ACCOR Paris - October 16, 2014
Third-quarter 2014 revenue up 4.6% like-for-like * * * Full-year EBIT target confirmed between €575 million and €595 million The vast majority of the Group's markets reported solid third-quarter growth, for total revenue of €1,459 million, up 4.6% like-for-like pro forma and 3.3% as reported. This consolidates the positive trend observed in the first half of the year, resulting in a 3.4% like-for-like increase for thenine months to end-September.
Strong demand in most of the Group's markets, particularly in the UK, Germany and
Benelux, and in Europe generally.
Slight improvement in France, especially in Paris thanks to favorable trends in August and
September.
Faster recovery in Southern Europe.
First tangible signs of a slowdown in Africa.
A total of 51 hotels or 7,529 rooms opened during the quarter.
Sébastien Bazin, Chairman and Chief Executive Officer, said: "This strong third-quarter performance enables us to confirm the full-year EBIT target set for 2014. Obviously, we will continue to pay close attention to changes in the persistently lackluster French market, and to the situation in Africa. The strong demand in Europe, including in Southern Europe, and in emerging markets will provide the growth necessary forHotelInvest and HotelServices to continue to implement their strategic roadmaps."
Note: With the application of IFRS 11 since January 2014, joint ventures may no longer be consolidated using the proportional method, but instead must be accounted for by the equity method in the same way as associates. The 2013 revenue figures in this press release have been adjusted accordingly, with a negative €82-million pro forma impact for the first nine months of the year and a negative €28-million impact for the third quarter (details by segment may be found in the
appendix).
1
Third-quarter 2014 revenue: €1,459 million, up 4.6% like-for-likein € million
Proforma Q3
2013 (1)
Q3 2014 Change L/L change
HotelServices 327 325 -0.5% 2.7% HotelInvest 1,252 1,293 3.3% 4.6% Holding & Interco -168 -159 4.4% -1.1%
Total 1,411 1,459 3.3% 4.6%(1) Revenue figures restated from the IFRS 11 impacts
At constant scope of consolidation and exchange rates (like-for-like), third-quarter revenue rose by 4.6%. Reported revenue reflected the following factors: Development, which added €12.7 million to revenue and 0.9% to growth, with the opening of
7,529 rooms (51 hotels), of which 95% under franchise agreements and management contracts.
Changes in the scope of consolidation, which reduced revenue by €36.3 million and growth by
2.6%, linked to our asset management policy.
A positive €6.0-million currency effect, which increased reported growth by 0.4%, mainly due to gains against the euro for the British pound (for €9.6 million) and the Argentinean peso (for €(2.5) million).
Revenue for third-quarter 2014 amounted to €1,459 million, up 3.3% on a reported basis.
Third-quarter 2014 revenue by business and regionIn € million
HotelInvest
Revenues (€m)
Proforma
L/L %
HotelServices
Revenues (€m)
Proforma
comp. %
Q3 2013 (1) Q3 2014 Var.
Q3 2013 (1) Q3 2014 Var.
France 428 418 0.9% 95 91 -3.2% NCEE 534 576 6.5% 86 83 6.4% MMEA 112 118 11.7% 26 29 8.5% Asia-Pacific 80 74 -3.4% 80 82 1.4% Americas 98 107 9.0% 29 30 5.6% Worldwide Structures - - N/A 12 11 14.3%
Total (2) 1,252 1,293 4.6% 327 325 2.7%
(1) Revenue figures restated from the IFRS 11 impacts
(2) Of which €150 million in intra-Group revenue
2
HotelInvest: Third-quarter revenue up 4.6% like-for-like to €1,293 million
At September 30, 2014, the HotelInvest portfolio comprised 1,359 hotels, of which 77% in Europe (France & NCEE) and 95% in the Economy and Midscale segments.
HotelInvest's performance in France improved during the quarter, with a 0.9% increase in revenue versus a
0.2% decline in the second quarter.
The NCEE region, which accounted for 45% of HotelInvest's revenue, recorded like-for-like growth of 6.5%
versus 1.7% in the second quarter, led by particularly robust demand in the UK (up 9.2%) and Germany (up
7.2%).
The MMEA region also confirmed its performance overall, with revenue up 11.7% like-for-like, thanks to the ongoing vitality of Southern European countries. In particular, occupancy rates in Spain returned to levels comparable with those recorded in 2008. Conversely, booking cancellations are increasingly affecting sub- Saharan Africa.
With revenue up 9.0%, the Americas region maintained its good performance overall, primarily thanks to Brazil (up 9.3%), which benefited from the positive impact of the FIFA World Cup in July but suffered from significant consumer hesitation in August and September in the run-up to the presidential elections. In Chile and Colombia, the momentum observed in the first half of the year continued during the third quarter, resulting in very favorable revenue gains of 8.1% and 7.6% respectively.
HotelInvest's business in the Asia-Pacific region was once again weighed down by Australia, where revenue fell 3.4% in the third quarter due to the still challenging situation in its mining regions, and by China.
HotelServices: Third-quarter 2014 revenue up 2.7% like-for-like1 to €325 million
HotelServices reported €3.2 billion in business volume in the third quarter of 2014, an increase of 4.7% at constant exchange rates, led by the combined impact of development and growth in RevPAR.
During the quarter, Accor opened 51 hotels or 7,529 rooms, of which 95%2 under franchise agreements and management contracts. At September 30, 2014, the HotelServices hotel portfolio comprised 3,675 hotels (or
475,713 rooms), of which 27%2 under franchise agreements and 73%2 under management contracts,
including the HotelInvest portfolio.
Fees paid by HotelInvest to HotelServices amounted to €150 million in the third quarter, or 46% of
HotelServices revenue for the period.
1 For HotelServices, like-for-like revenue includes development-related fees, at constant exchange rates.
2 In number of rooms
3
Third-quarter key market review In France, RevPAR rose by 1.8% in the third quarter (versus 0.5% in the second quarter), with Paris showing growth of 4.2% (versus 1.9% in the second quarter). Other French cities, however, saw a decline of 1.0%, as they remain structurally less vibrant. Performance outside Paris was also affected by the airline pilot strike, which weighed on occupancy during the second half of September.Overall, only a small portion of the increase in the VAT rate from 7% to 10% has been passed on to room prices. In spite of this, business grew by a slight 0.6% in the third quarter.
In Germany, business increased by a strong 7.4%, driven by leisure travellers in July and August and by business travelers in September, as the upturn in the trade fair and trade show calendar benefited all of the country's large cities. RevPAR grew by 8.0% all segments combined (13.7% for Luxury-Upscale, 8.3% for Midscale and 5.6% for Economy), thanks to a 4.7% price increase and a 2.4-point gain in the occupancy rate.As a result, revenue was up 7.2% for HotelInvest and 2.4% for HotelServices, reflecting a solid macroeconomic environment that generated good levels of demand in all regions.
In the United Kingdom, demand again improved strongly in the third quarter. This performance, led once more by the Midscale and Economy segments (up 8.8% and 10.5%, respectively) was due mainly to solid demand and the success of new openings during the period.
Business remained firm in London, with very strong occupancy rates and slightly higher prices (RevPAR up
3.7% in the third quarter versus 3.8% in the second quarter). Other cities turned in an excellent performance, with Britain's vibrant economy and major events such as the Commonwealth Games in Glasgow, the Ryder Cup and the NATO Summit in Wales driving a 14.8% increase in RevPAR in the third quarter.
Like-for-like revenue growth amounted to 9.2% for HotelInvest and 10.2% for HotelServices.
Business in France benefited from a certain improvement in August and September that should continue in October, thanks to the Paris Motor Show, currently being held in the capital. However, the situation in the French market remains uncertain over the medium term in a constrained economic and tax environment.
The other large European countries are on an upward trend, with good business levels in the United Kingdom (up 9.2%), Germany (up 7.4%) and Southern Europe (Spain up 13.8%, Portugal up 15.7% and Italy up 5.9%), which has returned to strong growth.
Performance in the Americas (up 8.2%), led by Brazil (up 10.1%), was satisfactory overall, with a sharp contrast between the excellent month of July (buoyed by the FIFA World Cup) and, as expected, significantly weaker business in August and September. This slower trend should be confirmed in the fourth quarter.
The Group remains extremely vigilant concerning the situation in Africa, and its potential consequences for international tourism.
In light of these factors, the Group confirms its EBIT target of between €575 and €595 million for full year
4
Material transactions and events in the third quarter Significant openingsA total of 7,529 rooms (51 hotels) were opened in the third quarter of 2014. Significant openings included the Pullman Panjin Oriental Ginza in China, the MGallery The Lake Garden Nay Pyi Taw in Myanmar, the Grand Mercure Goa Shrem Resort in India, the Novotel Basel City in Switzerland, the Mercure Hotel Heilbronn in Germany, the Ibis Styles London Kensington in the United Kingdom and the Adagio Abu Dhabi Al Bustan in the United Arab Emirates.
HotelInvest: property asset managementHotelInvest restructured 16 hotels during the third quarter of 2014, of which eight were previously leased properties and eight were owned hotels.
Bond issuesOn September 23, Accor successfully placed a bond issue in an amount of €150 million. The bonds will pay a return of 1.728% until February 2021.
Upcoming events
- October 30, 2014: Digital Day in London
- January 20, 2015: Publication of fourth-quarter 2014 revenue
- February 18, 2015: Publication of 2014 results
Accor, the world's leading hotel operator, offers its guests and partners the dual expertise of a hotel operator and brand franchisor (HotelServices) and a hotel owner and investor (HotelInvest) with the objective of ensuring lasting growth and harmonious development for the benefit of the greater number.
With more than 3,600 hotels and 470,000 rooms, Accor welcomes business and leisure travelers in 92 countries across all
hotel segments: luxury-upscale with Sofitel, Pullman, MGallery, and Grand Mercure, midscale with Novotel, Suite Novotel, Mercure and Adagio and economy with ibis, ibis Styles, ibis budget and hotelF1. The Group boasts a powerful digital ecosystem, notably its booking portal accorhotels.com, its brand websites and its loyalty program Le Club Accorhotels. As the world's top hospitality school, Accor is committed to developing the talents of its 170,000 employees in Accor brand hotels. They are the daily ambassadors of the culture of service and innovation that has driven the Group for over 45 years.
Follow news on Accor: Book a hotel:
@accor | http://www.accor.com/www.accor.comhttp://www.accorhotels.com/www.accorhotels.com
MEDIA RELATIONS INVESTOR AND ANALYST RELATIONS | |||
Charlotte Bourgeois-Cleary Vice President Media Relations Phone: +33 1 45 38 84 84 | Delphine Dumonceau Phone: +33 1 45 38 84 95 | Sébastien Valentin Senior Vice President Investor Relations and Financial Communication Phone: +33 1 45 38 86 25 | Marie Niel Investor Relations Phone: +33 1 45 38 86 94 |
5
Nine-month 2014 revenuein € million
Proforma
Sept 2013 (1)
Sept 2014 Change L/L change
HotelServices 929 907 -2.4% 4.6% HotelInvest 3,588 3,579 -0.2% 2.7% Holding & Interco -465 -434 6.6% -0.2%
Total 4,052 4,052 0,0% 3.4%(1) Revenue figures restated from the IFRS 11 impacts
At constant scope of consolidation and exchange rates (like-for-like), revenue for the first nine months of the year increased by 3.4%. Reported revenue for the period reflected the following factors: Development, which added €32.1 million to revenue and 0.8% to growth.
Changes in the scope of consolidation, which reduced revenue by €101.4 million or 2.5%.
The 1.7% negative currency effect, which reduced revenue by €69.0 million. Revenue for the nine months ended September 30, 2014 amounted to €4,052 million.
Nine-month 2014 revenue by business and regionIn € million
HotelInvest HotelServices
Revenue (M€)
Proforma
L/L %
Revenue (M€)
Proforma
comp. %
Sept 2013 (1) Sept 2014 Var.
Sept 2013 (1) Sept 2014 Var.
France 1,249 1,205 -0.9% 253 250 -0.9% NCEE 1,499 1,562 4,0% 236 223 5.4% MMEA 304 313 8.5% 83 88 9.6% Asia-Pacific 231 201 -1.5% 236 230 2.9% Americas 304 298 7.9% 83 82 9,0% Worldwide Structures - - N/A 38 35 27.2%
Total (2) 3,588 3,579 2.7% 929 907 4.6%
(1) Revenue figures restated from the IFRS 11 impacts
(2) Of which €407 million in intra-Group revenue
6
RevPAR excluding tax by segment and market (Q3 2014) (1/2)
Q3 2014
NCEE: Northern, Central and Eastern Europe (does not include France nor Southern Europe) MMEA: Mediterranean, Middle-East and Africa (includes Southern Europe)7
RevPAR excluding tax by segment and market (Q3 2014) (2/2)
Q3 2014
Luxury & Upscale Midscale Economy | 66.2 +2.5 70.4 +0.8 71.0 +1.4 | 118 +2.7 85 +2.6 56 +1.7 | 78 +6.6 60 +3.8 39 +3.7 | 75.5 +4.9 77.7 +2.7 77.6 +1.5 | 152 +2.9 89 +1.4 57 +1.8 | 115 +10.0 69 +5.1 44 +3.8 | 68.0 +3.0 74.2 +1.8 75.9 +1.5 | 125 +2.8 87 +1.9 56 +1.8 | 85 +7.4 65 +4.5 43 +3.8 |
Total | 69.1 +1.4 | 88 +2.8 | 60 +4.9 | 77.4 +2.1 | 74 +2.2 | 57 +5.1 | 73.6 +1.8 | 80 +2.5 | 59 +5.1 |
8
RevPAR excluding tax by segment and market (September-end) (1/2)
2014 September-end
NCEE: Northern, Central and Eastern Europe (does not include France nor Southern Europe) MMEA: Mediterranean, Middle-East and Africa (includes Southern Europe)9
RevPAR excluding tax by segment and market (September-end) (2/2)
2014 September-end
Luxury & Upscale Midscale Economy | 64.8 +2.6 69.1 +0.4 71.0 +2.4 | 118 +2.5 84 +2.6 56 +0.1 | 77 +6.7 58 +3.3 40 +3.5 | 69.9 +3.1 70.3 +1.7 72.0 +1.3 | 147 +1.8 90 +0.7 56 +1.1 | 103 +6.5 63 +3.2 40 +3.0 | 65.8 +2.7 69.7 +1.1 71.7 +1.6 | 124 +2.4 87 +1.6 56 +0.9 | 82 +6.6 61 +3.3 40 +3.1 |
Total | 68.1 +1.5 | 87 +2.3 | 60 +4.6 | 71.1 +1.5 | 74 +1.4 | 52 +3.6 | 69.7 +1.5 | 80 +1.8 | 56 +4.0 |
10
Q3 2013 Group Proforma Revenue - IFRS 11 impact
In € million
Group Proforma Revenue - IFRS 11 impact
In € million
11
|
distributed by
|
