July 29, 2005 - Accor's consolidated revenues rose 6.8% to Euros 3,643 million in the six months that ended June 30, 2005. Based on constant scope of consolidation and exchange rates, the like-for-like increase was 5.0%.
 

Revenues increased faster in the second quarter (up 6.0% like-for-like) than in the first (up 3.8%). When restated for differences in Easter vacation dates, which fell in April in 2004 and in March in 2005, revenues rose by 5.6% in second-quarter 2005, compared to 4.3% in the first quarter. The 1.3-point growth acceleration from one quarter to the next was due mainly to improved results in the Upscale and Midscale Hotel segment in Europe.

Expansion has contributed for up 4.3% of total sales growth. During the first half, 101 hotels (12,431 rooms) were opened, of which 80% were properties operated under management contracts or franchise agreements. Among the remaining 20% of owned or leased rooms, 60% were in the Economy segment and 40% in Upscale and Midscale hotels.

Disposals negatively impacted overall sales by -2.2%.

Sensitivity to currency changes are less and less important with a limited effect of -0.3% on first-half revenue growth.

Upscale and Midscale Hotels

Upscale and Midscale Hotel revenues rose a like-for-like 2.5% in the first half.

Revenue growth was strong in countries where the business cycle is robust, with like-for-like increases of 10.7% in North America, 5.7% in the United Kingdom, 24.7% in Asia and 7.3% in South America.

In Continental Europe, revenues grew slowly, although an improvement was apparent in the second quarter. In France, Accor applied a marketing policy that privilege business travelers, driving an increase in average room rates of 4.8% during the period.

Economy Hotels (outside the United States)

Economy Hotel revenues were up 4.3% like-for-like for the half: +4.2% in France and +3.1% in the rest of Europe.

Economy Hotels in the United States

The sustained growth in like-for-like revenues in the US Economy Hotel segment continued throughout the first half, as revenues rose 4.8% during the period.

Implementation also continued on the Red Roof Inn renovation program, with 80 units renovated as of June 30 and 12 currently in renovation.

Services

The Services business sped up its robust growth in the first half, when like-for-like revenues rose 12.6%. Revenues were up 9.2% in Europe and 19.2% in South America.

Favorable changes in local legislation supported expansion in new markets:

• In Belgium (up 21.8%), since the launch of the home services voucher in 2004,
• In the United Kingdom (up 15.9%), where additional childcare voucher tax advantages introduced in April spurred significant growth in revenues, which rose 20.4% in the second quarter compared to an 8.2% increase in the first three months,
• In Venezuela (up 58.5%), where companies must now provide food vouchers if they have 20 or more employees, compared to 50 employees in the past.

Travel Agencies

Travel agency revenues increased 23.0% as reported and 9.2% like-for-like. Revenues in France and the United States were lifted by the integration, respectively, of Protravel and Maritz. These acquisitions enabled Carlson Wagonlit Travel to win new contracts, create synergies and improve its negotiating power.

Casinos

In the Casinos business, the key event was the December 2004 creation of the new Groupe Lucien Barriere by combining the assets of Accor Casinos and Groupe Barriere. The new company operates 36 casinos and 13 hotels.

First-half revenues amounted to Euros 152 million for Accor's stake.

Other activities

Restaurants were up 9.1% like-for-like in the first-half.
On board train services revenues increased by 8.6% (like-for-like).

Conclusion

First-half 2005 confirmed the positive trends for 75% of the Accor business portfolio:

• Economy Hotels (outside the US): up 4.3%.
• US Economy Hotels: up 4.8%.
• Upscale and Midscale Hotels (excluding Continental Europe): up 6.6%.
• Services: up 12.6%.
• Other businesses: up 7.6%.

    Eliane Rouyer, Director
    Investor Relations
    Tel : +33-(1)-45-38-86-26

    Anthony Pallier
    Investor Relations
    Tel : +33-(1)-45-38-86-33

    All information are on accor.com