PARIS, July 16, 2009
In a severely deteriorated economic environment
- Prepaid Services revenue grew 5.7% like-for-like.
- Hotels revenue continued to decline, contracting 11.4% like-for-like.
Consolidated
revenue for the first half of 2009 totaled EUR3,410 million,
down 9.3% on a reported basis and 8.1% like-for-like over first-half
2008.
(in EUR millions) First-half First-half Change as Change
2008 2009 reported like-for-like(1)
Hotels 2,803 2,534 -9.6% -11.4%
Upscale and Midscale 1,671 1,472 -11.9% -13.3%
Economy 845 781 -7.6% -7.3%
Economy US 287 281 -2.0% -12.8%
Prepaid Services 459 465 +1.3% +5.7%
Other businesses 496 411 -17.0% -2.0%
Total 3,758 3,410 -9.3% -8.1%
(1) At constant scope of consolidation and exchange rates.
(2) Impact of the retrospective application of IFRIC 13 - Customer
Loyalty Programs from January 1, 2008.
First-half 2009 revenue performance was shaped by the following factors:
- The expansion strategy, which added 4.3% to
growth for the
quarter (of which EUR104 million from the full
consolidation of Orbis).
- The strategic refocusing on Hotels and
Prepaid Services
(with the disposal of the Brazilian
foodservices business) and ongoing
deployment of the asset-right strategy, which
had a 4.5% negative
impact on revenue for the period.
- The 1.0% negative currency effect, resulting
from the euro's
appreciation against the British pound, the
Australian dollar and the
Brazilian real. On the upside, the dollar
impact was a positive 1.1%.
- At constant scope of consolidation and
exchange rates,
revenue contracted by 8.1%.
Second
quarter revenue came to EUR1,794
million, down 9.0% on the year-earlier period on a reported
basis and down 10.1% like-for-like.
Prepaid
Services revenue up 5.7% like-for-like in the first half
First-half
revenue from the Prepaid Services business stood at EUR465 million,
up 1.3% as reported, reflecting the following factors:
- A 3.8% negative currency effect, mainly due
to the weakness
of the British pound and Latin American
currencies against the euro.
- A like-for-like increase of 5.7% at constant
scope of
consolidation and exchange rates, achieved
despite sharply higher
jobless rates, particularly in Europe, and
lower interest rates, which
had a negative impact on interest income
recognized in revenue.
Operating
revenue (i.e. excluding interest income) rose by 6.8% over the period,
compared with a 1.2% decline in interest income.
Excluding
operations in Argentina,
where tax incentives have been eliminated, revenue increased by 7.8% in
the first half.
Second
quarter revenue came to EUR234
million, up 0.5% as reported and up 3.2% like-for-like.
Prepaid
Services in Europe up
3.9% like-for-like to EUR259
million
In France,
like-for-like operating revenue (which excludes interest income) was up
11.9% for the first half of 2009, reflecting increases of 9.2% in the
first quarter and 14.9% in the second. Second-quarter growth was mainly
due to the launch of the prefunded Universal Employment Service
Vouchers (CESU Social) at the initiative of the French government. On
the other hand, lower interest rates dragged first-half interest income
down by 9.3%, including falls of 5.3% in the first quarter and 13.2% in
the second.
Revenue in
the United
Kingdom increased by 5.1% at constant scope of
consolidation and exchange rates, reflecting gains of 7.0% in the first
quarter and 2.9% in the second. Operating revenue was up 6.8% over the
period, including 8.4% in the first quarter and 5.0% in the second.
Growth was led by childcare vouchers (up 8.7%) and new PrePay Solutions
products. Gift vouchers, on the other hand, declined by 18.5%. Interest
income fell by 10.3% in the first half, reflecting declines of 6.1% in
the first quarter and 14.6% in the second.
Prepaid
Services in Latin
America up 7.9% like-for-like to EUR175 million
In Latin America,
revenue grew by 7.9%, of which 11.6% in the first quarter and 4.4% in
the second. Generally speaking, business remained strong throughout the
region and the slower revenue growth was mainly attributable to the
sharp drop in interest rates, financial revenue was up 26.3% in the
first quarter and was down 16.5% in the second.
In Brazil,
revenue increased by 11.9% at constant scope of consolidation and
exchange rates. The decline in the growth rate from 16.3% in the first
quarter to 7.8% in the second was primarily due to lower interest rates.
Despite the
elimination of tax incentives in Argentina,
operating revenue in the rest of Latin
America increased by 7.4% in the second quarter,
compared with 4.9% in the first, for a 6.2% gain over the entire first
half. Interest income, on the other hand, was weighed down by sharply
lower interest rates, particularly in Venezuela.
It declined by a sharp 14.6% in the first half, reflecting growth of
9.5% in the first quarter and a 35.3% drop in the second.
Further
deterioration in the Hotels business, down 11.4% like-for-like
Hotels
revenue amounted to EUR2,534
million in the first half, a period-on-period
decline of 9.6% as reported. This figure takes into account the impact
of:
- The expansion strategy, which added 4.4% to
growth thanks to
i) the opening of 12,100 rooms in first-half
2009 versus 11,000 in the
year-earlier period, including 4,240 rooms in
franchised hotels, an
increase of 26% over first-half 2008, and ii)
the EUR73-million impact
of the full consolidation of Orbis.
- The sale of hotel properties under the
asset-right strategy,
which reduced growth for the period by 2.1%.
- The currency effect, which was a negative
0.4% for the period.
- The 11.4% decline in Hotels revenue at
constant scope of
consolidation and exchange rates caused by the
continued deterioration
of the economic environment, in spite of the
improved resilience of the
economy segment, particularly in France.
Second
quarter Hotels revenue came to EUR1,351
million, down 11.1% as reported and 13.7% like-for-like.
Upscale and Midscale Hotels: down 13.3%
like-for-like to EUR1,472 million
In the
Upscale and Midscale segment, revenue was down 11.9% as reported and
13.3% like-for-like, reflecting declines of 9.2% in the first quarter
and 16.6% in the second.
In France,
the accelerating decline in revenue over the period was mainly due to
the Business segment, which dropped 12.6% in the first quarter and
18.7% in the second. The Leisure segment was more resilient,
contracting 4.1% in the second quarter. Moreover, despite the Paris Air
Show in June, business outside Paris held
up better than in the capital, with RevPAR down 17.2% in Paris versus
9.1% in the rest of the country.
In Germany,
the like-for-like fall in first-half revenue came to 11.6%, including
1.9% in the first quarter and 19.6% in the second. Adjusted for the
change in the timing of the Easter vacation and the absence of major
trade fairs, revenue was down 8.1% in the first quarter and 11.5% in
the second.
In the United Kingdom,
first-half revenue contracted 10.2% like-for-like, including 8.9% in
the first quarter and 11.4% in the second. Business in London fared
better than the rest of the country, as the weak pound attracted more
tourists, leading to a 10.4% rise in Leisure segment revenue. This
helped to limit the decline in RevPAR to 7.2% in the capital versus
19.2% for the rest of the country.
Economy Hotels: down 7.3% like-for-like to EUR781 million
In the
Economy Hotels segment, first-half 2009 revenue was down 7.6% as
reported and 7.3% like-for-like, reflecting declines of 6.8% in the
first quarter and 7.7% in the second.
In France,
the economy segment demonstrated strong resilience in the depressed
economic environment, with like-for-like revenue down just 2.7% for the
period, including 3.2% in the first quarter and 2.3% in the second.
After the major renovation program carried out in 2008 and 2009, Hotel
F1 recorded a slight 0.4% increase in RevPAR in the second quarter and
a decline of just 0.2% in the first six months, with first-half RevPAR
for the renovated units (representing nearly 50% of the hotel base) up
3.6%.
Like the
Upscale and Midscale segment, the Economy Hotels business held up
better in the regions than in the capital, with RevPAR down 3.7% in Paris and
0.2% in the rest of the country.
In Germany,
first-half revenue contracted 9.8% like-for-like, reflecting declines
of 5.0% in the first quarter and 13.8% in the second. Like the Upscale
and Midscale segment, the fact that the Easter vacation fell later in
2009 and the absence of certain trade fairs also had a significant
impact on revenue from Economy Hotels. Adjusted for these effects,
revenue was down 8.5% in the first quarter and 8.4% in the second.
Economy Hotels US: down 12.8% like-for-like
to EUR281 million
Motel 6
revenue contracted by 2.0% in the first half on a reported basis.
Like-for-like
revenue was down 12.8%, with falls of 11.5% in the first quarter and
14.1% in the second.
Although
still affected by the severely weakened economic situation in the United States,
the erosion of Motel 6 RevPAR was roughly 2 points less than that
experienced by the competitors in its segment.
The 23
franchised Motel 6 hotels opened since the beginning of 2009 along with
the 50 opened in 2008 drove a 26.6% increase in franchise revenues at
constant exchange rates.
Outlook
The second
quarter figures reflect the global economic situation, which is still
extremely depressed.
Prepaid
Services revenue increased by 5.7% like-for-like in the first half,
which was below the five-year annual target set by the Group in 2005.
The under-performance was due to the unprecedented nature of the
crisis, which has resulted in a very sharp rise in unemployment, and to
the decline in interest rates in Europe and Latin America,
which has eroded interest income.
Given the
faster reduction in interest rates, particularly in Latin America,
the Group expects interest income to fall by more than 25% in the
second half, feeding through to slightly positive like-for-like revenue
growth for the full year.
Hotels
revenue contracted 11.4% like-for-like in the first semester. The
economy segment is faring better than the upscale and midscale segment,
with revenue gap of 6.0 points (revenue down 7.3% in Economy hotels vs.
down 13.3% in Up & Midscale).
With
visibility in the Hotels business still low, the business remains badly
hit by the economic environment and has not yet showed signs of
stabilizing in most countries.
The Group
is continuing to adjust to this environment by cutting costs and
scaling back capital expenditure in 2009 and 2010.
Revenue
in EUR thousand Quarter 1 Quarter 2
HOTELS 2,008 2009 2,008 2009
756.767 687.180 914.442 784.760
388.094 358.017 456.406 422.484
Total HOTELS 137.254 137.235 149.573 143.833
1,282,115 1,182,432 1,520,421 1,351,077
PREPAID SERVICES 226.637 231.163 232.368 233.620
Other businesses 86.253 82.994 83.470 80.513
100.937 22.161 32.605 27.940
69.461 66.802 78.795 57.122
Total OTHER BUSINESSES 21.918 30.816 22.887 43.505
278.569 202.773 217.757 209.080
TOTAL 1,787,321 1,616,368 1,970,546 1,793,777
- TABLE CONTINUED -
First-Half 2009
in EUR thousand 2,008 2009
HOTELS
Up & Midscale 1,671,209 1,471,940
Economy 844.500 780.501
Economy US 286.827 281.068
Total HOTELS 2,802,536 2,533,509
PREPAID SERVICES 459.005 464.783
Other businesses
Casinos 169.723 163.507
Restaurants 133.542 50.101
On-board train services 148.256 123.924
Holdings & Other 44.805 74.321
Total OTHER BUSINESSES 496.326 411.853
TOTAL 3,757,867 3,410,145
in EUR thousand Quarter 1 Quarter 2
HOTELS Change Change L/L Change Change L/L
reported (1) reported (1)
-9.2% -9.2% -14.2% -16.6%
-7.7% -6.8% -7.4% -7.7%
Total HOTELS 0.0% -11.5% -3.8% -14.1%
-7.8% -8.7% -11.1% -13.7%
PREPAID SERVICES 2.0% 8.3% 0.5% 3.2%
Other businesses
-3.8% -6.3% -3.5% -5.4%
-78.0% -7.3% -14.3% -8.0%
-3.8% 4.7% -27.5% 2.9%
Total OTHER
BUSINESSES 40.6% -4.7% 90.1% 24.5%
-27.2% -3.8% -4.0% 0.3%
TOTAL -9.6% -5.8% -9.0% -10.1%
- TABLE CONTINUED -
First-Half 2009
in EUR thousand Change Change
reported L/L(1)
HOTELS
Up & Midscale -11.9% -13.3%
Economy -7.6% -7.3%
Economy US -2.0% -12.8%
Total HOTELS -9.6% -11.4%
PREPAID SERVICES 1.3% 5.7%
Other businesses
Casinos -3.7% -5.9%
Restaurants -62.5% -7.5%
On-board train services -16.4% 3.7%
Holdings & Other 65.9% 10.2%
Total OTHER BUSINESSES -17.0% -2.0%
TOTAL -9.3% -8.1%
(1) At constant scope of consolidation and exchange rates.
Year-to-Date RevPAR by Segment
HOTELS : RevPAR by segment Occupancy Rate Average room rate
H1 Subsidiaries Subsidiaries
(in (chg in (chg in (chg in % (chg
%) pts pts L/L reported) in %
reported) (1)) L/L
(1))
Upscale and Midscale
Europe (in EUR) 56.5 -8.9 -7.3 98 -8.9 -4.7
Economy Europe (in EUR) 64.1 -7.3 -7.4 57 -0.1 1.9
Economy US (in $) 58.7 -5.8 -6.1 43 -4.1 -4.6
- TABLE CONTINUED -
HOTELS : RevPAR by segment RevPAR
H1 Subsidiaries Subsidiaries Subsidiaries &
(chg in % (like-for-like(1)) (reported)
reported)
Upscale and Midscale
Europe (in EUR) 56 -21.3 -15.3 -21.1
Economy Europe (in EUR) 37 -10.4 -8.6 -10.5
Economy US (in $) 25 -12.8 -13.7 -12.8
(1) at comparable scope of consolidation and exchange rates.
Second Quarter RevPAR by Segment
HOTELS : RevPAR by segment Occupancy Rate Average room rate
Q2 Subsidiaries Subsidiaries
(in (chg in (chg in (chg in % (chg
%) pts pts L/L reported) in %
reported) (1)) L/L
(1))
Upscale and Midscale
Europe (in EUR) 61.1 -10.1 -8.8 98 -11.6 -7.9
Economy Europe (in EUR) 68.9 -7.8 -7.7 58 -1.4 0.4
Economy US (in $) 60.3 -7.0 -7.3 44 -4.7 -5.3
- TABLE CONTINUED -
HOTELS : RevPAR by segment RevPAR
Q2 Subsidiaries Subsidiaries Subsidiaries &
(chg in % (like-for-like(1)) (reported)
reported)
Upscale and Midscale
Europe (in EUR) 60 -24.1 -19.2 -23.6
Economy Europe
(in EUR) 40 -11.3 -9.7 -11.7
Economy US (in $) 26 -14.6 -15.7 -14.6
(1) at comparable scope of consolidation and exchange rates.
Year-to-Date RevPAR by Country
UPSCALE AND MIDSCALE HOTELS Nb of Occupancy Rate
RevPAR by country H1 rooms Subsidiaries
(in %) (chg in pts (chg in
reported) pts L/L
(in local currency) (1))
France 29.993 58.3 -8.2 -8.2
Germany 19.666 57.7 -5.1 -5.4
Netherlands 3.959 58.9 -7.9 -7.9
Belgium 1.801 62.8 -7.1 -7.1
Spain 2.333 48.9 -15.3 -14.5
Italy 3.522 54.0 -3.6 -2.9
UK ( in GBP) 5.432 72.3 -4.6 -4.8
- TABLE CONTINUED -
UPSCALE AND MIDSCALE HOTELS Average room rate
RevPAR by country H1 Subsidiaries
(chg in % (chg in % L/L
(in local currency) reported) (1))
France 115 -0.9 -0.9
Germany 91 -5.4 -5.9
Netherlands 97 -14.0 -14.0
Belgium 107 -5.6 -5.6
Spain 86 -18.6 -18.3
Italy 103 -11.6 -10.3
UK ( in GBP) 84 -5.9 -7.0
- TABLE CONTINUED -
UPSCALE AND MIDSCALE HOTELS RevPAR
RevPAR by country H1 Subsidiaries Subsidiaries Subsidiaries &
(like-for-like(1)) managed
(chg in % (reported)
(in local currency) reported)
France 67 -13.2 -13.1 -13.3
Germany 53 -13.1 -14.0 -13.0
Netherlands 57 -24.2 -24.2 -24.5
Belgium 67 -15.2 -15.2 -13.5
Spain 42 -38.0 -36.8 -38.0
Italy 55 -17.1 -14.8 -15.9
UK ( in GBP) 61 -11.5 -12.9 -11.9
(1) at comparable scope of consolidation and exchange rates.
ECONOMY HOTELS Nb of Occupancy Rate
RevPAR by country H1 rooms Subsidiaries
(in %) (chg in pts (chg in pts
(in local currency) reported) L/L (1))
France 41.943 66.9 -4.8 -5.5
Germany 15.052 61.5 -6.9 -7.0
Netherlands 2.256 65.5 -10.5 -9.6
Belgium 2.562 66.5 -9.9 -9.9
Spain 4.627 55.6 -17.2 -17.7
Italy 1.550 54.7 -6.9 -6.9
UK ( in GBP) 8.856 66.0 -9.0 -8.0
USA (in $) 77.836 58.7 -5.8 -6.1
- TABLE CONTINUED -
ECONOMY HOTELS Average room rate
RevPAR by country H1 Subsidiaries
(chg in % (chg in %
(in local currency) reported) L/L (1))
France 54 7.3 6.4
Germany 60 0.7 0.6
Netherlands 80 -4.4 -5.7
Belgium 70 -1.0 -1.0
Spain 54 -4.3 -4.7
Italy 72 -6.2 -6.2
UK ( in GBP) 53 -5.9 -2.6
USA (in $) 43 -4.1 -4.6
- TABLE CONTINUED -
ECONOMY HOTELS RevPAR
RevPAR by country Subsidiaries Subsidiaries Subsidiaries &
H1 managed
(chg in % (like-for-like(1)) (reported)
(in local currency) reported)
France 36 0.1 -1.8 0.1
Germany 37 -9.4 -9.7 -8.1
Netherlands 52 -17.7 -17.7 -17.7
Belgium 46 -13.9 -13.9 -13.9
Spain 30 -26.9 -27.8 -26.9
Italy 39 -16.8 -16.8 -16.8
UK ( in GBP) 35 -17.1 -13.0 -16.8
USA (in $) 25 -12.8 -13.7 -12.8
(1) at comparable scope of consolidation and exchange rates.
Second Quarter RevPAR by Country
UPSCALE AND MIDSCALE HOTELS Nb of Occupancy Rate
RevPAR by country Q2 rooms Subsidiaries
(in %) (chg in pts (chg in
reported) pts L/L
(in local currency) (1))
France 30.292 63.3 -8.7 -9.0
Germany 19.667 59.1 -8.6 -8.8
Netherlands 4.011 63.9 -11.1 -11.1
Belgium 1.801 68.2 -8.3 -8.3
Spain 2.385 53.5 -16.9 -15.5
Italy 3.613 61.0 -2.3 -2.6
UK ( in GBP) 5.432 75.6 -4.7 -5.0
- TABLE CONTINUED -
UPSCALE AND MIDSCALE HOTELS Average room rate
RevPAR by country Q2 Subsidiaries
(chg in % (chg in % L/L
(in local currency) reported) (1))
France 115 -2.9 -3.0
Germany 87 -11.5 -12.0
Netherlands 97 -16.9 -16.9
Belgium 105 -8.8 -8.8
Spain 80 -21.3 -21.0
Italy 107 -11.9 -10.6
UK ( in GBP) 85 -7.0 -8.4
- TABLE CONTINUED -
UPSCALE AND MIDSCALE HOTELS RevPAR
RevPAR by country Q2 Subsidiaries Subsidiaries Subsidiaries &
managed
(chg in % (like-for-like(1)) (reported)
(in local currency) reported)
France 73 -14.7 -15.0 -14.5
Germany 51 -22.7 -23.3 -22.4
Netherlands 62 -29.2 -29.2 -28.9
Belgium 72 -18.7 -18.7 -17.8
Spain 43 -40.2 -38.3 -40.2
Italy 65 -15.1 -14.2 -13.5
UK ( in GBP) 64 -12.4 -14.1 -12.7
(1) at comparable scope of consolidation and exchange rates.
ECONOMY HOTELS Nb of Occupancy Rate
RevPAR by country Q2 rooms Subsidiaries
(in %) (chg in pts (chg in pts
(in local currency) reported) L/L (1))
France 41.974 71.9 -4.6 -5.2
Germany 15.029 64.3 -9.2 -9.4
Netherlands 2.301 73.8 -10.1 -8.4
Belgium 2.562 72.0 -11.6 -11.6
Spain 4.660 58.6 -17.5 -17.7
Italy 1.550 61.8 -9.2 -9.2
UK ( in GBP) 8.898 69.9 -8.5 -7.9
USA (in $) 77.641 60.3 -7.0 -7.3
- TABLE CONTINUED -
ECONOMY HOTELS Average room rate
RevPAR by country Q2 Subsidiaries
(chg in % (chg in %
(in local currency) reported) L/L (1))
France 54 6.3 5.4
Germany 59 -1.9 -1.8
Netherlands 84 -6.2 -7.3
Belgium 69 -3.2 -3.2
Spain 54 -4.9 -5.2
Italy 70 -5.2 -5.2
UK ( in GBP) 53 -6.9 -3.3
USA (in $) 44 -4.7 -5.3
- TABLE CONTINUED -
ECONOMY HOTELS RevPAR
RevPAR by country Subsidiaries Subsidiaries Subsidiaries &
Q2 managed
(chg in % (like-for-like(1)) (reported)
(in local currency) reported)
France 39 -0.1 -1.8 -0.2
Germany 38 -14.2 -14.4 -13.8
Netherlands 62 -17.5 -16.7 -17.5
Belgium 50 -16.6 -16.6 -16.6
Spain 32 -26.7 -27.2 -26.7
Italy 43 -17.5 -17.5 -17.5
UK ( in GBP) 37 -17.0 -13.0 -16.6
USA (in $) 26 -14.6 -15.7 -14.6
(1) at comparable scope of consolidation and exchange rates.
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.
- Services, with 32 million people in 40 countries
benefiting
from Accor Services products in employee
and public benefits, rewards
and loyalty, and expense management. |