Quarterly Information PARIS, October 16 /PRNewswire-FirstCall/ --
Accor's consolidated revenue for the first nine months of 2007
totaled EUR6,119 million, an increase of 8.5% over the same period
of 2006. At constant scope of consolidation and exchange rates, the
like-for-like increase was 6.3%, confirming the favorable trend
enjoyed by the Services and Hotels businesses since the beginning
of the year. The expansion strategy accounted for 7.6% of revenue
growth for the first nine months of the year. Disposals carried out
under the ongoing asset-right strategy in the Hotels business and
the divestment of non-strategic assets - including Go Voyages,
which was sold in April - reduced revenue by 4.4%. The currency
effect was a negative 1.1% for the period.
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(in EUR millions) 2006 2007 % change % change (9 months) (9 months)
(reported) (like-for-like1)
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Hotels 4,052 4,391 +8.4% +5.5% Upscale and 2,163 2,476 +14.4% +6.6%
Midscale Economy 1,119 1,211 +8.2% +6.0% Economy US 770 704 -8.5%
+1.8% Services 543 624 +14.9% +12.1% Other businesses 1,046 1,104
+5.6% +6.5%
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Total 5,641 6,119 +8.5% +6.3%
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(1) At constant scope of consolidation and exchange rates. Services
Reported nine-month revenue up 14.9% Services revenue for the first
nine months of the year rose 14.9%, including like-for-like growth
of 12.1%. In Europe, revenue was up 13.7% like-for-like, including
growth of 14.3% in the third quarter versus 11.1% in the second
quarter and 16.0% in the first quarter. In Latin America, revenue
grew 8.5% like-for-like, reflecting increases of 8.4% in the third
quarter, 6.6% in the second quarter and 10.7% in the first quarter.
In line with the Group's medium-term objectives, acquisitions
accounted for 4.3% of revenue growth for the nine-month period,
corresponding to the contribution of Kadeos, a French gift card and
voucher company. The currency effect was a negative 0.9%, primarily
attributable to the declines of the Mexican peso (negative impact
of 0.5%) and the Venezuelan bolivar (negative impact of 0.7%)
against the euro. Third quarter revenue growth was 12.3%
like-for-like, versus 10.0% in the second quarter and 14.1% in the
first quarter. The quarter saw sharp gains in markets that
benefited from product launches, such as the United Kingdom where
revenue was up 17.5%, or from increased in penetration rates, such
as France where Ticket Restaurant issuance volume is up 11.2%. In
Brazil, the situation was unchanged, with revenue down by a slight
0.6% like-for-like, while revenue in the other Latin American
countries (excluding Brazil) grew 19.5%. Hotels Reported nine-month
revenue up 8.4% The 8.4% reported increase in Hotels revenue for
the first nine months of 2007 confirms the continuing uptrend in
the European hotel industry cycle underway since fourth-quarter
2006. At constant scope of consolidation and exchange rates, the
like-for-like increase was 5.5%. Business expansion boosted revenue
by 9.2%, with the consolidation of 52 Dorint hotels in Germany
accounting for 5.9%, the buyout of the Amorim Group's 50% stake in
the Portuguese joint venture for 0.2% and the opening of 19 626 new
rooms during the period for 3.1%. In line with the asset-right
strategy, the Group is continuing to dispose of hotel properties,
in most cases under sale and management-back or franchise-back
agreements. This process reduced revenue by 4.9% in the first nine
months of the year. The currency effect was a negative 1.4%, mainly
due to the euro's appreciation against the US dollar. In the third
quarter, Hotels revenue in Europe rose 6.7% like-for-like, compared
with increases of 3.4% in the second quarter and 7.9% in the first
quarter. Most of the second-quarter slowdown was due to
non-recurring events that skewed comparisons, specifically the FIFA
World Cup in Germany in the second quarter of 2006 and the decline
in demand in France during the May 2007 presidential election. By
contrast, third quarter 2007 revenue was boosted by the Rugby World
Cup, which generated an estimated EUR10.4 million in incremental
revenue in September, with around EUR5 million more expected in
October. Upscale and Midscale Hotels Revenue in the Upscale and
Midscale segment for the first nine months of 2007 rose 14.5% as
reported and 6.6% like-for-like. In the third quarter, revenue was
up 7.7% like-for-like, compared with increases of 4.1% in the
second quarter and 8.2% in the first quarter, reflecting the upturn
in the hotel industry cycle, particularly in Europe. In France,
revenue growth was 11.4% like-for-like, versus 6.3% in the second
quarter and 7.9% in the first quarter. The Rugby World Cup added
3.7 points to the growth rate for the quarter. RevPAR for the
Upscale and Midscale segment was up 12.1% for the period, including
increases of 11.6% for the Sofitel brand and 14.7% for Novotel. In
the United Kingdom, revenue for the quarter rose 6.7%
like-for-like, led by a strong performance in London where RevPAR
was 6.8% higher. In Germany, like-for-like revenue dipped 0.4%,
reflecting the high basis of comparison still created by the FIFA
World Cup. Economy Hotels (outside the United States) In the
Economy Hotel segment, revenue for the first nine months of 2007
rose 8.2% as reported and 6.0% like-for-like. Third quarter revenue
was 6.3% higher like-for-like, compared with increases of 4.0% in
the second quarter and 8.0% in the first quarter. In France,
revenue growth was 6.0% like-for-like, versus 2.6% in the second
quarter and 4.9% in the first quarter. In the United Kingdom,
revenue increased 10.2% like-for-like. In Germany, revenue for the
quarter was up 3.0%. US Economy Hotels In the US Economy Hotel
segment, like-for-like revenue for the first nine months of the
year was up 1.8%, but reported revenue was down 8.5%, reflecting
the early-September disposal of Red Roof Inn, which was removed
from the scope of consolidation at August 31, 2007, as well as the
dollar's weakness against the euro. Third quarter revenue generated
by Motel 6 was up 1.6%, compared with increases of 0.7% in the
second quarter and 1.8% in the first quarter. Financial position
and results Changes in scope of consolidation Development In
Services, acquisitions accounted for 4.3% of revenue growth for the
first nine months, in line with the Group's medium-term objectives.
The development plan for the Hotels business provides for 200,000
new rooms to be opened in the period to 2010. During the first nine
months of 2007, 19,626 rooms were opened, contributing partially to
the 9.2% growth in revenue generated by development initiatives.
Disposals In September, Accor announced that it had completed the
sale of Red Roof Inn to Citi GSS Group and Westbridge, as part of
its real estate strategy. The transaction added EUR470 million to
the Group's cash position. Red Roof Inn contributed EUR186 million
to consolidated revenue in the first eight months of the year. In
August, the Group announced the sale of its non-strategic Italian
food services business to Barclay's Private Equity for EUR135
million. The transaction was completed on October 11. The Italian
food services business contributed EUR312 million to consolidated
revenue in 2006 and EUR248 million the first nine months of the
current year. Currency effect The currency effect in the first nine
months of the year was a negative 1.1%. By business, the currency
effect was a negative 0.9% in Services, primarily attributable to
the declines of the Venezuelan bolivar (negative impact of 0.7%)
and the Mexican peso (negative impact of 0.5%) against the euro,
and a negative 1.4% in Hotels, mainly reflecting the euro's
appreciation against the US dollar. Debt refinanced with new EUR2
billion syndicated line of credit In July, Accor obtained a new
EUR2 billion syndicated line of credit as part of its debt
refinancing process. The five-year facility, which is renewable for
two one-year periods, was arranged on significantly improved
financial terms and conditions. The transaction has lengthened the
average maturity of Accor's financing, thereby enhancing its
financial flexibility. Share buyback program Between May and the
end of August, the Group carried out a EUR700 million share buyback
program, acquiring a total of 10,623,802 shares. At the end of
August, the decision was made to launch a new EUR500 million
program in light of the current weak stock market environment, the
increase in capital resulting from Colony Capital's bond
conversions in July and management's confidence in Accor's ability
to successfully deploy the strategic plan. In September, 1,710,500
shares were bought back under the new program, representing an
investment of EUR105 million. 2007 earnings objective Based on
results for the first nine months, the Group confirms its target of
reporting profit before tax and non-recurring items of around
EUR870 million to EUR890 million over the full year (excluding the
financial impact of the new share buyback program). This target
takes into account the prospects for continued strong demand in the
fourth quarter, marketing expenditure related to the launch of the
new hotel brands, and the disposals of Go Voyages (removed from the
scope of consolidation in April), Red Roof Inn (removed from the
scope of consolidation at August 31) and the Italian food services
business (removed from the scope of consolidation in October).
Significant transactions and events of the period Disposal of Red
Roof Inn in the United States The sale of Red Roof Inn (341 hotels,
36,683 rooms) to a consortium comprised of Citi's Global Special
Situations Group and Westbridge Hospitality Fund II, L.P. for
$1,313 million was completed in September. The transaction had a
EUR470 million favorable impact on the Group's cash position. Sale
of the Italian food services business On October 11, Accor
completed the sale of its non-strategic Italian food services
business, which was announced in August. The business was sold to
Barclay's Private Equity for EUR135 million. Acquisition of PrePay
Technologies Ltd in the United Kingdom In September, Accor Services
announced the acquisition of the entire capital of PrePay
Technologies Ltd, the UK's leading issuer of prepaid card
solutions, for GBP50 million. Sustained market growth and the
development of synergies with Accor Services' existing brands are
expected to generate ROCE of more than 15% by 2010. Consolidation
of Accor's presence in Portugal In July, Accor announced that it
was buying out the Amorim Group's 50% stake in the joint venture
the two companies created in 1997 to develop and operate hotels in
Portugal, for EUR69 million. At the same time, Accor sold the
131-room Sofitel Thalassa Vilalara to Amorim for EUR25 million. The
two transactions will have a slightly positive impact on 2007
profit before tax. Following these transactions, Accor is now the
sole owner of its hotel operations in Portugal, with a portfolio of
29 hotels (18 Ibis, 6 Mercure, 4 Novotel and 1 Sofitel,
representing a total of 3,093 rooms) that generated 2006 revenue of
EUR49 million (excluding the Sofitel Thalassa Vilalara).
Acquisition of an additional 4.9% of Orbis in Poland In August,
Accor increased its stake in Poland's Orbis by 4.9%, from 40.58% to
45.48%, at a cost of EUR42 million. Accor, the European leader and
a major global group in hotels, the global leader in services to
corporate clients and public institutions, operates in nearly 100
countries with 170,000 employees. It offers to its clients over 40
years of expertise in its two core businesses: - Hotels, with the
Sofitel, Pullman, Novotel, Mercure, Suitehotel, Ibis, All Seasons,
Etap Hotel, Formule 1 and Motel 6 brands, representing more than
4,000 hotels and nearly 500,000 rooms in 90 countries, as well as
strategically related activities, such as Lenotre. - Services, with
23 million people in nearly 40 countries benefiting from Accor
Services products in human resources, marketing services and
expense management.
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REVENUE
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Quarter 1 Quarter 2
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In Euros thousand 2,006 2,007 2,006 2,007
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HOTELS Upscale and Midscale 667,354 752,107 765,185 865,902 Economy
323,411 355,471 393,521 416,654 Economy US 231,601 215,940 260,157
245,286
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Total HOTELS 1,222,367 1,323,519 1,418,863 1,527,843
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SERVICES 179,360 206,984 185,118 210,783
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Other Businesses Casinos 76,980 78,172 80,759 80,619 Restaurants
141,609 151,766 141,505 164,521 On-board train services 59,343
59,704 65,572 70,568 Other 53,551 67,292 65,202 72,771
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Total other businesses 331,483 356,935 353,038 388,480
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Total 1,733,210 1,887,437 1,957,020 2,127,106
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Half Year Quarter 3
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In Euros thousand 2,006 2,007 2,006 2,007
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HOTELS Upscale and Midscale 1,432,540 1,618,009 730,509 857,524
Economy 716,933 772,126 402,604 439,360 Economy US 491,757 461,227
278,115 242,971
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Total HOTELS 2,641,230 2,851,362 1,411,227 1,539,856
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SERVICES 364,479 417,767 178,503 206,261
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Other Businesses Casinos 157,738 158,791 86,099 91,942 Restaurants
283,114 316,287 130,816 147,666 On-board train services 124,915
130,272 73,360 75,109 Other 118,753 140,064 70,899 43,818
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Total other businesses 684,521 745,414 361,173 358,534
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Total 3,690,230 4,014,543 1,950,904 2,104,651
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September-end (YTD)
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In Euros thousand 2,006 2,007
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HOTELS Upscale and Midscale 2,163,048 2,475,533 Economy 1,119,537
1,211,486 Economy US 769,872 704,198
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Total HOTELS 4,052,457 4,391,218
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SERVICES 542,981 624,028
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Other Businesses Casinos 243,837 250,733 Restaurants 413,930
463,954 On-board train services 198,275 205,381 Other 189,652
183,882
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Total other businesses 1,045,695 1,103,949
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Total 5,641,133 6,119,194
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REVENUE
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Quarter 1 Quarter 2 Half Year
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Change Change Change Change Change Reported% L/L %(*) Reported% L/L
%(*) Reported%
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HOTELS Upscale and Midscale 12.7% 8.2% 13.2% 4.1% 12.9% Economy
9.9% 8.0% 5.9% 4.0% 7.7% Economy US -6.8% 2.0% -5.7% 1.8% -6.2%
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Total HOTELS 8.3% 7.0% 7.7% 3.7% 8.0%
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SERVICES 15.4% 14.1% 13.9% 10.0% 14.6%
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Other Businesses Casinos 1.5% 3.5% -0.2% 1.2% 0.7% Restaurants 7.2%
9.1% 16.3% 15.2% 11.7% On-board train services 0.6% -2.3% 7.6% 4.3%
4.3% Other 25.7% 13.2% 11.6% -1.4% 17.9%
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Total other businesses 7.7% 6.4% 10.0% 6.9% 8.9%
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Total 8.9% 7.6% 8.7% 4.8% 8.8%
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Half Year Quarter 3 Septembre-end (YTD)
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Change Change Change Change Change L/L %(*) Reported% L/L %(*)
Reported% L/L %(*)
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HOTELS Upscale and Midscale 6.0% 17.4% 7.7% 14.4% 6.6% Economy 5.8%
9.1% 6.3% 8.2% 6.0% Economy US 1.9% -12.6% 1.5% -8.5% 1.8%
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Total HOTELS 5.2% 9.1% 6.1% 8.4% 5.5%
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SERVICES 12.0% 15.6% 12.3% 14.9% 12.1%
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Other Businesses Casinos 2.3% 6.8% 8.2% 2.8% 4.4% Restaurants 12.1%
12.9% 10.6% 12.1% 11.6% On-board train services 1.2% 2.4% 2.3% 3.6%
1.6% Other 5.2% -38.2% -0.9% -3.0% 2.9%
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Total other businesses 6.7% -0.7% 6.1% 5.6% 6.5%
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Total 6.1% 7.9% 6.6% 8.5% 6.3%
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*Based on constant scope of consolidation and exchange rates
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RevPAR by Segment
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HOTELS : RevPAR by segment Occupancy Rate Average room rate at
September-end 2007 Subsidiaries (reported) Subsidiaries (reported)
(YTD) (in %) (chg in pts) (chg in %)
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Upscale and Midscale Europe (in EUR) 67.4% +2.0 102 +5.1% Economy
Europe (in EUR) 74.6% +1.0 54 +4.3% Economy US (in $) 66.7% +0.3 48
+1.8%
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HOTELS : RevPAR by segment RevPAR at September-end 2007
Subsidiaries (reported) Subsidiaries Subsidiaries (YTD) (chg in %)
(like-for & managed -like(1)) (reported)
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Upscale and Midscale Europe (in EUR) 69 +8.3% +7.8% +10.5% Economy
Europe (in EUR) 41 +5.7% +5.5% +5.9% Economy US (in $) 32 +2.2%
+2.1% +2.2%
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(1) at comparable scope of consolidation and exchange rates.
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RevPAR by Country
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UPSCALE AND MIDSCALE HOTELS Number Occupancy Rate RevPAR by country
at of September-end 2007 (YTD) rooms Subsidiaries (reported) (in
local currency) (in %) (chg in pts)
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France 30,236 67.3% +4.0 Germany 21,209 64.5% -1.2 Netherlands
4,278 68.9% +1.9 Belgium 2,232 71.3% +2.9 Spain 2,259 67.0% +4.9
Italy 3,104 63.3% -1.6 UK ( in GBP) 5,347 78.3% +1.5 USA (in $) 520
91.9% +20.4
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UPSCALE AND MIDSCALE HOTELS Average room rate RevPAR RevPAR by
country at September-end 2007 (YTD) Subsidiaries (reported)
Subsidiaries (reported) (in local currency) (chg in %) (chg in %)
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France 108 +5.0% 73 +11.7% Germany 90 +15.7% 58 +13.5% Netherlands
112 +1.8% 77 +4.8% Belgium 101 +3.2% 72 +7.6% Spain 99 +3.4% 66
+11.6% Italy 118 +2.6% 75 +0.0% UK ( in GBP) 84 +6.5% 66 +8.6% USA
(in $) 225 +11.1% 207 +42.8%
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UPSCALE AND MIDSCALE HOTELS RevPAR RevPAR by country at
September-end 2007 (YTD) Subsidiaries Subsidiaries & managed
(in local currency) (like-for-like(1)) (reported)
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France +10.1% +11.2% Germany +3.8% +6.8% Netherlands +5.5% +4.5%
Belgium +7.6% +9.0% Spain +11.6% +11.7% Italy +2.2% +0.0% UK ( in
GBP) +7.0% +1.2% USA (in $) +19.4% +22.6%
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(1) at comparable scope of consolidation and exchange rates.
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RevPAR by Country
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ECONOMY HOTELS Number of Occupancy Rate RevPAR by country at
September-end 2007 (YTD) rooms Subsidiaries (reported) (in local
currency) (in %) (chg in pts)
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France 44,074 74.3% +0.5 Germany 15,146 71.7% -0.2 Netherlands
2,215 83.7% +2.7 Belgium 2,566 77.3% +1.6 Spain 3,984 79.0% +1.3
Italy 1,436 64.0% +3.9 UK ( in GBP) 7,310 77.3% +3.3 USA (in $)
103,551 66.7% +0.3
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ECONOMY HOTELS Average room rate RevPAR RevPAR by country at
September-end 2007 Subsidiaries (reported) Subsidiaries (reported)
(in local currency) (chg in %) (chg in %)
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France 47 +4.0% 35 +4.6% Germany 56 +3.5% 40 +3.3% Netherlands 77
+5.1% 65 +8.6% Belgium 64 +3.0% 50 +5.2% Spain 54 +4.5% 43 +6.3%
Italy 73 +0.8% 47 +7.4% UK ( in GBP) 53 +4.9% 41 +9.6% USA (in $)
48 +1.8% 32 +2.2%
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ECONOMY HOTELS RevPAR RevPAR by country at September-end 2007
Subsidiaries Subsidiaries & managed (in local currency)
(like-for-like(1)) (reported)
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France +4.3% +4.6% Germany +3.1% +3.6% Netherlands +8.5% +8.6%
Belgium +7.5% +5.2% Spain +5.8% +6.3% Italy +7.6% +7.4% UK ( in
GBP) +11.1% +9.6% USA (in $) +2.1% +2.2%
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(1) at comparable scope of consolidation and exchange rates.
DATASOURCE: Accor CONTACT: Media Contacts: Armelle Volkringer,
Senior Vice President, Corporate Communications and External
Relations, Phone: +33-(0)1-45-38-84-85; Arnaud Leblin, Director,
Media Relations Department, Phone: +33-(0)1-45-38-84-85; Investor
Contacts: Eliane Rouyer, Senior Vice President, Investor Relations
and Financial Communications, Phone: +33-(0)1-45-38-86-26; Solene
Zammito, Deputy Director Investor Relations, Phone:
+33-(0)1-45-38-86-33
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