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ACCOR: Strong growth in 2016 earnings with increased market share and international reach

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Revenue up 0.9% to €5,631 million (+2.2% LFL) EBIT up 4.6% to €696 million (+3.8% LFL) Net profit up 8.1% to €266 million
Sébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, said:
AccorHotels has posted an excellent performance for 2016 in a challenging environment, in particular with record levels of EBIT and numbers of hotel rooms opened. Thanks to the efforts made by our teams around the world, we have implemented strong operational levers, which enabled growth in earnings to outpace that in revenue. We have ventured out to conquer new markets and offer new services thereby consolidating our leadership position and opening up new horizons for our clients. Carrying out our project to turn HotelInvest into a subsidiary in 2017 will give us significant headroom to seize the numerous opportunities provided by the rapid transformation of our industry.”
Significant events and strategic transactions in 2016
Robust growth in most of the Group’s key markets
Record development, with 81,042 rooms (347 hotels), of which 89% under management contracts (including 117 hotels and 43,481 rooms via Fairmont Raffles Hotels International) and franchise agreements
Acquisition of the Fairmont Raffles Hotels International Group, with 98% support at the Shareholders’ Meeting of July 12, 2016
Acquisition of 100% of onefinestay, world leader in luxury serviced home rentals, and 79% of John Paul, world leader in concierge services
HotelInvest
Continued rotation of assets, with 148 hotels, of which:
85 hotels in Europe transferred to Grape Hospitality
12 hotels in China transferred to Huazhu
Launch of the Booster project to turn HotelInvest into a subsidiary and sell a majority of its capital
Agreement with a subsidiary of the Abu Dhabi Investment Authority (ADIA) to restructure a portfolio of 31 hotels (4,097 rooms) in Australia
HotelServices
Recruitment of 2,200 independent hotels, of which 1,800 integrated into the accorhotels.com marketplace
Announcement of a strategic partnership with 25Hours Hotels
Announcement of a strategic partnership with Banyan Tree
Creation of the JO&JOE lifestyle brand
Continued deployment of the five-year digital plan (€173 million committed out of €250 million since 2014)
Luxury private rentals
Acquisition of onefinestay, the world leader in luxury serviced home rentals, of 49% of Squarebreak and of 28% of Oasis Collections
In February 2017, start of exclusive negotiations with Travel Keys to create the world leader in the rental of luxury private villas
2016 results
On July 12, 2016, AccorHotels announced its intention to dispose of its real estate operations, united within HotelInvest, at the end of first-half 2017.
In accordance with IFRS 5, assets held for sale have been placed in a separate item on the balance sheet, in the income statement and in cash-flow statement.
However, to facilitate comparison with the previous year and the objectives announced by the Group, all comments in this press release regarding business trends and profitability are formulated on the basis of consolidated figures before separation of these operations in the income statement. The tables in the appendix show the reconciliation between the consolidated financial statements and the figures provided before application of IFRS 5.

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