France’s Accor Flexed Bulky Muscles in First Half of 2007

The Board of Directors of Accor, France’s leading hotel company, met in late August under the chairmanship of Serge Weinberg and approved the financial statements for the six months ended June 30.

Consolidated Revenue rose by a reported 8.8 percent to €4,015 million in the first six months of 2007. At constant scope of consolidation and exchange rates, the like-for-like increase was 6.1 percent, reflecting the ongoing favorable environment in the services and hotel businesses. EBITDAR amounted to €1,095 million, up 10.2 percent compared with first half of 2006.

The Hotel division’s new business model, the upturn in the hotel cycle in Europe –leading to a sharper rise in average room rates- and sustained activity levels in the services business drove a 1.0-point improvement in EBITDAR margin to 27.3 percent of revenue in first-half 2007.

EBITDAR margin in the Hotel business increased by a like-for-like 0.7 points in the Upscale and mid-scale segment, 1.5 points in European Economy Hotels and 1.6 points in U.S. Economy Hotels.

The services business reported an EBITDAR margin of 41.9 percent for the period, a 2.4-point like-for-like increase that attested to the business’ robust performance in its markets.

As to net profit, the group share amounted to €596 million, up 147.6 percent over the
year-earlier period. The total includes EUR311 million in capital gains on property disposals mainly in the United Kingdom, in Germany and the Netherlands.