Home Press Releases Accor: Sustained growth and solid results in 2012

Accor: Sustained growth and solid results in 2012


Accor enters a deep transformation process to drive further growth

Solid results in 2012

* Growth in revenue, up 2.7% like-for-like(1) to EUR5,649 million
* Improvement in EBIT, up 3% like-for-like to EUR526 million
* Operating profit before tax and non-recurring items, up 4.1% like-for-like to
  EUR468 million
* Net profit of EUR80 million, before the impact of the Motel 6 disposal
* Ordinary dividend of EUR0.76 a share, up 17% compared with 2011 (subject to
  shareholder approval)
* Record expansion with the opening of more than 38,000 rooms, 85% of which
  under management or franchise agreements
* EUR1,402 million reduction in adjusted net debt thanks to the asset
  management strategy, of which EUR606 million from the asset management
  program and EUR796 million from the disposal of Motel 6.

                          2013-2016: a new ambition

* Confirmed expansion plan of 30,000 rooms per year through organic growth,
  with an EBIT margin above 15%
* Extended Asset Management plan, with 800 hotels to be restructured, for a
  total negative impact of EUR2 billion on the Group’s revenue, and a
  EUR2 billion reduction in Adjusted Net Debt
* About EUR30 million annual investment plan to consolidate the Group
  distribution systems
* A EUR100 million savings plan between 2013 and 2014, to maintain the Group’s
  competitiveness, in an environment shaped by increasing operating costs and
  accrued competition in Europe
* A clear improvement in the Group’s economic performance by 2016-end, implying
  a structurally strong cash-flow generation 1At constant scope of
  consolidation and exchange rates

(1) At constant scope of consolidation and exchange rates

Accor’s performance in 2012 was shaped by:

* Sustained revenue growth in every segment, driven by steadily rising room
* An improvement in EBIT, to EUR526 million, at the upper end of the target
  range announced in August 2012
* The generation of positive free cash flow before non-recurring items, at
  EUR150 million
* The disposal, on October 1st, of Motel 6 to Blackstone
* The effective launch of the ibis megabrand program, with the rebranding of
  more than 1,500 hotels
* The issue in June of EUR600-million in five-year, 2.875% bond, with a further
  EUR100 million tranche successfully added in September.


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