Accor

Earnings Release • Apr 21, 2021

Press release APRIL 21, 2021

First-quarter 2021 revenue of €361 million down 48% like-for-like

* * *

64% DECLINE IN REVPAR VS. Q1 2019

ORGANIC OPENINGS AT 7,100 ROOMS

EBITDA SENSITIVITY AND CASH BURN INDICATORS CONFIRMED

Sébastien Bazin, Chairman and Chief Executive Officer of Accor, said:

"There were no surprises in our first-quarter performance. Global business trends are improving slightly and the ramp-up of the vaccine rollouts bodes well for a particularly strong rebound. As it did in 2020, the Group continues to keep a close eye on protecting its cash and cutting costs. Today, all our efforts are focused on the strong recovery expected this summer."

Consolidated first-quarter 2021 revenue totaled €361 million, down 53% as reported and 48% like-for-like versus Q1 2020 (i.e., -57% versus Q1 2019).

RevPAR fell by 64.3% versus Q1 2019, reflecting an environment that remains hard hit by the Covid-19 epidemic. There were, however, significant year-on-year improvements in South Europe, Australia, the Middle East and North America.

Changes in the scope of consolidation (acquisitions and disposals) had a negative impact of -€25 million, largely due to the disposal of Mövenpick leased hotels in early March 2020.

Currency effects had a negative impact of -€11 million, mainly due to the Brazilian real (-26.4%) and the US dollar (-8.7%).

During the first quarter, Accor opened 56 hotels, representing 7,100 rooms. Although slightly below previous years, this is a very satisfying level given the current backdrop. At end-March 2021, the Group had a portfolio of 757,000 rooms (5,163 hotels) and a pipeline of 211,000 rooms (1,204 hotels), of which 74% in emerging markets.

As of April 19, 2021, 87% of the Group's hotels were open, i.e., more than 4,500 units.

Change in reporting format

The reorganization of the Group, and notably the change of the management structure in the frame of the RESET plan, resulted in a modification of the internal performance reporting and consequently of the segment reporting in accordance with IFRS 8 (operating segments):

• Reorganization of the operating structures within the different regions led to a change in the geographic reporting of the Management & Franchise segment.
• o Europe is split between South Europe (including France) and North Europe (including the United Kingdom and Germany);
• o Asia-Pacific (ASPAC) comprises the Pacific, Southeast Asia and Greater China regions;
• o Middle East & Africa (MEA) has been renamed India, Middle East, Africa & Turkey (IMEAT) as the region now includes India (previously in ASPAC) and Turkey (previously in Europe);
• o North/Central America, the Caribbean and South America have been grouped together under "Americas".
• The Holding & Intercos segment remains unchanged.
• The Hotel Assets & Other segment now includes all activities not related to HotelServices.

The first-quarter 2021 information is also presented in the previous reporting format in the appendix to this press release, along with the figures for the last two years in the new format.

Decrease in revenue

The Group reported first-quarter 2021 revenue of €361 million, down 48% like-for-like versus Q1 2020. This decline came to -56% for HotelServices and -33% for Hotel Assets & Other. To provide a comparison with RevPAR (presented as the change versus Q1 2019 throughout this release), the like-for-like decline in revenue versus Q1 2019 is 57%.

TOTAL	768	361	(53)%	(48)%	(57)%
Holding & Intercos	(11)	(2)	N/A	N/A	N/A
Hotel Assets & Other	239	129	(46)%	(33)%	(44)%
HotelServices	540	234	(57)%	(56)%	(64)%
In € millions	Q1 20	Q1 21	Change (as reported)	Change (LFL)(1)	Change (LFL) (1) vs 2019

(1) Like-for-like: at constant scope of consolidation and exchange rates.

HotelServices

HotelServices, which comprises fees from Management & Franchise (M&F) and Services to Owners, reported €234 million in revenue, down 64% life-for-like versus Q1 2019. This decline reflects the Covid-19-related deterioration in RevPAR.

Revenue in the Management & Franchise (M&F) business was €73 million, down 69% like-for-like versus Q1 2019, with performance hit by the gradual spread of the virus in various regions. In general, the sharper decline in M&F revenue reflects the collapse in incentive fees based on the hotel operating margin generated from management contracts.

TOTAL	150	73	(52)%	(69)%
Americas	30	15	(57)%	(70)%
IMEAT	23	11	(47)%	(69)%
ASPAC	27	20	(27)%	(62)%
North Europe	35	10	(70)%	(80)%
South Europe	36	17	(53)%	(67)%
In € millions	Q1 20	Q1 21	Change (LFL)(1)	Change (LFL) (1) vs 2019

(1) Like-for-like: at constant scope of consolidation and exchange rates.

Consolidated RevPAR was down 64.3% overall in Q1 2021 versus Q1 2019. This decline reflects an environment that remains at the mercy of the health situation, notably linked to the emergence of Covid-19 UK variant.

RevPAR improved sequentially in South Europe to -63.2%, mainly due to the easing of some of the restrictions.

• RevPAR fell by 60.8% in France, reflecting an improvement vs. Q4 2020 as there was no lockdown in France over Q1 2021. This performance is driven by the province (-49.4%), which welcomed domestic business clientele in particular. In contrast, Paris (RevPAR down 74.8%) suffered from the absence of international clientele. The third lockdown implemented since April 6 could, however, have an adverse impact on the second quarter before some restrictions are potentially lifted mid-May.
• In Spain, RevPAR fell by 80.8% versus Q1 2019.

North Europe reported a sharper drop in RevPAR of 81.9% due to the extension of strict lockdown measures since end-2020.

• In the United Kingdom, RevPAR fell by 86.5%. London was more affected than the regional cities with RevPAR down 91.1% and 80.5%, respectively. The gradual easing of the restrictions expected to begin on May 17, 2021 bodes well for an improvement in the second quarter.
• The 87.1% decline in RevPAR in Germany was similar to that of the United Kingdom.

In Asia-Pacific, RevPAR fell by 54.8%, with mixed performances by region.

• In China, RevPAR fell by 42.6% in first-quarter 2021, representing a sharp deterioration versus Q4 2020 (-18.1%). The region saw a resurgence of Covid-19 cases between January and February, leading the authorities to reintroduce severe restrictions, particularly during the Chinese New Year. The situation improved considerably again in March with a RevPAR down by 31%.
• In Australia, the lifting of the restrictions to coincide with the summer vacation period played a role in the sequential improvement in RevPAR, which was down 43.5%, notably for our Mantra portfolio on the Gold Coast. This decline was also mitigated by hotels being used for quarantine, which had a positive short-term impact on RevPAR.

In the India, Middle East, Africa & Turkey region, RevPAR was down 50.5%. This improvement in performance was driven by the United Arab Emirates, and more specifically by Dubai, which saw a strong inbound from Europe as most of the border restrictions have been eased. Whether or not this regional improvement continues will depend on events expected to take place mainly in the second half of 2021, including the Hajj pilgrimage and Expo 2020.

RevPAR was down 72.8% in the Americas.

• There was an improvement in North/Central America and the Caribbean, with RevPAR down by 76.3%. The recovery is pulled up by the US where the deployment of the vaccines is fast.
• In South America, where RevPAR fell by 62.9%. An improvement appeared to be underway at the beginning of the year before cases surged again in March, mainly in Brazil with more aggressive variants.

Hotel Assets & Other

Revenue in the "Hotel Assets & Other" segment was down 44% like-for-like versus Q1 2019, reflecting a smaller decline in RevPAR in Australia.

This segment now comprises New Businesses (concierge services, luxury home rentals, private sales of hotel stays, and digital services for hotel owners) which continue to be affected in different ways, ranging from the severely affected businesses directly related to the Travel sector, such as onefinestay's private home rentals, to the digital businesses, such as the services provided by D-Edge.

At end-March 2021, this segment, which includes owned and leased hotels, represented 122 hotels and 23,942 rooms.

EBITDA sensitivity and cash burn indicators reiterated

Accor confirms its EBITDA sensitivity per point of RevPAR a tad below €18 million, down from 2019, and monthly cash burn of less than €40 million. These indicators should be viewed in the context of the Group's healthy balance sheet, which has €3.6 billion in cash, of which €1.8 billion of undrawn revolving credit facility.

Events from January 1, 2021 to April 22, 2021

Capital increase of AccorInvest

On January 14, 2021, the Extraordinary General Meeting of AccorInvest's shareholders approved the completion of a €150 million euros capital increase subscribed by all shareholders in proportion to their ownership, representing €45 million for Accor. Besides, a second tranche amounting to €327 million euros (including €109 million euros for Accor) is expected to be proposed for approval to the Extraordinary General Meeting that will be held on March 1, 2021, subject to a subscription by all shareholders.

Redemption of bond

On February 5, 2021, Accor redeemed the maturing €550 million outstanding amount of a €900 million bond issued in February 2014. In 2019, this bond had been partially repurchased in the amount of €350 million. This redemption has been funded through the issuance of bonds convertible and/or exchangeable into new and/or existing shares (OCEANEs) on December 7, 2020.

Covenant holidays

On February 8, 2021, Accor obtained a one-year extension of the covenant holiday for the €1,200 million revolving credit facility, concluded on June 2018 a bank consortium. The covenant will not be tested on the next two test dates on June 30 and December 31, 2021.

Disposal of Huazhu Group Ltd shares

On February 18, 2021, Accor sold a part of its share in Huazhu Group Ltd which represent 1,5% of share capital of the company for 239 million euros. After completion of this transaction, the Group retains a 3.3% residual interest in the share capital.

Upcoming events in 2021 April 29th: Annual Shareholders' Meeting

ABOUT ACCOR

Accor is a world leading hospitality group consisting of more than 5,100 properties and 10,000 food and beverage venues throughout 110 countries. The group has one of the industry's most diverse and fully-integrated hospitality ecosystems encompassing luxury and premium brands, midscale and economy offerings, unique lifestyle concepts, entertainment and nightlife venues, restaurants and bars, branded private residences, shared accommodation properties, concierge services, co-working spaces and more. Accor also boasts an unrivalled portfolio of distinctive brands and mora than 260,000 team members worldwide. 68 million members benefit from the company's comprehensive loyalty program ALL - Accor Live Limitless - a daily lifestyle companion that provides access to a wide variety of rewards, services and experiences. Through its Planet 21 – Acting Here, Accor Solidarity, RiiSE and ALL Heartist Fund initiatives, the group is focused on driving positive action through business ethics, responsible tourism, environmental sustainability, community engagement, diversity and inclusivity. Founded in 1967, Accor SA is headquartered in France and publicly listed on the Euronext Paris Stock Exchange (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACCYY) in the United States. For more information visit group.accor.com or follow Accor on Twitter, Facebook, LinkedIn and Instagram.

Media Relations

Charlotte Thouvard Senior Vice President Group External Communications T. +33 (0)1 45 38 19 14 charlotte.thouvard@accor.com

Investor and Analyst Relations

Pierre-Loup Etienne Senior Vice President Investor Relations T. +33 (0)1 45 38 47 76 pierre-loup.etienne@accor.com

Line Crieloue Corporate Executive Director Group External Communications T. +33 (0)1 45 38 18 11 line.crieloue@accor.com

RevPAR excluding tax by segment – Q1 2021

Q1 2021		Occupancy rate	Average room rate			RevPAR
vs. Q1 2019	%	chg pts LFL		€ chg % LFL	€	chg % LFL
Luxury & Upscale	14.7	-44.9	162	-8.2	24	-76.7
Midscale	22.3	-37.6	87	-12.3	19	-67.3
Economy	29.5	-32.7	55	-9.5	16	-56.8
South Europe	26.4	-34.9	67	-15.0	18	-63.2
Luxury & Upscale	11.6	-52.3	121	-4.2	14	-81.9
Midscale	16.4	-49.4	61	-24.9	10	-81.6
Economy	15.5	-50.8	46	-26.2	7	-82.3
North Europe	15.5	-50.3	60	-24.9	9	-81.9
Luxury & Upscale	38.5	-26.2	88	-28.1	34	-56.6
Midscale	43.1	-28.0	63	-19.6	27	-51.7
Economy	46.9	-27.6	31	-28.4	15	-55.8
ASPAC	42.3	-27.3	61	-25.3	26	-54.8
Luxury & Upscale	31.9	-34.4	115	+1.5	37	-50.0
Midscale	46.6	-20.4	48	-22.5	22	-45.2
Economy	41.3	-24.7	33	-30.9	14	-55.5
IMEAT	36.9	-29.0	78	-12.6	29	-50.5
Luxury & Upscale	19.8	-45.6	167	-16.5	33	-75.6
Midscale	25.6	-35.8	48	-25.2	12	-69.9
Economy	28.1	-25.9	27	-18.8	8	-56.8
Americas	24.8	-34.8	75	-31.9	19	-72.8
Luxury & Upscale	29.6	-35.1	108	-21.0	32	-63.2
Midscale	29.9	-36.7	64	-20.8	19	-65.3
Economy	30.1	-35.0	41	-21.7	12	-64.2
Total	29.9	-35.5	66	-21.2	20	-64.3

Hotel base – March 2021

March 2021		Hotel assets		Managed		Franchised	Total
	Hotels	Rooms	Hotels	Rooms	Hotels	Rooms	Hotels	Rooms
Luxury & Upscale	2	1,339	37	6 741	32	2,598	71	10,678
Midscale	6	807	169	24,860	346	33,096	521	58,763
Economy	1	98	270	32,874	1 026	75,259	1 297	108,231
South Europe	9	2,244	476	64,475	1 404	110,953	1 889	177,672
Luxury & Upscale	3	721	67	12,342	37	8,108	107	21,171
Midscale	0	0	191	34,366	246	30,265	437	64,631
Economy	4	865	318	44,356	248	26,425	570	71,646
North Europe	7	1,586	576	91,064	531	64,798	1 114	157,448
Luxury & Upscale	10	2,106	275	67,439	65	11,765	350	81,310
Midscale	22	3,689	243	56,655	186	30,152	451	90,496
Economy	1	70	172	32,225	270	30,760	443	63,055
ASPAC	33	5,865	690	156,319	521	72,677	1 244	234,861
Luxury & Upscale	2	525	174	44,127	23	6,108	199	50,760
Midscale	5	796	80	15,501	23	4,434	108	20,731
Economy	10	1,681	71	13,209	14	2,098	95	16,988
IMEAT	17	3,002	325	72,837	60	12,640	402	88,479
Luxury & Upscale	1	53	95	31,309	18	4,928	114	36,290
Midscale	10	1,832	79	13,341	28	4,509	117	19,682
Economy	45	9,360	90	14,269	148	19,247	283	42,876
Americas	56	11,245	264	58,919	194	28,684	514	98,848
Luxury & Upscale	18	4,744	648	161,958	175	33,507	841	200,209
Midscale	43	7,124	762	144,723	829	102,456	1,634	254,303
Economy	61	12,074	921	136,933	1 706	153,789	2,688	302,796
Total	122	23,942	2,331	443,614	2 710	289,752	5,163	757,308

Previous reporting format

RevPAR excluding tax by segment – Q1 2021

Q1 2021	Occupancy rate		Average room rate		RevPAR
vs. Q1 2019	%	chg pts LFL		€ chg % LFL	€	chg % LFL
Luxury & Upscale	14.9	-47.3	129	+0.0	19	-74.3
Midscale	19.5	-43.6	74	-15.9	14	-74.3
Economy	24.1	-39.6	52	-14.6	13	-67.3
Europe	21.5	-41.7	65	-17.4	14	-71.3
Luxury & Upscale	38.7	-26.0	87	-28.8	33	-56.8
Midscale	43.9	-26.4	61	-21.5	27	-51.3
Economy	46.8	-27.1	31	-29.4	14	-56.1
Asia-Pacific	42.7	-26.5	60	-26.4	26	-54.7
Luxury & Upscale	32.8	-35.3	119	+2.1	39	-51.2
Midscale	44.9	-24.5	53	-20.9	24	-48.0
Economy	40.5	-26.9	37	-32.1	15	-58.5
Middle East & Africa	36.3	-31.7	87	-9.7	32	-52.3
Luxury & Upscale	19.5	-47.5	188	-14.8	37	-76.6
Midscale	22.0	-51.7	95	-16.9	21	-75.2
Economy	31.4	-28.8	30	-17.1	9	-57.5
North America, Central America & the Caribbean	21.0	-46.2	170	-19.5	36	-76.3
Luxury & Upscale	21.0	-37.7	83	-17.1	17	-69.9
Midscale	26.4	-31.9	39	-22.4	10	-65.3
Economy	27.9	-25.7	27	-18.9	8	-56.8
South America	26.8	-28.5	34	-23.7	9	-62.9
Luxury & Upscale	29.6	-35.1	108	-21.0	32	-63.2
Midscale	29.9	-36.7	64	-20.8	19	-65.3
Economy	30.1	-35.0	41	-21.7	12	-64.2
Total	29.9	-35.5	66	-21.2	20	-64.3

Hotel base – March 2021

March 2021	Hotel assets			Managed	Franchised		Total
	Hotels	Rooms	Hotels	Rooms	Hotels	Rooms	Hotels	Rooms
Luxury & Upscale	5	2 060	117	21 644	84	15 690	206	39 394
Midscale	11	1 603	361	59 318	601	64 991	973	125 912
Economy	15	2 644	589	77 326	1 278	102 055	1 882	182 025
Europe	31	6 307	1 067	158 288	1 963	182 736	3 061	347 331
Luxury & Upscale	10	2 106	284	69 256	65	11 765	359	83 127
Midscale	22	3 689	265	60 902	188	30 390	475	94 981
Economy	1	70	191	35 784	270	30 760	462	66 614
Asia-Pacific	33	5 865	740	165 942	523	72 915	1 296	244 722
Luxury & Upscale	2	525	152	39 749	8	1 124	162	41 398
Midscale	0	0	57	11 162	12	2 566	69	13 728
Economy	0	0	51	9 554	10	1 727	61	11 281
Middle East & Africa	2	525	260	60 465	30	5 417	292	66 407
Luxury & Upscale	1	53	70	25 829	12	3 696	83	29 578
Midscale	0	0	7	2 410	7	1 401	14	3 811
Economy	0	0	20	2 649	3	410	23	3 059
North America, Central America & the Caribbean	1	53	97	30 888	22	5 507	120	36 448
Luxury & Upscale	0	0	25	5 480	6	1 232	31	6 712
Midscale	10	1 832	72	10 931	21	3 108	103	15 871
Economy	45	9 360	70	11 620	145	18 837	260	39 817
South America	55	11 192	167	28 031	172	23 177	394	62 400
Luxury & Upscale	18	4 744	648	161 958	175	33 507	841	200 209
Midscale	43	7 124	762	144 723	829	102 456	1 634	254 303
Economy	61	12 074	921	136 933	1 706	153 789	2 688	302 796
Total	122	23 942	2 331	443 614	2 710	289 752	5 163	757 308

Revenue

In € millions	Q1 20	Q1 21	Change (as reported)	Change (LFL) (1)
HotelServices	540	234	(57)%	(56)%
Hotel Assets	206	111	(46)%	(32)%
New Businesses	32	18	(43)%	(42)%
Holding & Intercos	(11)	(2)	N/A	N/A
TOTAL	768	361	(53)%	(48)%

(1) Like-for-like: at constant scope of consolidation and exchange rates.

Management & Franchise

In € millions	Q1 2020	Q1 2021	Change (LFL) (1)
Europe	72	28	(60)%
ASPAC	30	21	(30)%
Middle East & Africa	19	9	(48)%
North America, Central America & the Caribbean	20	13	(54)%
South America	9	3	(63)%
TOTAL	150	73	(52)%

(1) Like-for-like: at constant scope of consolidation and exchange rates.

New reporting format

Revenue by segment

In € millions		Q1 19 Q2 19 Q3 19 Q4 19				Q1 20 Q2 20 Q3 20 Q4 20
HotelServices	645	720	760	769	540	110	224	268
Hotel Assets & Other	296	300	315	325	239	44	99	107
Holding & Intercos	(17)	(19)	(26)	(19)	(11)	(5)	5	1
TOTAL	925		1,002 1,049 1,075		768	149	329	376

Management & Franchise revenue by geography

In € millions			Q1 19 Q2 19 Q3 19 Q4 19			Q1 20 Q2 20 Q3 20 Q4 20
South Europe	51	73	74	64	36	(5)	28	21
North Europe	49	68	68	67	35	(5)	15	6
ASPAC	52	42	52	57	27	-	15	30
IMEAT	30	32	30	36	23	(2)	6	10
Americas	43	47	48	44	30	1	8	13
TOTAL	225	261	272	268	150	(11)	72	81

Group revenue & EBITDA

In € millions		HotelServices	Hotel Assets & Other	Holding & intercos	TOTAL
H1 2019	Revenue	1,366	597	(36)	1,926
	EBITDA	344	96	(65)	375
H2 2019	Revenue	1,528	639	(44)	2,123
	EBITDA	397	117	(64)	450
FY 2019	Revenue	2,894	1,236	(81)	4,049
	EBITDA	741	214	(129)	825
H1 2020	Revenue	650	283	(16)	917
	EBITDA	(141)	(26)	(60)	(227)
H2 2020	Revenue	492	206	6	704
	EBITDA	(117)	4	(52)	(165)
FY 2020	Revenue	1,142	488	(9)	1,621
	EBITDA	(257)	(22)	(112)	(391)

In € millions		South Europe	North Europe	ASPAC	IMEAT	Americas	TOTAL
H1 2019	Revenue	124	117	95	62	89	486
	EBITDA	97	89	63	46	57	353
H2 2019	Revenue	139	135	109	66	91	540
	EBITDA	112	109	81	52	59	412
FY 2019	Revenue	262	252	204	128	181	1,026
	EBITDA	209	198	144	98	115	765
H1 2020	Revenue	31	30	27	20	31	139
	EBITDA	(1)	(1)	(2)	-	4	-
H2 2020	Revenue	49	20	45	16	21	153
	EBITDA	14	(10)	23	1	(4)	25
FY 2020	Revenue	80	51	72	36	52	292
	EBITDA	14	(11)	21	1	-	25

Management & Franchise revenue & EBITDA