Revenue up 0.9% to €5,631 million (+2.2% LFL)
EBIT up 4.6% to €696 million (+3.8% LFL)
Net profit up 8.1% to €266 million
Sébastien Bazin, Chairman and Chief Executive Officer of AccorHotels, said: AccorHotels has posted an excellent performance for 2016 in a challenging environment, in particular with record levels of EBIT and numbers of hotel rooms opened. Thanks to the efforts made by our teams around the world, we have implemented strong operational levers, which enabled growth in earnings to outpace that in revenue. We have ventured out to conquer new markets and offer new services thereby consolidating our leadership position and opening up new horizons for our clients. Carrying out our project to turn HotelInvest into a subsidiary in 2017 will give us significant headroom to seize the numerous opportunities provided by the rapid transformation of our industry."
Significant events and strategic transactions in 2016
- Robust growth in most of the Group's key markets
- Record development, with 81,042 rooms (347 hotels), of which 89% under management contracts (including 117 hotels and 43,481 rooms via Fairmont Raffles Hotels International) and franchise agreements
- Acquisition of the Fairmont Raffles Hotels International Group, with 98% support at the Shareholders’ Meeting of July 12, 2016
- Acquisition of 100% of onefinestay, world leader in luxury serviced home rentals, and 79% of John Paul, world leader in concierge services
HotelInvest
- Continued rotation of assets, with 148 hotels, of which:
– 85 hotels in Europe transferred to Grape Hospitality
– 12 hotels in China transferred to Huazhu
- Launch of the Booster project to turn HotelInvest into a subsidiary and sell a majority of its capital
- Agreement with a subsidiary of the Abu Dhabi Investment Authority (ADIA) to restructure a portfolio of 31 hotels (4,097 rooms) in Australia
HotelServices
- Recruitment of 2,200 independent hotels, of which 1,800 integrated into the accorhotels.com marketplace
- Announcement of a strategic partnership with 25Hours Hotels
- Announcement of a strategic partnership with Banyan Tree
- Creation of the JO&JOE lifestyle brand
- Continued deployment of the five-year digital plan (€173 million committed out of €250 million since 2014)
Luxury private rentals
- Acquisition of onefinestay, the world leader in luxury serviced home rentals, of 49% of Squarebreak and of 28% of Oasis Collections
- In February 2017, start of exclusive negotiations with Travel Keys to create the world leader in the rental of luxury private villas
2016 results
On July 12, 2016, AccorHotels announced its intention to dispose of its real estate operations, united within HotelInvest, at the end of first-half 2017.
In accordance with IFRS 5, assets held for sale have been placed in a separate item on the balance sheet, in the income statement and in cash-flow statement.
However, to facilitate comparison with the previous year and the objectives announced by the Group, all comments in this press release regarding business trends and profitability are formulated on the basis of consolidated figures before separation of these operations in the income statement. The tables in the appendix show the reconciliation between the consolidated financial statements and the figures provided before application of IFRS 5.
Consolidated 2016 revenue amounted to €5,631 million, up 2.2% from 2015 at constant scope of consolidation and exchange rates (like-for-like), and up 0.9% as reported. The increase resulted from healthy business levels in most of the Group’s key markets: Asia-Pacific (+5.5%), Americas (+4.7%), Northern, Central and Eastern Europe (NCEE: +4.1%), and Mediterranean, Middle East and Africa (MMEA: +3.8%).
– Growth in the Asia-Pacific region was led by the development over the past three years of 252 hotels operated under franchise agreements or management contracts and by RevPAR growth of 4.9% in 2016.
– Despite a challenging business environment in Brazil (-2.4%), the Americas reported an improved performance, driven notably by RevPAR growth of 17.6% in Mexico.
– Eastern Europe, the United Kingdom and Germany were the main business drivers in Northern, Central and Eastern Europe, posting revenue growth of 7.6%, 4.3% and 3.7% respectively for the year.
Revenue was down 2.8% in France in 2016. Business was very challenging in Paris (RevPAR: -13.2%), where demand was affected by recent events, while hotels outside the capital put in a solid performance for the year (RevPAR: +4.2%).
To view full financial release and corresponding tables please click the PDF icon or visit: http://www.accorhotels-group.com/fileadmin/user_upload/Contenus_Accor/Finance/Pressreleases/2017/UK/ah_pr_2016results_final_en.pdf
