ACCOR Press Release
Paris, July 27, 2016
Solid first-half 2016 results driven by the transformation plan * * * Revenue up 2.0% (LFL) to €2,598 million EBIT down 4.0% (LFL) to €239 million Net profit, group share of €74 million * * * Full-year 2016 EBIT target: between €670 million and €720 million Sébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, said:"With several of our key markets, including France and Brazil, shaken by crises and violent events, the Group showed remarkable resilience in the first half of 2016. We continued to invest heavily in order to grow, transform and gain a foothold in new businesses that are destined to become fundamental for the Group.
We will pursue this offensive strategy in the coming months. Our presence in 95 countries, our leadership positions in Europe, Asia-Pacific, Latin America, Africa and the Middle East, and our strength as the world's leading hotel operator covering all segments from economy to luxury give us a major competitive edge. Combined with the launch of a project to turn our property division into a subsidiary and a strategy that gives priority to customer-focused innovation, these strengths will be the drivers of our future growth.
First-half 2016 highlightsRobust growth in all of the Group's key markets, except France and Brazil
Record development, with the opening of 19,366 rooms, 90% of which under franchise or management contracts
HotelInvest: Considerably improved performance, driven by restructuring
HotelServices: Stable operating performance in the first half, before the impact of commitments relating to the digital plan, the deployment of onefinestay and the AccorHotels marketplace
Strategic transactions in first-half 2016HotelInvest
Further asset restructuring, with the restructuring of 120 hotels, of which
85 hotels in Europe transferred to Grape Hospitality
12 hotels transferred to Huazhu
Preparation of the project to turn HotelInvest into a subsidiary
HotelServices
Acquisition of the Fairmont Raffles Hotels International Group, with 98% support at the Shareholders' Meeting of July 12, 2016
Recruitment of 1,600 independent hotels, gradually integrated into the marketplace accorhotels.com
Continued implementation of the digital plan
Creation of a world leader in luxury residential rentals
Acquisition of onefinestay, the world leader in luxury serviced home rentals
Acquisition of 30% of Oasis Collections, a digital platform offering a selection of apartments and associated services
Acquisition of 49% of Squarebreak, an innovative digital platform offering upscale villas in France
Sustained revenue growth
re porte d) | (LFL) | |||
HotelServic es | 632 | 658 | 4.1% | 5.9% |
HotelInvest | 2,373 | 2,205 | (7.1%) | 0.5% |
Holding & Intercos | (279) | (265) | 5.0% | 1.7% |
Tota l | 2 , 7 2 6 | 2 , 5 9 8 | (4 . 7 % ) | 2 , 0 % |
In €million H 1 2 0 15 H 1 2 0 16 Change (a s
Cha nge
Consolidated first-half 2016 revenue amounted to €2,598 million, up 2.0% year- on-year at constant scope of consolidation and exchange rates. The increase resulted from favorable business levels in most of the Group's key markets: Northern, Central and Eastern Europe (NCEE: +4.1%), Asia-Pacific (ASPAC:
+4.8%), Americas (+1.7%) and the Mediterranean, Middle East, Africa (MMEA:
+3.2%).
Germany and the United Kingdom were the main drivers in Northern, Central and Eastern Europe, delivering revenue growth of 4.3% and 4.4% respectively in the first half.
The Iberian Peninsula drove growth in the MMEA area, with revenue up 11.5%.
Revenue was down 2.6% in France (RevPAR: -2.2%), with a very pronounced drop in Paris (RevPAR: -12.0%), still affected by the events of November 13, 2015, as well as floods and strikes more recently, in May and June 2016. Regional cities reported excellent first-half activity (RevPAR: +6.0%), thanks to Euro 2016.
Revenue in the Americas was up 1.7%, driven chiefly by dynamic growth in Argentina (+57.2%), Mexico (+20.6%), Canada (+9.7%), Peru (+4.6%) and Chile (+1.4%), offsetting slower business in Brazil (-5.5%).
Revenue by business and region in H1 2016
In € million
HotelServices Revenues (€m)
Change
HotelInvest Revenues (€m)
Change
H1 2015 | H1 2016 | Comp. | H1 2015 | H1 2016 | LFL | |
France | 167 | 168 | 1.4% | 770 | 734 | (3.6%) |
NCEE | 158 | 168 | 9.6% | 1,079 | 1,009 | 3.1% |
MMEA | 67 | 69 | 3,0% | 206 | 203 | 3.5% |
Asia-Pacific | 175 | 180 | 7.8% | 134 | 106 | (0.4%) |
Americas | 52 | 48 | 7.5% | 184 | 153 | 0.2% |
Worldwide structures | 14 | 26 | 2.8% | 0 | 0 | N/A |
Total(1) | 632 | 658 | 5.9% | 2,373 | 2,205 | 0.5% |
Of which €265 million in intra-Group revenue and holding
Reported revenue for the period reflected the following factors:
Development, which added €47 million to revenue and 1.7% to growth, with the opening of HotelInvest properties and acquisitions during the first half.
Disposals, which reduced revenue by €143 million and growth by 5.2%.
Currency effects, which had a negative impact of €86 million (-3.2%), resulting mainly from declines in the Brazilian real (€29 million), the British pound (€17 million) and the Australian dollar (€13 million).
Cha nge (a s | Cha nge | |||
re porte d) | (LFL) (1) | |||
Revenue | 2,726 | 2,598 | (4.7%) | 2.0% |
EBITDAR(2) | 837 | 763 | (8.8%) | (2.3%) |
EBITDAR margin | 30.7% | 29.4% | (1.3 pt) | (1.4 pt) |
EBIT | 263 | 239 | (8.9%) | (4.0%) |
In € million H1 2015 H1 2016
Operating profit before tax and non-recurring
items and non-recurring items 239 143 - - Net profit before profit/(loss) from
discontinued operations | |||
Profit/(loss) from discontinued operations | (1) | (0) | - - |
Net profit, Group share | 91 | 74 | - - |
91 75 - -
Like-for-like: at constant scope of consolidation and exchange rates
Earnings before interest, taxes, depreciation, amortization and rental expense
In € million | HotelServices | HotelInvest | Holding & AccorHotels Intercos | |
Revenue | 658 | 2,205 | (265) | 2,598 |
EBITDAR | 177 | 631 | (45) | 763 |
EBITDAR margin | 26.9% | 28.6% | N/A | 29.4% |
EBITDA | 163 | 286 | (44) | 405 |
EBITDA margin | 24.8% | 13,0% | N/A | 15.6% |
EBIT | 141 | 145 | (47) | 239 |
EBIT margin | 21.5% | 6.6% | N/A | 9.2% |
H1 2015 EBIT | 167 | 133 | (37) | 263 |
H1 2015 EBIT margin | 26.3% | 5.6% | N/A | 9.6% |
The consolidated EBIT margin was down slightly at 9.2%. The HotelServices margin contracted by 4.9 points due to the ramp-up of the digital plan, and investments related to the marketplace and onefinestay.
The HotelInvest margin increased by 1.0 points to 6.6%, driven by further restructuring of the asset portfolio.
Accor SA published this content on 27 July 2016 and is solely responsible for the information contained herein.
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