- Pressemitteilung BoxID 343508
Solid Performance in First-Half 2012
Record expansion and increased asset-light target: 80% of the portfolio to be managed or franchised by end-2016
- Solid growth in revenue, up 3.6% like-for-like2 to €2,717 million
- Strong improvement in EBIT, up 10.1% like-for-like to €212 million
- Sharp increase in operating profit before tax and non-recurring items, up 27.4% like-for-like to €190 million
- Net profit of €80 million, before the impact of the Motel 6 disposal
- Ongoing deployment of the asset management program, with the disposal of 59 hotels over the first-half reducing adjusted net debt by €283 million
- Full year EBIT target of €510-530 million
First-half 2012 was shaped by:
- A solid performance in every segment, led by steadily rising room rates
- A sharp 10.1% like-for-like improvement in EBIT, to €212 million, in particular thanks to the success of the asset management strategy
- A recurring free cash flow generation at €140 million
- Record expansion that added 20,700 new rooms, or 141 hotels, including Mirvac
- The signature on May 22 of an agreement to sell Motel 6 to Blackstone
- The effective launch of the ibis megabrand program, with 661 hotels rebranded to date
- The issue in June of a €600-million in five-year, 2.875% bond
Consolidated revenue for the six months ended June 30, 2012 totaled €2,717 million, down 0.1% year-on-year on a reported basis and up 3.6% like-for-like compared with first-half 2011.
During the period, business levels remained robust in emerging markets. It was generally stable in Europe, with solid conditions in the key markets (excellent performance in the capitals), but still very challenging in the Southern countries.
By segment, like-for-like growth came to 3.5% in the Upscale & Midscale segment and 4.0% in the Economy segment. The gains were led by rising room rates across every segment and supported by the growing percentage of management and franchise fees in the revenue mix.
In the first six months, 141 hotels (20,700 rooms) were opened, including:
- 85%3 under management contracts and franchise agreements.
- 57%3 in the Asia-Pacific region, 25%3 in Europe, 13%3 in Africa and the Middle East and 5%3 in Latin America.
This expansion remains dynamic, with 108,700 rooms in the pipeline for the period to 2016.
- Satisfactory performance in Upscale & Midscale Hotels
In the Upscale & Midscale segment, revenue increased by 0.7% as reported and by 3.5% like-for-like in the first six months of 2012.
EBITDAR margin remained virtually unchanged at 27.8% of revenue, (down 0.1 point as reported and 0.4 point like-for-like). This represented a satisfactory performance given, in particular, the high prior-year May comparatives in France and the persistent deterioration in the Southern European economies.
- Strong improvement in margins across the Economy brand portfolio
Revenue from Economy Hotels ended the first-half up 4.5% as reported and 4.0% like-for-like.
EBITDAR margin widened by 0.8 point as reported and 0.7 point like-for-like to 37.5%, a new record first-half high that reflected very robust demand and the segment's sustained expansion under asset-light agreements.
Solid growth in EBIT
Solid growth in EBITSolid growth in EBIT Solid growth in EBIT Solid growth in EBIT Consolidated EBITDAR4 amounted to €835 million in the first-half of 2012, up 3.4% year-on-year like-for-like and 1.1% as reported. The flow-through ratio stood at 29%, while EBITDAR margin rose to 30.7% from 30.4% in first-half 2011.
EBIT rose by 10.1% like-for-like over the period, to €212 million from €204 million in first-half 2011, led by the effective implementation of the asset management program.
Operating profit before tax and non-recurring items amounted to €190 million in first-half 2012, versus €151 million in the year-earlier period. The steep 27.4% like-for-like increase reflected the significant improvement in net financial expense, to €29 million from €53 million in first-half 2011.
Net Result excluding the impact of the Motel 6 disposal ended the first-half at €80 million, compared with €62 million a year earlier.
Net profit reaches € (532) million. It is affected by an exceptional accounting loss of €612 million linked to Motel 6 operation, with includes impairments and the exercise of buy-out options on fixed-lease hotels.
Funds from operations rose to €310 million from €303 million in first-half 2011. Recurring expansion expenditure amounted to €75 million for the period, while maintenance and renovation expenditure totaled €95 million.
Over the first-half, the acquisition of Mirvac for €167 million, the payment of €114 million in a special dividend and the exercise of buy-out options on fixed-lease hotels ahead of the Motel 6 disposal increased consolidated debt by an aggregate €578 million, with the result that net debt amounted to €804 million at June 30, 2012.
Consolidated return on capital employed (ROCE) rose to 14.2% at June 30, 2012 from 13.6% a year earlier. Over the period, ROCE improved sharply in the Upscale & Midscale segment, to 11.5% thanks to the roll out of the asset management program, which leads to a €197 million decrease in capital employed. ROCE gained 0.5 point at 19.6% in the Economy segment, a remarkable performance given the sustained deployment of the ibis budget renovation program.
As of June 30, 2012, Accor had €1.7 billion in unused, confirmed lines of credit long term. The Group also optimized its debt cost over the period, with the successful issue of €600 million in 2.875% bonds.
Continued deployment of the asset management program
Continued deployment of the asset management program Continued deployment of the asset management programContinued deployment of the asset management programContinued deployment of the asset management program Continued deployment of the asset management program Continued deployment of the asset management program Continued deployment of the asset management programContinued deployment of the asset management program Continued deployment of the asset management program Continued deployment of the asset management program Continued deployment of the asset management programContinued deployment of the asset management program Continued deployment of the asset management program In first-half 2012, 48 hotels (4,500 rooms) changed ownership structure and are now operated under variable leases, management contracts or franchise agreements. In addition, 11 hotels (representing 1,700 rooms) were sold during the period. These transactions had the effect of reducing adjusted net debt by €283 million.
As of August 29, 2012, following the announced disposals of the Novotel Beijing Sanyuan, the stake in the Mirvac Wholesale Fund and the MGallery hotels in Cologne and Amsterdam, the impact of property disposals on adjusted net debt amounted to €354 million. The Group has now met close to 75% of the targeted €1.2 billion impact on adjusted net debt over the 2011-2012 period.
These transactions have confirmed Accor's ability to pursue a dynamic asset management strategy as part of a hotel property asset disposal program designed to reduce consolidated adjusted net debt by €2.2 billion over the 2011-2015 period.
Outlook for 2012
- July business trends
In July, RevPAR5 net of tax rose by 2.9% like-for-like in the Upscale & Midscale Hotels segment and by 0.2% in Economy Hotels.
This performance remains in line with first-half trends, with figures stable in Europe despite the deteriorating situation in the Southern countries.
- Full year EBIT target
Business volumes remained firm throughout the summer. While visibility on the second half is still limited by the uncertain economic environment, Accor has not yet observed any tangible signs of a downturn in demand, except in Southern Europe.
Based on these factors, the EBIT target for the year stands at between €510 million and €530 million, versus the EBIT of €515 million in 2011 (restated from Motel 6).
New objectives for year-end 2016
As part of the transformation of its business model, which is being driven both by fast growth under management and franchise contracts and by a dynamic asset management strategy, Accor is now committed, by end-2016, to operating a room base 40% under franchise agreements, 40% under management contracts and 20% in owned or leased hotels.
To meet these objectives, Accor enhances its expertise:
- In Europe, a brand-based operating organization will be introduced on January 1st, 2013.
- At the same time, the Group is working on creating a Property Management Department, which would consolidate all of its property-related activities.
This new structure will enable the Group to improve performance in every respect:
- Operationally, with stronger brands, faster supply growth, and a property portfolio focused on the most strategic hotels.
- Financially, with optimized margins, improved free cash flow generation and a reduction in both capital intensity and earnings volatility.
ACCOR Hospitality Germany GmbH
Accor, the world's leading hotel operator and market leader in Europe, is present in 92 countries with more than 4,400 hotels and 530,000 rooms. Accor's broad portfolio of hotel brands - Sofitel, Pullman, MGallery, Novotel, Suite Novotel, Mercure, Adagio, Ibis, all seasons/ibis styles, Etap Hotel/Formule 1/ibis budget and hotelF1 - provides an extensive offer from luxury to budget. With more than 180,000 employees* in Accor brand hotels worldwide, the Group offers its clients and partners nearly 45 years of know-how and expertise.
*Of which 145,000 in owned, leased and managed hotels.
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