Accor: 2008 Revenue - Up 2.8% Like-for-Like

Strong Growth in Prepaid Services: Up 12.9% of Which 13.6% in the Fourth Quarter



PARIS, January 15  /PRNewswire-FirstCall/ -- 2008 profit before tax target confirmed at EUR870-890 million, up 12% like-for-like, excluding the impact of the return to shareholders

Accor's consolidated revenue totaled EUR7,739 million in 2008, up 2.8% like-for-like[1] compared with the previous year and down 4.7% on a reported basis.

  Revenue                     2007      2008    % change      % change
  (in EUR millions)                                      like-for-like
                                             as reported

  Hotels                     5,827     5,767       -1.0%         +2.1%
  Upscale and Midscale       3,323     3,448       +3.7%         +2.6%
  Economy                    1,663     1,719       +3.4%         +3.2%
  Economy US                   841       600     -28.7%*         -2.1%
  Prepaid Services             885       978      +10.5%        +12.9%
  Other businesses           1,409       994    -29.4%**         -0.6%
  Total                      8,121     7,739       -4.7%         +2.8%

  *Reflects the disposal of Red Roof Inn and the EUR/$ currency effect


** Reflects the disposal of Italian and Brazilian Foodservices businesses and Go Voyages.

  2008 revenue performance was shaped by the following factors:

  - 2.8% like-for-like growth.

  - The strategic refocusing on the Hotels and Prepaid Services businesses
    (with the disposals of Red Roof Inn, Go Voyages and the Italian and
    Brazilian foodservices operations) and the continued deployment of the
    asset-right strategy, which together reduced revenue for the year by
    EUR865 million or 10.6%.

  - The expansion strategy, which increased revenue by EUR422 million or
    5.2%, including the consolidation of Orbis in the third quarter.

  - The negative 2.1% currency effect resulting from the weakness of the
    dollar, the British pound and most South American currencies against
    the euro.



Revenue for the fourth quarter alone came to EUR1,952 million, down a reported 2.5% over the year-earlier period. Like-for-like, revenue was down 1.1% for the quarter, as softening demand in the Hotels business, particularly in the upscale and midscale segments, offset sustained growth in Prepaid Services. 

  Prepaid Services
  Revenue up 12.9% like-for-like for the year


Revenue from the Prepaid Services business amounted to EUR978 million in 2008, an increase of 10.5% as reported and of 12.9% like-for-like. Revenue growth tracked the increase in issue volume, which rose 11.0% to EUR12,696 million from EUR11,436 million in 2007.

Acquisitions added 3.7% to growth for the year. However, the currency effect was a negative 2.8%, mainly due to the weakness of the British pound and Latin American currencies.

Prepaid Services revenue for the fourth quarter alone stood at EUR285 million, up 9.3% as reported and 13.6% like-for-like.

  In Europe, revenue rose by 7.7% like-for-like in the fourth quarter.

  - Revenue in France was up 9.6% like-for-like and 16.8% excluding an
    adjustment, with increases of 12.2% in meal vouchers and 14.2%* in gift
    vouchers.

  - Revenue rose 6.9% like-for-like in the United Kingdom, led by a 16.0%
    increase in childcare and luncheon voucher products. On the other hand,
    gift voucher revenue was down 9.2% like-for-like for the period.

  - Adjusted for the loss of the Onem contract in October 2007, revenue in
    Belgium was up 5.4%.



In Latin America, revenue climbed 22.2% like-for-like over the quarter. In Brazil, like-for-like revenue remained on the strong upward trend that began early in the year, rising 27.7% during the quarter, while the other Latin American countries enjoyed an aggregate 15.9% increase like-for-like. This performance takes into account the 50.5% fall in revenue in Argentina during the quarter following the withdrawal of local payroll tax breaks. Excluding Argentina, revenue growth in Latin America came to 29.7% for the period. 

  *After adjustment for a revenue item recognized in December 2007.
  Hotels
  Revenue up 2.1% like-for-like for the year


Hotels revenue for the year amounted to EUR5,767 million, up 2.1% like-for-like and down 1.0% as reported, reflecting the following factors:

  - The 5.1% like-for-like increase in the first six months of the year,
    when the economy was still favorable, was followed in the third quarter
    by the first signs of a slowdown, with growth easing to just 1.1%
    like-for-like on a decline in demand, notably in the United States and
    Southern Europe. Business conditions further deteriorated in the final
    quarter, when Hotels revenue contracted by 2.8%.

  - The sale of Red Roof Inn and other hotel units as part of the
    asset-right strategy had a negative impact of EUR316 million or 5.4% on
    revenue for the year.

  - The expansion strategy added EUR267 million or 4.6% to annual revenue,
    of which EUR108 million from the consolidation of Orbis (EUR93 million
    in the Upscale and Midscale Hotels segment and EUR15 million in the
    Economy Hotels in Europe segment). In all, 28,000 rooms were opened
    over the period.

  - The currency effect was a negative 2.3%, stemming mainly from the
    increased strength of the euro against the dollar and the British
    pound.



Revenue for the fourth quarter alone came to EUR1,438 million, unchanged from the year-earlier period as reported and down 2.8% like-for-like, due primarily to the Upscale and Midscale Hotels segment and the Economy Hotels US business. 

  Upscale and Midscale Hotels
  2008 revenue up 2.6% like-for-like


Revenue from upscale and midscale hotels amounted to EUR3,448 million in 2008, an increase of 2.6% like-for-like (2.9% excluding the impact of the Rugby World Cup) and of 3.7% as reported.

Fourth-quarter revenue down 3.3% like-for-like

In a challenging economy, Upscale and Midscale Hotels revenue declined by 3.3% like-for-like in the fourth quarter, compared with a 6.2% increase in the first-half and a 1.8% gain in the third quarter.

  The revenue impact varied by region:

  - A first set of countries (including the United Kingdom, Spain, Italy
    and Portugal), which contribute 31% of segment revenue, are
    experiencing a deep recession, with a more than 8% decline in
    like-for-like revenue.

  - Operations in Germany and France, which account for 54% of segment
    revenue, are being less impacted by recession, with like-of-like
    revenue declines of 2 to 4% for the period.

  - Lastly, a third set of countries (in Africa, Asia and Latin America),
    which reported an aggregate EUR132 million or 15% of quarterly segment
    revenue, are withstanding the economic situation and maintaining their
    growth momentum.



In France, like-for-like fourth-quarter revenue was down 3.6%, or 2.0% excluding the impact of the Rugby World Cup. The midscale segment is proving more resilient (down 2.7%) than the upper upscale and upscale (down 8.2%).

Revenue was down 2.6% like-for-like in Germany, with again, firmer resistance in the midscale (down 2.1%) than in the upper upscale and upscale (down 4.4%).

In the United Kingdom, revenue fell 8.8% like-for-like, with stronger resistance in London (Novotel RevPAR down 2.8%) than in the regions (Novotel RevPAR down 10.1%). 

  Economy Hotels (excluding Motel 6)
  2008 revenue up 3.2% like-for-like


Revenue from economy hotels outside the US totalled EUR1,719 million in 2008, an increase of 3.2% like-for-like and of 3.4% as reported.

Fourth-quarter revenue down 0.5% like-for-like

Revenue eased back 0.5% like-for-like in the fourth quarter after expanding 6.1% in the first half and 1.7% in the third quarter. It is worth noting that excluding operations in Spain, Portugal and Italy, Economy Hotel revenue outside the US rose by 0.7% during the quarter.

Revenue in France was up 1.2% like-for-like, led by the Ibis brand, which reported 2.5% like-for-like growth and a 5.0% increase in RevPAR for its Paris units.

In Germany, revenue was down just 0.6% like-for-like, while in the United Kingdom, it declined by 1.1%, with a better performance in London (Ibis RevPAR down 1.1%) than in the regions (Ibis RevPAR down 5.2%). 

  Economy Hotels in the United States
  2008 revenue down 2.1% like-for-like


Revenue from economy hotels in the United States stood at EUR600 million for the year, a decline of 28.7% as reported (due to the disposal of Red Roof Inn) and of 2.1% like-for-like.

Fourth-quarter revenue down 6.5% like-for-like

On a like-for-like basis, revenue contracted by 6.5% in the fourth quarter, after dipping 0.4% in the first half and declining 2.7% in the third quarter. Motel 6 outperformed the competition during the period. 

  Franchise fees were up 23.4%.
  Other businesses


Like-for-like revenue from the other businesses (Casinos, Lenotre, Onboard Train Services and Others) came to EUR995 million in 2008, down 0.6% with a 5.9% decline in the final quarter.

Reported revenue for the fourth quarter was down 24.4% to EUR229 million, primarily due to the disposal of the Brazilian foodservices business (deconsolidated as of March 31, 2008), which offset the positive EUR18 million impact over the quarter from the consolidation of Orbis Travel and Orbis Transport since July 1, 2008.

Casinos revenue contracted 10.3% like-for-like, reflecting the decline in traffic caused in part by France's new anti-smoking legislation.

The Restaurant business (mainly Lenotre) saw a 4.7% like-for-like decline in revenue.

Revenue from Onboard Train Services rose 3% like-for-like, led by the increasing passenger numbers on the TGV Est high-speed train line.

2008 earnings guidance

Accor confirms its target, announced last October, of full-year 2008 profit before tax and non-recurring items of between EUR870 million and EUR890 million. This guidance takes into account the clear slowdown in business in the fourth quarter and the resilience of the Prepaid Services division.

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 40 years of expertise in two core businesses:

  - Hotels, with the Sofitel, Pullman, MGallery, 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.

  - Prepaid 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


                       Quarter 1           Quarter 2           Quarter 3
  in EUR thousands  2007      2008      2007      2008      2007      2008
                  adjusted            adjusted            adjusted
                    (1)                 (1)                 (1)
  HOTELS
   Up & Midscale  742,364   761,765   853,963   919,504   845,286   887,929
   Economy        364,770   387,196   427,857   455,013   451,014   463,792
   Economy US     215,940   137,255   245,286   149,573   242,971   166,729
  Total HOTELS  1,323,074 1,286,216 1,527,106 1,524,089 1,539,272 1,518,451

  PREPAID
  SERVICES        206,984   226,635   210,783   232,372   206,261   233,571

  Other Businesses
   Casinos         78,172    86,252    80,619    83,471    91,942    87,513
   Restaurants(3) 151,766   100,937   164,521    32,605   147,666    24,792
   On-board train
   services        59,704    69,461    70,568    78,795    75,109    82,804
   Holding &
   Other (4)       67,737    21,919    73,507    22,887    44,401    74,383
  TOTAL OTHER
  BUSINESSES      357,380   278,569   389,216   217,758   359,118   269,492

  TOTAL         1,887,437 1,791,420 2,127,105 1,974,219 2,104,650 2,021,514



                                         Quarter 4      December end (YTD)
  in EUR thousands                    2007      2008      2007      2008
                                    adjusted            adjusted
                                       (1)                 (1)
  HOTELS
   Up & Midscale                      881,916   878,446 3,323,528 3,447,644
   Economy                            418,892   413,425 1,662,533 1,719,426
   Economy US                         137,184   145,988   841,383   599,545
  Total HOTELS                      1,437,992 1,437,859 5,827,444 5,766,615

  PREPAID SERVICES                    261,146   285,478   885,174   978,056

  Other Businesses
   Casinos                             95,437    88,728   346,170   345,964
   Restaurants (3)                    109,352    28,800   573,306   187,134
   On-board train services             67,418    75,289   272,798   306,348
   Holding & Other (4)                 30,623    36,132   216,269   155,320
  TOTAL OTHER BUSINESSES              302,829   228,948 1,408,543   994,767

  TOTAL                             2,001,967 1,952,285 8,121,160 7,739,438



                                  Quarter 1       Quarter 2       Quarter 3
  in EUR thousands           Change  Change  Change  Change  Change  Change
                            reported L/L(2) reported L/L(2) reported L/L(2)
  HOTELS
    Up & Midscale               2.6%   3.9%     7.7%   8.2%     5.0%   1.8%
    Economy                     6.1%   5.3%     6.3%   6.8%     2.8%   1.7%
    Economy US                -36.4%   0.1%   -39.0%  -0.8%   -31.4%  -2.7%
  Total HOTELS                 -2.8%   3.7%    -0.2%   6.3%    -1.4%   1.1%

  PREPAID SERVICES              9.5%  10.4%    10.2%  13.3%    13.2%  14.1%

  Other Businesses
   Casinos                     10.3%   6.1%     3.5%  -1.7%    -4.8%  -9.3%
   Restaurants (3)            -33.5%   8.7%   -80.2%  -2.5%   -83.2%   1.1%
   On-board train services     16.3%   8.5%    11.7%   1.0%    10.2%   1.6%
   Holding & Other (4)        -67.6%  -4.3%   -68.9%  -0.7%    67.5%   0.8%
  TOTAL OTHER BUSINESSES      -22.1%   5.6%   -44.1%  -1.4%   -25.0%  -1.5%

  TOTAL                        -5.1%   4.8%    -7.2%   5.6%    -4.0%   1.9%



                                         Quarter 4     December end
                                                           (YTD)
  in EUR thousands                     Change  Change  Change  Change
                                      reported L/L(2) reported L/L(2)
  HOTELS
              Up & Midscale              -0.4%  -3.3%     3.7%   2.6%
              Economy                    -1.3%  -0.5%     3.4%   3.2%
              Economy US                  6.4%  -6.5%   -28.7%  -2.1%
  Total HOTELS                            0.0%  -2.8%    -1.0%   2.1%

  PREPAID SERVICES                        9.3%  13.6%    10.5%  12.9%

  Other Businesses
              Casinos                    -7.0% -10.3%    -0.1%  -4.3%
              Restaurants (3)           -73.7%  -4.7%   -67.4%   1.0%
              On-board train services    11.7%   3.0%    12.3%   3.3%
              Holding & Other (4)        18.0% -15.7%   -28.2%  -3.6%
  TOTAL OTHER BUSINESSES                -24.4%  -5.9%   -29.4%  -0.6%

  TOTAL                                  -2.5%  -1.1%    -4.7%   2.8%

              (1) after reclassification of Timeshare in Australia from
              "Upscale and Midscale Hotels" to "Holding and Other"
              (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


                    Fourth Quarter 2008 RevPAR by Segment


  HOTELS : RevPAR by segment             Occupancy Rate
  Q4                         Subsidiaries (reported)  Subsidiaries (L/L)(1)
                                (in %)    (chg in pts)     (chg in pts)

  Upscale and Midscale Europe
  (in EUR)                      60.8         -6.7                  -5.0
  Economy Europe (in EUR)       67.2         -5.0                  -5.0
  Economy US (in $)             58.6         -3.2                  -3.5

  HOTELS : RevPAR by segment            Average room rate
  Q4                         Subsidiaries (reported)  Subsidiaries (L/L)(1)
                                           (chg in %)       (chg in %)

  Upscale and Midscale Europe
  (in EUR)                       104         -1.7                   1.6
  Economy Europe (in EUR)         58          3.7                   5.5
  Economy US (in $)               43         -1.1                  -1.8

  HOTELS : RevPAR by segment                RevPAR
  Q4                         Subsidiaries (reported)  Subsidiaries (L/L)(1)
                                           (chg in %)       (chg in %)

  Upscale and Midscale Europe
  (in EUR)                        63     -11.5(2)               -5.8(2)
  Economy Europe (in EUR)         39         -3.4                  -1.7
  Economy US (in $)               25         -6.2                  -7.4



  HOTELS : RevPAR by segment                RevPAR
  Q4                                Subsidiaries & managed
                                          (reported)

  Upscale and Midscale Europe
  (in EUR)                                  -11.1
  Economy Europe (in EUR)                    -3.6
  Economy US (in $)                          -6.2



  (1) at comparable scope of consolidation and exchange rates.
  (2) impacted by Orbis integration




                      2008 RevPAR by Segment (December-end, YTD)





  HOTELS : RevPAR by segment               Occupancy Rate
  DecYTD 2008                Subsidiaries (reported)  Subsidiaries (L/L)(1)
                               (in %)    (chg in pts)     (chg in pts)

  Upscale and Midscale Europe
  (in EUR)                      64.8         -2.6                  -2.0
  Economy Europe (in EUR)       71.6         -2.3                  -2.4
  Economy US (in $)             64.4         -2.4                  -2.4

  HOTELS : RevPAR by segment             Average room rate
  DecYTD 2008                Subsidiaries (reported)  Subsidiaries (L/L)(1)
                                           (chg in %)       (chg in %)

  Upscale and Midscale Europe
  (in EUR)                       105          2.0                   4.3
  Economy Europe (in EUR)         58          4.6                   5.8
  Economy US (in $)               45          0.6                   0.1

  HOTELS : RevPAR by segment                  RevPAR
  DecYTD 2008                Subsidiaries (reported)  Subsidiaries (L/L)(1)
                                          (chg in %)       (chg in %)

  Upscale and Midscale Europe
  (in EUR)                        68         -1.8                   1.3
  Economy Europe (in EUR)         41          1.3                   2.4
  Economy US (in $)               29         -3.0                  -3.6



  HOTELS : RevPAR by segment                  RevPAR
  DecYTD 2008                         Subsidiaries & managed
                                            (reported)

  Upscale and Midscale Europe
  (in EUR)                                   -2.3
  Economy Europe (in EUR)                     1.1
  Economy US (in $)                          -3.0

  (1) at comparable scope of consolidation and exchange rates.




                               Fourth Quarter 2008 RevPAR by Country


  UPSCALE AND MIDSCALE HOTELS Number of Occupancy Rate    Average room rate
  RevPAR by country Q4         rooms    Subsidiaries         Subsidiaries
  (in local currency)                    (reported)          (reported)
                                      (in %)  (chg in pts)       (chg in %)
  France                      29,289   62.3      -5.0      120          3.2
  Germany                     19,845   63.8      -2.8       94          2.7
  Netherlands                  4,005   60.3      -6.9      107         -1.1
  Belgium                      1,802   71.7      -0.6      108          1.6
  Spain                        2,259   54.2     -10.9       92         -8.5
  Italy                        3,462   57.1      -3.5      110         -5.3
  UK ( in GBP)                 5,432   74.0      -4.1       89          0.4
  USA (in $)                     480   84.3     -10.9      319          0.3

  UPSCALE AND MIDSCALE HOTELS               RevPAR
  RevPAR by country Q4    Subsidiaries  Subsidiaries Subsidiaries & managed
  (in local currency)      (reported)  (like-for-like(1))    (reported)
                              (chg in %)
  France                  75      -4.5       -4.2               -3.8
  Germany                 60      -1.6       -3.1               -1.5
  Netherlands             65     -11.2      -11.5              -15.6
  Belgium                 78       0.8       -5.7                0.0
  Spain                   50     -23.8      -23.8              -23.8
  Italy                   63     -10.7       -8.6              -10.7
  UK ( in GBP)            66      -4.8       -6.5               -6.7
  USA (in $)             269     -11.2      -11.2               -6.5

  (1) at comparable scope of consolidation and exchange rates.

  ECONOMY HOTELS            Number of Occupancy Rate      Average room rate
  RevPAR by country Q4         rooms    Subsidiaries        Subsidiaries
                                        (reported)           (reported)
  (in local currency)                 (in %) (chg in pts)        (chg in %)
  France                      42,249   67.9     -3.3       53          8.8
  Germany                     14,945   67.3     -2.7       59          3.9
  Netherlands                  2,316   67.0    -10.0       81          4.3
  Belgium                      2,561   75.9     -4.6       70          6.0
  Spain                        4,595   60.5    -14.4       55          1.4
  Italy                        1,550   57.1     -5.9       70         -6.6
  UK ( in GBP)                 8,632   68.6     -7.9       55          1.7
  USA (in $)                  80,152   58.6     -3.2       43         -1.1

  ECONOMY HOTELS                          RevPAR
  RevPAR by country Q4  Subsidiaries  Subsidiaries   Subsidiaries & managed
  (in local currency)    (reported)  (like-for-like(1))    (reported)
                              (chg in %)
  France                36        3.8      2.0                 3.8
  Germany               40       -0.1     -0.1                 0.1
  Netherlands           54       -9.2     -9.9                -9.2
  Belgium               53       -0.1     -0.1                -0.1
  Spain                 34      -18.1    -19.4               -18.1
  Italy                 40      -15.4    -15.3               -15.4
  UK ( in GBP)          38       -8.8     -3.0                -9.3
  USA (in $)            25       -6.2     -7.4                -6.2





                 2008 RevPAR by Country (December-end, YTD)


  UPSCALE AND MIDSCALE HOTELS Number  Occupancy Rate    Average room rate
                                of
  RevPAR by country FY 2008   rooms   Subsidiaries    Subsidiaries
                                       (reported)     (reported)
  (in local currency)                (in %)(chg in pts)     (chg in %)
  France                      29,599  66.1    -1.0     116          5.2
  Germany                     20,127  63.7    -1.2      95          5.4
  Netherlands                  3,989  65.4    -3.2     108          2.4
  Belgium                      1,802  71.1    -0.4     108          6.2
  Spain                        2,259  62.3    -4.2      98         -1.3
  Italy                        3,456  58.6    -3.6     116         -1.4
  UK ( in GBP)                 5,280  77.4    -0.9      89          4.5
  USA (in $)                     480  91.6    -2.3     260          1.7



  UPSCALE AND MIDSCALE HOTELS


  RevPAR by                                 RevPAR
  country FY 2008      Subsidiaries Subsidiaries    Subsidiaries & managed
  (in local currency)   (reported) (like-for-like(1))       (reported)
                            (chg in %)
  France               77      3.6       2.7                    3.1
  Germany              61      3.5       3.0                    3.4
  Netherlands          71     -2.3      -2.4                   -6.8
  Belgium              77      5.6      -0.3                    4.7
  Spain                61     -7.5      -7.5                   -7.5
  Italy                68     -7.1      -4.2                   -7.1
  UK ( in GBP)         69      3.3       1.8                   -0.3
  USA (in $)          238     -0.8      -0.8                   -6.4

  (1) at comparable scope of consolidation and excahange rates.



  ECONOMY HOTELS      Number    Occupancy Rate         Average room rate
                        of
  RevPAR by country   rooms Subsidiaries (reported) Subsidiaries (reported)
  FY 2008
  (in local currency)          (in %)    (chg in pts)            (chg in %)
  France              42,986     71.9         -1.7         51         7.6
  Germany             15,031     69.8         -1.5         59         4.7
  Netherlands          2,207     73.8         -8.2         82         6.4
  Belgium              2,560     77.0         -1.1         69         6.3
  Spain                4,492     70.3         -7.7         56         3.6
  Italy                1,550     61.5         -2.2         73        -0.6
  UK ( in GBP)         7,966     74.3         -2.8         56         5.1
  USA (in $)          80,152     64.4         -2.4         45         0.6



  ECONOMY HOTELS                       RevPAR
  RevPAR by
  country FY 2008     Subsidiaries   Subsidiaries    Subsidiaries & managed
  (in local currency)  (reported) (like-for-like(1))       (reported)
                            (chg in %)
  France              37          5.1      3.8                 5.2
  Germany             41          2.5      2.5                 1.8
  Netherlands         61         -4.3     -5.9                -4.3
  Belgium             53          4.8      4.6                 4.8
  Spain               40         -6.6     -6.9                -6.6
  Italy               45         -4.1     -4.4                -4.1
  UK ( in GBP)        41          1.3      4.2                 1.1
  USA (in $)          29         -3.0     -3.6                -3.0

  (1) at comparable scope of consolidation and excahange rates.


  ---------------------------------


[1] Based on a comparable scope of consolidation and at constant exchange rates 

DATASOURCE: Accor



CONTACT:  CONTACTS PRESSE: Alain Delrieu, Senior Media Relations

Officer, Phone: [phone]. CONTACTS INVESTISSEURS: Eliane

Rouyer-Chevalier, Senior Vice President, Investor Relations and Financial

Communication, Phone: [phone]. Solene Zammito, Deputy Director,

Investor Relations, Phone : [phone]

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