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Accor: 2004 Hotel Revenues Up 4.1% Like-for-Like, 
Strong Hotel Performances in the
United States and United Kingdom

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January 27, 2005 - Accor's consolidated revenues rose 4.3% to EUR 7.1 billion in the year ended December 31, 2004. Excluding the currency effect and changes in the scope of consolidation, the increase was 4.6%, and 5.1% in the fourth quarter alone, reflecting generally good demand across the business base.
 
    (EUR millions)         2003      2004  % change      % change
                                          (reported)  (like-for-like)
    Hotels                4,850     5,036       +3.8%           +4.1%
    Services                472       507       +7.5%           +9.4%
    Other businesses      1,506     1,580       +4.9%           +4.7%
    Total Group           6,828     7,123       +4.3%           +4.6%

Hotels

Hotel revenues for the year were up 4.1% like-for-like. The 3.8% reported increase was due to a negative 2.2% dollar-related currency effect, partially offset by newly opened hotels, which added 2.8% to growth.

For the year, like-for-like revenues in the upscale and midscale segments rose by 5.0%, led in particular by strong performances in the United States, the United Kingdom, Eastern Europe, Asia and Latin America. However, France, Spain and Italy have yet to show tangible signs of a sustained recovery. Economy hotel revenues were up 3.2% in Europe and 2.6% in the United States.

Revenues in the fourth quarter improved over the third quarter. Revenues from upscale and midscale hotels increased 4.2% like-for-like for the period (including 1.6% in France and 3.0% in the rest of Europe) versus up 2.0% in the previous quarter. Revenues in the economy segment in Europe continued their steady rise, gaining 2.5%. In the US, economy hotels started to benefit from the recovery, with like-for-like revenues rising 4.7%.

Services

The Services business continued its steady and sustained growth. Like-for-like revenues rose 9.4% for the year, including gains of 7.5% in Europe and 11.8% in Latin America.

On a reported basis, the full-year increase was 7.5%, mainly because of the currency effect linked to Latin American currencies. In the fourth quarter, business activity improved by 8.3%.

Other businesses

Revenues from other businesses (travel agencies, casinos, restaurants and onboard train services) rose by 4.7% like-for-like and 4.9% as reported for the full year. The travel agency business enjoyed sustained growth in the fourth quarter, with like-for-like revenues increasing 14.1%.

Expansion in 2004

During the year, Accor continued to expand in Hotels with the opening of 188 new units (23,472 rooms), in Services with the acquisition of the British company Capital Incentives, specialized in gift vouchers, and in Travel Agencies with Carlson Wagonlit Travel's integration of the Protravel network in France and the Maritz network in the United States.

In the on board train services, Compagnie des Wagons-Lits won the catering contract on high-speed trains in France for 5 years.

Also this year, Accor became the core industrial shareholder of Club Mediterranee after the acquisition of a 28.9% equity interest. The creation in the casinos of Groupe Lucien Barriere, in which Accor holds a 34.0% stake, was completed at the end of the year.

Full-year earnings objective

With the fourth quarter's performance in line with our expectations, Accor has confirmed its full-year objective between EUR 570 and EUR 590 million in profit before tax.
 


                                     First Quarter        Second Quarter
                                    Sales     Sales       Sales       Sales
    in EUR Thousands                2003      2004        2003        2004
    Hotels
          Upscale and Midscale      609,422   646,225       684,707   758,274
          Economy                   258,409   276,826       303,056   324,781
          Economy US                230,191   202,220       257,302   246,658
    Total Hotels                  1,098,022 1,125,272     1,245,065 1,329,714

    SERVICES                        110,853   121,152       120,000   127,680

    Other Businesses
          Travel Management          92,699    87,714       100,165   105,662
          Casinos                    51,281    53,341        51,038    53,200
          Restauration               99,571   109,504       108,034   113,061
          On-board train services    62,679    58,669        71,645    65,049
          Other                      43,012    42,293        52,404    50,202
    Total others businesses         349,242   351,521       383,286   387,173

    Total                         1,558,118 1,597,945     1,748,351 1,844,567

                                    Third             FourthQuarter
                                   Quarter
                                    Sales     Sales       Sales       Sales
    in EUR Thousands                2003      2004        2003        2004
    Hotels
          Upscale and Midscale      687,492   712,288       712,081   748,235
          Economy                   317,643   338,623       288,639   308,991
          Economy US                289,978   269,726       211,631   203,782
    Total Hotels                  1,295,114 1,320,638     1,212,351 1,261,008

    SERVICES                        112,120   121,338       128,843   136,866

    Other Businesses
          Travel Management          90,840   120,090        98,691   127,839
          Casinos                    55,501    55,051        54,053    59,579
          Restauration               98,397   103,545       113,072   123,022
          On-board train services    75,378    70,080        37,069    67,502
          Other                      65,419    58,962        55,069    55,423
    Total others businesses         385,535   407,728       387,954   433,366

    Total                         1,792,768 1,849,704     1,729,148 1,831,240
 

                                              YTD december,31
                                            Sales       Sales
    in EUR Thousands                        2003        2004
    Hotels
                 Upscale and Midscale      2,693,702   2,865,022
                 Economy                   1,167,747   1,249,223
                 Economy US                  989,102     922,387
    Total Hotels                           4,850,552   5,036,631

    SERVICES                                 471,816     507,036

    Other Businesses
                 Travel Management           382,396     441,305
                 Casinos                     211,872     221,170
                 Restauration                419,074     449,132
                 On-board train services     246,771     261,300
                 Other                       215,904     206,880
    Total others businesses                1,506,017   1,579,788

    Total                                  6,828,385   7,123,456
 
 

                                     First Quarter        Second Quarter
                                   Change    Change      Change      Change
                                   2004/03   2004/03     2004/03     2004/03
                                  reported  like for    reported    like for
                                            like (i)                like (i)
    Hotels
          Upscale and Midscale         6.0%      5.0%         10.7%      9.1%
          Economy                      7.1%      3.9%          7.2%      3.9%
          Economy US                 -12.2%      2.3%         -4.1%      2.4%
    Total Hotels                       2.5%      4.2%          6.8%      6.4%

    SERVICES                           9.3%     10.4%          6.4%      8.6%

    Other Businesses
          Travel Management           -5.4%     -3.4%          5.5%      4.0%
          Casinos                      4.0%     -0.5%          4.2%      1.8%
          Restauration                10.0%      9.0%          4.7%      6.9%
          On-board train services     -6.4%      2.7%         -9.2%      0.9%
          Other                       -1.7%      5.1%         -4.2%      7.6%
    Total others businesses            0.7%      2.7%          1.0%      4.4%

    Total                              2.6%      4.3%          5.5%      6.1%

                                     Third Quarter         FourthQuarter
                                   Change    Change      Change      Change
                                   2004/03   2004/03     2004/03     2004/03
                                   reported  like for    reported    like for
                                            like (i)                like (i)
    Hotels
          Upscale and Midscale         3.6%      2.0%          5.1%      4.2%
          Economy                      6.6%      3.0%          7.1%      2.7%
          Economy US                  -7.0%      1.4%         -3.7%      4.7%
    Total Hotels                       2.0%      2.1%          4.0%      3.9%

    SERVICES                           8.2%     10.4%          6.2%      8.3%

    Other Businesses
          Travel Management           32.2%      7.6%         29.5%     14.1%
          Casinos                     -0.8%     -1.3%         10.2%      2.1%
          Restauration                 5.2%      7.5%          8.8%      9.7%
          On-board train services     -7.0%      1.2%          0.6%      3.1%
          Other                       -9.9%     -1.0%          0.6%      4.9%
    Total others businesses            5.8%      3.6%         11.7%      8.0%

    Total                              3.2%      2.9%          5.9%      5.1%

                                             YTD december,31
                                           Change      Change
                                           2004/03     2004/03
                                          reported    like for
                                                      like (i)
    Hotels
                 Upscale and Midscale           6.4%        5.0%
                 Economy                        7.0%        3.3%
                 Economy US                    -6.7%        2.6%
    Total Hotels                                3.8%        4.1%

    SERVICES                                    7.5%        9.4%

    Other Businesses
                 Travel Management             15.4%        5.7%
                 Casinos                        4.4%        0.5%
                 Restauration                   7.2%        8.3%
                 On-board train services       -5.6%        1.9%
                 Other                         -4.2%        3.8%
    Total others businesses                     4.9%        4.7%

    Total                                       4.3%        4.6%

    (i) same perimeter and currency basis
 
 

    HOTELS : RevPAR by   Occupancy     Average              RevPAR
    segment at             Rate         room       (change in %)
    December-end 2004                   rate
    (YTD)                                       subsidiaries &   subsidiaries
                                                   managed            only
                      (in %)  (var in  (var in %)  reported       like-for-
                               pts)                basis (1)   like basis (2)
    Upscale and
    Midscale
    Europe            63.3        1.1     0.2         1.9            2.4
    Economy Europe
    (excl. US)        72.7        0.6     2.5         3.3            2.7
    Economy US (in
    USD)              65.0        0.6     1.2         2.2            2.1
 
 

    HOTELS : RevPAR by country   Nomber of  Occupancy   Average room rate
    at December-end 2004 (YTD)   rooms (1)    rate
    (in local currency)                      (in %)   (var in pts) (var in %)
    France                       81.873       69.1          0.4      1.1
    Germany                      37.780       63.5          0.5      7.8
    UK                           11.345       75.0          1.1      5.4
    Netherlands                   6.434       67.7         -0.1     -0.1
    Belgium                       5.487       70.0          1.4      0.2
    Spain                         4.517       70.0          1.6     -1.2
    Italy                         3.984       56.6         -1.5     -2.6
    Hungary                       3.348       67.5          8.1      0.4
    USA (upscale and midscale)    3.765       71.1          7.8      5.1

    HOTELS : RevPAR by country            RevPAR (change in %)
    at December-end 2004 (YTD)   subsidiaries &      subsidiaries only
                                    managed
    (in local currency)        reported basis (1) like-for-like basis (2)
    France                                    1.7           1.5
    Germany                                   8.7           2.9
    UK                                        6.9           6.7
    Netherlands                              -0.3          -0.9
    Belgium                                   2.2           2.1
    Spain                                     1.1          -2.2
    Italy                                    -5.2          -2.6
    Hungary                                  14.1          14.1
    USA (upscale and midscale)               18.0          18.5

    (1) subsidiaries (owned and leased) and managed hotels
    (2) at comparable scope
 

Accor is a European leader and one of the world's largest groups in travel, tourism and corporate services.


 
Contact:
Accor
accor.com
Also See: Accor Reports 2003 Revenues Down 4.3%; Opens 170 New Hotels / Hotel Operating Statistics / January 2004
Accor Reports 2002 Hotel Sales Declined 0.3%, Sales for Economy Hotels US Down 4.2%; YTD Occupancy and RevPAR by Country / February 2003


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