Press Release
Paris - February 22, 2017
Strong growth in 2016 earnings with increased market share and international reach* * *
Revenue up 0.9% to €5,631 million (+2.2% LFL) EBIT up 4.6% to €696 million (+3.8% LFL) Net profit up 8.1% to €266 millionSébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, said:
AccorHotels has posted an excellent performance for 2016 in a challenging environment, in particular with record levels of EBIT and numbers of hotel rooms opened. Thanks to the efforts made by our teams around the world, we have implemented strong operational levers, which enabled growth in earnings to outpace that in revenue. We have ventured out to conquer new markets and offer new services thereby consolidating our leadership position and opening up new horizons for our clients. Carrying out our project to turn HotelInvest into a subsidiary in 2017 will give us significant headroom to seize the numerous opportunities provided by the rapid transformation of our industry."
Significant events and strategic transactions in 2016Robust growth in most of the Group's key markets
Record development, with 81,042 rooms (347 hotels), of which 89% under management contracts (including 117 hotels and 43,481 rooms via Fairmont Raffles Hotels International) and franchise agreements
Acquisition of the Fairmont Raffles Hotels International Group, with 98% support at the Shareholders' Meeting of July 12, 2016
Acquisition of 100% of onefinestay, world leader in luxury serviced home rentals, and 79% of John Paul, world leader in concierge services
HotelInvest
Continued rotation of assets, with 148 hotels, of which:
85 hotels in Europe transferred to Grape Hospitality
12 hotels in China transferred to Huazhu
Launch of the Booster project to turn HotelInvest into a subsidiary and sell a majority of its capital
Agreement with a subsidiary of the Abu Dhabi Investment Authority (ADIA) to restructure a portfolio of 31 hotels (4,097 rooms) in Australia
HotelServices
Recruitment of 2,200 independent hotels, of which 1,800 integrated into the accorhotels.com marketplace
Announcement of a strategic partnership with 25Hours Hotels
Announcement of a strategic partnership with Banyan Tree
Creation of the JO&JOE lifestyle brand
Continued deployment of the five-year digital plan (€173 million committed out of €250 million since 2014)
Luxury private rentals
Acquisition of onefinestay, the world leader in luxury serviced home rentals, of 49% of Squarebreak and of 28% of Oasis Collections
In February 2017, start of exclusive negotiations with Travel Keys to create the world leader in the rental of luxury private villas
On July 12, 2016, AccorHotels announced its intention to dispose of its real estate operations, united within HotelInvest, at the end of first-half 2017.
In accordance with IFRS 5, assets held for sale have been placed in a separate item on the balance sheet, in the income statement and in cash-flow statement.
However, to facilitate comparison with the previous year and the objectives announced by the Group, all comments in this press release regarding business trends and profitability are formulated on the basis of consolidated figures before separation of these operations in the income statement. The tables in the appendix show the reconciliation between the consolidated financial statements and the figures provided before application of IFRS 5.
Sustained revenue growth(a s re porte d) | ||||
HotelServices | 1,339 | 1,567 | 17.0% | 6.2% |
HotelInvest | 4,815 | 4,617 | - 4.1% | 0.6% |
Holding & Intercos | (574) | (553) | 3.5% | 2.2% |
Total | 5, 581 | 5, 631 | 0. 9% | 2. 2% |
In €millions 20 15 20 16 Change
Cha nge (LFL)
Consolidated 2016 revenue amounted to €5,631 million, up 2.2% from 2015 at constant scope of consolidation and exchange rates (like-for-like), and up 0.9% as reported. The increase resulted from healthy business levels in most of the Group's key markets: Asia-Pacific (+5.5%), Americas (+4.7%), Northern, Central and Eastern Europe (NCEE: +4.1%), and Mediterranean, Middle East and Africa (MMEA: +3.8%).
Growth in the Asia-Pacific region was led by the development over the past three years of 252 hotels operated under franchise agreements or management contracts and by RevPAR growth of 4.9% in 2016.
Despite a challenging business environment in Brazil (-2.4%), the Americas reported an improved performance, driven notably by RevPAR growth of 17.6% in Mexico.
Eastern Europe, the United Kingdom and Germany were the main business drivers in Northern, Central and Eastern Europe, posting revenue growth of 7.6%, 4.3% and 3.7% respectively for the year.
Revenue was down 2.8% in France in 2016. Business was very challenging in Paris (RevPAR: -13.2%), where demand was affected by recent events, while hotels outside the capital put in a solid performance for the year (RevPAR: +4.2%).
Revenue by business and region in 2016
In € millions
Reven
HotelServices ue (€m)
LFL(2)
HotelInvest Revenue (€m)
LFL(2)
2015
2016
Change
2015
2016
Change
France
348
346
-0.8%
1,545
1,398
-4.2%
NCEE
338
369
10.8%
2,227
2,082
2.8%
MMEA
137
164
4.4%
432
413
3.5%
Asia-Pacific
366
416
8.1%
274
344
0.4%
Americas
101
196
9.8%
337
380
3.8%
Worldwide structures
49
77
5.9%
N/A
N/A
N/A
Total(1)
1,339
1,567
6.2%
4,815
4,617
0.6%
Of which €553 million in intra-Group revenue and holding
Like-for-like: at constant scope of consolidation and exchange rates
Reported revenue for the period reflected the following factors:
Development, which added €418 million to revenue and 7.5% to growth, with 81,042 additional rooms (347 hotels), of which 89% under management contracts or franchise agreements. At December 31, 2016, the HotelServices portfolio comprised 4,144 hotels and 583,161 rooms, of which 31% under franchise agreements and 69% under management contracts, including the HotelInvest portfolio.
Disposals, which reduced revenue by €355 million and growth by 6.4%.
Currency effects, which had a negative impact of €136 million (-2.4%), resulting mainly from declines in the British pound (€72 million), the Argentine peso (€16 million), the Brazilian real (€12 million) and the Egyptian pound (€8 million).
(as reported) | (LFL)(1) | |||
Revenue | 5,581 | 5,631 | 0.9% | 2.2% |
EBITDAR(2) | 1,780 | 1,781 | 0.1% | 1.5% |
EBITDAR margin | 31.9% | 31.6% | -0.3 pt | -0.3 pt |
EBITDA | 986 | 1,037 | 5.2% | 4.0% |
EBITDA margin | 17.7% | 18.4% | 0.7pt | +0.3pt |
EBIT | 665 | 696 | 4.5% | 3.8% |
In € millions 2015 2016 Change
Change
Operating profit before tax and non-recurring
items 605 571 - -
Net profit before profit/(loss) from
discontinued operations | |||
Profit/(loss) from discontinued operations | (1) | (0) | - - |
Net profit, Group share | 244 | 265 | - - |
246 266 - -
(1) Like-for-like: at constant scope of consolidation and exchange rates
Accor SA published this content on 22 February 2017 and is solely responsible for the information contained herein.
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