Accor: First-Half 2006 Revenue - Good Performance in Two Core Businesses: Hotels: +7.0% / Services: +25.6%
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Accor: First-Half 2006 Revenue - Good Performance in Two Core Businesses: Hotels: +7.0% / Services: +25.6%
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Category: Worldwide
This is a press release selected by our editorial committee and published online for free on 2006-07-21
Accor’s consolidated revenue rose 8.4% to €3,690 in the first six
months of 2006. At constant scope of consolidation and exchange rates, the increase was
6.0%.
Business expansion accounted for 3.6% of growth while asset disposals had a negative
impact of 3.4%.
The increase in like-for-like revenue over the first half reflects a good performance across all
businesses and regions. The Hotels business benefited from a solid recovery in Northern
Europe (Germany, Benelux and the United Kingdom), led by Germany. Although growth was
more moderate in Southern Europe (France, Spain and Italy), signs of an upturn were
apparent in the second quarter especially in France. Revenue from Economy hotels in the
US continued to deliver sustained growth in the first half. The Services business again
reported excellent revenue growth.
Hotels
Growth accelerated in the second quarter compared to the first. Adjusted for the positive
impact of the soccer World Cup and Easter vacation, revenue rose 5.6% in the second
quarter and 4.6% in the first three months of the year.
Upscale and Midscale Hotels
First-half revenue in the Upscale and Midscale segment increased 5.2% as reported and
5.7% like-for-like.
In Germany, like-for-like revenue growth came to 10.4%. Excluding the impact of the World
Cup, the increase was 7.3%, reflecting a more favorable economic environment. Business
conditions were also more favorable in Benelux, where revenue rose 6.0% like-for-like. In the
United Kingdom, particularly strong business in London lifted like-for-like revenue by 7.5%.
Activity in France picked up speed over the period, with like-for-like revenue up 0.9% in the
first quarter and 3.0% in the second, for a total gain of 2.1%.
Economy Hotels (outside the United States)
In the Economy segment (excluding the US), revenue rose 8.7% as reported and 4.7% likefor-
like.
The World Cup fueled the 7.7% like-for-like increase in Germany. Factoring out this event,
first-half revenue was up 4.3% thanks to the good business environment. In Benelux, like-forlike
revenue growth came to 9.3%.
In France, stronger demand led to a 3.1% gain over the period, with like-for-like revenue up
1.8% in the first quarter and 4.1% in the second.
Economy Hotels in the US
Growth continued in this segment, with revenue up 6.0% like-for-like. The upward trend
tapered off slightly at the end of the period, in an environment shaped by higher oil prices.
The positive currency effect accounted for 4.8 points of the 9.9% rise in reported revenue.
Services
The Services business again turned in an excellent performance, with revenue up 25.6% as
reported and 16.3% like-for-like.
Product range extensions made a significant contribution to growth. Examples include the
Ticket Emploi Service in Belgium (like-for-like revenue up 22.5%), the Childcare voucher in
the UK (up 21.1%) and the Ticket Car in Mexico (up 21.1%).
Increase of penetration rates also made a contribution to revenue growth. For instance in
Venezuela, revenue rose 40.7% like-for-like.
Business expansion accounted for 4.7% of reported growth, mainly through four recent
acquisitions: Hungastro in Romania (meal vouchers), Delicard in Sweden (gift vouchers),
Stimula in France (gift vouchers) and Commuter Check in the United States (transportation
vouchers).
The currency effect added 5.9 points to revenue growth and primarily reflected the
appreciation of the Brazilian real against the euro.
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