• Improving trends observed in first-quarter 2010 continued throughout the period, with like-for-like growth of 8.2% in Q2 versus 1.6% in Q1
• Strong growth in revenue, led by higher occupancy rates in the Upscale & Midscale and the Economy segments

Accor’s first-half 2010 revenue totaled €2,849 million, up 6.1% over first-half 2009 on an adjusted basis and 4.7% at comparable scope of consolidation and exchange rates (like-for-like).

First-half revenue figures have been adjusted for the following businesses:

• Prepaid Services, following the demerger from Accor (first listing of Edenred on the stock exchange on July 2, 2010).
• Groupe Lucien Barrière, reclassified as “assets held for sale” after the Base Document was filed to the French securities regulator AMF on July 6, 2010 in view of a possible stock market listing.
• Compagnie des Wagons-Lits’ onboard rail catering, sold on July 7, 2010 and therefore reclassified as “assets held for sale”.

Hotels: up 5.1% like-for-like in first-half 2010

First-half 2010 revenue amounted to €2,723 million, shaped by the following factors:

• Expansion, which added €40 million to revenue and 1.6% to reported growth, thanks to the opening of 10,900 rooms over the period.
• The impact of the asset-right strategy, which reduced revenue by an aggregate €55 million, or 2.2%.
• A positive 3.0% currency effect that increased revenue by €75 million, owing in particular to the decline in the euro against the Australian dollar and the Brazilian real.
• At constant scope of consolidation and exchange rates, the like-for-like increase was 5.1% for first-half 2010, reflecting the improvement in key Hotel performance indicators, in particular occupancy rates.

For the second-quarter alone, revenue came to €1,503 million, up 11.3% over second-quarter 2009 as reported. This figure takes into account:

• The positive 1.6% impact from expansion, which added €22 million due to the opening of 6,000 rooms.
• The negative 2.3% impact of the asset-right strategy, which reduced revenue by €32 million.
• A positive 3.8% currency effect, which increased revenue by €51 million.
• At constant scope of consolidation and exchange rates, the like-for-like increase was 8.2% for second-quarter 2010, reflecting the continued improvement in occupancy rates that began in the first quarter.

NOTE: Since January 1, 2010, the hospitality industry has been affected by several changes in VAT legislation. In Germany, the VAT rate on lodging accommodations was reduced to 7% from 19%, while in the United Kingdom, the general VAT rate was increased by 2.5 points to 17.5% from 15%. This has had an impact on RevPAR figures, which are reported including VAT, whereas revenue is stated net of VAT.

Upscale and Midscale Hotels: up 6.7% like-for-like

In the Upscale and Midscale segment, revenue was up 8.3% as reported and 6.7% like-for-like in the first half, reflecting growth of 2.8% in the first quarter and 10.1% in the second. The positive trend observed in the first quarter remained in place over the period. Occupancy rates continued to rise, pushing up RevPAR in most European countries. Average room rates are continuing to improve, particularly in the United Kingdom and Germany.

In France, first-half revenue rose 6.8% like-for-like, reflecting increases of 2.4% in the first quarter and 10.6% in the second. Despite the absence of the Paris Air Show in June, growth in occupancy rates was stronger in the Paris area (up 8.7 pts) than in the regions (up 4.2 pts) in the second quarter.

In Germany, like-for-like revenue was up 11.6% for the first half of 2010, reflecting increases of 3.8% in the first quarter and 19.5% in the second. Demand was led by the numerous trade fairs held in the second quarter, which did not take place in 2009.

In the United Kingdom, like-for-like growth totaled 4.8% in the first half, of which 3.9% in the first quarter and 5.7% in the second. The improvement was due to the increase in average room rates excluding VAT, which rose 5.9% in the first quarter and 6.3% in the second.

Economy Hotels (outside the United States): up 5.5% like-for-like

In the Economy Hotels segment, revenue was up 10.3% as reported and 5.5% like-for-like in first-half 2010, reflecting increases of 2.7% in the first quarter and 7.6% in the second. Revenue growth is being driven mainly by improved occupancy rates, and by the large number of openings in Latin America and China.

In France, revenue growth was 3.7% like-for-like in the first half, including 2.0% in the first quarter and 5.2% in the second. In the second quarter, revenue rose across every brand , with Ibis in particular delivering like-for-like growth of 5.8% over the period. The Paris area outperformed the regions in the second quarter, with occupancy rates up 3.7 pts in the capital and 2.4 pts elsewhere.

In Germany, like-for-like revenue was up 10.5% for the first half of 2010, reflecting increases of 4.8% in the first quarter and 16.0% in the second. Second-quarter revenue was lifted by the numerous trade fairs held in 2010.

In the United Kingdom, revenue growth was 5.5% like-for-like in the first half, thanks to growth of 3.9% in the first quarter and 6.9% in the second. London came out ahead of the regions in the second quarter. Occupancy rates were up 6.3 pts in the capital versus 5.2 pts in the rest of the country.

Economy Hotels in the United States: down 3.9% like-for-like

In the US Economy Hotels business, first-half revenue declined by 5.0% as reported and by 3.9% like-for-like, with revenue down 7.5% in the first quarter and virtually stable in the second (almost stable at -0.5%). Motel 6 is doing better than the competition: for the first time since June 2008, RevPAR is positive in June (+3.1%).

Other businesses: down 2.5% like-for-like in first-half 2010

Revenue from the other businesses, €126 millions, including Lenôtre and the parent company, declined by 2.5% like-for-like during the first half. On an adjusted basis, the decline in revenue stood at 17.2%, reflecting the sale of Orbis Travel travel agencies in Poland.

Compagnie des Wagons-Lits’ onboard food services operations and the Groupe Lucien Barrière business have been reclassified as “assets held for sale,” and therefore not included in the revenue for first-half 2009 and 2010.

Conclusion

In most countries, and particularly in Europe, the recovery that began in the first three months of 2010 gathered momentum in the second quarter, mainly due to favorable prior-year comparatives.  On the Upscale and Midscale segment, revenue growth was driven by a strong performance in occupancy rates, whereas average room rates are rising in our main markets, France, Germany and United Kingdom.  Good performances of the Economy segment in Europe are linked to the strong improvement of occupancy rates, whereas average room rates are stabilizing.

Upcoming events

•    August 26, 2010: 2010 interim results

•    October 20, 2010: Third-quarter 2010 revenue

About Accor

Accor, the world’s leading hotel operator and market leader in Europe, is present in 90 countries with 4,100 hotels and close to 500,000 rooms. Accor’s broad portfolio of hotel brands – Sofitel, Pullman, MGallery, Novotel, Suite Novotel, Mercure, Adagio, ibis, all seasons, Etap Hotel, hotelF1 and Motel 6, and its related activities, Thalassa sea & spa and Lenôtre – provide an extensive offer from luxury to budget. With 145,000 employees worldwide, the Group offers to its clients and partners nearly 45 years of know-how and expertise.