Registration Document 2013
Strategic Vision and Outlook
3. A development strategy focused
on emerging markets and franchise
and management contracts
In 2013, a total of 22,637 new rooms or 170 hotels were opened
worldwide, representing one hotel every two days (and one
ibis every three days). Franchise agreements and management
contracts accounted for 85% of this development, while leased
hotels represented 12% and owned hotels 3%.
Several openings planned for 2013, mainly in China and India, have
been rescheduled for 2014 or 2015.Together, they represent around
11,000 rooms to be added to the development pipeline, which totaled
136,000 rooms at the end of the year. Of the openings carried out in
2013, 59% were outside Europe, including 37% in the Asia-Pacific
region, 13% in Latin America and 9% in Africa-Middle East.
Accor has decided not to develop its network
lease contracts in
the future, except for contacts already underway, which represent
around one hundred hotels.
4. Continued deployment of the asset management program
A total of 53 hotels were sold or restructured in 2013, leading to a €408 million reduction in adjusted net debt and a cash impact of
€331 million. This included the sale of 23 hotels and the restructuring of 30 lease contracts.
Sale and variable leaseback
Sale and management-back
Sale and franchise-back
IMPACT ONADJUSTED NET DEBT
(1) Net debt adjusted for the net present value of minimum lease payments discounted at 7% (Standard and Poor’s methodology).
5. 2013 financial objectives met
All of the objectives set for 2013 were met or exceeded during
€536 million in EBIT,
at the upper end of the announced range,
supported in particular by the ongoing deployment of a cost-savings
plan, which by year-end had already delivered €37 million of the
€100 million in savings expected in 2013 and 2014;
A record €248million in
operating free cash flow
opening of 22,637 rooms,
despite several projects being postponed until 2014 or 2015,
mainly in China and India;
increase in the number of rooms under asset-light
with 85% of new openings in hotels
under management or franchise contracts;
progress in the asset management program,
with 53 hotels
sold for a €408 million reduction in adjusted net debt.
All of the 2013 P&L Performance objectives were also met during
a 53.4%EBITDARmargin onmanagement and franchise contracts,
exceeding the target of more than 50%;
the Sales & Marketing Fund at EBITDAR breakeven.
1.5.2. TRENDS AND OUTLOOK
Fourth-quarter 2013 trends continued into January/February 2014,
with situations varying by region. In Europe, the United Kingdom
and Germany turned in very solid performances, while results
were more mixed in France. Southern Europe, which encompasses
Spain, Italy, Portugal and Greece, seemed to show some initial
signs of an upturn in demand, after seven consecutive years of
decline. Emerging markets in Latin America, Africa-Middle East and
Asia-Pacific continued to experience very strong demand, despite
a slight decline in Australia and China.
In an economic environment that remains uncertain in Europe,
business is holding firm, in line with what was observed in late
2013. As a result, Accor has entered 2014 relatively confident
in its business outlook.