Accor : First-Quarter 2009 Revenue Down 5.8% Like-for-Like

Share Name	Share Symbol	Market	Type
Accor SA Ltd (PK)	USOTC:ACRFF	OTCMarkets	Common Stock

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	0.00	0.00%	42.25	40.55	46.76				0.00	21:09:08

Accor (PK) (USOTC:ACRFF)
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PARIS, April 16 /PRNewswire-FirstCall/ -- In the midst of an unprecedented recession, - Strong performance in Prepaid Services, with an 8.3% increase. - Worsening business conditions in Hotels, with an 8.7% decline despite resistance in Economy Hotels in France (down 3.2%). - New cost-saving initiatives: - A EUR175 million annual reduction in renovation capital expenditure in 2009 and 2010, compared with 2008. - A larger cost-saving plan, in addition to the already announced EUR100 million program. Consolidated revenue for the first three months of 2009 totaled EUR1,616 million, down 5.8% like-for-like over the same period of 2008 and down 9.6% on a reported basis. (in EUR millions) 2008 2009 % change % change as reported like-for-like (1) Hotels 1,282 1,182 -7.8% -8.7% Upscale and 757 687 -9.2% -9.2% Midscale Economy 388 358 -7.7% -6.8% Economy US 137 137 0.0% -11.5% Prepaid Services 227 231 +2.0% +8.3% Other businesses 278 203 -27.2% -3.8% Total 1,787 (2) 1,616 -9.6% -5.8% (1) At constant scope of consolidation and exchange rates. (2) Adjustment related to loyalty program: impact of the IFRIC 13 application, retroactive to January 1st, 2008. First-quarter 2009 revenue performance reflects the impact of: - The strategic refocusing on the Hotels and Prepaid Services businesses (with the disposal of the Brazilian foodservices operations) and the continued deployment of the "asset-right" strategy, which had a negative 6.4% impact on revenue for the period. - The expansion strategy, which added 4.1% to growth for the quarter (of which EUR45 million from the full consolidation of Orbis). - The negative 1.5% currency effect, resulting from the appreciation of the euro against the British pound, the Australian dollar and the Brazilian real. On the upside, the dollar impact was a positive 1.1%. - On the like-for-like basis, the revenue declined by 5.8% for the quarter. Strong performance in Prepaid Services, with an 8.3% increase in the midst of an unprecedented recession Revenue from the Prepaid Services business stood at EUR231 million, up 2.0% as reported, reflecting in particular the following factors: - A negative 4.6% currency effect, mainly due to the weakness of the British pound and Latin American currencies against the euro. - A like-for-like increase of 8.3%, in line with the medium-term target. Adjusted for the impact of the gradual elimination of tax breaks in Argentina, Prepaid Services revenue was up 11.1% for the quarter. Prepaid Services in Europe: up 5.8% like-for-like In France, revenue grew by 7.1% like-for-like, despite a 5.3% decline in financial revenue. Excluding gift vouchers, whose revenue rose 0.4% and accounted for 25% of the business' revenue in France, the increase was 10.0% for the quarter. In the United Kingdom, revenue was up 7.0% like-for-like, despite a 6.1% decline in financial revenue. Childcare Voucher revenue rose 12.0% during the period, while gift card revenue, which accounts for just 15% of total prepaid service revenue in the UK, declined by 16.3%. Prepaid Services in Latin America: up 11.6% like-for-like Revenue rose a like-for-like 16.3% in Brazil over the quarter, led by gains of 10.3% for Ticket Restaurante, 27.5% for Ticket Alimentacao and 20.1% for Ticket Car. In the rest of Latin America, like-for-like growth totaled 24.3% excluding Brazil and the impact of the gradual elimination of tax breaks in Argentina. Worsening business conditions in Hotels, with an 8.7% decline like-for-like Hotels revenue amounted to EUR1,182 million in the first quarter, a year-on-year decline of 7.8% as reported. This figure takes into account the impact of: - The sale of hotel properties as part of the "asset-right" strategy, which reduced growth for the quarter by 2.4%. - The expansion strategy, which added 4.2% to growth thanks to the opening of 5,110 rooms and the EUR32 million impact from the full consolidation of Orbis. - The currency effect, which was a negative 0.9% for the period. - At constant scope of consolidation and exchange rates, Hotels revenue was down 8.7%. The shift in the Easter vacation calendar, to April 2009 from March in 2008, in most European countries (mainly Germany, Spain and Belgium) had a positive 0.9-point impact on revenue. This was offset, however, by the 1.0-point negative impact from the fact that 2009 had one less day than 2008, which was a leap year. Upscale and Midscale Hotels: down 9.2% like-for-like In the Upscale and Midscale segment, revenue was down 9.2% as reported for the period. In general, the Midscale segment was relatively less affected than the Upscale segment. This was the case in France, where RevPAR declined 10.1% in the Midscale and 13.4% in the Upscale. Moreover, business in Paris was more affected than in the rest of the country, with RevPAR down 14.7% in the capital versus 6.6% elsewhere. In Germany, revenue declined by 1.9% like-for-like over the period, or by 8.1% adjusted for the shift in the Easter vacation period. In the United Kingdom, business was harder hit outside London, with RevPAR down 16.5%, than in London, down 7.0%. Economy Hotels outside the US: down 6.8% like-for-like RevPAR volatility in this segment is typically around twice the change in GDP, which is notably lower than in the Up and Midscale segments (where elasticity is 4 to 6). Given the unprecedented drop in GDP in most European countries, Economy Hotels revenue declined by 7.7% as reported and 6.8% like-for-like during the first quarter. In France, revenue was down 3.2% like-for-like, or just 2.7% adjusted for the impact of the F1 hotels renovation program. As was the case in the Upscale and Midscale segment, business outside Paris fared better than in the capital, with RevPAR down 5.1% in Paris but up 0.9% in the rest of the country. Revenue in Germany was down 5.0% like-for-like, of which 4.6% for Ibis as well as for Etap Hotel. In the United Kingdom, business in London was more affected than in the rest of the country, with RevPAR down 15.1% and RevPAR down 11.5% elsewhere. Revenue was more severely affected in certain other European countries, such as Spain (down 29.3% like-for-like), Italy (down 17.5%), the Netherlands (down 10.9%) and Belgium (down 10.5%). Economy Hotels in the US: down 11.5% like-for-like The Economy segment experienced an 11.5% decline like-for-like, but remained less affected than the Upscale and Midscale segments in the United States. Furthermore, Motel 6 outperformed its competitive-set, in a segment that saw a decline in business for the second year in a row. The opening of approximately 50 hotels in 2008 drove a 19.4% increase in fees from franchised hotels during the first quarter on 2009. New cost-saving initiatives in the midst of an unprecedented recession In a first-quarter business environment shaped by a faster decline in revenue compared with fourth-quarter 2008, particularly in Europe, Accor has decided to reduce its 2009 and 2010 annual renovation budget to EUR315 million, or EUR175 million less than in 2008. In addition to the already announced program to reduce support costs by EUR75 million in 2009 and a further EUR25 million in 2010, Accor is already planning to increase its cost-saving program. Quarterly Information Significant transactions and events of the period Creation of a leading joint venture with MasterCard Europe in the European prepaid market In mid February, Accor Services and MasterCard Europe announced a strategic alliance resulting in the creation of PrePay Solutions, which is owned 67% by Accor Services and 33% by MasterCard Europe. PrePay Solutions will provide services to Accor Services and MasterCard, enabling each firm to offer its respective customers - corporates, local authorities and government agencies for Accor Services, banks and other financial institutions for MasterCard - solutions leveraging the partners' closely related expertise in prepaid services and electronic payments. These customers will therefore be able to take advantage of the strong growth in the European prepaid market, which is estimated at EUR130 billion. At the same time, PrePay Solutions will market prepaid solutions directly to its own customers, such as retailers. Financial position and results Successful bond issue in January 2009 On January 28, 2009, Accor successfully placed a EUR600 million issue of fixed-rate, five-year bonds, maturing February 4, 2014 and paying 7.50% interest. The bonds were placed with more than 200 European institutional investors. The transaction enabled the Group to diversify its financing sources and increase the average maturity of its debt. CIWLT dispute On December 12, 2008, the Cergy Pontoise Administrative Court handed down a ruling against CIWLT, which was immediately enforceable even in the event of an appeal, thereby lifting the suspension previously applied to claims for the years from 1998 to 2002. As a result, Accor settled the claims and late interest on February 27, 2009, in a total amount of EUR242.5 million. Stake in Groupe Lucien Barriere raised to 49% Under the January 2004 agreements signed by Colony Capital, the Desseigne Barriere family and Accor, Colony Capital held a put option to sell its 15% stake in Groupe Lucien Barriere SAS to Accor for a price to be determined by five independent banks. In November 2008, Colony Capital informed Accor that it intended to initiate the valuation process. The process resulted in a price of EUR153 million, corresponding to the average valuation of the independent experts, excluding both the highest and the lowest valuation in accordance with the 2004 agreements. Following the valuation process, Colony Capital decided to exercise its put for EUR153 million, which was paid on April 15, 2009. The transaction is expected to increase Accor's consolidated net debt by EUR270 million, following the proportional consolidation of 49% of Groupe Lucien Barriere's debt in the second half. Financial resources The cash position is solid with EUR1.5 billion in unused committed credit lines as of mid-April 2009, after taking into account the above items. During the period, Fitch has confirmed its BBB long-term rating with stable outlook, and Standard & Poor's its BBB long-term rating with negative outlook. 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. Quarter 1 Quarter 1 In EUR thousand 2,008 2,009 Change Change Reported % L/L % (1) HOTELS Up & Midscale 756.767 687.18 -9.2% -9.2% Economy 388.094 358.017 -7.7% -6.8% Economy US 137.254 137.235 0.0% -11.5% TOTAL HOTELS 1,282,115 1,182,432 -7.8% -8.7% SERVICES 226.637 231.163 2.0% 8.3% Other Businesses Casinos 86.253 82.994 -3.8% -6.3% Restaurants (3) 100.937 22.161 -78.0% -7.3% On-board train Services 69.461 66.802 -3.8% 4.7% Holding & Other (4) 21.918 30.816 40.6% -4.7% TOTAL OTHER BUSINESSES 278.569 202.773 -27.2% -3.8% TOTAL 1,787,321 1,616,368 -9.6% -5.8% (1) at constant scope of consolidation and exchange rates HOTELS : RevPAR by segment T1 Occupancy Rate Subsidiaries (in %) (chg in pts (chg in pts L/L reported) (1)) Upscale and Midscale Europe (in EUR) 51.8 -7.7 -5.8 Economy Europe (in EUR) 59.3 -7.0 -7.1 Economy US (in $) 57.2 -4.7 -5.0 - TABLE CONTINUED - Average room rate Subsidiaries (chg in % (chg in % L/L (1)) reported) Upscale and Midscale Europe (in EUR) 99 -5.5% -0.9% Economy Europe (in EUR) 57 +1.3% +3.4% Economy US (in $) 43 -3.4% -3.8% - TABLE CONTINUED - RevPAR Subsidiaries Subsidiaries Subsidiaries (chg in % (like-for-like(1)) & managed Upscale and Midscale reported) (reported) Europe (in EUR) 52 -17.7% -10.5% -17.9% Economy Europe (in EUR) 34 -9.4% -7.6% -9.3% Economy US (in $) 24 -10.8% -11.6% -10.8% (1) at comparable scope of consolidation and exchange rates. UPSCALE AND MIDSCALE HOTELS Occupancy Rate RevPAR by country T1 Subsidiaries (in local currency) Nb of (in %) (chg in pts (chg in pts L/L rooms reported) (1)) France 29,691 53.2 -7.7 -7.5 Germany 19,664 56.2 -1.7 -2.0 Netherlands 3,907 53.7 -4.8 -4.8 Belgium 1,801 57.4 -6.0 -6.0 Spain 2,281 43.9 -14.0 -13.6 Italy 3,429 46.6 -4.7 -3.3 UK ( in GBP) 5,432 69.1 -4.6 -4.7 - TABLE CONTINUED - Average Room Rate Subsidiaries (in local currency) Nb of (chg in % (chg in % L/L rooms reported) (1)) France 116 +1.6% +1.6% Germany 95 +1.5% +1.0% Netherlands 97 -9.9% -9.9% Belgium 110 -1.6% -1.6% Spain 93 -15.2% -15.1% Italy 96 -11.2% -10.1% UK ( in GBP) 84 -4.6% -5.5% - TABLE CONTINUED - RevPAR Subsidiaries Subsidiaries Subsidiaries & managed (chg in % (like-for-like(1)) (reported) (in local currency) reported) France 62 -11.2% -10.8% -11.8% Germany 54 -1.4% -2.5% -1.5% Netherlands 52 -17.3% -17.3% -18.5% Belgium 63 -10.9% -10.9% -8.2% Spain 41 -35.6% -35.1% -35.6% Italy 45 -19.4% -15.8% -18.9% UK ( in GBP) 58 -10.5% -11.4% -11.0% (1) at comparable scope of consolidation and exchange rates. ECONOMY HOTELS Nb of Occupancy Rate RevPAR by country T1 rooms Subsidiaries (in %) (chg in pts (chg in pts L/L (in local currency) reported) (1)) France 41,911 61.7 -5.1 -5.9 Germany 15,076 58.8 -4.6 -4.6 Netherlands 2,211 56.7 -11.4 -11.4 Belgium 2,562 61.0 -8.3 -8.3 Spain 4,595 52.5 -16.9 -17.6 Italy 1,550 47.7 -4.7 -4.7 UK ( in GBP) 8,813 61.9 -9.4 -8.3 USA (in $) 78,033 57.2 -4.7 -5.0 - TABLE CONTINUED - ECONOMY HOTELS Average room rate RevPAR by country T1 Subsidiaries (chg in % (chg in % L/L (1)) (in local currency) reported) France 54 +8.5% +7.5% Germany 62 +3.7% +3.4% Netherlands 75 -2.5% -2.5% Belgium 70 +1.6% +1.6% Spain 55 -3.6% -4.0% Italy 74 -7.7% -7.7% UK ( in GBP) 52 -4.7% -1.7% USA (in $) 43 -3.4% -3.8% - TABLE CONTINUED - ECONOMY HOTELS RevPAR RevPAR by country T1 Subsidiaries Subsidiaries Subsidiaries & managed (chg in % (like-for-like(1)) reported) (reported) (in local currency) France 33 +0.2% -1.9% +0.2% Germany 36 +3.8% -4.2% -1.3% Netherlands 43 -18.8% -18.8% -18.8% Belgium 43 -10.5% -10.5% -10.5% Spain 29 -27.2% -28.4% -27.2% Italy 35 -15.9% -15.9% -15.9% UK ( in GBP) 32 -17.3% -13.1% -17.1% USA (in $) 24 -10.8% -11.6% -10.8% (1) at comparable scope of consolidation and exchange rates. DATASOURCE: Accor CONTACT: Media Contacts: Alain Delrieu, Senior Media Relations Officer, Phone: +33-1-45-38-84-85; Aurelie Langevin, Press Officer, Phone: +33-1-45-38-84-76; Investors Contacts: Eliane Rouyer-Chevalier, Senior Vice President, Investor Relations and Financial Communication, Phone: +33-1-45-38-86-26; Olivia Testas, Investor Relations, Phone: +33-1-45-38-86-33

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ACRFF Accor SA Ltd (PK)