Accor: Third Quarter 2005 sales
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Accor: Third Quarter 2005 sales
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Category: Worldwide -
This is a press release selected by our editorial committee and published online for free on 2005-10-28
Third Quarter 2005 sales: up 7,9%
Nine-Month: up 7,2%
Paris, October 26, 2005
(in Euros million) 2004
IFRS
2005
IFRS
% change
(reported)
% change
(like-for-like)*
Hotels
Upscale and Midscale 2,064 2,117 +2.6% +2.9%
Economy 937 1 027 +9.5% +4.2%
Economy US 719 728 +1.3% +4.7%
Services 378 442 +17.1% +13.0%
Other businesses 1,155 1,315 +13.9% +6.4%
Total Group 5,253 5,629 +7.2% +4.9%
* Based on constant scope of consolidation and exchange rates
Nine-Month revenues
Accor’s consolidated revenues rose by 7.2% to Euros 5,629 million in the nine months that
ended September 30, 2005. At constant scope of consolidation and exchange rates, the
increase was 4.9%.
Expansion accounted for 4.4% of revenue growth for the period, led by the Economy Hotel
segment (whose contribution to revenues was +5.2%) and Upscale and Midscale Hotels
(+2.7%).
Asset disposals had a negative 2.4% impact on growth. As part of the strategy of selling nonperforming
Hotel assets, 31 hotels were sold, reducing segment revenues by Euros 71
million for the period.
The appreciation of mainly Brazilian real against the euro resulted in a positive 0.3%
currency effect for the period.
Third quarter
In the third quarter alone, revenues totaled Euros 1,986 million up 7.9% on a reported basis.
Revenues in the third quarter rose by 4.6% like-for-like in line with the first half’s 5.0% rise.
Like-for-like third-quarter revenues were up 3.9% for Hotels, compared with 3.4% in the first
half, and 13.9% for Services, versus a 12.6% rise in the first six months.
Upscale and Midscale Hotels
Upscale and Midscale Hotel revenues rose a like-for-like 3.5% in the third quarter, slightly
faster than the first half’s 2.5% increase.
The 2.9% increase in segment revenues for the first nine months was led by sharp growth in
the United States, Asia and South America.
In the United Kingdom, revenues were up 4.7% for the 9 month period, despite the impact of
terrorist attacks on third-quarter tourist traffic in London.
In France, the strategic marketing focus on business travelers drove an average 4.0%
increase in room rates for the nine-month period.
Growth remained moderate in Germany and the Benelux countries.
Economy Hotels (outside the United States)
The Economy Hotel segment continued to make solid gains, with like-for-like revenues rising
4.0% in the third quarter alone and 4.2% for the nine-month period.
In France, the rate increase strategy led to a 4.0% rise in like-for-like revenues for the first
nine months. Elsewhere in Europe, revenues increased by 3.2% like-for-like. As in the
Upscale and Midscale segment, the United Kingdom experienced a temporary decline in
tourist traffic to London during the summer.
Economy Hotels in the US
Like-for-like revenues in the US Economy Hotel segment rose by 4.6% in the third quarter
alone and 4.7% over the first nine months.
Implementation of the Red Roof Inn renovation program continued, with 86 hotels renovated
as of September 30 and 19 currently in renovation.
Hurricane Katrina had no impact on revenues for the period.
Services
Revenues from the Services business rose by 13.9% like-for-like and 22.8% on a reported
basis in the third quarter. For the full nine months, they were up a strong 13.0% like-for-like
and 17.1% as reported, led particularly by favorable changes in legislation in Belgium (up
20.8% like-for-like), the United Kingdom (up 19.5%) and Venezuela (up 56.4%).
Thanks to the appreciation of the Brazilian real against the euro, the currency effect had a
positive 2.8% impact on nine-month revenue growth.
Travel agencies
Travel agency revenues increased 2.9% like-for-like in the third quarter alone, lower than the
first half’s 8.7% rise. The decline reflected a stabilization in the positive impact of synergies
from recent acquisitions, as well as comparison base less favorable than in first half 2005.
For the full nine-month period, travel agency revenues were up 6.5% like-for-like.
Casinos
Nine-month revenues for the Casinos business rose 2.0% like-for-like, but were up a
reported 47.1% due to the creation of Groupe Lucien Barrière in December 2004.
The 5.3% increase in like-for-like revenues during the third quarter resulted mainly from nonrecurring
sales on traditional games. Excluding these items, revenue growth is trending
upwards at 1 to 2%.
Other businesses
Like-for-like revenues from the restaurant business were up 6.6% for the first nine months of
the year.
Revenues generated by onboard train services increased 8.1% like-for-like.
Conclusion
Business in the third quarter confirmed first-half trends.
The rise in nine-month revenues was sustained in Economy Hotels outside the US (up
4.2%), US Economy Hotels (up 4.7%), Upscale and Midscale Hotels in the United States,
Latin America, Asia and the United Kingdom (up 6.7%), Services (up 13.0%) and other
businesses (up 6.4%). Together, these segments account for 75% of the Accor business
portfolio.
The increase in revenues in the Upscale and Midscale Hotel segment was more moderate in
Continental Europe, where the marketing strategy in France is producing results.
With third quarter revenues in line with forecast, Accor is maintaining its full-year target of
Euros 590-610 million in profit before tax (an increase of 15 to 20%) and around Euros 300
million in net income (up 30%) as released at first-half results.
*****
With 168,000 people in 140 countries, Accor is the European leader and one of the world's
largest groups in travel, tourism and corporate services, with two major international
activities:
- hotels: over 4,000 hotels (more than 466,000 rooms) in 92 countries, casinos, travel
agencies, and restaurants;
- services to corporate clients and public institutions: 19 million people in 34 countries use
a broad range of services (food vouchers, people care and services, incentive, loyalty
programs) engineered and managed by Accor.
Contacts
Jacques Charbit Marie-Claire Camus
+33 (0) 1 45 38 87 52 +33 (0) 1 45 38 84 85
Further information on Accor is available on Internet at accor.com
Revenues
2004
Revenues
2004 IFRS
Revenues
2005 IFRS
Revenues
2004
Revenues
2004 IFRS
Revenues
2005 IFRS
Revenues
2004
Revenues
2004 IFRS
Revenues
2005 IFRS
Revenues
2004
Revenues
2004 IFRS
Revenues
2005 IFRS
HOTELS
Upscale and Midscale 646 225 630 510 631 473 758 274 734 784 758 144 1 404 499 1 365 294 1 389 617 712 327 699 012 727 697
Economy 276 826 275 834 294 400 324 781 323 960 361 011 601 608 599 794 655 411 338 623 337 751 371 140
Economy US 202 220 202 220 200 753 246 658 246 658 246 767 448 879 448 879 447 521 269 726 269 726 280 118
Total HOTELS 1 125 272 1 108 564 1 126 626 1 329 714 1 305 402 1 365 923 2 454 985 2 413 966 2 492 549 1 320 677 1 306 489 1 378 955
SERVICES 121 152 123 395 139 716 127 680 130 287 150 374 248 832 253 682 290 090 121 338 124 161 152 429
Other Businesses
Travel Agencies 92 357 92 728 113 469 111 314 111 822 125 421 203 671 204 550 238 890 125 294 125 736 120 103
Casinos 53 341 53 289 76 070 53 200 53 148 75 597 106 541 106 437 151 667 55 051 54 998 85 832
Restauration 109 504 111 624 118 125 113 061 115 108 133 275 222 565 226 732 251 400 103 545 106 058 117 804
On-board train services 58 669 58 669 59 638 65 049 65 049 68 842 123 718 123 718 128 479 70 080 70 080 72 158
Other 37 650 37 920 42 102 44 549 44 832 47 859 82 199 82 752 89 960 53 719 54 010 58 930
Total other businesses 351 521 354 230 409 404 387 173 389 958 450 993 738 694 744 189 860 397 407 689 410 883 454 827
Total 1 597 945 1 586 189 1 675 746 1 844 566 1 825 647 1 967 290 3 442 511 3 411 837 3 643 036 1 849 704 1 841 532 1 986 212
NB: Revenue from Frantour previously in « Other » has been reclassified in « Travel Agencies » for better comparison purpose
Quarter 1 Quarter 2 Half Year Quarter 3
Change
Report. IFRS
Change
L/L % (*)
Change
Report. IFRS
Change
L/L % (*)
Change
Report. IFRS
Change
L/L % (*)
Change
Report. IFRS
Change
L/L % (*)
Change
Report. IFRS
Change
L/L % (*)
HOTELS
Upscale and Midscale 0.2% 0.5% 3.2% 4.2% 1.8% 2.5% 4.1% 3.5% 2.6% 2.9%
Economy 6.7% 3.5% 11.4% 4.9% 9.3% 4.3% 9.9% 4.0% 9.5% 4.2%
Economy US -0.7% 4.5% 0.0% 5.0% -0.3% 4.8% 3.9% 4.6% 1.3% 4.7%
Total HOTELS 1.6% 2.0% 4.6% 4.5% 3.3% 3.4% 5.5% 3.9% 4.1% 3.6%
SERVICES 13.2% 11.8% 15.4% 13.4% 14.4% 12.6% 22.8% 13.9% 17.1% 13.0%
Other Businesses
Travel Agencies 22.4% 7.7% 12.2% 9.6% 16.8% 8.7% -4.5% 2.9% 8.7% 6.5%
Casinos 42.7% 3.9% 42.2% -3.2% 42.5% 0.3% 56.1% 5.3% 47.1% 2.0%
Restauration 5.8% 4.1% 15.8% 13.9% 10.9% 9.1% 11.1% 1.4% 10.9% 6.6%
On-board train services 1.7% 6.2% 5.8% 10.8% 3.8% 8.6% 3.0% 7.1% 3.5% 8.1%
Other 11.0% 15.5% 6.8% 3.7% 8.7% 9.1% 9.1% 6.9% 8.9% 8.2%
Total other businesses 15.6% 6.6% 15.7% 8.6% 15.6% 7.6% 10.7% 4.1% 13.9% 6.4%
Total 5.6% 3.8% 7.8% 6.0% 6.8% 5.0% 7.9% 4.6% 7.2% 4.9%
(*) L/L : Like for Like
Septembre-end (YTD) Quarter 1 Quarter 2 Half Year Quarter 3
Revpar by segment
Revpar by country
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