2013 Registration document and annual financial report - page 204

Registration Document 2013
Financial Statemements
Consolidated Financial Statements And Notes
A. Divestments, real estate transactions
and strategy
A.1. Divestments
A.1.1. Sale of the US Economy Hotels Business
On May 22, 2012, Accor signed an agreement to sell its US
Economy Hotels business to an affiliate of Blackstone Real Estate
Partners VII for a reference price of $1.9 billion before considering
the working capital requirement. The network included Motel 6,
the iconic North American brand, and Studio 6, an extended-stay
economy chain, and comprised 1,106 hotels (106,844 rooms) in the
USA and in Canada.The transaction was completed on October 1,
2012, after the leased hotels had been bought back and the other
closing conditions had been met.
Until December 30, 2011, US Economy Hotels represented a core
business for Accor and as such was presented as a separate business
segment in Accor’s segment reporting (US Economy Hotels).
Consequently, in the comparative annual information for 2012, US
Economy Hotels has been classified as a discontinued operation
and accounted for in accordance with IFRS 5 “Non-current assets
held for sale and discontinued operations”, as follows:
the net loss from the US Economy Hotels business for the periods
to September 30, 2012 has been reclassified in the 2012 annual
consolidated financial statement as “Net loss from discontinued
operations” (see Note 17);
the loss on the sale, completed on October 1, 2012, has also
been reclassified as “Net loss from discontinued operations” in
the 2012 annual consolidated financial statements (see Note 17);
cash flows for the US Economy Hotels business are presented
separately as cash flows from discontinued operations in the
2012 annual consolidated statements of cash flows.
The transaction was completed on October 1, 2012, leading to
the recognition in the 2012 consolidated financial statements of a
total loss of €679 million, including (i) the €445 million loss for the
year arising notably from the exercise of call options on fixed-lease
hotels and from impairment charges on assets, and (ii) €234 million
in negative fair value adjustments corresponding to the difference
the reference sale price of $1,900 million (€1,481 million) less
other adjustments (mainly the balance of the working capital
requirement) for €143 million; and
the carrying amount of the US Economy Hotels business’s net
assets in the Group’s financial statements at October 1, 2012
(€1,556 million), plus the transaction costs (€16 million).
The transaction proceeds were used to pay down net debt by
€249 million as of December 31, 2012. Including the €547 million
effect of cancelling rental commitments (with rental commitments
discounted at the rate of 7%), the impact on adjusted net debt was
a favorable €796 million.
A.1.2. Sale of Accor’s stake in OnboardTrain
In 2010, Accor sold Compagnie des Wagons Lits’ onboard rail
catering businesses in France, Austria and Portugal and part of the
Italian business to Newrest through a joint venture that was 60%
owned by Newrest and 40% by Accor, which no longer exercised
significant influence over the joint venture.
During the first-half of 2012, the 40% stake in the joint venture was
sold to Newrest for €1 and Accor’s remaining 17% direct interest
in the Austrian subsidiary was also sold to Newrest for €1. As the
shares had previously been written down in full, the loss on the
sale had no impact on profit for the period (see Note 17).
The Italian Onboard DayTrain Services business remained classified
under “Assets held for sale” at December 31, 2013 (see Note 32) in
view of the end of the contract with the grantor of the concession
which took place in October 2013 and the ongoing liquidation
process of the company.
A.1.3. Accor sells its 19.4% stake inTAHL
In November 2013, Accor sold its 19.4% stake in theTourismAsset
Holdings Ltd. (TAHL), Australia’s largest hotel owning Company, to the
Abu Dhabi Investment Authority (ADIA) for a value of AU$66 million
(€46 million), and a repayment of AU$76 million (€53 million) loans.
At the end of December 2013, the impact of this transaction amounts
to €2 million on net result and the transaction enabled Accor to
reduce adjusted net debt by a cumulative €101 million.
TAHL owns 31 hotels in Australia (4,097 rooms), all of which are
operated by Accor through lease or management contracts under
the ibis, ibis
, ibis Styles, Mercure, Novotel and Pullman
brands. All contracts will be maintained.
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