2013 Registration document and annual financial report - page 217

Registration Document 2013
215
Financial Statemements
5
Consolidated Financial Statements And Notes
(1) Rental expense by brand and type of contract at December 31, 2013 is presented as follows:
Leased hotels at
December 31, 2013
Fixed
rent with
purchase
option
Fixed rent
without
purchase
option
Fixed rent
with a variable
portion
Variable
rent with a
minimum
Variable
rent with a
minimum and
cap
Variable rent
without a
minimum Total
Sofitel
1
3
-
2
-
5
11
Pullman
-
6
2
3
-
3
14
MGallery
1
5
1
2
1
1
11
Novotel
1
34
8
21
4
94
162
Suite Novotel
-
6
-
1
-
10
17
Mercure
3
43
17
11
3
70
147
Adagio
-
7
-
-
4
-
11
ibis
2
96
13
63
3
183
360
ibis Styles
-
5
8
1
-
4
18
ibis
budget
1
65
12
10
1
104
193
Formule 1/HotelF1
-
1
-
-
-
158
159
Other
-
4
-
1
-
1
6
TOTAL
9
275
61
115
16
633 1,109
(2) Fixed rent expense with a variable portion includes a fixed portion and a variable portion.The variable portion is generally a percentage of revenue or a percentage
of EBITDAR.
(3) This rent expense depends on a percentage of revenue or a percentage of EBITDAR with a fixed contract guaranteed minimum.
(4) This rent expense depends on a percentage of revenue with a fixed contract guaranteed minimum which is also caped.
(5) Variable rent without a minimum is generally based on a percentage of revenue (601 hotels), or a percentage of EBITDAR (32 hotels). None of the leases contains
any minimum rent clauses. Variable rents without a minimum based on a percentage of EBITDAR amount to €44 million at December 31, 2013.
C. Minimum rental commitments (cash basis)
Minimum future rentals in the following tables only correspond to long-term rental commitments in the Hotels Division for hotels opened
or closed for repairs.
Undiscounted minimum lease payments in foreign currencies converted at the average exchange rate based on latest known rates, are
as follows:
Years
(in millions of euros)
Years
(in millions of euros)
2014
(407)
2023
(200)
2015
(398)
2024
(185)
2016
(374)
2025
(163)
2017
(350)
2026
(144)
2018
(339)
2027
(96)
2019
(327)
2028
(78)
2020
(289)
2029
(62)
2021
(237)
2030
(43)
2022
(218)
> 2030
(280)
TOTAL
(4,190)
At December 31, 2013, the present value of future minimum lease
payments, considered as representing 7% of the minimum lease
payments used to calculate the “Adjusted funds from ordinary
activities/adjusted net debt” ratio, amounted to €(2,676) million.
Interest expense on adjusted net debt, estimated at 7%, amounted to
€187million.The difference between theminimum rent (€407million)
and interest expense (€187 million) amounted to €220 million.This
corresponds to the implicit repayment of adjusted debt (“Standard
& Poor’s method) and therefore constitutes an adjustment for the
calculation of the adjusted funds from operations/adjusted net debt
ratio (see note (b) in the Key Management Ratios).
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