Accor: 2009 Nine-Month Revenue Down 8.2% Like-for-Like

PARIS, October 15  /PRNewswire-FirstCall/ -- 

  In an economic environment that has seen no significant improvement,

  - Prepaid Services revenue rose by 3.6% like-for-like despite
    rising unemployment and the steep decline in interest rates worldwide.

  - Hotel revenue retreated by 10.7% like-for-like, with the
    Economy segment showing relatively good resilience, particularly in
    France.




Consolidated revenue for the first nine months of 2009 totaled EUR5,258 million, down 8.2% like for like and 8.9% on a reported basis from the prior-year period.

  (in EUR millions)          2008       2009
                       (9 months) (9 months)    % change         % change
                                              as reported  like-for-like(1)
  Hotels                    4,317      3,891       -9.9%           -10.7%
  Upscale and Midscale      2,554      2,248      -12.0%           -12.2%
  Economy                   1,310      1,216       -7.2%            -6.8%
  Economy US                  454        427       -5.8%           -13.6%
  Prepaid Services            693        687       -0.8%            +3.6%
  Other businesses            766        681      -11.1%            -4.9%
  Total                     5,775      5,258       -8.9%            -8.2%


  (1) At constant scope of consolidation and exchange rates.


(2) Impact of the retrospective application of IFRIC 13 - Customer Loyalty Programs from January 1, 2008.

Consolidated revenue performance for the period was shaped by the following factors:

  - The expansion strategy, which increased revenue by EUR251
    million (4.3%), of which EUR106 million from the consolidation of Orbis
    and EUR51 million from the consolidation of 49% of Groupe Lucien
    Barriere's revenue since July 1, 2009.

  - The refocusing strategy, which reduced revenue by 3.8%
    (EUR220 million), reflecting the disposal of the Brazilian foodservice
    business (EUR71 million), the loss of the onboard train services
    contract (EUR54 million) and the impact of a number of real estate
    transactions (EUR76 million).

  - The 1.3% negative currency effect, which reduced revenue by
    EUR74 million, primarily due to the euro's appreciation against the
    British pound, the Brazilian real and the Australian dollar. The
    euro/US dollar exchange rate had a positive 0.9% impact.

  - Like-for-like, revenue was down by 8.2% for the period.




Revenue for the third quarter alone totaled EUR1,848 million, a decline of 8.4% as reported and like-for-like.

Prepaid Services revenue up 3.6% like-for-like in the first nine months

Revenue from the Prepaid Services business in the first nine months declined by 0.8% to EUR687 million as reported, reflecting the following factors:

  - The currency effect, which reduced revenue by 3.8% (EUR27
    million), mainly due to the decline against the euro of the Brazilian
    real (down 2.1%), the British pound (down 0.6%) and the Mexican peso
    (down 0.6%).

  - At constant scope of consolidation and exchange rates,
    Prepaid Services revenue rose by 3.6% over the period.



Revenue for the third quarter alone totaled EUR222 million, a decline of 4.9% as reported and 0.6% like-for-like. Despite the rise in unemployment, especially in Europe, operating revenue growth held firm at 3.0%, but financial revenue fell by 21.8% due to the decline in interest rates in both Europe and Latin America.

In Europe, revenue stood at EUR116 million, down 1.5% like-for-like. Operating revenue rose by 2.0% during the quarter, while the falloff in financial revenue accelerated to 20.3%, following a 5.1% increase in the first quarter and a 10.8% decline in the second.

In Latin America, revenue totaled EUR90 million, a 0.6% increase like-for-like. Operating revenue, which was less affected than in Europe by the rise in unemployment, rose by 4.5%. However, total revenue growth was considerably dampened by the ongoing decline in financial revenue, which fell by 22.9% in the third quarter, following a 26.3% rise in the first quarter and a 16.5% decline in the second.

Hotels revenue down 10.7% like-for-like in the first nine months

Hotels revenue amounted to EUR3,891 million, a decline of 9.9% on a reported basis compared to the prior-year period. It reflected the following factors:

  - The expansion strategy, with in particular the opening of
    18,700 rooms during the first nine months attesting to the business'
    strong growth dynamic and driving a 3.5% increase in revenue for the
    period, and EUR75 million from the consolidation of Orbis hotels
    division.

  - The sale of hotel properties under the asset-right strategy,
    which reduced growth for the period by 2.0%.

  - The negative 0.8% currency effect.

  - At constant scope of consolidation and exchange rates,
    Hotels revenue was down 10.7% like-for-like.



Revenue for the third quarter alone totaled EUR1,357 million, a decline of 10.4% as reported and 9.3% like-for-like.

Upscale and Midscale Hotels

Revenue in the Upscale and Midscale segment for the first nine months of 2009 declined by 12.0% as reported and 12.2% like-for-like.

Third-quarter revenue was down 10.1% like-for-like. The slower decline in revenue compared with the second quarter was due to the positive impact of changes in the customer mix during the summer, with leisure customers accounting for nearly 54% of the total for the period, versus 36% in the first half.

In France, regions outside Paris (RevPAR down 5.8%) held up better than the Paris area (RevPAR down 17.1%).

In the United Kingdom, unlike in France, business in London (RevPAR down 6.0%) withstood the recession more effectively than in other parts of the country (RevPAR down 16.4%).

Economy Hotels

Revenue in the Economy segment declined by 7.2% as reported and 6.8% like-for-like.

As during the first two quarters of the year, Economy hotels continued to demonstrate their resilience in the third quarter. Revenue declined 5.8% like-for-like, led by a relatively solid performance in France, where revenue eased just 2.5% like-for-like.

In France, regions outside Paris (RevPAR down 1.9%) held up better than the Paris area (RevPAR down 8.0%).

Economy Hotels in the United States

Motel 6's nine-month revenue contracted by 5.8% on a reported basis and by 13.6% like-for-like.

Third-quarter revenue was down 15.0% like-for-like, reflecting the ongoing decline in business in the US, where RevPAR has trended steadily lower over the past 18 months. 

  Quarterly Report
  Financial position and results


In the absence of any visibility in the economic environment, the target for operating profit before tax and non-recurring items has been based on the following assumptions:

  In Prepaid Services:

  - A more than 25% decline in financial revenue in the second
    half, causing like-for-like revenue to show only a slight gain for the
    year.

  - An operating margin of more than 40% for the year.

  In the Hotels business:

  - No major improvement in business expected in the second
    half.

  - A step-up in the plan to reduce operating costs in the
    owned/leased hotels to EUR150 million from EUR120 million, to ensure
    that the response ratio holds steady at 35%.

  Consolidated earnings:

  - An EUR80-million reduction in support costs over the year.




As a result, the target for operating profit before tax and non-recurring items is confirmed at between EUR400 million and EUR450 million.

Significant transactions and events of the period

Accor has announced to conduct a review of the potential benefits of demerging the businesses

Given the depth and speed of the changes ahead, the transformation and development of the two core businesses will be stepped up.

As part of this process, during its meeting on August 26, the Board of Directors has approved Chairman and CEO Gilles Pelisson's recommendation to conduct a review of the potential benefits of demerging the two businesses into two independent companies, each with their own strategy and resources for growth.

A major real estate transaction in the Budget segment in France

In line with its ongoing asset-right strategy, Accor announced in late September a major real estate transaction in the Budget segment in France, with the sale of 158 hotelF1 properties, representing a total of 12,300 rooms.

This sale and variable leaseback transaction was carried out with a consortium of leading French institutional investors through a property investment trust (OPCI).

With the sale of the hotel units for EUR272 million, Accor signed a 12-year business lease, renewable six times at Accor's option. The variable rents are based on an average 20% of revenue with no guaranteed minimum. Based on 2008 revenue, the variable rent would have been EUR21.3 million.

The transaction will enable Accor to reduce its adjusted net debt by approximately EUR187 million in 2009, of which EUR130 million will be added to the Group's cash reserves. In addition, it will have a positive impact of roughly EUR5 million on profit before tax.

Accor Services gains leadership of the meal voucher market in the Czech Republic with the acquisition of local operator Exit Group

As part of its growth strategy, Accor Services announced in early October that it had acquired Exit Group, the fourth largest provider of meal vouchers in the Czech Republic. With a strong position among small and mid-sized businesses, Exit Group reported issue volume of EUR77 million in 2008.

With this acquisition, Accor Services has widened its share of the meal voucher market and will also gain access to Exit Group's 165,000 end users for its value-added products and services.

The transaction was finalized at a price of EUR15 million. Accor Services Czech Republic's post-acquisition issue volume is estimated at EUR250 million. 

  Upcoming events
  - January 19, 2010: Fourth-quarter 2009 revenue


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.

  - Services, with 32 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
  in EUR thousand            2008      2009       2008      2009
  HOTELS
      Up & Midscale       756,767   687,180    914,442   784,760
      Economy             388,094   358,017    456,406   422,484
      Economy US          137,254   137,235    149,573   143,833
  Total HOTELS          1,282,115 1,182,432  1,520,421 1,351,077

  PREPAID SERVICES        226,637   231,163    232,368   233,620

  Other businesses
      Casinos              86,253    82,994     83,470    80,513
      Restaurants         100,937    22,161     32,605    27,940
      On-board
      train services       69,461    66,802     78,795    57,122
      Holdings & Other     21,919    30,816     22,887    43,505
  Total OTHER BUSINESSES  278,569   202,773    217,756   209,081

  TOTAL                 1,787,321 1,616,368 1,970,546 1,793,778

  (continued)


                    First-Half 2009        Quarter 3     September end(YTD)
  in EUR thousand    2008      2009      2008       2009     2008      2009

  HOTELS
   Up &
   Midscale     1,671,209 1,471,940   882,421   776,235 2,553,629 2,248,175
   Economy        844,500   780,501   465,029   435,017 1,309,529 1,215,518
   Economy US     286,828   281,068   166,729   146,012   453,557   427,080
  Total HOTELS  2,802,536 2,533,509 1,514,179 1,357,264 4,316,715 3,890,773

  PREPAID         459,005   464,783   233,571   222,038   692,576   686,821
  SERVICES

  Other
  businesses      169,723   163,507    87,513   137,576   257,236   301,084
      Casinos     133,542    50,101    24,792    19,677   158,334    69,778
      Restaurants 148,256   123,924    82,804    65,168   231,059   189,092
      On-board     44,805    74,321    74,383    46,537   119,189   120,859
      train
      services
      Holdings &
      Other       496,326   411,854   269,492   268,958   765,818   680,812
  Total
  OTHER
  BUSINESSES    3,757,867 3,410,146 2,017,242 1,848,260 5,775,108 5,258,406



                              Quarter 1       Quarter 2
  in EUR thousand          Change  Change  Change  Change
                          reported    L/L reported    L/L
                                       (1)             (1)
  HOTELS
       Up & Midscale         -9.2%  -9.2%   -14.2% -16.6%
       Economy               -7.7%  -6.8%    -7.4%  -7.7%
       Economy US             0.0% -11.5%    -3.8% -14.1%
  Total HOTELS               -7.8%  -8.7%   -11.1% -13.7%

  PREPAID SERVICES            2.0%   8.3%     0.5%   3.2%

  Other businesses
       Casinos               -3.8%  -6.3%    -3.5%  -5.4%
       Restaurants          -78.0%  -7.3%   -14.3%  -8.0%
       On-board
       train services        -3.8%   4.7%   -27.5%   2.9%
       Holdings & Other      40.6%  -4.7%    90.1%  24.5%
  Total OTHER BUSINESSES    -27.2%  -3.8%    -4.0%   0.3%

  TOTAL                      -9.6%  -5.8%    -9.0% -10.1%

  (continued)

  in EUR thousand         First-Half 2009     Quarter   September end
                                                 3          (YTD)
  HOTELS                 Change  Change  Change     Change  Change   Change
                        reported L/L(1) reported   L/L (1) reported  L/L(1)

  Up & Midscale           -11.9% -13.3%    -12.0%   -10.1%   -12.0%  -12.2%
  Economy                  -7.6%  -7.3%     -6.5%    -5.8%    -7.2%   -6.8%
  Economy US               -2.0% -12.8%    -12.4%   -15.0%    -5.8%  -13.6%
  Total HOTELS             -9.6% -11.4%    -10.4%    -9.3%    -9.9%  -10.7%


  PREPAID SERVICES          1.3%   5.7%     -4.9%    -0.6%    -0.8%    3.6%

  Other businesses
  Casinos                  -3.7%  -5.9%     57.2%    -3.2%    17.0%   -5.0%
  Restaurants             -62.5%  -7.5%    -20.6%   -16.9%   -55.9%   -9.0%
  On-board train
  services                -16.4%   3.7%    -21.3%     0.4%   -18.2%    2.5%
  Holdings & Other         65.9%  10.2%    -37.4%   -27.8%     1.4%  -13.5%
  Total OTHER BUSINESSES  -17.0%  -2.0%     -0.2%   -10.2%   -11.1%   -4.9%

  TOTAL                    -9.3%  -8.1%     -8.4%    -8.4%    -8.9%   -8.2%

  (1) At constant scope of consolidation and exchange rates.



                   RevPAR by segment (September YTD 2009)

  HOTELS : RevPAR by segment      Occupancy Rate        Average room rate
                                   Subsidiaries           Subsidiaries
                             (in %)  (chg in   (chg         (chg in %  (chg
                                        pts     in          reported)  in %
                                     reported)  pts                    L/L
                                                L/L                    (1))
                                                (1))
  Upscale and Midscale
  Europe (in EUR)              59.0    -7.2    -6.1     96      -8.7   -5.6
  Economy Europe (in EUR)      66.2    -6.9    -7.0     57      -0.7    0.9
  Economy US (in $)            59.9    -6.4    -6.8     44      -4.3   -4.9


  (continued)


  HOTELS : RevPAR by segment                   RevPAR
  Sept YTD 2009            Subsidiaries        Subsidiaries   Subsidiaries
                                                                 & managed
                                  (chg in %       (like-for-    (reported)
                                   reported)       like(1))
  Upscale and Midscale
  Europe (in EUR)             57      -18.6          -14.2         -18.6
  Economy Europe (in          38      -10.1           -8.7         -10.4
  Economy US (in $)           26      -13.6          -14.7         -13.6

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



                         RevPAR by segment (Q3 2009)

  HOTELS : RevPAR by segment     Occupancy Rate        Average room rate
  Q3                              Subsidiaries           Subsidiaries
                             (in %)  (chg in  (chg         (chg in %  (chg
                                       pts     in          reported)  in %
                                    reported)  pts                    L/L
                                               L/L                    (1))
                                              (1))

  Upscale and Midscale
  Europe (in EUR)              63.9  -3.8   -4.0      93      -8.4   -6.7
  Economy Europe (in EUR)      70.3  -6.2   -6.3      56      -1.7   -0.4
  Economy US (in $)            62.2  -7.6   -8.2      45      -4.7   -5.4


  (continued)


  HOTELS : RevPAR by segment               RevPAR
  Q3
                       Subsidiaries         Subsidiaries    Subsidiaries
                                                               & managed
                               (chg in %   (like-for-like(1))  (reported)
                                reported)
  Upscale and
  Midscale Europe (in EUR)  59    -13.5         -12.2             -13.7
  Economy Europe (in EUR)   40     -9.7          -8.5             -10.3
  Economy US (in $)         28    -15.1         -16.6             -15.1


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



                   RevPAR by country (September YTD 2009)

  UPSCALE AND MIDSCALE HOTELS  Nb of        Occupancy Rate
  RevPAR by country Sept YTD   rooms         Subsidiaries
  2009
                                      (in %)   (chg in   (chg in pts L/L
                                                 pts          (1))
  (in local currency)                         reported)
  France                      29.809     60.4      -7.0       -7.1
  Germany                     19.655     58.6      -5.1       -5.3
  Netherlands                  3.977     61.0      -6.2       -6.2
  Belgium                      1.801     64.1      -6.8       -6.8
  Spain                        2.351     52.5     -12.4      -11.3
  Italy                        3.583     56.7      -2.4       -2.0
  UK ( in GBP)                 5.432     75.2      -3.3       -3.6

  (continued)


  UPSCALE AND MIDSCALE HOTELS             Average room rate

  RevPAR by country
  Sept YTD 2009                             Subsidiaries
                                              (chg in %    (chg in %
  (in local currency)                          reported)     L/L (1))
  France                               113         -1.8         -2.1
  Germany                               89         -6.5         -6.9
  Netherlands                           93        -14.1        -14.1
  Belgium                              102         -6.2         -6.2
  Spain                                 81        -18.4        -18.1
  Italy                                105        -10.9         -9.6
  UK ( in GBP)                          83         -6.8         -8.0

  (continued)


  UPSCALE AND MIDSCALE HOTELS                           RevPAR
  RevPAR by
  country Sept YTD 2009  Subsidiaries     Subsidiaries   Subsidiaries &
                                                               managed
                               (chg in %   (like-for-like(1)) (reported)
  (in local currency)                       reported)
  France                68        -12.0              -12.4      -12.5
  Germany               52        -13.9              -14.6      -13.8
  Netherlands           57        -22.0              -22.0      -22.0
  Belgium               65        -15.1              -15.1      -13.5
  Spain                 43        -34.1              -32.4      -28.3
  Italy                 60        -14.5              -12.6      -12.2
  UK ( in GBP)          62        -10.7              -12.2      -10.9

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



  ECONOMY HOTELS      Nb of                 Occupancy Rate
  RevPAR by country   rooms                  Subsidiaries
  Sept YTD 2009
                             (in %)   (chg in pts reported)     (chg in
                                                                pts L/L
  (in local currency)                                             (1))
  France              41.925   68.3            -4.9               -5.6
  Germany             15.041   64.5            -6.1               -6.2
  Netherlands          2.308   66.4            -9.8               -9.2
  Belgium              2.562   69.2            -8.2               -8.2
  Spain                4.662   57.2           -16.5              -16.9
  Italy                1.550   57.2            -5.8               -5.8
  UK ( in GBP)         8.871   67.8            -8.7               -8.0
  USA (in $)          77.596   59.9            -6.4               -6.8

  ECONOMY HOTELS                          Average room rate
  RevPAR by country                        Subsidiaries
                                        (chg in %    (chg in %
  (in local currency)                   reported)     L/L (1))
  France                        54          6.1          5.3
  Germany                       59          0.3          0.1
  Netherlands                   80         -3.6         -4.4
  Belgium                       67         -2.6         -2.6
  Spain                         54         -4.2         -5.0
  Italy                         69         -6.5         -6.5
  UK ( in GBP)                  53         -6.0         -2.7
  USA (in $)                    44         -4.3         -4.9

  ECONOMY HOTELS                             RevPAR
  RevPAR by country
  Sept YTD 2009       Subsidiaries        Subsidiaries   Subsidiaries &
                                                               managed
                              (chg in % (like-for-like(1))   (reported)
  (in local currency)          reported)
  France              37          -1.0               -2.7       -1.2
  Germany             38          -8.3               -8.6       -7.4
  Netherlands         53         -16.0              -16.0      -16.0
  Belgium             46         -12.9              -12.9      -12.9
  Spain               31         -25.7              -26.8      -25.7
  Italy               40         -15.1              -15.1      -15.1
  UK ( in GBP)        36         -16.6              -12.8      -16.2
  USA (in $)          26         -13.6              -14.7      -13.6

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



                         RevPAR by country (Q3 2009)

  UPSCALE AND MIDSCALE HOTELS Nb of              Occupancy Rate
  RevPAR by country Q3        rooms               Subsidiaries
                                          (in %)       (chg in pts (chg in
                                                        reported)  pts L/L
  (in local currency)                                                (1))
  France                      29.874        64.7           -4.5     -4.9
  Germany                     19.634        60.5           -5.1     -5.2
  Netherlands                  4.011        65.0           -2.8     -2.8
  Belgium                      1.801        66.7           -6.0     -6.0
  Spain                        2.385        59.6           -6.9     -5.1
  Italy                        3.704        61.8           +0.0     -0.4
  UK ( in GBP)                 5.432        81.0           -0.8     -1.3

  (continued)

  UPSCALE AND MIDSCALE HOTELS               Average room rate
  RevPAR by country Q3                         Subsidiaries
                                                 (chg in %   (chg in % L/L
  (in local currency)                            reported)        (1))
  France                                    108         -3.3           -4.2
  Germany                                    86         -8.4           -8.7
  Netherlands                                86        -13.4          -13.4
  Belgium                                    92         -7.3           -7.3
  Spain                                      75        -16.5          -16.1
  Italy                                     110        -10.1           -8.5
  UK ( in GBP)                               80         -8.3           -9.5

  (continued)

  UPSCALE AND MIDSCALE HOTELS                           RevPAR
  RevPAR by country Q3        Subsidiaries        Subsidiaries Subsidiaries
                                                                       &
                                                                   managed
                                            (chg in %   (like-for  (repor-
  (in local currency)                       reported)    -like(1))     ted)
  France                                70         -9.7     -11.0    -10.8
  Germany                               52        -15.6     -15.9    -15.5
  Netherlands                           56        -17.0     -17.0    -16.5
  Belgium                               61        -15.0     -15.0    -13.6
  Spain                                 45        -25.2     -22.5     -8.2
  Italy                                 68        -10.1      -9.1     -5.9
  UK ( in GBP)                          65         -9.2     -10.9     -8.9

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



  ECONOMY HOTELS           Nb of                 Occupancy Rate
  RevPAR by country        rooms                  Subsidiaries
  Q3
                                         (in %)     (chg in pts    (chg in
                                                       reported)   pts L/L
  (in local currency)                                                 (1))
  France                  41.890           71.0            -5.2       -5.7
  Germany                 15.019           70.4            -4.5       -4.6
  Netherlands              2.410           68.2            -8.5       -8.5
  Belgium                  2.562           74.6            -4.8       -4.8
  Spain                    4.731           60.3           -15.0      -15.6
  Italy                    1.550           62.1            -3.5       -3.5
  UK ( in £)               8.900           71.3            -8.0       -7.8
  USA (in $)              77.125           62.2            -7.6       -8.2

  (continued)

  ECONOMY HOTELS                  Average room rate
  RevPAR by country                 Subsidiaries
  Q3
                                      (chg in %     (chg in % L/L (1))
  (in local currency)                 reported)
  France                        53              3.9                 3.3
  Germany                       58             -0.2                -0.6
  Netherlands                   79             -1.9                -1.9
  Belgium                       62             -5.1                -5.1
  Spain                         54             -4.1                -5.5
  Italy                         65             -6.6                -6.6
  UK ( in GBP)                  53             -6.2                -3.0
  USA (in $)                    45             -4.7                -5.4

  (continued)

  ECONOMY HOTELS                            RevPAR
  RevPAR by country   Subsidiaries              Subsidiaries   Subsidiaries
  Q3                                                              & managed
                                    (chg in %   (like-for-like(1))  (repo-
  (in local currency)               reported)                         rted)
  France                        37         -3.2               -4.3    -3.5
  Germany                       41         -6.2               -6.8    -6.4
  Netherlands                   54        -12.8              -12.8   -12.8
  Belgium                       46        -10.8              -10.8   -10.8
  Spain                         32        -23.2              -25.1   -23.2
  Italy                         41        -11.6              -11.6   -11.6
  UK ( in GBP)                  38        -15.6              -12.5   -14.9
  USA (in $)                    28        -15.1              -16.6   -15.1

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


DATASOURCE: Accor



CONTACT:  MEDIA CONTACT: Alain Delrieu, Phone: [phone],

Aurelie Langevin, Phone: [phone]; INVESTORS CONTACTS, Eliane

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

Communications, Phone: [phone]; Solene Zammito, Deputy Director,

Investor Relations, Phone : [phone]

Copyright