Paris, July 27th

Solid first-half 2016 results driven by the transformation plan

Revenue up 2.0% (LFL) to €2,598 million
EBIT down 4.0% (LFL) to €239 million
Net profit, group share of €74 million

Full-year 2016 EBIT target: between €670 million and €720 million

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

"With several of our key markets, including France and Brazil, shaken by crises and violent events, the Group showed remarkable resilience in the first half of 2016. We continued to invest heavily in order to grow, transform and gain a foothold in new businesses that are destined to become fundamental for the Group.

We will pursue this offensive strategy in the coming months. Our presence in 95 countries, our leadership positions in Europe, Asia-Pacific, Latin America, Africa and the Middle East, and our strength as the world's leading hotel operator covering all segments from economy to luxury give us a major competitive edge. Combined with the launch of a project to turn our property division into a subsidiary and a strategy that gives priority to customer-focused innovation, these strengths will be the drivers of our future growth.

First-half 2016 highlights

  • Robust growth in all of the Group's key markets, except France and Brazil
  • Record development, with the opening of 19,366 rooms, 90% of which under franchise or management contracts
  • HotelInvest: Considerably improved performance, driven by restructuring
  • HotelServices: Stable operating performance in the first half, before the impact of commitments relating to the digital plan, the deployment of onefinestay and the AccorHotels marketplace

Strategic transactions in first-half 2016


  • Further asset restructuring, with the restructuring of 120 hotels, of which
    • 85 hotels in Europe transferred to Grape Hospitality
    • 12 hotels transferred to Huazhu
  • Preparation of the project to turn HotelInvest into a subsidiary


  • Acquisition of the Fairmont Raffles Hotels International Group, with 98% support at the Shareholders’ Meeting of July 12, 2016
  • Recruitment of 1,600 independent hotels, gradually integrated into the AccorHotels marketplace
  • Continued implementation of the digital plan

Creation of a world leader in luxury residential rentals

  • Acquisition of onefinestay, the world leader in luxury serviced home rentals
  • Acquisition of 30% of Oasis Collections, a digital platform offering a selection of apartments and associated services
  • Acquisition of 49% of Squarebreak, an innovative digital platform offering upscale villas in France

First-half 2016 revenue

Sustained revenue growth

Consolidated first-half 2016 revenue amounted to €2,598 million, up 2.0% year-on-year at constant scope of consolidation and exchange rates. The increase resulted from favorable business levels in most of the Group’s key markets: Northern, Central and Eastern Europe (NCEE: +4.1%), Asia-Pacific (ASPAC: +4.8%), Americas (+1.7%) and the Mediterranean, Middle East, Africa (MMEA: +3.2%).

  • Germany and the United Kingdom were the main drivers in Northern, Central and Eastern Europe, delivering revenue growth of 4.3% and 4.4% respectively in the first half.

  • The Iberian Peninsula drove growth in the MMEA area, with revenue up 11.5%.

Revenue was down 2.6% in France (RevPAR: -2.2%), with a very pronounced drop in Paris (RevPAR: -12.0%), still affected by the events of November 13, 2015, as well as floods and strikes more recently, in May and June 2016. Regional cities reported excellent first-half activity (RevPAR: +6.0%), thanks to Euro 2016.

Revenue in the Americas was up 1.7%, driven chiefly by dynamic growth in Argentina (+57.2%), Mexico (+20.6%), Canada (+9.7%), Peru (+4.6%) and Chile (+1.4%), offsetting slower business in Brazil (-5.5%).

Revenue by business and region in H1 2016

(1) Of which €265 million in intra-Group revenue and holding

Reported revenue for the period reflected the following factors:

  • Development, which added €47 million to revenue and 1.7% to growth, with the opening of HotelInvest properties and acquisitions during the first half.
  • Disposals, which reduced revenue by €143 million and growth by 5.2%.
  • Currency effects, which had a negative impact of €86 million (-3.2%), resulting mainly from declines in the Brazilian real (€29 million), the British pound (€17 million) and the Australian dollar (€13 million).

First-half 2016 results

  1. Like-for-like: at constant scope of consolidation and exchange rates
  2. Earnings before interest, taxes, depreciation, amortization and rental expense

HotelServices & HotelInvest results – first-half 2016

The consolidated EBIT margin was down slightly at 9.2%. The HotelServices margin contracted by 4.9 points due to the ramp-up of the digital plan, and investments related to the marketplace and onefinestay.

The HotelInvest margin increased by 1.0 points to 6.6%, driven by further restructuring of the asset portfolio.

EBIT by region and business

AccorHotels recorded strong EBIT growth in the majority of its markets, with double-digit increases in the NCEE and MMEA regions. By contrast, France and Brazil adversely affected the Group’s profitability, as did HotelServices’ worldwide structures, which bear the impact of the commitments related to the digital plan, and the acquisition and development of onefinestay and FastBooking.

The very solid performance of the NCEE region (+10.5% LFL) was driven by strong business levels in Germany, the United Kingdom and Poland, and by the asset management strategy. The MMEA region continues to enjoy traction from the vigorous recovery in the southern European countries.

Lastly, the decline in earnings in France (-4.2%) was mainly attributable to lower demand in the wake of the 2015 terrorist attacks, particularly in Paris, while earnings in the Americas (-54.5%) were dampened by the economic difficulties prevailing in Brazil over the past two years.


HotelServices detailed results – first-half 2016

The EBITDA margin excluding Sales, Marketing & Digital, the loyalty program and the acquisition of onefinestay was 49.1%, versus 48.4% in first-half 2015, a robust increase of 0.7 points.

As expected, the segment’s earnings were impacted by the implementation of the digital plan and commitments in the amount of €87 million this year as well as by the acquisition of onefinestay. As such, HotelServices’ EBITDA declined to €163 million (-5.0% LFL); EBIT was €141 million, down 7.5% on a like-for-like basis.


HotelInvest detailed results – first-half 2016

HotelInvest’s EBIT increased by 7.4% like-for-like to €145 million, putting the margin at a solid 6.6%, a significant improvement of 1.0 points compared with the year-earlier period. The increase is attributable to sustained hotel business, notably in the United Kingdom and Germany, but also to the dynamic management of the Group’s assets over the past two years.

Asset management policy

A total of 120 hotels were restructured in the first half of 2016, of which 81 leased hotels and 39 owned properties. These transactions had the effect of reducing adjusted net debt by €233 million.

The Group also sold a portfolio of 85 European hotels in the Economy and Midscale segments to the Grape Hospitality hotel platform, 70% owned by Eurazeo and 30% by AccorHotels.

Gross asset value

To ensure a detailed valuation of HotelInvest in the potential perspective of its transformation into a subsidiary before the end of first-half 2017, HotelInvest’s gross asset value will be subject to a new estimate in September 2016. As a reminder, its assets were valued at €6.9 billion at end-December 2015.

Robust cash-flow generation and sound financial position

In first-half 2016, funds from operations amounted to €320 million, versus €364 million in the year-earlier period. Recurring development expenditure was €135 million in H1 2016, versus €88 million in the prior-year period. Renovation and maintenance expenditure was €84 million, versus €64 million in first-half 2015.

The Group’s recurring cash flow amounted to €102 million.

Consolidated net debt totaled €511 million at June 30, 2016, an increase of €705 million year-on-year, resulting mainly from acquisitions.

Following various bonds issued in 2014, the Group reduced the cost of its debt to an all-time low of 2.85% at end-June 2016.

As of June 30, 2016, AccorHotels also had an unused €1.8 billion confirmed long-term line of credit and €2.3 billion in cash.

Full-year 2016 EBIT target

The Group’s H1 2016 results reflect contrasting market situations. With the effectiveness of its strategic plan and substantial investments, its ability to generate robust cash flows and its sound financial position, AccorHotels was able to overcome the difficulties encountered in certain contracting markets, at a time when the relative impacts of Brexit, the terrorist attacks in France and Germany, and the situation in Turkey are still difficult to measure.

In this context, factoring in the consolidation of Fairmont Raffles Hotels International in the second half, the Group expects its 2016 EBIT to come within a broad range of between €670 million and €720 million. As in 2015, this range will be narrowed when the third-quarter revenue figures are published on October 18.

Events since January 1, 2016

On February 18, 2016, AccorHotels announced the acquisition of a 30% stake in Oasis Collections, the company that pioneered the “Home meets Hotel” category of accommodation, blending the value and authenticity of private rentals with high-quality hotel services.

On February 18, 2016, AccorHotels announced the acquisition of a strategic 49% stake in Squarebreak, which offers stays in private upscale properties in resort locations, primarily in France, Spain and Morocco.

On April 5, 2016, AccorHotels announced the acquisition of onefinestay, leader in luxury serviced home rentals in key worldwide gateways, for €150 million (£117 million). The Group plans to invest a further €64 million (£50 million) to accelerate the company’s international development.

On July 1, 2016, AccorHotels announced the sale of a portfolio of 85 hotels to Grape Hospitality, a European hotel platform 70% owned by Eurazeo and 30% by AccorHotels, for €504 million. The portfolio consists of 1 Pullman, 19 Novotel, 13 Mercure, 35 ibis, 3 ibis Styles and 14 ibis budget hotels, all of which will continue to be operated under franchise contracts and will benefit from an ambitious renovation program over the coming months.

On July 12, 2016, AccorHotels finalized the acquisition of the Fairmont Raffles Hotels International Group. This acquisition positions AccorHotels as a leading player in the global luxury hotel market, giving it 154 facilities of the highest quality, 40 of which are under development, and provides the Group with solid expertise in luxury hotel management and marketing, and a substantial footprint in the North American market. A global luxury/upscale division has been created within AccorHotels, and Chris Cahill — a specialist in luxury hospitality who spent part of his career heading up Operations at FRHI — has been appointed to its helm. The deal resulted in an investment by the Qatar Investment Authority and Kingdom Holding Company of Saudi Arabia funds, and the allocation of seats on the AccorHotels Board of Directors to three of their representatives, as well as three independent directors.

On July 12, 2016, AccorHotels announced plans to turn HotelInvest into a subsidiary, with the aim of strengthening its financial resources in order to accelerate its growth, while also providing a legal structure that will ultimately enable third-party investors to hold the majority of HotelInvest’s capital. AccorHotels will use the additional financial leeway to develop its two business lines and seize new growth opportunities, thereby maximizing the Group’s overall value.

Upcoming events in 2016

October 18, 2016: publication of third-quarter 2016 revenue

Other information

The Board of Directors met on July 27, 2016 and approved the financial statements for the six months ended June 30, 2016. The auditors have reviewed the financial statements and the report is in the process of being issued. The consolidated financial statements and notes related to this press release will be available on July 28, 2016 from the website.


Second-quarter 2016 revenue

At constant scope of consolidation and exchange rates (like-for-like), second-quarter 2016 revenue rose by 2.0%.

Reported revenue for the period reflected the following factors:

  • Development, which added €27.8 million to revenue and 1.9% to growth, with the opening of 10,383 rooms (64 hotels).

  • Disposals, which reduced revenue by €76.3 million and growth by 5.1%.


  • Currency effects, which had a negative impact of €46.2 million (-3.1%), resulting mainly from declines in the British pound (€12.9 million), the Brazilian real (€10.0 million), and the Australian dollar (€6.2 million).

As a result, second-quarter 2016 revenue amounted to €1,437 million, a decline of 4.3% as reported.

Revenue by business and region in Q2 2016

 (1) Of which €153 million in intra-Group revenue and holding

HotelServices: second-quarter revenue up 6.1% like-for-like[1] to €359 million

HotelServices reported business volume2 of €3.4 billion in the second quarter of 2016, an increase of 5.5% at constant exchange rates, driven by the combined impact of development and growth in RevPAR.

AccorHotels opened 64 hotels or 10,383 rooms during the second quarter, of which 87% under franchise agreements and management contracts. At end-June 2016, the HotelServices portfolio comprised 3,942 hotels and 524,955 rooms, of which 32% under franchise agreements and 68% under management contracts, including the HotelInvest portfolio.

Revenue was up 6.1% on a like-for-like basis compared with the second quarter of 2015, with increases across the NCEE (+10.5%), Asia-Pacific (+7.4%), Americas (+4.3%) and France (+2.0%) regions, and to a lesser extent in the MMEA region (+1.0%), despite the impact of Ramadan falling in June this year.

Fees paid by HotelInvest to HotelServices amounted to €144 million in the second quarter, or 40% of HotelServices’ revenue for the period.

HotelInvest: second-quarter revenue up 0.7% like-for-like to €1,232 million

At June 30, 2016, the HotelInvest portfolio comprised 1,183 hotels, of which 82% in Europe and 94% in the Economy and Midscale segments.

HotelInvest’s activity in France was down 4.0% on a like-for-like basis, marked by a sharp slowdown in Paris (RevPAR: -12.6%), partly offset by sustained activity in regional cities (RevPAR: +7.0%) thanks to Euro 2016.

Operations in Northern, Central and Eastern Europe (NCEE), which account for 46% of HotelInvest’s revenue, grew strongly (+4.2% LFL), with further sustained activity in the Germany (+7.2%) and Poland (+9.1%), and satisfactory business in the United Kingdom (+2.6%).

The MMEA region (+1.6%) continued to grow thanks to Spain and Portugal (+9.5%), despite the impact of a demanding comparison base on Italy (-3.3%).

HotelInvest’s activity in Asia-Pacific was stable on a like-for-like basis (-0.1%).

Lastly, revenue in the Americas edged down by just 0.3% compared with Q2 2015, despite persistently depressed activity in Brazil (-8.7%).

RevPAR excluding tax by segment and market - Q2 2016

NCEE: Northern, Central and Eastern Europe (does not include France or Southern Europe)

MMEA: Mediterranean, Middle East and Africa (includes Southern Europe)

AsPac: Asia-Pacific

Americas: North America, Central America and South America

RevPAR excluding tax by segment and market - H1 2016

NCEE: Northern, Central and Eastern Europe (does not include France or Southern Europe)

MMEA: Mediterranean, Middle East and Africa (includes Southern Europe)

AsPac: Asia-Pacific

Americas: North America, Central America and South America

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

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


AccorHotels is a world-leading travel & lifestyle group and digital innovator offering unique experiences in more than 4,000 hotels, resorts and residences, as well as in over 2,500 of the finest private homes around the globe. Benefiting from dual expertise as an investor and operator through its HotelServices and HotelInvest divisions, AccorHotels operates in 95 countries. Its portfolio comprises internationally acclaimed luxury brands including RafflesFairmontSofitel Legend,  SO SofitelSofitelonefinestayMGallery by SofitelPullman, and Swissôtel; as well as the popular midscale and boutique brands of NovotelMercureMama Shelter and Adagio; the in-demand economy brands including ibisibis Stylesibis budget and the regional brands Grand MercureThe Sebel and hotelF1.

With an unmatched collection of brands and rich history spanning close to five decades, AccorHotels, along with its global team of more than 240,000 dedicated women and men, has a purposeful and heartfelt mission: to make every guest Feel Welcome. Guests enjoy access to one of the world’s most rewarding hotel loyalty programs - Le Club AccorHotels

AccorHotels is active in its local communities and committed to sustainable development and solidarity through PLANET 21, a comprehensive program that brings together employees, guests and partners to drive sustainable growth.

Accor SA is publicly listed with shares trading on the Euronext Paris exchange (ISIN code: FR0000120404) and the OTC marketplace (Code: ACRFY) in the United States. 

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