Accor — Earnings Release 2010

Jan 19, 2011

Press Release Paris – January 19, 2011

Strong increase in 2010 Hotels revenue, up 7.4% like-for-like

Sustained growth in the fourth quarter, up 9.4% like-for-like

***

2010 EBIT target revised upward to around €440 million

(versus the €400-420 million previously announced)

(in € millions)	2009 Restated1	2010 Reported1	% change	% change like-for-like2
Group	5,490	5,948	+8.4%	+7.1%
of which:
Upscale and Midscale	3,026	3,332	+10.1%	+9.0%
Economy	1,626	1,806	+11.1%	+6.8%
Economy US	534	555	+3.8%	+0.7%
Hotels	5,186	5,693	+9.8%	+7.4%

Consolidated revenue for 2010 totaled €5,948 million, up 8.4% on a reported basis and 7.1% like-for-like.

²At constant scope of consolidation and exchange rates

¹ The figures for 2010 have been restated to exclude the following discontinued operations:

^- Prepaid Services, following the demerger from Accor (Edenred shares began trading on the stock exchange on July 2, 2010).

^- The Compagnie des Wagons-Lits onboard rail catering business, following the disposal of the company on July 7, 2010.

Groupe Lucien Barrière has been reclassified in "Assets held for sale" and its revenue has therefore been deducted from Accor's revenue for both of the years presented.

Note: Consolidated revenue (including the Prepaid Services business that was demerged from Accor on July 2, 2010) is presented in the appendix on page 5 together with a reconciliation between the reported and restated revenue figures.

Hotels: 7.4% like-for-like increase in revenue for the year, with 9.4% growth in the fourth quarter alone

For the year ended December 31, 2010, Hotels revenue amounted to €5,693 million, up 9.8% on a reported basis. The increase for the year can be analyzed as follows:

• Expansion increased revenue by €75 million, adding 1.4% to reported growth. The increase was attributable to the opening of 214 hotels, representing 24,800 rooms, essentially through management and franchise contracts.
• Changes in the hotel portfolio related to the ongoing deployment of the asset-right strategy reduced revenue by €136 million and reported growth by 2.6%.
• The 3.5% positive currency effect added €183 million to revenue. It was primarily due to the favorable change in exchange rates for the Australian dollar, Brazilian real and US dollar against the euro.

At constant scope of consolidation and exchange rates, revenue rose by 7.4%, reflecting the upswing in the hotel cycle during the year.

Fourth-quarter revenue in the Hotels business came to €1,448 million, up a reported 11.8% on the yearearlier period. This figure takes into account:

• The 1.1% positive impact of the Group's expansion, which added €15 million to revenue. The increase was led by the opening of 84 hotels, representing 9,400 rooms, during the quarter.
• The 2.6% negative impact of the asset-right strategy, which reduced revenue by €34 million.
• The 3.9% positive currency effect, which increased revenue by €50 million.

Like-for-like revenue growth for the fourth quarter stood at 9.4%. The increase reflected the ongoing improvement in occupancy rates, while the recovery in average room rates continued in most countries.

Note: Since January 1, 2010, the hospitality industry has been affected by several changes in VAT legislation. In Germany, the VAT rate on lodging accommodations was reduced to 7% from 19%, while in the United Kingdom, the general VAT rate was increased by 2.5 points to 17.5% from 15%. This has had an impact on RevPAR figures, which include VAT, but not on revenue, which is stated net of VAT.

Upscale and Midscale Hotels: up 9.0% like-for-like for the year, including 10.6% growth in the fourth quarter

In 2010, revenue in the Upscale and Midscale segment rose by 10.1% as reported and 9.0% like-for-like. The strong 10.6% like-for-like increase in the fourth quarter was in line with the 11.6% rise in the third quarter. The upturn in business noted at September 30 in the major markets (France, Germany and the United Kingdom) extended to most European countries, with occupancy rates continuing to improve and average room rates also increasing, except in Spain and Italy.

In France, like-for-like revenue was up 8.7% for the year and 9.9% in the fourth quarter. The Upscale and Midscale segment continued to benefit from improved occupancy rates, which rose 4.0 points in the fourth quarter, while average room rates increased by a significant 4.9% in the last three months of the year. The increase extended across all categories within the segment. The rise in RevPAR was especially strong in Paris, which benefited from the combined improvement in occupancy rates and average room rates.

In Germany, like-for-like revenue rose by 14.2%, lifted by the solid recovery in economic activity and a more favorable trade events calendar. Revenue rose by 12.8% in the fourth quarter, led by increases in occupancy rates and average room rates net of VAT.

In the United Kingdom, like-for-like revenue growth was 4.7% for the year and 2.8% for the fourth quarter alone, because of less favorable prior-year comparatives. London again turned in a solid performance while hotels in other parts of the country were boosted by a business recovery in the last quarter.

As in the previous quarters, Upscale and Midscale hotels in emerging markets continued to enjoy doubledigit revenue growth. For the year, revenue increased by 18.1% in Latin America (including 15.7% in the fourth quarter) and by 15.5% in the Asia-Pacific region (16.3% in the fourth quarter).

Economy Hotels excluding the US: up 6.8% for the year and 7.7% in the fourth quarter, like-for-like

In Economy Hotels, revenue for the year was up 11.1% as reported and 6.8% like-for-like. The segment's fourth-quarter performance was solid, as revenue increased 7.7% like-for-like. In most European countries, occupancy rates continued to rise while average room rates are now stabilizing.

In France, revenue expanded 4.4% like-for-like for the year, with 5.9% growth in the fourth quarter. All of the brands benefited from the upturn in the hotel cycle, especially in Paris where RevPAR increased by 9.0% in the fourth quarter. Average room rates began to improve gradually, especially for Ibis and Etap Hotel.

Thanks to the overall economic recovery, Economy Hotels in Germany turned in a very good performance, with revenue up 13.4% like-for-like for the year, including an increase of 15.7% in the fourth quarter. Demand in major cities like Cologne, Munich and Frankfurt helped to drive an increase in occupancy rates while average room rates net of VAT continued to improve.

In the United Kingdom, like-for-like revenue in the Economy segment was up 6.2% for the year and 7.3% in the fourth quarter. Deployment of the revenue management strategy had a positive impact on indicators. Occupancy rates were up 5.7 points. As in the Upscale and Midscale segment, hotels in London performed well, posting improvements in both occupancy rates and average room rates.

Like-for-like revenue growth in emerging markets was especially robust in 2010, with increases of 13.2% in Latin America (including 10.7% in the fourth quarter) and 11.9% in the Asia-Pacific region (13.5% in the fourth quarter).

Economy Hotels in the United States: up 0.7% like-for-like, with 7.2% growth in the fourth quarter

Revenue from the US Economy Hotels segment was up 3.8% for the year as reported. Like-for-like revenue growth stood at 0.7% with a strong 7.2% increase in the fourth quarter, following a 3.9% decline in the first half and a 4.9% rise in the third quarter. The increase was due essentially to the improvement in occupancy rates (up 4.5 points in the fourth quarter). The brand benefited from strong momentum in 2010. For the year, 58 hotels were opened under franchise contracts, of which 23 in the fourth quarter.

Conclusion: EBIT target revised upwards

Thanks to the favorable trend in the hotel cycle, consolidated revenue enjoyed sustained growth that accelerated in the second half. The recovery that began in the Group's main markets (France, Germany and the United Kingdom) gradually extended to most European countries. Occupancy rates again improved while average room rates continued to rise in the fourth quarter. The business was also lifted by a strong rebound in emerging markets, which posted double-digit revenue increases.

In light of the fourth quarter's very solid revenue performance, particularly in key European capitals, and a more favorable currency effect, full-year EBIT should come to around €440 million (compared with €236 million in 2009), versus the €400-420 million target announced in late October.

* *

Upcoming event

• February 23, 2011: publication of 2010 annual results

Accor, the world's leading hotel operator and market leader in Europe, is present in 90 countries with 4,200 hotels and more than 500,000 rooms. Accor's broad portfolio of hotel brands - Sofitel, Pullman, MGallery, Novotel, Suite Novotel, Mercure, Adagio, ibis, all seasons, Etap Hotel, hotelF1 and Motel 6, and its related activities, Thalassa sea & spa and Lenôtre - provide an extensive offer from luxury to budget.

*****

With 145,000 employees worldwide, the Group offers to its clients and partners nearly 45 years of know-how and expertise.

Armelle Volkringer Senior Vice President, Corporate and External Relations Tel.: +33 (0)1 45 38 87 52

Charlotte Bourgeois-Cleary Tel.: +33 (0)1 45 38 84 84

MEDIA RELATIONS INVESTOR RELATIONS

Sébastien Valentin Senior Vice President, Financial Communication and Investor Relations Tel.: +33 (0)1 45 38 86 25

Olivia Hublot Investor Relations Tel.: +33 (0)1 45 38 87 06

Accor revenue (including assets held for sale) for the year ended December 31, 2010

in € thousand	Quarter 1		Quarter 2		Quarter 3		Quarter 4		December end (YTD)
	2009	2010	2009	2010	2009	2010	2009	2010	2009	2010
Publication
Up & Midscale	686	717	785	878	776	867	778	870	3,026	3,332
Economy	359	385	422	476	435	490	410	455	1,626	1,806
Economy US	137	118	144	149	146	165	107	123	534	555
HOTELS	1,182	1,219	1,351	1,503	1,357	1,522	1,296	1,448	5,186	5,693
Casinos	83	129	81	126	138	139	140	142	441	536
Lenôtre	22	24	28	29	20	21	28	32	98	105
On-board train services	67	35	57	32	65	11	59	13	248	90
Holdings & Other pro forma (*)	41	32	54	33	57	33	38	34	190	132
Other businesses	213	219	219	219	279	204	265	221	977	863
PREPAID SERVICES Proforma (*)	221	227	223	234	212	-	246	-	902	461
Total Groupe before demerger	1,616	1,666	1,794	1,957	1,848	1,726	1,806	1,669	7,065	7,017
Restatements
Prepaid Services demerger (1)	(221)	(227)	(223)	(234)	(212)	-	(246)	-	(902)	(461)
Casinos (2)	(79)	(125)	(77)	(122)	(133)	(134)	(135)	(138)	(424)	(518)
On-board train services (3)	(67)	(35)	(57)	(32)	(65)	(11)	(59)	(13)	(248)	(90)
Total restatements	(367)	(386)	(357)	(387)	(410)	(145)	(440)	(151)	(1,574)	(1,069)
Restated
Up & Midscale	686	717	785	878	776	867	778	870	3,026	3,332
Economy	359	385	422	476	435	490	410	455	1,626	1,806
Economy US	137	118	144	149	146	165	107	123	534	555
HOTELS	1,182	1,219	1,351	1,503	1,357	1,522	1,296	1,448	5,186	5,693
Lenôtre	22	24	28	29	20	21	28	32	98	105
Holdings & Other	45	36	57	37	61	37	42	39	205	150
Other businesses	67	60	85	66	81	58	70	71	303	255
Total Group	1,250	1,279	1,436	1,569	1,438	1,580	1,366	1,519	5,490	5,948
in %	Quarter 1		Quarter 2		Quarter 3			Quarter 4	December end (YTD)
	∆ restated	∆ L/L (4)	∆ restated	∆ L/L (4)	∆ restated	∆ L/L (4)	∆ restated	∆ L/L (4)	∆ restated	∆ L/L (4)
Restated
Up & Midscale	4.4%	2.8%	11,9%	10,1%	11.7%	11.6%	11.8%	10.6%	10.1%	9.0%
Economy	7.2%	2.7%	12,8%	7,6%	12.6%	8.2%	11.0%	7.7%	11.1%	6.8%
Economy US	-14.0%	-7,5%	3,5%	-0,5%	13.0%	4.9%	14.6%	7.2%	3.8%	0.7%
HOTELS	3,1%	1,6%	11.3%	8,2%	12.2%	9.8%	11.8%	9.4%	9.8%	7.4%
Lenôtre	6,5%	7,4%	3,0%	2,7%	5.6%	4.5%	13.2%	13.7%	7.2%	7.3%
Holdings & Other	-18.9%	-6.9%	-35.0%	-5.5%	-38.5%	1.8%	-8.3%	2.2%	-27.1%	-2.0%
Other businesses	-10.5%	-2.2%	-22.6%	-2.8%	-27.8%	2.5%	0.4%	6.8%	-16.0%	1.0%
Total Group	2.4%	1.4%	9.2%	7.5%	9.9%	9.4%	11.2%	9.3%	8.4%	7.1%

(1) Edenred, the former Prepaid Services business, released its first-half revenue figures on July 19, 2010. The business has not been consolidated since July 2, 2010, when Edenred shares began publicly trading.

(2) Groupe Lucien Barrière was reclassified as "assets held for sale"

(3) Compagnie des Wagons-Lits' onboard foodservices business was reclassified as "assets held for sale" after it was sold on July 7, 2010.

(4) At constant scope of consolidation and exchange rates.

*Reclassification in Holding Companies and Other of the SNCF train crew housing business, previously recognized in Prepaid Services.

RevPAR including VAT by segment (total at December 31)

HO TE LS : R evP AR by ent se gm		Oc Ra te cu pan cy			Av era ge roo m r	ate	Re vP AR
YT D Q 4	Su bsi dia ries			Su bsi dia ries			Su bsi	dia ries	Su bsi dia ries	Su bsi & ma dia ries ed nag
	( in % )	(c hg in p ts rep ed) ort	(c hg in p /L ( ts L 1) )		(c hg in % rep ed) ort	(c hg in % L/L ( 1) )		(c hg in % rep ed) ort	( like -fo r-li ke( 1) )	(re ted ) por
Up le a nd Mid le E ( in € ) sca sca uro pe	6 3. 4%	+4 .6	+4 .4	9 8	+1 .9 %	+0 .5 %	6 2	+9 .8 %	+8 .0 %	+1 0. 0 %
Ec Eu e ( in € ) on om y rop	6 8. 6 %	+3 .2	+3 .2	5 8	+0 .8 %	0. 9 % -	40	+5 .8 %	+4 .1%	+6 .1%
in \$ Ec US ( ) on om y	6 1.1 %	+2 .9	+2 .8	42	-3. 4%	3. 9 % -	25	.5 +1 %	+0 .7%	.5 +1 %

(1) at comparable scope of consolidation and exchange rates.

RevPAR including VAT by segment (4th quarter)

LS HO TE : R evP AR by ent se gm	Oc Ra te cu pan cy			Av	era ge roo m r	ate	Re vP AR
Q4		Su bsi dia ries		Su bsi dia ries			Su bsi	dia ries	Su bsi dia ries	Su bsi & ma dia ries ed nag
	( in % )	(c hg in p ts rep ed) ort	(c hg in p /L ( ts L 1) )		(c hg in % rep ed) ort	(c hg in % L/L ( 1) )		(c hg in % rep ed) ort	( like -fo r-li ke( 1) )	(re ted ) por
Up le a nd Mid le E ( in € ) sca sca uro pe	6 2. 5 %	+4 .1	+3 .6	10 1	+4 .8 %	+3 .6 %	6 3	+1 2.2 %	+1 0. 1%	+1 2.6 %
Ec Eu e ( in € ) on om y rop	6 7.3 %	+4 .6	+4 5	5 9	+1 .6 %	0. 3 % -	3 9	+9 .0 %	+6 .8 %	+9 5 %
US ( in \$ ) Ec on om y	5 7. 5 %	+4 .7	+4 5 ,	40	1.2 % -	1.2 % -	23	+7 5 %	+7 .2%	+7 5 %

(1) at comparable scope of consolidation and exchange rates.

RevPAR including VAT by country (total at December 31)

UPS CAL E A ND MID SCA LE HO TEL S	Nb of		Oc Rat cu pan cy e			Av ate era ge roo m r		Re vP AR
YT D Q 4 R evp ar	roo ms		Sub sid iari es		Sub sid iari es			Sub sid	iari es	Sub sid iari es	Sub & ma sid iari es ed nag
( ) in l l cu oca rre ncy		( in % )	(c hg in p ts rep ed) ort	(c hg in p /L (1 ts L ) )		(c hg in % rep ed) ort	(c hg in % L/L (1 ) )		(c hg in % rep ed) ort	( like -fo r-lik e(1 ) )	(re ted ) por
Fra nce	27 8 9 8 ,	6 4.5 %	+4 .6	+4 .4	11 6	+2 .5 %	+1 .5 %	75	+1 0. 4%	+9 .1%	+1 0. 1%
Ge rm any	19 07 8 ,	6 4.9 %	+5 .5	+5 .6	8 9	1.0 % -	0. 9 % -	5 8	+8 .1%	+8 .4%	+8 .2%
Ne the rla nds	3, 5 28	67 .2%	+6 .3	+5 .3	9 5	+3 .6 %	0. 1% -	6 4	+1 4.4 %	+8 .9 %	+1 9. 6 %
Be lg ium	1, 8 0 2	73 .1%	+7 .5	+7 .5	10 2	0. 2% -	0. 2% -	74	+1 1.2 %	+1 1.2 %	+1 2.3 %
Sp ain	2, 6 49	57 .8 %	+5 .3	+4 .1	79	3. 5 % -	5. 2% -	45	+6 .3 %	+2 .3 %	+1 0. 8 %
Ital y	3, 9 8 8	6 0. 9 %	+4 .4	+5 .0	9 9	4.5 % -	4.3 % -	6 0	+2 .9 %	+4 .2%	+2 .1%
UK ( in £ )	5, 5 41	77 .4%	+2 .2	+2 .6	9 2	+1 0. 0 %	+1 0. 4%	71	+1 3. 2%	+1 4.2 %	+1 2.7 %

(1) at comparable scope of consolidation and exchange rates.

ECO S NO MY HO TEL	Nb of		Oc Rat cu pan cy e			Av era ge roo m r	ate	Re vP AR
D Q YT 4 R evp ar	roo ms		Sub sid iari es		Sub sid iari es			Sub sid	iari es	Sub sid iari es	Sub sid iari & ma es ed nag
( in l l cu ) oca rre ncy		( in % )	(c hg in p ts rep ed) ort	(c hg in p /L (1 ts L ) )		(c hg in % rep ed) ort	(c hg in % L/L (1 ) )		(c hg in % rep ed) ort	( like -fo r-lik e(1 ) )	(re ted ) por
Fra nce	3 9, 9 3 4	6 9. 8 %	+2 .8	.5 +2	5 4	.5 +0 %	0. 0 % -	3 8	+4 .7%	+3 .8 %	+4 .7%
Ge rm any	15 16 0 ,	6 8. 5 %	+4 .2	+4 .0	5 8	1.7 % -	2.4 % -	40	+4 .7%	+3 .7%	+4 .3 %
Ne the rla nds	2, 41 4	73 .2%	+8 .1	+8 .5	77	2.4 % -	1.8 % -	5 6	+9 .6 %	+1 1.1 %	+9 .6 %
Be lg ium	2, 6 3 9	72 .6 %	+2 .4	+3 .4	6 9	+2 .6 %	+1 .4%	5 0	+6 .1%	+6 .5 %	+6 .1%
Sp ain	4, 8 9 8	5 4.6 %	0. 8 -	0. 6 -	5 3	1.1 % -	1.9 % -	29	2.5 % -	2.9 % -	2.5 % -
Ital y	1, 5 5 2	6 5. 0 %	+9 .0	+9 .0	6 5	6. 3 % -	6. 3 % -	42	+8 .7%	+8 .7%	+8 .7%
UK ( in £ )	9, 0 13	72 .3 %	+4 .8	+4 .7	5 4	+2 .4%	+1 .3 %	3 9	+9 .6 %	+8 .3 %	+9 .5 %
US A ( in \$ )	73 40 3 ,	6 1.1 %	+2 .9	+2 .8	42	3. 4% -	3. 9 % -	25	+1 .5 %	+0 .7%	+1 .5 %

(1) at comparable scope of consolidation and exchange rates.

RevPAR including VAT by country (4th quarter)

UPS CAL SCA S E A ND MID LE HO TEL	Nb of		Oc Ra te cup anc y			Av era ge roo m r	ate	Re vP AR
Q4 Rev by ntri par cou es	roo ms		Sub sid iari es		Sub sid iari es			Sub sid	iari es	Sub sid iari es	Sub & ma sid iari es ed nag
( in l l cu ) oca rre ncy		( in % )	(ch in p ts rep g ed) ort	(ch in p /L (1 ts L g ) )		(ch in % g rep ed) ort	(ch in % L/L g (1 ) )		(ch in % g rep ed) ort	(l ike -for -lik e(1 ) )	(re ted ) por
Fra nce	27 89 8 ,	62 .8%	+4 .8	+4 0 ,	12 1	+5 .8%	+4 9% ,	76	+1 4.6 %	+1 2, 3%	+1 3.8 %
Ge rm any	19 07 8 ,	67 .0%	+5 .0	+5 .0	90	+0 .5%	+0 .2%	61	+8 .6%	+8 .3%	+9 .1%
Ne the rla nds	3, 52 8	68 .7%	+8 .5	+7 .3	96	+8 .4%	+5 .3%	66	+2 3.6 %	+1 8. 5%	+3 0.9 %
Be lg ium	1, 80 2	74 .4%	+4 .2	+4 .2	10 8	+5 .9%	+5 .9%	80	+1 2.3 %	+1 2.3 %	+1 4.7 %
Sp ain	2, 64 9	56 .0%	+3 .6	+1 .7	78	3.9 % -	6.2 % -	44	+2 .6%	3.1 % -	.2% +7
Ital y	3, 98 8	59 .2%	+3 .2	+4 .3	9 5	4.6 % -	4.4 % -	56	+0 .8%	+2 .9%	+2 .6%
UK ( in £ )	5, 54 1	77 .0%	+1 .8	+1 .3	97	+1 1.4 %	+1 1.1 %	75	+1 4.1 %	+1 3.2 %	+1 4.1 %

(1) at comparable scope of consolidation and excahange rates.

ECO NO MY HO TEL S	of Nb	Oc Ra te cup anc y			Av	era ge roo m r	ate	Re vP AR
Q4 Rev by ntri par cou es	roo ms		Sub sid iari es		Sub sid iari es			Sub sid	iari es	Sub sid iari es	Sub sid iari & ma es ed nag
( in l l cu ) oca rre ncy		( in % )	(ch in p ts rep g ort ed)	(ch in p /L (1 ts L g ) )		(ch in % g rep ort ed)	(ch in % L/L g (1 ) )		(ch in % g rep ort ed)	(l ike -for -lik e(1 ) )	(re ted ) por
Fra nce	39 93 4 ,	67 .9%	+4 .4	+3 .9	5 5	+0 .5%	0.2 % -	38	+7 .5%	+6 .0%	+7 .7%
Ge rm any	15 16 0 ,	69 .6%	+6 .0	+5 .6	59	1.0 % -	2.2 % -	41	+8 .2%	+6 .4%	.7% +7
Ne the rla nds	2, 41 4	72 .4%	+1 1.3	+1 1.3	76	+0 .4%	+0 .4%	5 5	+1 9.0 %	+1 9.0 %	+1 9.0 %
Be lg ium	2, 63 9	72 .6%	0. 5 -	+1 .6	72	+4 .5%	+4 .4%	52	+3 .8%	+6 .8%	+3 .8%
Sp ain	4, 89 8	50 .4%	+0 .1	+1 .3	53	0.3 % -	0.2 % -	27	0.2 % -	+2 .4%	0.2 % -
Ital y	1, 5 52	64 .9%	+1 2.7	+1 2.7	62	9.1 % -	9.1 % -	40	+1 3.0 %	+1 3.0 %	+1 3.0 %
UK ( in £ )	9, 01 3	72 .5%	+5 .4	+5 .7	56	+2 .5%	+2 .3%	41	+1 0.8 %	+1 1.0 %	+1 0.6 %
US in \$ A ( )	73 40 3 ,	57 .5%	+4 .7	+4 .5	40	1.2 % -	1.2 % -	23	+7 .5%	+7 .2%	+7 .5%

(1) at comparable scope of consolidation and excahange rates.