Accor:- 2005 Revenue:Up 7.9% to €7,622 million
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Accor:- 2005 Revenue:Up 7.9% to €7,622 million
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2006-01-27
Paris, January 25th, 2006
(in Euros million) 2004
IFRS
2005
IFRS
% change
(reported)
% change
(like-for-like)*
Hotels
Upscale and Midscale 2,787 2,864 +2.8% +2.8%
Economy 1,247 1,367 +9.6% +4.1%
Economy US 922 964 +4.5% +5.1%
Services 518 630 +21.7% +14.1%
Other businesses 1,590 1,797 +12.9% +5.0%
Total Group 7,064 7,622 +7.9% +4.7%
* Based on constant scope of consolidation and exchange rates
Accor’s consolidated revenue rose by 7.9% to €7,622 million for the year ended
December 31, 2005.
At constant scope of consolidation and exchange rates, the increase was 4.7%.
Expansion added 4.5% to revenue growth while asset disposals had a negative 2.5%
impact. During the year, 182 hotels (23,632 rooms) were opened and 90 hotels (11,626
rooms) were closed, increasing the portfolio to 4,065 hotels (475,433 rooms) at December
31. Of the new openings, 75% were units operated under non-capital intensive
agreements (management or franchise contracts) and 25% were owned or leased
properties.
The currency effect had a positive 1.2% impact on revenue growth, primarily due to the
appreciation of the Brazilian real.
Fourth quarter
For the fourth quarter, revenue was up by 10.0% to €1,993 million. Like-for-like, the
increase was 4.1%, compared with a sharp 5.1% rise in fourth-quarter 2004.
Fourth-quarter 2005 also saw strong like-for-like growth in the US Economy segment (up
6.3%) and in Services (up 16.9%).
***
Upscale and Midscale Hotels
Upscale and Midscale hotel revenue increased 2.7% like-for-like in the fourth quarter, in
line with the trend over the first nine months of the year.
For the year, segment revenue rose 2.8%, both as reported and like-for-like.
Business was very satisfactory in North America, Latin America and Asia, with like-for-like
revenue increasing by 7.3%. In the United States in particular, revenue was up 10.7%
like-for-like.
Growth was more moderate in Europe, rising 1.5% like-for-like. In France, revenue
increased by 1.4% like-for-like, reflecting a slight decline in the occupancy rate and
effective management of average room rates. In a still lackluster business environment,
revenue in Germany rose 1.3% like-for-like, as the occupancy rate improved without any
increase in the average room rate. In the United Kingdom, revenue was up a solid 4.4%
like-for-like despite the impact of July's terrorist attacks.
Economy Hotels (outside the United States)
The Economy Hotel segment confirmed its solid performance, with full-year revenue
growth of 9.6% as reported and 4.1% like-for-like.
The like-for-like increase was 3.6% in France and 3.5% in the rest of Europe.
Expansion added 5.1%, or €63 million, to growth, with 64 hotel openings (8,064 rooms),
including 10 Ibis in Spain.
Economy Hotels in the US
RevPAR rose a sharp 5.6% like-for-like during the year, led by a 4.3% increase in average
room rates and a 0.8-point rise in occupancy rates. Revenue excluding the currency effect
was up 5.1%.
The faster growth in revenue in the fourth quarter (up 6.3% like-for-like) was especially
apparent in Louisiana, Texas, Alabama and California.
Implementation of the Red Roof Inn renovation program continued, with 92 hotels
successfully upgraded as of December 31 and 22 currently in renovation.
Services
For the year, revenue in the Services business was up 14.1% like-for-like. The strong
growth was due to a combination of especially positive factors, including favorable
legislation and new product launches.
In Europe, revenue rose 10.1% like-for-like, with, in particular, increases of 22.0% in the
United Kingdom and 14.8% in Belgium.
Latin America posted a sharp 21.0% increase in like-for-like revenues. In Argentina,
Mexico and Venezuela, revenue benefited from highly favorable legislation.
Thanks to the appreciation of the Brazilian real, exchange rates had a positive 4.5%
impact on full-year revenue growth.
Other businesses
For the year, travel agency revenue increased 4.8% as reported and 3.3% like-for-like.
In the Casinos business, revenue for the 12 month period was up 1.0% like-for-like and
47.7% as reported, following the creation of Groupe Lucien Barrière in December 2004.
Full-year revenue from the restaurant business rose 6.9% like-for-like and 13.0% as
reported.
Revenue generated by onboard train services increased 6.1% like-for-like and 1.1% as
reported.
Conclusion
The Group’s overall good performance was led by the Services business, the US
Economy Hotels segment, and Economy Hotels (outside the US). The Upscale and
Midscale Hotels segment in Europe remains sluggish.
With revenue in line with forecasts, Accor confirms its full-year objectives of €590-610
million in profit before tax and approximately €300 million in net profit, as it announced
when the 2005 interim results were released.
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