2014 Registration Document and Annual Financial Report - page 255

5
Financial Statemements
Consolidated Financial Statements and Notes
NOTE 38
DEVELOPMENT EXPENDITURE
Development expenditure corresponds to the property, plant and
equipment, and working capital of newly consolidated companies
(in accordance with IAS 7 “Statement of cash flows”) and includes
the purchase or construction of new assets and the exercise of call
options under sale-and-leaseback transactions, as follows:
Development expenditure excluding discontinued operations
(inmillions of euros)
France
Europe
(excl. France/
Mediterranean)
Mediterranean,
Middle East,
Africa
Asia
Pacific Americas
Worldwide
Structures*
2014
2013
Adjusted
HOTELSERVICES
(1)
8
4
7
15
2
3
39
39
HOTELINVEST
(2)
80
1,125
11
13
61
19 1,309
175
CORPORATE & INTERCOS
(3)
(0)
(3)
(1)
-
(37)
6 (35)
(24)
TOTAL 2014
88
1,126
17
28
26
28
1,313
TOTAL 2013 ADJUSTED
24
110
12 19
24
1
190
* “Worldwide Structures” corresponds to development expenditure that is not specific to a single geographic region.
(1) Including €8 million related to the guaranteed minimum rent on the ParisTour Eiffel Pullman and €9 million corresponding to a loan made to the owner of the future
Sydney Darling Harbour Sofitel in exchange for being awarded the hotel management contract;
(2) Including:
- €715 million related to the acquisition of an 86-hotel portfolio from Moor Park in Germany and in the Netherlands (see Note 3.B.1);
- €176 million related to the acquisition of an 11-hotel portfolio from Axa Real Estate in Switzerland (see Note 3.B.2);
€89 million related to the purchase of a portfolio of 13Tritax hotels in the United Kingdom (see Note 3.B.3);
- 29 million related to the acquisition of a stake in Mama Shelter (see Note 3.B.4);
- €37 million of internal loans between HotelInvest entities in the USA and Accor Holding.
(3) Including €37 million of internal loans between Accor Holding and HotelInvest entities in the USA.
NOTE 39
SEGMENT INFORMATION
A. Chief operating decision maker
Accor’s chief operating decision maker is Executive management,
assisted by the Executive Committee. Executive management
assesses the results and performance of each operating segment
and makes resource allocation decisions.
B. Operating segments
At the end of 2013, Accor announced a plan to redefine the Group’s
business model around two strategic businesses:
ƒƒ
Hotel operator and brand franchisor HotelServices, with a business
model focused on generating revenue from fees and optimizing
the income statement;
ƒƒ
Hotel owner and investor HotelInvest, with a business model
aimed at improving the return on assets and optimizing the
statement of financial position.
To support the new business model, each strategic business has
been reorganized by region, as follows:
ƒƒ
France;
ƒƒ
Europe (excluding France/Mediterranean);
ƒƒ
Mediterranean, Middle East, Africa;
ƒƒ
Asia Pacific;
ƒƒ
Americas, comprising Latin America, the Caribbean and North
America.
The reorganization has led to a change in the Group’s internal reporting
presentation which is now based on the Strategic business/Region
matrix. The Executive Committee now assesses the performance
of each Strategic business/Region and makes resource allocation
decisions based on their respective results.
As a result, the segment information presented in the consolidated
financial statements concerns redefined operating segments that
correspond to the segments whose operating results are regularly
reviewed by the chief operating decisionmaker for resource allocation
purposes. Prior period segment information has been restated on
the same basis.
HotelServices
HotelServices corresponds toAccor’s business as a hotel operator and
franchisor. It comprises all of the Group’s hotels, as the hotels owned
by HotelInvest are operated by HotelServices under management
contracts. Its business model focuses entirely on generating fee
revenue, including fees received by hotel-owning subsidiaries that
are eliminated in consolidation. HotelServices spans Management
and Franchising activities, sales and marketing, distribution and
information systems as well as other activities such as a timeshare
business in Australia, Strata, a company that operates the common
areas of hotels in Oceania, and the Accor loyalty program.
Registration Document 2014
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