Home » Financial » Currently Reading:

Increase in earnings* driven by strong business and dynamic development

July 31, 2017 Financial No Comments Email Email

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

Solid growth in revenue

Consolidated first-half 2017 revenue amounted to €922 million, up 8.3% yearon-year at constant scope of consolidation and exchange rates (+33.5% on a reported basis).

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 a 6.0% increase in like-for-like revenue (30.1% on a reported basis) to €839 million. This increase reflected strong activity in AsiaPacific (+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.

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.

– RevPAR increased by 1.1% in Germany on a weak trade fair calendar in April and June. In Eastern Europe, it grew by 7.8%, reflecting sustained development in that region.

– The Iberian Peninsula continued its recovery, recording strong business levels once again, with RevPAR growth of 14.9%. The Asia-Pacific region also performed very well, posting 9.3% growth driven by the luxury segment (RevPAR up 6.5%) and persistently dynamic development.

The Middle East & Africa region recorded a 4.7% increase in revenue, driven by a 3-point rise in the occupancy rate and a 4.5% increase in RevPAR. The Middle East posted a record level of revenue during the first half (+6.6%), thanks notably to the Sofitel Gezirah, where RevPAR doubled during the period. Africa’s performance (-0.7%), on the other hand, was impacted by challenging security conditions, particularly in Côte d’Ivoire and Angola. North America, Central America & the Caribbean experienced a slowdown due to a significant decline in arrivals of foreign tourists in major cities in the United States. The 2.9% like-for-like decline in revenue does not include Fairmont; it only takes into account the hotels included in the scope of consolidation in H1 2016, which are more exposed to markets such as New York and Miami. Fairmont, which benefits from the good balance of its portfolio between the United States and Canadian markets and a strong presence in American cities with less exposure to international customers, recorded RevPAR growth of 7% in the United States and 15% in Canada. Lastly, the situation remains difficult in South America, and more precisely in Brazil (-9,7%). Regional revenue was down 5.1%, with Rio facing a particularly challenging situation (occupancy rate down 13 points), reflecting the overcapacity generated by the Olympic Games and a depressed socioeconomic environment. HotelServices’ development continues at a rapid pace. AccorHotels opened 115 new hotels in the first half, representing more than 23,000 rooms; it is forecasting organic growth of 40,000 rooms in 2017. At the end of June 2017, the Group’s pipeline comprised 910 hotels and 167,000 rooms, of which 81% in emerging markets and 45% in the Asia-Pacific region.

In the six months to end-June 2017, new businesses (concierge services, luxury home rentals and digital services for independent hotels) recorded revenue growth of 16.4% on a like-for-like basis to €43 million, up from €13 million at the end of June 2016. John Paul continued its integration within the Group, notably taking charge of Customer Care and the steering of the AccorLocal project, which is currently being tested in Paris and regional cities in France.

At the same time, the acquisition of TravelKeys round out onefinestay’s offer in the luxury segment, where the Group added seven new destinations during the first half. Revenue derived from the hotel assets held by the Group, mainly in Central Europe and under lease in Brazil, also grew by 4.6%. This good overall performance reflects contrasting situations between Brazil, where business is still challenging, and Central Europe, which remains very dynamic.

For morinformation : AccorHotels_PR_H12017Results_EN

Comment on this Article:







Time limit is exhausted. Please reload CAPTCHA.

Platinium Partnership

ADVERTISEMENTS

Elite Partnership Sponsors

ADVERTISEMENTS

Premier Partnership Sponsors

ADVERTISEMENTS

Official Media Event Partner

ADVERTISEMENTS

Global Travel media endorses the following travel publication

ADVERTISEMENTS

GLOBAL TRAVEL MEDIA VIDEOS