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Solid growth in first-half 2013, supported by a favorable calendar of events in the second quarter

July 19, 2013 Financial No Comments Email Email
  • Gross revenue1 up 6.7% to €5.6 billion, thanks to management and franchise expansion.
  • First-half revenue up 1.8% increase like-for-like, including 3.3% in the second quarter due to favorable prior-year comparatives.
  • Robust 15.9% growth in first-half revenue from management and franchise fees
  • Solid revenue growth across all segments, led by good resilience in Europe and boosted by emerging markets.
  • 9,940 new rooms opened during the first-half, 80% of which under asset-light structures

Rise in gross revenue

Lifted by the transformation of the business model, the Group’s gross revenue rose by 6.7% to €5.6 billion in the first-half, with a growing contribution from managed and franchised hotels.

First-half 2013 revenue: €2,694 million, up 1.8% like-for-like

At comparable scope of consolidation and exchange rates, first-half revenue was up 1.8%, thanks in particular to the robust 15.9% rise in management and franchise fees.

Reported revenue reflected the following factors:

  • Expansion, which added €90 million to revenue and 3.3% to growth, with the opening of 9,940 rooms (77 hotels), of which 80% under management and franchise agreements.
  • Changes in the scope of consolidation due to the assets disposal, which reduced revenue by €127 million and growth by 4.7%.
  • The negative €34 million currency effect, which reduced growth by 1.2%, mainly due to a decline in the Brazilian real, British pound and Australian dollar.

Reported revenue in first-half 2013 totaled €2,694 million, down 0.9%.

Second-quarter 2013 revenue: €1,467 million, up 3.3% like-forlike 

Like-for-like, second-quarter 2013 revenue rose by 3.3%, thanks to a rich calendar of events and favorable prior-year comparatives, both in large cities and provinces across Europe. Revenue was also lifted by a 13.9% growth in management and franchise fees. 

Reported revenue reflected the following factors:

  • Expansion, which added €37 million to revenue and 2.5% to growth, with the opening of 5,312 rooms (45 hotels), of which 75% under management and franchise agreements.
  • Changes in the scope of consolidation, which reduced revenue by €77 million and growth by 5.2%.
  • The negative €18 million currency effect, which reduced growth by 1.2%, mainly due to a decline in the Brazilian real, British pound and Australian dollar.

As reported, second-quarter revenue stood at €1,467 million, down 0.5%. 

  • Upscale & Midscale Hotels: revenue up 3.7% like-for-like

Revenue in the Upscale and Midscale segment rose by 3.7% like-for-like and declined by 1.8% as reported in the second quarter.

The segment’s solid performance was led by emerging markets, with double-digit growth in Latin America (up 13.9%) and Africa-Middle East (up 15.3%). The quarter saw strong resilience in Europe. France, Germany and the United Kingdom benefited from major trade fairs.

The Upscale segment continued to turn in a satisfactory performance, especially the Pullman brand which recorded revenue growth of 12%. The 12.8% increase in management and franchise fees also contributed to the segment’s revenue growth.

Economy Hotels: revenue up 2.4% like-for-like 

Revenue from Economy hotels increased by 2.4% like-for-like and 1.4% as reported in the second quarter. 

While the economic environment in Spain remained challenging, sales in the segment were driven by firm demand in Germany and the United Kingdom and also benefited from a few signs of improvement in Italy and Portugal.

France’s performance improved, compared with the early part of the year. With the exception of Australia and China, emerging markets reported very satisfactory growth. At the same time, the fee-based revenue from management and franchise rose by a very high 18%.

Conclusion: First-half 2013 performance driven by a very dynamic second quarter 

Accor posted strong revenue growth in the first-half, thanks in particular to a rich calendar of events and

favorable prior-year comparatives in the second quarter. This solid performance was also led by the rise in revenue from management and franchise fees, as the Group continued to transform its business model.

First-half 2013 trends are expected to continue during the summer season, with satisfactory business levels in most of the Group’s key markets.

Quarterly Information 

Expansion 

A total of 9,940 new rooms were opened in the first half, of which 80% under asset-light structures and 49% in emerging markets.

Governance – Decision of the Board of Directors 

At its meeting on April 23, 2013, the Board of Directors decided to install a transition executive team, following the departure of Chairman and Chief Executive Officer Denis Hennequin. The team is comprised of Philippe Citerne, Non-Executive Chairman of Accor, Sébastien Bazin, Vice-Chairman of the Board of Directors, and Yann Caillère, Chief Executive Officer.

Upcoming event:

August 28, 2013: 2013 half-year results

See more information at http://www.accor.com

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