PARIS, August 3, 2001 (PRIMEZONE) -- ACCOR (Reuters: AC.PA, Euroclear Paris code :12040, AC. Paris Stock Exchange), consolidated sales for first-half 2001.
(in EUR million) 2000 2001 Change Hotels 2,230 2,482 +11.3% Services 206 241 +17.4% Other activities 881 876 -0.5% Total Group 3,316 3,600 +8.6%
Accor's first half 2001 consolidated sales totaled EUR 3.6 million, up 8.6% compared to EUR 3.316 million in the first half of 2000. Excluding disposals and currency impact, the sales grew 11.4%.
These results demonstrate Accor's ability to deliver good growth in a difficult economic environment. Accor continues to successfully capitalize on its leadership position in Europe and worldwide, its well-balanced portfolio across market segments and geographies, and its investments in reservation systems, distribution and yield management.
Detail
Accor's sales growth of 8.6% is comprised of:
-- growth of existing activities: +5.3% -- business development: +6.1% -- currency impact: +0.8% -- asset disposals: -3.6%
Hotels: +11.3%
Hotel activities rose by 11.3%, reflecting a 3.4% increase in existing units, 7.8% growth from new business development and a 1.7% positive currency impact (mainly US Dollar).
Services: +17.4%
Revenues from Services grew 17.4%, reflecting a 17.9% increase in existing activities on a like-for-like basis, 2.1% growth from new business development, and a 1.8% reduction from currency impact (mainly Brazilian Real).
Other Activities of Travel and Tourism
-- Travel agencies: +2.7% (+0.2% same perimeter and currency basis)
-- Casinos: +29.6% (+12.3% like-for-like)
-- Restaurants and catering: -8.8% (+11.5% same perimeter and
currency basis)
-- On-board train services: -17.2% (+7.7% like-for-like)
Comments on Activity Trends and 2001 Outlook
The slowdown in the U.S. economy has adversely affected the hotel industry. Accor followed the market trend but thanks to its focus on the economy segment and its broad geographic dispersal of properties across the U.S., Accor has reduced the impact of the softening economy.
Current forecasts for the U.S. economy considered in light of Accor's U.S. RevPAR progress through June (1.8% growth of Motel 6 and Red Roof Inns) suggests that, if the current trend continues, Accor's U.S. RevPAR in 2001 should be slightly negative.
In Europe, where activity stagnated in certain countries, Accor's leadership with its well-balanced portfolio, its strong presence in the economy segment, and its lesser dependence on American clientele, enabled Accor's European hotels to deliver solid RevPAR growths. Taking into account Accor's June-end (European RevPAR growth of 6.1% in the business and leisure segment and 7.5% growth in the economy segment), Accor maintains its confidence in delivering full year 2001 European RevPAR growth of 5.0%.
During the first half of 2001, Accor's services business delivered strong sales in the established markets of France, Italy and Mexico, and in new markets including Venezuela and Romania where performance was exceptional.
Sales from travel agencies, which are undergoing foreseen repercussions from the contraction of corporate travel policies in the U.S., post a slight increase despite volume declines due to Accor's ability to increase commission rates.
Other activities also delivered good progress, notably casinos with 12.3% growth and restaurants and catering with 11.5% growth, both on like-for-like basis.
The success of Accor's development strategy continues to make Accor confident that it will add 30 - 35 thousand rooms to its network during the year, mainly through organic growth.
Thanks to its well-balanced geographic coverage, its privileged position in Europe, its diversified portfolio of activities in the hotel business and services businesses, and its selective development strategy, Accor's strenghts enable us to lessen the negative impact of the economic cycles.
In the current economic environment, Accor remains confident for 2001.
With 145,000 associates in 140 countries, Accor is the European leader and one of the world's largest groups in travel, tourism and corporate services, with two major international activities:
-- hotels: 3,600 hotels (400,000 rooms) in 90 countries, travel
agencies, restaurants and casinos;
-- services to corporate clients and public institutions: each day,
12 million people in 31 countries use a broad range of services
(food vouchers, people's care, expenses management, incentive /
events) engineered and managed by Accor.
Information on Accor are available on Internet at www.accor.com/finance
Consolidated Sales First Quarter
(in EUR million) 2000 2001 Variation Variation
2001/2000 2001/2000
published Like-for-like
basis
Hotels 983 1122 +14.1% +5.5%
Business and leisure 529 611 +15.6% +6.6%
Economy 194 221 +14.2% +6.5%
Economy u.S. 260 289 +11.0% +2.4%
Services 98 116 +18.7% +17.4%
Other activities 415 415 0.0% +6.5%
Travel management 120 124 +3.1% +0.7%
Casinos 55 71 +28.8% +11.1%
Restauration 126 115 -8.9% +8.1%
On-board train services 74 63 -15.5% +8.1%
Other 40 43 +8.2% +9.4%
TOTAL 1,496 1,652 +10.5% +6.5%
Consolidated Sales Second Quarter
(in EUR million) 2000 2001 Variation Variation
2001/2000 2001/2000
published Like-for-like
basis
Hotels 1,246 1,361 +9.2% +1.8%
Business and leisure 669 729 +8.9% +2.4%
Economy 241 266 +10.4% +2.7%
Economy U.S. 336 366 +8.9% -0.1%
Services 108 126 +16.3% +18.4%
Other activities 466 462 -1.0% +8.0%
Travel management 138 142 +2.5% -0.2%
Casinos 57 75 +30.3% +13.5%
Restauration 135 123 -8.7% +14.7%
On-board train services 87 70 -18.7% +7.3%
Other 49 51 +5.2% +7.3%
TOTAL 1,820 1,948 +7.0% +4.4%
Consolidated Sales Half Year
(in EUR million) 2000 2001 Variation Variation
2001/2000 2001/2000
published Like-for-like
basis
Hotels 2,230 2,482 +11.3% +3.4%
Business and leisure 1,198 1,340 +11.8% +4.3%
Economy 434 487 +12.1% +4.3%
Economy U.S. 597 655 +9.8% +1.0%
Services 206 241 +17.4% +17.9%
Other activities 881 876 -0.5% +7.3%
Travel management 258 265 +2.7% +0.2%
Casinos 112 145 +29.6% +12.3%
Restauration 261 238 -8.8% +11.5%
On-board train services 161 133 -17.2% +7.7%
Other 88 94 +6.6% +8.3%
TOTAL 3.316 3.600 +8.6% +5.3%
Hotel RevPAR by market
segment 2001 Half Year, YTD
Occupancy Rate Average RevPAR
Room Rate
(in %) (var. in pts.) (Var. in %) (var. in %)
Business and Leisure
Europe (in FRF) 65.2% - 0.2 +6.4% +6.1%
Economy Europe
(in FRF) 74.4% +0.5 +6.8% +7.5%
Economy Lodging
(in USD) 66.7% +0.8 +0.5% +1.8%
Hotel RevPAR by country
2001 Half Year, YTD
Number Occupancy Rate Average RevPAR
of Rooms* Room Rate
(in local
currency) (in %) (var. in pts.) (var. in %) (var. in %)
France 81,470 71.7% +0.5 +7.2% +7.9%
Germany 28,109 65.3% -0.8 +2.6%(a) +1.4%
U.K. 7,831 72.1% +1.8 +1.0%(b) +3.5%
The
Netherlands 5,143 75.2% -1.2 +5.1% +3.4%
Belgium 4,802 69.6% -0.4 +3.8% +3.2%
Italy 3,156 69.0% +1.6 +6.8% +9.4%
Hungary 3,062 58.0% -2.3 -0.2% -4.0%
U.S.A.:
(Business
and Leisure) 3,512 66.9% -1.6 +3.7%(c) +1.3%
* Subsidiaries and managed
(a) +2.7% excluding business development
(b) +6.8% excluding business development
(c) -5.3% excluding business development