2014 Review OF THE YEAR
climbed 26.9% like-for-like to €292 million, with a
6.1%margin, a year-on-year improvement of 2.0 percentage points.
The increase is chiefly attributable to the restructuring operations
carried out since HotelInvest’s creation. In 2014, Accor acquired
three hotel portfolios that were previously operated by the Group
under variable leases.These portfolios (Moor Park, Axa Real Estate
and Tritax) were acquired for a total of €980 million. Together, they
represent 110 hotels or 14,072 rooms. Also during the year, 48 hotels
were restructured, of which 30 hotels under leases and 18 hotels
under direct ownership.
These transactions had the effect of reducing
adjusted net debt
by €137 million.
The performance was also driven by sustained hotel activity in
Europe (excluding France and Mediterranean) region (revenue up
4.2% like-for-like), with strong demand in particular in the UK and the
Benelux countries. Emerging markets also enjoyed very favorable
trends, particularly in the Americas (up 7.2%) thanks to a strong first
half-year, and the Mediterranean, Middle East, Africa region, which,
after a loss of €27 million in 2013, moved closer to breakeven in
2014 thanks to the strong recovery in southern European countries.
HotelInvest cash flow
(inmillions of euros)
NOI* (EBITDA less maintenance capital expenditure)
Recurring development expenditure
EBITDA less Capex
* Net operating income.
(1) Restated for the impact of IFRS 11.
HotelInvest’s cashflow improved in step with the increase in EBITDA.
Net operating income (NOI),
which corresponds to EBITDA less
maintenance expenditure, was €364 million in 2014, with owned
hotels contributing 56% of the total. One of HotelInvest’s objectives
is to increase this contribution to 75% by 2016. Adjusted for
development expenditure, the cash flow generated by HotelInvest in
2014 was €162 million, representing 28% of EBIT, a sharp increase
compared with 2013.
gross asset value,
which was remeasured in the
second half, was €6.3 billion. As a proportion of gross asset value,
its EBITDA at end-December, factoring in the full-year impact of
portfolios acquired in 2014, showed a
return on investment (ROI)
of 9.7% on the HotelInvest assets.
Accor had HotelInvest’s hotel assets valued by three independent
experts, which each analyzed a third of the portfolio. The valuation
technique chosen was EBITDAmultiples, defined in accordance with
each hotel’s specific situation (market, segment, etc.) However for
lease contracts, the valuation also took into account such factors
as the time remaining on the lease, the options for terminating the
contract and the potential lease termination costs. At December 31,
2014, HotelInvest’s gross asset value, as estimated by the experts,
was €6.3 billion, of which €3.7 billion for the 378 owned hotels and
€2.6 billion for the 976 lease contracts. The Group will have the
HotelInvest portfolio valued every year.
HotelInvest’s P&L Performance in 2014 is as follows:
(inmillions of euros)
Owned Fixed lease Var. lease
Number of hotels
25.9% 32.8% 29.9% -8.1% 29.2%
Depreciation, amortization and provisions
12.4% 3.9% 5.4% -20.7% 6.1%
2013 EBIT (restated)
2013 EBIT margin (restated)
8.4% 1.3% 5.0%
Registration Document 2014