ACRFF Accor SA Ltd (PK)

Strong Growth in Prepaid Services: Up 12.9% of Which 13.6% in the Fourth Quarter PARIS, January 15 /PRNewswire-FirstCall/ -- 2008 profit before tax target confirmed at EUR870-890 million, up 12% like-for-like, excluding the impact of the return to shareholders Accor's consolidated revenue totaled EUR7,739 million in 2008, up 2.8% like-for-like[1] compared with the previous year and down 4.7% on a reported basis. Revenue 2007 2008 % change % change (in EUR millions) like-for-like as reported Hotels 5,827 5,767 -1.0% +2.1% Upscale and Midscale 3,323 3,448 +3.7% +2.6% Economy 1,663 1,719 +3.4% +3.2% Economy US 841 600 -28.7%* -2.1% Prepaid Services 885 978 +10.5% +12.9% Other businesses 1,409 994 -29.4%** -0.6% Total 8,121 7,739 -4.7% +2.8% *Reflects the disposal of Red Roof Inn and the EUR/$ currency effect ** Reflects the disposal of Italian and Brazilian Foodservices businesses and Go Voyages. 2008 revenue performance was shaped by the following factors: - 2.8% like-for-like growth. - The strategic refocusing on the Hotels and Prepaid Services businesses (with the disposals of Red Roof Inn, Go Voyages and the Italian and Brazilian foodservices operations) and the continued deployment of the asset-right strategy, which together reduced revenue for the year by EUR865 million or 10.6%. - The expansion strategy, which increased revenue by EUR422 million or 5.2%, including the consolidation of Orbis in the third quarter. - The negative 2.1% currency effect resulting from the weakness of the dollar, the British pound and most South American currencies against the euro. Revenue for the fourth quarter alone came to EUR1,952 million, down a reported 2.5% over the year-earlier period. Like-for-like, revenue was down 1.1% for the quarter, as softening demand in the Hotels business, particularly in the upscale and midscale segments, offset sustained growth in Prepaid Services. Prepaid Services Revenue up 12.9% like-for-like for the year Revenue from the Prepaid Services business amounted to EUR978 million in 2008, an increase of 10.5% as reported and of 12.9% like-for-like. Revenue growth tracked the increase in issue volume, which rose 11.0% to EUR12,696 million from EUR11,436 million in 2007. Acquisitions added 3.7% to growth for the year. However, the currency effect was a negative 2.8%, mainly due to the weakness of the British pound and Latin American currencies. Prepaid Services revenue for the fourth quarter alone stood at EUR285 million, up 9.3% as reported and 13.6% like-for-like. In Europe, revenue rose by 7.7% like-for-like in the fourth quarter. - Revenue in France was up 9.6% like-for-like and 16.8% excluding an adjustment, with increases of 12.2% in meal vouchers and 14.2%* in gift vouchers. - Revenue rose 6.9% like-for-like in the United Kingdom, led by a 16.0% increase in childcare and luncheon voucher products. On the other hand, gift voucher revenue was down 9.2% like-for-like for the period. - Adjusted for the loss of the Onem contract in October 2007, revenue in Belgium was up 5.4%. In Latin America, revenue climbed 22.2% like-for-like over the quarter. In Brazil, like-for-like revenue remained on the strong upward trend that began early in the year, rising 27.7% during the quarter, while the other Latin American countries enjoyed an aggregate 15.9% increase like-for-like. This performance takes into account the 50.5% fall in revenue in Argentina during the quarter following the withdrawal of local payroll tax breaks. Excluding Argentina, revenue growth in Latin America came to 29.7% for the period. *After adjustment for a revenue item recognized in December 2007. Hotels Revenue up 2.1% like-for-like for the year Hotels revenue for the year amounted to EUR5,767 million, up 2.1% like-for-like and down 1.0% as reported, reflecting the following factors: - The 5.1% like-for-like increase in the first six months of the year, when the economy was still favorable, was followed in the third quarter by the first signs of a slowdown, with growth easing to just 1.1% like-for-like on a decline in demand, notably in the United States and Southern Europe. Business conditions further deteriorated in the final quarter, when Hotels revenue contracted by 2.8%. - The sale of Red Roof Inn and other hotel units as part of the asset-right strategy had a negative impact of EUR316 million or 5.4% on revenue for the year. - The expansion strategy added EUR267 million or 4.6% to annual revenue, of which EUR108 million from the consolidation of Orbis (EUR93 million in the Upscale and Midscale Hotels segment and EUR15 million in the Economy Hotels in Europe segment). In all, 28,000 rooms were opened over the period. - The currency effect was a negative 2.3%, stemming mainly from the increased strength of the euro against the dollar and the British pound. Revenue for the fourth quarter alone came to EUR1,438 million, unchanged from the year-earlier period as reported and down 2.8% like-for-like, due primarily to the Upscale and Midscale Hotels segment and the Economy Hotels US business. Upscale and Midscale Hotels 2008 revenue up 2.6% like-for-like Revenue from upscale and midscale hotels amounted to EUR3,448 million in 2008, an increase of 2.6% like-for-like (2.9% excluding the impact of the Rugby World Cup) and of 3.7% as reported. Fourth-quarter revenue down 3.3% like-for-like In a challenging economy, Upscale and Midscale Hotels revenue declined by 3.3% like-for-like in the fourth quarter, compared with a 6.2% increase in the first-half and a 1.8% gain in the third quarter. The revenue impact varied by region: - A first set of countries (including the United Kingdom, Spain, Italy and Portugal), which contribute 31% of segment revenue, are experiencing a deep recession, with a more than 8% decline in like-for-like revenue. - Operations in Germany and France, which account for 54% of segment revenue, are being less impacted by recession, with like-of-like revenue declines of 2 to 4% for the period. - Lastly, a third set of countries (in Africa, Asia and Latin America), which reported an aggregate EUR132 million or 15% of quarterly segment revenue, are withstanding the economic situation and maintaining their growth momentum. In France, like-for-like fourth-quarter revenue was down 3.6%, or 2.0% excluding the impact of the Rugby World Cup. The midscale segment is proving more resilient (down 2.7%) than the upper upscale and upscale (down 8.2%). Revenue was down 2.6% like-for-like in Germany, with again, firmer resistance in the midscale (down 2.1%) than in the upper upscale and upscale (down 4.4%). In the United Kingdom, revenue fell 8.8% like-for-like, with stronger resistance in London (Novotel RevPAR down 2.8%) than in the regions (Novotel RevPAR down 10.1%). Economy Hotels (excluding Motel 6) 2008 revenue up 3.2% like-for-like Revenue from economy hotels outside the US totalled EUR1,719 million in 2008, an increase of 3.2% like-for-like and of 3.4% as reported. Fourth-quarter revenue down 0.5% like-for-like Revenue eased back 0.5% like-for-like in the fourth quarter after expanding 6.1% in the first half and 1.7% in the third quarter. It is worth noting that excluding operations in Spain, Portugal and Italy, Economy Hotel revenue outside the US rose by 0.7% during the quarter. Revenue in France was up 1.2% like-for-like, led by the Ibis brand, which reported 2.5% like-for-like growth and a 5.0% increase in RevPAR for its Paris units. In Germany, revenue was down just 0.6% like-for-like, while in the United Kingdom, it declined by 1.1%, with a better performance in London (Ibis RevPAR down 1.1%) than in the regions (Ibis RevPAR down 5.2%). Economy Hotels in the United States 2008 revenue down 2.1% like-for-like Revenue from economy hotels in the United States stood at EUR600 million for the year, a decline of 28.7% as reported (due to the disposal of Red Roof Inn) and of 2.1% like-for-like. Fourth-quarter revenue down 6.5% like-for-like On a like-for-like basis, revenue contracted by 6.5% in the fourth quarter, after dipping 0.4% in the first half and declining 2.7% in the third quarter. Motel 6 outperformed the competition during the period. Franchise fees were up 23.4%. Other businesses Like-for-like revenue from the other businesses (Casinos, Lenotre, Onboard Train Services and Others) came to EUR995 million in 2008, down 0.6% with a 5.9% decline in the final quarter. Reported revenue for the fourth quarter was down 24.4% to EUR229 million, primarily due to the disposal of the Brazilian foodservices business (deconsolidated as of March 31, 2008), which offset the positive EUR18 million impact over the quarter from the consolidation of Orbis Travel and Orbis Transport since July 1, 2008. Casinos revenue contracted 10.3% like-for-like, reflecting the decline in traffic caused in part by France's new anti-smoking legislation. The Restaurant business (mainly Lenotre) saw a 4.7% like-for-like decline in revenue. Revenue from Onboard Train Services rose 3% like-for-like, led by the increasing passenger numbers on the TGV Est high-speed train line. 2008 earnings guidance Accor confirms its target, announced last October, of full-year 2008 profit before tax and non-recurring items of between EUR870 million and EUR890 million. This guidance takes into account the clear slowdown in business in the fourth quarter and the resilience of the Prepaid Services division. Accor, a major global group and the European leader in hotels, as well as the global leader in services to corporate clients and public institutions, operates in nearly 100 countries with 150,000 employees. It offers to its clients over 40 years of expertise in two core businesses: - Hotels, with the Sofitel, Pullman, MGallery, Novotel, Mercure, Suitehotel, Ibis, all seasons, Etap Hotel, Formule 1 and Motel 6 brands, representing 4,000 hotels and nearly 500,000 rooms in 90 countries, as well as strategically related activities, such as Lenotre. - Prepaid Services, with 30 million people in 40 countries benefiting from Accor Services products in employee and public benefits, rewards and loyalty, and expense management. Revenue Quarter 1 Quarter 2 Quarter 3 in EUR thousands 2007 2008 2007 2008 2007 2008 adjusted adjusted adjusted (1) (1) (1) HOTELS Up & Midscale 742,364 761,765 853,963 919,504 845,286 887,929 Economy 364,770 387,196 427,857 455,013 451,014 463,792 Economy US 215,940 137,255 245,286 149,573 242,971 166,729 Total HOTELS 1,323,074 1,286,216 1,527,106 1,524,089 1,539,272 1,518,451 PREPAID SERVICES 206,984 226,635 210,783 232,372 206,261 233,571 Other Businesses Casinos 78,172 86,252 80,619 83,471 91,942 87,513 Restaurants(3) 151,766 100,937 164,521 32,605 147,666 24,792 On-board train services 59,704 69,461 70,568 78,795 75,109 82,804 Holding & Other (4) 67,737 21,919 73,507 22,887 44,401 74,383 TOTAL OTHER BUSINESSES 357,380 278,569 389,216 217,758 359,118 269,492 TOTAL 1,887,437 1,791,420 2,127,105 1,974,219 2,104,650 2,021,514 Quarter 4 December end (YTD) in EUR thousands 2007 2008 2007 2008 adjusted adjusted (1) (1) HOTELS Up & Midscale 881,916 878,446 3,323,528 3,447,644 Economy 418,892 413,425 1,662,533 1,719,426 Economy US 137,184 145,988 841,383 599,545 Total HOTELS 1,437,992 1,437,859 5,827,444 5,766,615 PREPAID SERVICES 261,146 285,478 885,174 978,056 Other Businesses Casinos 95,437 88,728 346,170 345,964 Restaurants (3) 109,352 28,800 573,306 187,134 On-board train services 67,418 75,289 272,798 306,348 Holding & Other (4) 30,623 36,132 216,269 155,320 TOTAL OTHER BUSINESSES 302,829 228,948 1,408,543 994,767 TOTAL 2,001,967 1,952,285 8,121,160 7,739,438 Quarter 1 Quarter 2 Quarter 3 in EUR thousands Change Change Change Change Change Change reported L/L(2) reported L/L(2) reported L/L(2) HOTELS Up & Midscale 2.6% 3.9% 7.7% 8.2% 5.0% 1.8% Economy 6.1% 5.3% 6.3% 6.8% 2.8% 1.7% Economy US -36.4% 0.1% -39.0% -0.8% -31.4% -2.7% Total HOTELS -2.8% 3.7% -0.2% 6.3% -1.4% 1.1% PREPAID SERVICES 9.5% 10.4% 10.2% 13.3% 13.2% 14.1% Other Businesses Casinos 10.3% 6.1% 3.5% -1.7% -4.8% -9.3% Restaurants (3) -33.5% 8.7% -80.2% -2.5% -83.2% 1.1% On-board train services 16.3% 8.5% 11.7% 1.0% 10.2% 1.6% Holding & Other (4) -67.6% -4.3% -68.9% -0.7% 67.5% 0.8% TOTAL OTHER BUSINESSES -22.1% 5.6% -44.1% -1.4% -25.0% -1.5% TOTAL -5.1% 4.8% -7.2% 5.6% -4.0% 1.9% Quarter 4 December end (YTD) in EUR thousands Change Change Change Change reported L/L(2) reported L/L(2) HOTELS Up & Midscale -0.4% -3.3% 3.7% 2.6% Economy -1.3% -0.5% 3.4% 3.2% Economy US 6.4% -6.5% -28.7% -2.1% Total HOTELS 0.0% -2.8% -1.0% 2.1% PREPAID SERVICES 9.3% 13.6% 10.5% 12.9% Other Businesses Casinos -7.0% -10.3% -0.1% -4.3% Restaurants (3) -73.7% -4.7% -67.4% 1.0% On-board train services 11.7% 3.0% 12.3% 3.3% Holding & Other (4) 18.0% -15.7% -28.2% -3.6% TOTAL OTHER BUSINESSES -24.4% -5.9% -29.4% -0.6% TOTAL -2.5% -1.1% -4.7% 2.8% (1) after reclassification of Timeshare in Australia from "Upscale and Midscale Hotels" to "Holding and Other" (2) at constant scope of consolidation and exchange rates (3) including the Italian and Brazilian food services businesses (4) including Go Voyages and Scapa Italia Fourth Quarter 2008 RevPAR by Segment HOTELS : RevPAR by segment Occupancy Rate Q4 Subsidiaries (reported) Subsidiaries (L/L)(1) (in %) (chg in pts) (chg in pts) Upscale and Midscale Europe (in EUR) 60.8 -6.7 -5.0 Economy Europe (in EUR) 67.2 -5.0 -5.0 Economy US (in $) 58.6 -3.2 -3.5 HOTELS : RevPAR by segment Average room rate Q4 Subsidiaries (reported) Subsidiaries (L/L)(1) (chg in %) (chg in %) Upscale and Midscale Europe (in EUR) 104 -1.7 1.6 Economy Europe (in EUR) 58 3.7 5.5 Economy US (in $) 43 -1.1 -1.8 HOTELS : RevPAR by segment RevPAR Q4 Subsidiaries (reported) Subsidiaries (L/L)(1) (chg in %) (chg in %) Upscale and Midscale Europe (in EUR) 63 -11.5(2) -5.8(2) Economy Europe (in EUR) 39 -3.4 -1.7 Economy US (in $) 25 -6.2 -7.4 HOTELS : RevPAR by segment RevPAR Q4 Subsidiaries & managed (reported) Upscale and Midscale Europe (in EUR) -11.1 Economy Europe (in EUR) -3.6 Economy US (in $) -6.2 (1) at comparable scope of consolidation and exchange rates. (2) impacted by Orbis integration 2008 RevPAR by Segment (December-end, YTD) HOTELS : RevPAR by segment Occupancy Rate DecYTD 2008 Subsidiaries (reported) Subsidiaries (L/L)(1) (in %) (chg in pts) (chg in pts) Upscale and Midscale Europe (in EUR) 64.8 -2.6 -2.0 Economy Europe (in EUR) 71.6 -2.3 -2.4 Economy US (in $) 64.4 -2.4 -2.4 HOTELS : RevPAR by segment Average room rate DecYTD 2008 Subsidiaries (reported) Subsidiaries (L/L)(1) (chg in %) (chg in %) Upscale and Midscale Europe (in EUR) 105 2.0 4.3 Economy Europe (in EUR) 58 4.6 5.8 Economy US (in $) 45 0.6 0.1 HOTELS : RevPAR by segment RevPAR DecYTD 2008 Subsidiaries (reported) Subsidiaries (L/L)(1) (chg in %) (chg in %) Upscale and Midscale Europe (in EUR) 68 -1.8 1.3 Economy Europe (in EUR) 41 1.3 2.4 Economy US (in $) 29 -3.0 -3.6 HOTELS : RevPAR by segment RevPAR DecYTD 2008 Subsidiaries & managed (reported) Upscale and Midscale Europe (in EUR) -2.3 Economy Europe (in EUR) 1.1 Economy US (in $) -3.0 (1) at comparable scope of consolidation and exchange rates. Fourth Quarter 2008 RevPAR by Country UPSCALE AND MIDSCALE HOTELS Number of Occupancy Rate Average room rate RevPAR by country Q4 rooms Subsidiaries Subsidiaries (in local currency) (reported) (reported) (in %) (chg in pts) (chg in %) France 29,289 62.3 -5.0 120 3.2 Germany 19,845 63.8 -2.8 94 2.7 Netherlands 4,005 60.3 -6.9 107 -1.1 Belgium 1,802 71.7 -0.6 108 1.6 Spain 2,259 54.2 -10.9 92 -8.5 Italy 3,462 57.1 -3.5 110 -5.3 UK ( in GBP) 5,432 74.0 -4.1 89 0.4 USA (in $) 480 84.3 -10.9 319 0.3 UPSCALE AND MIDSCALE HOTELS RevPAR RevPAR by country Q4 Subsidiaries Subsidiaries Subsidiaries & managed (in local currency) (reported) (like-for-like(1)) (reported) (chg in %) France 75 -4.5 -4.2 -3.8 Germany 60 -1.6 -3.1 -1.5 Netherlands 65 -11.2 -11.5 -15.6 Belgium 78 0.8 -5.7 0.0 Spain 50 -23.8 -23.8 -23.8 Italy 63 -10.7 -8.6 -10.7 UK ( in GBP) 66 -4.8 -6.5 -6.7 USA (in $) 269 -11.2 -11.2 -6.5 (1) at comparable scope of consolidation and exchange rates. ECONOMY HOTELS Number of Occupancy Rate Average room rate RevPAR by country Q4 rooms Subsidiaries Subsidiaries (reported) (reported) (in local currency) (in %) (chg in pts) (chg in %) France 42,249 67.9 -3.3 53 8.8 Germany 14,945 67.3 -2.7 59 3.9 Netherlands 2,316 67.0 -10.0 81 4.3 Belgium 2,561 75.9 -4.6 70 6.0 Spain 4,595 60.5 -14.4 55 1.4 Italy 1,550 57.1 -5.9 70 -6.6 UK ( in GBP) 8,632 68.6 -7.9 55 1.7 USA (in $) 80,152 58.6 -3.2 43 -1.1 ECONOMY HOTELS RevPAR RevPAR by country Q4 Subsidiaries Subsidiaries Subsidiaries & managed (in local currency) (reported) (like-for-like(1)) (reported) (chg in %) France 36 3.8 2.0 3.8 Germany 40 -0.1 -0.1 0.1 Netherlands 54 -9.2 -9.9 -9.2 Belgium 53 -0.1 -0.1 -0.1 Spain 34 -18.1 -19.4 -18.1 Italy 40 -15.4 -15.3 -15.4 UK ( in GBP) 38 -8.8 -3.0 -9.3 USA (in $) 25 -6.2 -7.4 -6.2 2008 RevPAR by Country (December-end, YTD) UPSCALE AND MIDSCALE HOTELS Number Occupancy Rate Average room rate of RevPAR by country FY 2008 rooms Subsidiaries Subsidiaries (reported) (reported) (in local currency) (in %)(chg in pts) (chg in %) France 29,599 66.1 -1.0 116 5.2 Germany 20,127 63.7 -1.2 95 5.4 Netherlands 3,989 65.4 -3.2 108 2.4 Belgium 1,802 71.1 -0.4 108 6.2 Spain 2,259 62.3 -4.2 98 -1.3 Italy 3,456 58.6 -3.6 116 -1.4 UK ( in GBP) 5,280 77.4 -0.9 89 4.5 USA (in $) 480 91.6 -2.3 260 1.7 UPSCALE AND MIDSCALE HOTELS RevPAR by RevPAR country FY 2008 Subsidiaries Subsidiaries Subsidiaries & managed (in local currency) (reported) (like-for-like(1)) (reported) (chg in %) France 77 3.6 2.7 3.1 Germany 61 3.5 3.0 3.4 Netherlands 71 -2.3 -2.4 -6.8 Belgium 77 5.6 -0.3 4.7 Spain 61 -7.5 -7.5 -7.5 Italy 68 -7.1 -4.2 -7.1 UK ( in GBP) 69 3.3 1.8 -0.3 USA (in $) 238 -0.8 -0.8 -6.4 (1) at comparable scope of consolidation and excahange rates. ECONOMY HOTELS Number Occupancy Rate Average room rate of RevPAR by country rooms Subsidiaries (reported) Subsidiaries (reported) FY 2008 (in local currency) (in %) (chg in pts) (chg in %) France 42,986 71.9 -1.7 51 7.6 Germany 15,031 69.8 -1.5 59 4.7 Netherlands 2,207 73.8 -8.2 82 6.4 Belgium 2,560 77.0 -1.1 69 6.3 Spain 4,492 70.3 -7.7 56 3.6 Italy 1,550 61.5 -2.2 73 -0.6 UK ( in GBP) 7,966 74.3 -2.8 56 5.1 USA (in $) 80,152 64.4 -2.4 45 0.6 ECONOMY HOTELS RevPAR RevPAR by country FY 2008 Subsidiaries Subsidiaries Subsidiaries & managed (in local currency) (reported) (like-for-like(1)) (reported) (chg in %) France 37 5.1 3.8 5.2 Germany 41 2.5 2.5 1.8 Netherlands 61 -4.3 -5.9 -4.3 Belgium 53 4.8 4.6 4.8 Spain 40 -6.6 -6.9 -6.6 Italy 45 -4.1 -4.4 -4.1 UK ( in GBP) 41 1.3 4.2 1.1 USA (in $) 29 -3.0 -3.6 -3.0 (1) at comparable scope of consolidation and excahange rates. --------------------------------- [1] Based on a comparable scope of consolidation and at constant exchange rates DATASOURCE: Accor CONTACT: CONTACTS PRESSE: Alain Delrieu, Senior Media Relations Officer, Phone: +33-1-45-38-84-85. CONTACTS INVESTISSEURS: Eliane Rouyer-Chevalier, Senior Vice President, Investor Relations and Financial Communication, Phone: +33-1-45-38-86-26. Solene Zammito, Deputy Director, Investor Relations, Phone : +33-1-45-38-86-33

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