Registration Document 2013
Consolidated Financial Statements And Notes
In 2013, Accor sold the Sofitel Paris Le Faubourg in Paris, under a
sale & management-back agreement, for an enterprise value of
€113 million (€769,000 per room) including a €13 million renovation
program. The buyer is Mount Kellett Capital Management LP.
The transaction enabled Accor to reduce adjusted net debt by a
cumulative €89 million at December 31, 2013.
A.2.3. Sale & Franchise-backTransactions
and Outright sales
Sale & franchise-back transactions and outright sales consist of
selling hotels, through outright asset sales, lease terminations at
or before the expiry date and sale & franchise-back transactions.
The main sale & franchise-back transactions and outright sales
carried out in 2012 and 2013 were as follows:
In 2012, Accor sold the Pullman Paris Rive Gauche (617 rooms)
to Bouygues Immobilier for €77 million, in line with its asset-right
strategy.The hotel, whose operating performance and technical
standards fell below Group requirements, shut down in 2012.The
contract also includes an earn-out mechanism, whose amount
will depend on the terms and conditions of the reconstruction
project (up to €10 million). The transaction enabled Accor to
reduce net debt by a cumulative €72 million.
In 2012, Accor sold its 52.6% stake in Hotel Formula 1 to its
historical South African partner, Southern Sun Hotels, a subsidiary
of the Tsogo Sun group, for €28 million (including a €3 million
of loan repayment). Hotel Formula 1 was formed in 1991 as a
joint venture between Accor and Southern Sun. Its South African
network comprises 20 hotels (1,474 rooms) owned by the joint
venture and 3 managed hotels owned by Southern Sun. All 23
hotels now operate as franchised units, under the Formula 1
brand. The transaction enabled Accor to reduce net debt by a
cumulative €28 million.
In 2012, termination of six hotel leases in Germany and the
Netherlands generated a capital loss of €47 million but enabled
the Group to reduce adjusted net debt by €35 million.
Sale & franchise-back transactions and outright sales also included
various other transactions representing non-material amounts and
various loan repayments.
A.3. New strategy
Last November 27, at the initiative of its new Chairman and Chief
Executive Officer, Sébastien Bazin, Accor announced the redefinition
of the Group’s business model around 2 core missions:
HotelServices: a hotel operator and brand franchisor that will be
fee-oriented and P&L driven;
HotelInvest: a hotel owner and investor that will be yield-oriented
and balance sheet driven.
This new strategy is built on four pillars:
a clear and sustained vision;
a simple and agile organization;
a renewed management and firm leadership;
selected priorities to deliver results;
And is accompanied by five priorities:
a value-oriented, disciplinedhotel ownership strategy, entailingnotably
the end of expansion through leases, and no further disposals of
owned hotels, unless they are structurally underperforming assets;
a new organization built by geography, consistent in all markets,
with lower running costs;
expertise in the digital value chain and distribution;
strengthened leadership and market share in the core markets;
renewed employee motivation.
With this new strategy, from 2014 Accor will have:
specific and dedicated KPIs to track and monitor execution of
a structure built to maximize operating performance and create
value for shareholders and all other stakeholders.
The new strategy, which is currently being deployed, will lead to
a change in the presentation of the Group’s segment information
in the consolidated financial statements as from June 30, 2014. In
addition, financial indicators aligned with the financial characteristics
of each of the two missions are in the process of being developed.