
BUSINESSES
TOTAL 1,887,437 1,791,420 2,127,105 1,974,219 4,014,542 3,765,639
in EUR thousand
Quarter 1 Quarter 2 First Half
2008
Change Change Change Change Change Change
reported L/L(2) reported L/L(2) reported L/L(2)
HOTELS
Up & 2.6% 3.9% 7.7% 8.2% 5.3% 6.2%
Midscale
Economy 6.1% 5.3% 6.3% 6.8% 6.3% 6.1%
Economy US -36.4% 0.1% -39.0% -0.8% -37.8% -0.4%
Total HOTELS -2.8% 3.7% -0.2% 6.3% -1.4% 5.1%
SERVICES 9.5% 10.4% 10.2% 13.3% 9.9% 11.8%
Other Businesses
Casinos 10.3% 6.1% 3.5% -1.7% 6.9% 2.1%
Rest- -33.5% 8.7% -80.2% -2.5% -57.8% 2.9%
aurants(3)
On-board 16.3% 8.5% 11.7% 1.0% 13.8% 4.4%
train
services
Holding & -67.6% -4.3% -68.9% -0.7% -68.3% -2.4%
Other(4)
TOTAL OTHER -22.1% 5.6% -44.1% -1.4% -33.5% 2.0%
BUSINESSES
TOTAL -5.1% 4.8% -7.2% 5.6% -6.2% 5.2%
(1) After reclassification of timeshares in
(2) At constant scope of consolidation and exchange rates.
(3) Including the Italian and Brazilian food services businesses.
(4) Including Go Voyages and Scapa Italia
RevPAR by segment
HOTELS : Occupancy Average RevPAR
RevPAR Rate room
by rate
segment
Q2 2008 Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries
(reported) (reported) (reported) & managed
(in %) (chg (chg (chg (like-for- (reported)
in in %) in %) like(1))
pts)
Upscale 71.1% +0.8 111 +6.4% 79 +7.5% +7.8% +6.5%
and
Midscale
Europe
(in EUR)
Economy 76.6% -0.1 58 +6.2% 45 +6.1% +6.8% +5.8%
Europe
(in EUR)
Economy 67.3% -2.2 46 +1.8% 31 -1.4% -1.8% -1.4%
US (in
$) (2)
HOTELS : Occupancy Average RevPAR
RevPAR Rate room
by rate
segment
at end Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries
of June (reported) (reported) (reported) & managed
2008 (in %) (chg (chg (chg (like-for- (reported)
(YTD) in in %) in %) like(1))
pts)
Upscale 65.3% +0.2 108 +4.9% 71 +5.2% +5.5% +3.9%
and
Midscale
Europe
(in EUR)
Economy 71.4% -0.3 58 +5.0% 41 +4.6% +5.3% +4.4%
Europe
(in EUR)
Economy 64.6% -1.8 45 +1.5% 29 -1.2% -1.6% -1.2%
US (in
$) (2)
RevPAR by country (Q2 2008)
UPSCALE AND Number Occupancy Average
MIDSCALE of Rate room
HOTELS rate
RevPAR by rooms Subsidiaries Subsidiaries
country at (reported) (reported)
Q2 2008
(in euros) (in %) (chg (chg
in in %)
pts)
France 30,141 72.0% +1.4 118 +7.8%
Germany 20,187 67.7% +3.0 98 +8.6%
Netherlands 4,183 73.5% -2.4 122 +4.9%
Belgium 1,802 76.5% -0.1 115 +12.0%
Spain 2,259 70.5% -1.5 102 +1.4%
Italy 3,551 63.3% -5.6 121 +1.4%
UK 5,226 80.3% +1.3 92 +7.8%
USA (in $) 480 95.2% +1.2 265 +3.8%
RevPAR by country (Q2 2008)
UPSCALE AND Number RevPAR
MIDSCALE
HOTELS
RevPAR by Subsidiaries Subsidiaries Subsidiaries
country at (reported) & managed
Q2 2008
(in euros) (chg (like-for-like(1)) (reported)
in %)
France 85 +10.0% +8.2% +8.5%
Germany 67 +13.7% +13.7% +13.4%
Netherlands 90 +1.5% +0.7% +1.5%
Belgium 88 +11.9% +6.2% +10.7%
Spain 72 -0.7% -0.7% -0.7%
Italy 77 -6.9% -3.2% -6.8%
UK 74 +9.6% +7.9% +5.7%
USA (in $) 252 +5.1% +5.1% +8.4%
(1) at comparable scope of consolidation and excahange rates.
ECONOMY Number Occupancy Average room
HOTELS of Rate rate
RevPAR by rooms Subsidiaries Subsidiaries
country at (reported) (reported)
Q2 2008
(in euros) (in %) (chg (chg
in in %)
pts)
France 43,318 76.5% -0.5 51 +8.3%
Germany 15,059 73.5% +1.9 60 +6.9%
Netherlands 2,152 83.9% -6.6 89 +9.9%
Belgium 2,560 83.6% +1.9 71 +8.5%
Spain 4,452 76.1% -4.9 57 +5.1%
Italy 1,550 71.0% -0.6 74 +2.6%
UK 7,686 78.4% +1.0 57 +6.9%
USA (in $) 80,063 67.3% -2.2 46 +1.8%
(2)
ECONOMY RevPAR
HOTELS
RevPAR by Subsidiaries Subsidiaries Subsidiaries
country at (reported) & managed
Q2 2008
(in euros) (chg (like-for-like(1)) (reported)
in %)
France 39 +7.7% +6.3% +7.8%
Germany 44 +9.8% +9.7% +8.2%
Netherlands 75 +1.8% -0.2% +1.8%
Belgium 59 +11.1% +11.1% +11.1%
Spain 43 -1.2% -1.4% -1.2%
Italy 53 +1.6% +2.0% +1.6%
UK 45 +8.3% +9.3% +7.8%
USA (in $) 31 -1.4% -1.8% -1.4%
(2)
(1) at comparable scope of consolidation and excahange rates.
(2) Excluding Red Roof Inn
UPSCALE AND Number Occupancy Average room RevPAR
MIDSCALE of Rate rate
HOTELS
RevPAR by rooms Subsidiaries Subsidiaries Subsidiaries
country at (reported) (reported) (reported)
end of June
2008 (YTD)
(in local (in %) (chg (chg (chg
currency) in in %) in %)
pts)
France 29,611 66.5% +1.7 117 +6.6% 78 +9.4%
Germany 20,282 62.7% -0.2 96 +6.1% 60 +5.7%
Netherlands 4,151 65.5% -2.3 118 +3.2% 77 -0.2%
Belgium 1,802 69.9% +1.0 113 +8.4% 79 +9.9%
Spain 2,259 64.2% -2.1 105 +2.6% 68 -0.6%
Italy 3,371 57.6% -4.4 116 +1.2% 67 -6.1%
UK 5,230 77.0% +0.4 90 +6.2% 69 +6.7%
USA (in $) 480 94.2% +4.5 234 +8.2% 221 +13.6%
UPSCALE AND
MIDSCALE
HOTELS
RevPAR by Subsidiaries Subsidiaries
country at & managed
end of June
2008 (YTD)
(in local (chg (like-for-like(1)) (reported)
currency)
France +7.8% +7.1%
Germany +5.3% +5.7%
Netherlands -0.3% -0.2%
Belgium +3.7% +8.9%
Spain -0.6% -0.6%
Italy -3.5% -5.9%
UK +5.0% +1.0%
USA (in $) +5.1% +7.5%
(1) at comparable scope of
consolidation and excahange
rates.
ECONOMY Number Occupancy Average room RevPAR
HOTELS of Rate rate
RevPAR by rooms Subsidiaries Subsidiaries Subsidiaries
country at (reported) (reported) (reported)
end of June
2008 (YTD)
(in local (in %) (chg (chg (chg
currency) in in %) in %)
pts)
France 43,518 71.7% -0.2 50 +6.8% 36 +6.4%
Germany 15,094 68.4% -0.4 60 +5.2% 41 +4.6%
Netherlands 2,151 76.0% -5.5 84 +9.1% 64 +1.7%
Belgium 2,560 76.4% +2.1 70 +6.9% 54 +9.9%
Spain 4,388 72.8% -3.9 57 +5.4% 41 +0.1%
Italy 1,550 61.3% -0.9 77 +3.4% 47 +1.9%
UK 7,651 74.9% +0.4 56 +6.3% 42 +6.8%
USA (in $) 80,063 64.6% -1.8 45 +1.5% 29 -1.2%
ECONOMY
HOTELS
RevPAR by Subsidiaries Subsidiaries
country at & managed
end of June
2008 (YTD)
(in local (like-for-like(1)) (reported)
currency)
France +5.2% +6.6%
Germany +4.7% +3.6%
Netherlands -0.2% +1.7%
Belgium +9.4% +9.9%
Spain -0.6% +0.1%
Italy +3.3% +1.9%
UK +7.5% +6.7%
USA (in $) -1.6% -1.2%
(2)
(1) at comparable scope of
consolidation and excahange
rates.
(2)
Excluding
Red Roof
Inn
SOURCE Accor