First-Quarter 2007 Revenue Up 8.9%
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First-Quarter 2007 Revenue Up 8.9%
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Category: Europe
This is a press release selected by our editorial committee and published online for free on 2007-04-20
Accor’s consolidated revenue rose 8.9% to €1,887 million in the first three months of 2007. At constant
scope of consolidation and exchange rates, the like-for-like increase was 7.6%. This very good start to 2007
confirms the fourth-quarter 2006 growth trend.
The Group’s two businesses are benefiting from a favorable business environment, with the Services
business enjoying structural growth in demand and the Hotel business lifted by an upturn in the European
hospitality industry cycle.
(in € millions) 2006
Adjusted(1)
2007
% change
as reported
% change
like-for-like(2)
Hotels 1,234 1,346 +9.1% +7.2%
Upscale and Midscale 679 775 +14.2% +8.5%
Economy 323 355 +9.9% +8.0%
Economy US 232 216 -6.8% +2.0%
Services 179 207 +15.4% +14.1%
Other Businesses 320 334 +4.3% +5.7%
Total 1,733 1,887 +8.9% +7.6%
(1) In accordance with IFRS, all data reported in 2006 have been adjusted to reflect the disposal of Carlson Wagonlit Travel.
(2) At constant scope of consolidation and exchange rates.
Services
Revenue from the Services business increased by 15.4% as reported and 14.1% like-for-like for the first
quarter.
In Europe, revenue rose by 16.0% like-for-like. France reported like-for-like revenue growth of 19.8%, led by
extensions to the product range, such as gift vouchers (excluding Kadéos) and the CESU services voucher,
whose revenue ramped up with issue volume doubling over the period. The other European countries also
performed well, with overall revenue growth of 13.7% like-for-like.
Latin America’s 10.7% like-for-like growth was driven by solid gains in Argentina (34.8%), Venezuela (28.2%)
and Mexico (20.6%). In Brazil, however, revenue contracted by a slight 0.8% like-for-like, reflecting a more
difficult competitive environment.
In line with the Group’s medium-term objectives, acquisitions accounted for 4.8% of first-quarter revenue
growth. In particular, the acquisition of the Kadéos gift vouchers and cards business in France added 2.5%.
The currency effect was a negative 3.1%, mainly due to the appreciation of the euro against Latin American
currencies.
Hotels
In the first quarter, Hotel revenue rose by 9.1% as reported. The 7.2% like-for-like increase confirmed the
fourth-quarter 2006 upturn in the European hospitality industry cycle. Growth was led by increases in both
the average room rate and the occupancy rate. With 70% of its hotel revenue generated in Europe, Accor is
very well positioned to take advantage of this upturn.
Business expansion represented 9.6% of revenue growth, with the January 2007 integration of 52 Dorint
hotels in Germany accounting for 6.2% of the increase and the impact of the opening of 6,500 rooms during
the period for 3.4%.
As part of the Group’s real estate management strategy, eight Sofitel in the US were divested under saleand-
management-back agreements, while other hotels were sold either outright or under sale-and-franchiseback
agreements. These disposals reduced revenue for the period by 5.5%.
The currency effect was a negative 2.1%, mainly due to the appreciation of the euro against US dollar.
Upscale and Midscale Hotels
First-quarter revenue in the Upscale and Midscale segment increased 8.5% like-for-like.
Revenue rose 7.9% like-for-like in France and 8.8% in the rest of Europe, with gains of 9.7% in the United
Kingdom, 7.8% in Germany and 13.5% in the Benelux countries.
Economy Hotels (outside the United States)
In the Economy Hotel segment, revenue rose by 8.0% like-for-like.
The acceleration in like-for-like growth was led by solid increases of 14.3% in the United Kingdom and 14.9%
in the Benelux countries, as well as by sustained growth of 4.9% in France and 5.1% in Germany.
US Economy Hotels
At 2.0%, like-for-like revenue growth in the US Economy Hotel segment was again weighed down by
unfavorable prior-year comparatives because of the additional business generated by hurricanes in early
2006.
Revenue rose 1.8% at Motel 6 and 2.6% at Red Roof Inn.
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