Press Release
Paris, July 27, 2017
Increase in earnings* driven by strong business and dynamic development* * *
- Revenue up 33.5% to €922 million (+8.3% LFL)
- EBIT up 68.0% to €226 million (+33.9% LFL)
- 23,000 rooms opened during the first half (115 hotels)
* * *
Full-year 2017 EBIT target between €460 million and €480 millionSébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, said:
AccorHotels' results for first-half 2017 are particularly solid. They reflect growth in our hotel business, the rapid integration of recently acquired brands, our persistently dynamic development and the ramp-up of our new businesses. In this way, we are increasing our market share and consolidating our global leadership while profoundly transforming our business model. The separation of AccorInvest into a stand-alone legal entity has been completed. Discussions about the opening of this business to outside investors are ongoing. Our pursuit of this growth strategy enables us to aim for another year of record growth in 2017.
* AccorHotels results excl. AccorInvest (IFRS 5)
Significant events and strategic transactions in H1 2017Solid results in most of the Group's key markets, particularly with the recovery in France & Switzerland
Development corresponding to 23,000 additional rooms (115 hotels), of which 94% under franchise agreements and management contracts (including 7,000 rooms from Rixos Hotels)
Portfolio of 4,195 hotels (597,132 rooms) at the end of June 2017
Pipeline of 910 hotels and 167,000 rooms, of which 81% in emerging markets and 45% in the Asia-Pacific region
AccorInvest
Approval of the partial contribution of assets held by Accor SA in AccorInvest at the Extraordinary General Meeting of June 30, 2017
Transfer of the remaining assets to AccorInvest
HotelServices
Implementation of the strategic partnership with Rixos Hotels in the international resort segment
Consolidation of AccorHotels' leadership in Brazil via the signature of an agreement with BHG relating to 26 hotels (approximately 4,400 rooms)
Acquisition of 40% of Potel & Chabot, French leader in prestige event services
Acquisition of 31% of Noctis, which specializes in events, foodservice and entertainment
New businesses
Acquisition of TravelKeys, consolidating the Group's position as global leader in the luxury serviced home rental market with concierge services
Acquisition of Availpro, following on from Fastbooking in 2015, creating the European leader in digital services for independent hotels
Acquisition of VeryChic, a digital platform for the private sale of hotel rooms and apartments, cruises, stays and luxury packages
On July 12, 2016, AccorHotels announced its intention to turn HotelInvest into a subsidiary and dispose of a majority of it, united under AccorInvest. In accordance with IFRS 5, the assets held for sale have been placed in a separate item on the balance sheet and in the income and cash flow statements. The financial data presented in this press release reflect this accounting treatment.
AccorHotels is now structured around the following segments:
HotelServices, which houses the hotel franchisor and operator business, as well as activities related to hotel operations
New businesses, which at this stage brings together FastBooking and Availpro, onefinestay, TravelKeys, VeryChic and John Paul (previously part of HotelServices)
Hotel assets, which include HotelInvest assets not transferred to AccorInvest, mainly corresponding to Orbis, hotels operated under variable lease agreements based on a percentage of EBITDAR (also known as management leases) and a few assets intended to be restructured before the Booster transaction closes
Holding and Intercos, which includes inter-company eliminations between each segment and the cost of central functions
HotelServices is organized into six operating regions:
France & Switzerland
Europe (including Southern Europe)
Middle East & Africa
Asia-Pacific
North America, Central America & the Caribbean
South America
Consolidated first-half 2017 revenue amounted to €922 million, up 8.3% year- on-year at constant scope of consolidation and exchange rates (+33.5% on a reported basis).
(a s re porte d) | (LFL) | |||
HotelServices | 645 | 839 | 30.1% | 6.0% |
New businesses | 13 | 43 | N/A | 16.4% |
Hotel assets | 280 | 297 | 6.1% | 4.6% |
Holding & Intercos | (248) | (258) | N/A | N/A |
Tota l | 691 | 922 | 3 3 . 5 % | 8 . 3 % |
In €millions H 1 2 0 16 H 1 2 0 17Change
Cha nge
Reported revenue for the period reflected the following factors:
Changes in the scope of consolidation (acquisitions and disposals) had a positive impact of €165.9 million (+24.1%), thanks to the contributions of Raffles, Fairmont, Swissôtel, Availpro, onefinestay, TravelKeys, VeryChic and John Paul.
Currency effects had a positive impact of €8 million, attributable primarily to the positive effect of the Brazilian real (+€12 million) and the Australian dollar (+€6 million), partially offset by the negative impact of the Egyptian pound (-€14 million).
Revenue by business and region in H1 2017
HotelServices reported a6.0% increase in like-for-like revenue (30.1% on a reported basis) to €839 million. This increase reflected strong activity in Asia- Pacific (+9.3%), Europe (+8.1%), Middle East & Africa (+4.7%) and France & Switzerland (+3.7%). The North America, Central America & the Caribbean and South America regions were down 2.9% and 5.1% respectively.
H1 2016 | H1 2017 | Change (LFL) |
181 | 194 | 3.7% |
181 | 200 | 8.1% |
42 | 61 | 4.7% |
180 | 225 | 9.3% |
17 | 77 | (2.9)% |
30 | 34 | (5.1)% |
13 | 49 | 2.8% |
645 | 839 | 6.0% |
In € millions
France & Switzerland Europe
M iddle East & Africa (M EA) Asia-Pacific
North America, Central America
& the Caribbean South America
Worldwide structures
Total
The Group's RevPAR was up 3.8% overall.
In France & Switzerland, revenue was up 3.7% on a like-for-like basis. Up 2.0%, RevPAR was buoyed by an occupancy rate up 2.7 points thanks to the return of foreign tourists to Paris. As a result, Paris posted the strongest increase in RevPAR (+4.3%), driven notably by very positive trends in the luxury/upscale segment (+7.2%).
Europe posted like-for-like revenue growth of 8.1% thanks to RevPAR growth of 5.9%.
- Business was once again extremely strong in the United Kingdom (+7.1%), a market that remains attractive to British and foreign tourists, especially London.
Accor SA published this content on 27 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 July 2017 07:49:08 UTC.
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