Solid revenue growth in 2014 of 3.8% like-for-like

The vast majority of the Group's markets reported solid growth in 2014, with revenue of€5,454 million, up 3.8% like-for-like and 0.5% as reported, buoyed by like-for-like growth of 4.8% in thesecond half and 5.1% in the fourth quarter. 

Strong increase in fourth-quarter revenue: up 5.1% like-for-like and 2.1% as reported. 

HotelInvest, hotel owner and investor: 

o Like-for-like full-year revenue up 3.0% to €4,794 million.

o Solid growth in every geography except Asia-Pacific – down 0.5% owing to China – and France, where revenue fell 0.2% as the rise in VAT and a lackluster economic environment affected business. 

HotelServices, hotel operator and brand franchiser:

o Business volume1 up 3.9% excluding currency effects to €11.9 billion, notably poweredby the development of emerging markets.

o Revenue up 5.5% like-for-like to €1,248 million, with strong gains in the Americas (up11.3%), in the Mediterranean, Middle East and Africa region (MMEA, up 8.2%) and inNorthern, Central and Eastern Europe (NCEE, up 6.1%). 

A total of 208 hotels were opened in 2014, representing 29,556 rooms.

2014 EBIT target revised upwards to around €600 million, from between €575 million and €595million previously.

Sébastien Bazin, Accor Chairman and Chief Executive Officer, said: “Accor's growth in 2014 is evenmore remarkable in light of the mixed economic environment during the year and the fact that a majortransformation was underway within the Group. The solid performance reflects the commitment of our teams,the strength of our brands, the trust we have built up with our guests and partners, and the vitality of ourdevelopment. Thanks to the rigorous implementation of our new strategy and the faster pace of growth in thefourth quarter, we are raising our EBIT target to around €600 million.”

Note: With the application of IFRS 11 since January 2014, joint ventures may no longer be consolidated using theproportional method, but instead must be accounted for by the equity method in the same way as associates. The 2013revenue figures in this press release have been adjusted accordingly, with a negative €83 million pro forma impact for thefirst nine months of the year and a negative €29 million impact for the fourth quarter (details by segment can be found inthe appendix).

1 Business volume corresponds to revenue from owned, leased and managed hotels and to room revenue from franchised hotels. Change is as reported excluding currency effects.

22014 revenue: €5,454 million, up 3.8% like-for-likeIn 

At constant scope of consolidation and exchange rates (like-for-like), 2014 revenue was up 3.8%.

Reported revenue reflected the following factors: 

Development, which added €44.4 million to revenue and 0.8% to growth. 

Changes in the scope of consolidation, which reduced revenue by €162.0 million (-3.0%). 

Currency effects, which reduced revenue by €62.0 million (-1.1%).

Fourth-quarter 2014 revenue: €1,403 million, up 5.1% like-for-like

At constant scope of consolidation and exchange rates (like-for-like), fourth-quarter revenue rose 5.1%.

Reported revenue for the quarter reflected the following factors: 

Development, which added €12.3 million to revenue and 0.9% to growth, with the opening of9,743 rooms (65 hotels), of which 86% under franchise agreements or management contracts. 

Changes in the scope of consolidation, which reduced revenue by €60.6 million (-4.4%), reflectingthe Group’s asset management strategy. 

Currency effects, which increased revenue by €7.0 million and growth by 0.5%, mainly due to therise in the British pound (for €8.4 million) and the fall in the Argentinean peso (for a negative€2.5 million) against the euro.

Revenue for fourth-quarter 2014 totaled €1,403 million, up 2.1% on a reported basis.

HotelInvest: Fourth-quarter revenue up 3.8% like-for-like to €1,214 million

At December 31, 2014, the HotelInvest portfolio comprised 1,354 hotels, of which 86% in Europe (France,NCEE and Southern Europe) and 96% in the Economy and Midscale segments.

HotelInvest's performance in France improved in the quarter, with revenue up 1.7% versus a 0.9% rise in thethird quarter.

The NCEE region, which accounted for 45% of HotelInvest's revenue, recorded like-for-like growth of 4.5%versus 6.5% in the third quarter, led by continuing robust demand in the UK (up 7.5%) and Germany (up3.0%).

The MMEA region continued to perform well, with revenue up 8.4% like-for-like, driven in particular by a strongrally in Southern European countries, especially Spain (up 7.9%). The impact of room cancellations in sub-Saharan Africa gradually declined during the fourth quarter, with revenue down 2.8% versus 5.3% in the thirdquarter, suggesting a return to normal business in the coming months.

The Americas region continued to deliver a satisfactory performance overall, with revenue up 5.3%, despite aslower pace of growth in Brazil (up 2.7%), which had benefited from the positive impact of the FIFA World Cupin the third quarter. Argentina (up 29.2%, partly due to inflation), Chile (up 4.9%) and Colombia (up 3.4%)continued to record solid revenue growth.

HotelInvest's business in the Asia-Pacific region advanced 2.7% (from a fall of 3.4% in the third quarter), liftedby improved comparables in Australia and despite the continued contraction in China (down 3.0%).

HotelInvest restructured 10 hotels during the fourth quarter of 2014, of which 7 were previously operatedunder leases and 3 were owned.

HotelServices: Fourth-quarter revenue up 8.0% like-for-like1 to €341 million

HotelServices reported €3.0 billion in business volume in the fourth quarter, up 1.2% at constant exchangerates.

During the quarter, Accor opened 65 hotels or 9,743 rooms, of which 86%2 under franchise agreements ormanagement contracts. At December 31, 2014, the HotelServices portfolio comprised 3,717 hotels (or482,296 rooms), of which 28%2 under franchise agreements and 72%2 under management contracts,including the HotelInvest portfolio.

Fourth-quarter revenue rose 8.0% like-for-like compared to the year-earlier period. This performance reflectsvery strong gains in all regions (7.9% in NCEE, driven by a 20.1% increase in the UK; 4.2% in MMEA, with aparticularly sound 8.8% increase in the Middle East; 18.3% in the Americas; and 5.1% in Asia-Pacific) and asharp turnaround in France, where revenue rose 6.7% in the fourth quarter, after a 3.2% decline in the thirdquarter, spurred notably by the Paris Motor Show and the SIAL Food Fair.

Fees paid by HotelInvest to HotelServices amounted to €145 million in the fourth quarter, or 42% ofHotelServices revenue for the period.

1 For HotelServices, like-for-like revenue includes development-related fees, at constant exchange rates.

2 In number of rooms.

Fourth-quarter key market review

Accor turned in a robust fourth-quarter performance, supported by satisfactory RevPAR growth linked to both demand and prices.

In France, RevPAR rose by 3.3% in the fourth quarter, versus 1.8% in the third quarter. Performanceimproved in Paris (up 5.4%), thanks to the Paris Motor Show and various trade fairs, and was stable outsideParis, where business remains slow.Overall, only a small portion of the increase in the VAT rate from 7% to 10% has been passed on to roomprices. Accor is therefore closely monitoring developments in the industry's tax environment in France.

In Germany, fourth-quarter revenue increased by a sound 3.8%, driven by business travelers in Novemberand December and by leisure travelers drawn to celebrations marking the 25th anniversary of the fall of theBerlin Wall. RevPAR grew by 3.6% all segments combined, largely powered by a good occupancy rate (up 2.8points) and by the Luxury/Upscale segment (up 5.5%).

As a result, revenue was up 3.0% for HotelInvest and 3.7% for HotelServices, reflecting a solidmacroeconomic environment that generated good levels of demand in all German regions.

In the United Kingdom, demand again improved strongly in the fourth quarter, up 8.7%. Led once more bythe Economy and Midscale segments (RevPAR, up 9.9% and 6.5% respectively), this performance was due torecord-high occupancy rates (81% in the fourth quarter) and good price gains across all segments. Businessin London grew, with rising occupancy rates and higher prices (RevPAR up 4.1% in the fourth quarter). OtherUK cities turned in another excellent performance, with a 11.8% increase in RevPAR in the fourth quarter, ledby the country’s vibrant economy, major sporting events in Liverpool, Manchester and Wolverhampton, andthe MTV Europe Awards in Glasgow.

Like-for-like revenue growth was 7.5% for HotelInvest and 20.1% for HotelServices.

Performance in the Americas was satisfactory overall (revenue up 5.4%), despite a sharp slowdown in Brazil(revenue up 1.1% in the fourth quarter after 10.1% in the third quarter) due to a decline in meetings and seminars in the Midscale and Upscale segments and the 'wait-and-see' attitude linked to the presidential elections.

The MMEA region delivered a very satisfactory performance (revenue up 9.2%), lifted by Southern European countries (Spain up 8.2%, Portugal up 14.1% and Italy up 4.8%) as the rally observed in the first half clearly gathered pace in the six months to December 31, and by a leveling-off of booking cancellations in Africa.

2014 EBIT target revised upward to around €600 million

In light of the strong growth reported across all markets in 2014 and the particularly operational performance in the fourth quarter, Accor has raised its 2014 EBIT target to around €600 million.

Material transactions and events in the fourth quarter

Groundbreaking alliance between Accor and Huazhu (China Lodging)

Accor and Huazhu Hotels Group (also known as China Lodging Group) sealed an extensive and long-termalliance to create the most prominent and diversified hotel company in China, with more than 2,000 hotels andthe strongest pipeline in the country.

Accor's stake in Reef Casino

Accor was unable to finalize the sale of its stake in Reef Casino in Australia, valued at AU$ 85 million(€55.5 million), after the Australian authorities delivered an unfavorable opinion to the buyer.

Significant openings

A total of 9,743 rooms (65 hotels) were opened in the fourth quarter of 2014. Significant openings includedthe Pullman Khao Lak Katiliya Resort & Spa in Thailand, the MGallery The New Inchcolm Hotel & SuitesBrisbane in Australia, the Novotel Rio de Janeiro Parque Olimpico in Brazil and the ibis Los Mochis in Mexico.

Upcoming events

- February 18, 2015: Annual results for 2014

- April 16, 2015: First-quarter 2015 revenue