Orbis : Increasing operating indicators were observed in all the countries of the Eastern Europe where Orbis operated hotels

Orbis_Komunikat prasowy_EN_wyniki 1Q2016_F Press Release

Warsaw, 28th April 2016

Increasing operating indicators were observed in all the countries of the Eastern Europe where Orbis operated hotels. Following a very successful 2015 year, we continue achieving solid operational and financial results in 1Q 2016. Positive results are driven by Orbis strategy put in place in favorable economic results in the region. The Group remains focused on three main pillars: People - building organization based on our employees' talents and putting a hotel guest in the center of each of our actions; Performance - moving towards operating excellence and best quality of services; and Portfolio - expanding hotel network in the region and further balance sheet optimization.- said Gilles Clavie, President and CEO of Orbis S.A. Financial and operating results

Orbis revenue increased up to EUR 56.8 million, by 7.9% comparing to previous year figures. The Group EBITDAR totaled EUR 11.8 million and operating income (EBITDA) amounted to EUR 6.1 million, which represents a significant growth by EUR 1.9 million in the 1Q.

In 1Q 2016 very positive operational results of the Orbis Group are confirmed by 8.1% RevPAR growth like-for-like which amounted to EUR 26.2. This result was achieved mainly

due to increase of the average room rate (ARR) which stood at EUR 47 like-for-like (up by 4.1% in 1Q 2016). The occupancy rate amounted to 55.8% (up by 2.1 p.p. compared to last year results). Increasing operating indicators were observed in all the countries of the Eastern Europe where Orbis operated hotels.

Portfolio Development & Asset Management

In the 1Q Orbis Group was very active in developing its network. The Company signed 5 new management agreements for new hotels to be located in Warsaw, Budapest and Sofia. The total of 705 hotel rooms will be added to our network in the near future. Furthermore, in 2016, 7 new hotels (702 rooms in total) will join the group based on already signed franchise agreements. Apart from franchise & management expansion Orbis plans to complete its own development project i.e. Mercure Kraków Old Town (200 rooms) and ibis Gdańsk (120 rooms), which will be opened in the second half of 2016.

In line with asset management plan in 1Q 2016 Orbis finalized a buy-back transaction of its two leased hotels: Mercure Budapest City Center and ibis Budapest Heroes' Square. This step allows reducing leasing costs and a more effective hotel management. Some further potential buy-back transactions can occur in the future. With the objective of optimizing its asset portfolio the Company has also signed preliminary sale and franchise-back agreements for its non-strategic hotel Mercure Mrągowo Resort & Spa. The hotel is already operated by the new investor.

Total CAPEX amounting to PLN 33.1 million was spent during the quarter to finance buy- back transactions, development projects and modernization works of which PLN 3.2 million was spent on financing hotel modernization and new development projects.

Solid operating performance and good cash flow supported by stable positive forecasts for the near future enabled the Management Board to give recommendation to the Supervisory Board on the dividend payment at PLN 1.5 per share.

We believe that the very good Company performance in 1Q will be continued in the course of the year and we will deliver solid results that will translate into added value for our shareholders.- summarized Gilles Clavie

Financial and operating results

Orbis Hotel Group	1Q 2016 like-for-like	1Q 2015 like-for-like	change
Operating

Occupancy rate %	55.8%	53.7%	2.1 p.p.
Average Room Rate without VAT in EUR	47.0	45.2	4.1%
Revenue per Available Room in EUR	26.2	24.3	8.1%
Financial m EUR
Revenue	56.8	52.6	7.9%
EBITDAR	11.8	9.8	19.9%
EBITDA operating	6.1	4.2	44.8%
Income before tax	-3.6	-5.1	30.2%

Contact: Katarzyna Gronek

Press Office Orbis SA

T. +48 22 829 38 03; Katarzyna.Gronek@accor.com

The Orbis Hotel Group is the largest network of hotels in Poland and in Eastern Europe. Orbis comprises more than 100 hotels and is the sole licensor of all AccorHotels brands in 16 countries including Bosnia and Herzegovina, Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Macedonia, Moldova, Montenegro, Poland, Romania, Serbia, Slovakia and Slovenia. It offers a total of almost 19,000 rooms. The hotels operate under the brand names Sofitel, Pullman, MGallery, Novotel, Mercure, ibis, ibis Styles and ibis budget. These brands, recognized throughout the world, provide a quality of service to various standards, ranging from luxury 5-star to budget 1-star hotels.

AccorHotels is a Group united by a shared passion for hospitality and driven by a shared promise to make everyone Feel Welcome. Over 190,000 women and men in 3,900 AccorHotels establishments look after thousands of guests every day in 92 countries. AccorHotels is the world's leading hotel operator and offers its customers, partners and employees:

• its dual expertise as a hotel operator and franchisor (HotelServices) and a hotel owner and investor (HotelInvest);

• a large portfolio of internationally renowned brands covering the full spectrum, with luxury (Sofitel, Pullman, MGallery, Grand Mercure, The Sebel), midscale (Novotel, Suite Novotel, Mercure, Mama Shelter, Adagio) economy (ibis, ibis Styles, ibis budget, adagio access and hotelF1) establishments;

• a powerful marketplace and loyalty program Le Club AccorHotels

• almost half a century of commitment to corporate citizenship and solidarity with the PLANET 21 program.

Accor SA shares are listed on the Euronext Paris exchange (ISIN code: FR0000120404) and traded in the USA on the OTC marketplace (Code: ACRFY)

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