Benefits of France´s Accor Dipped 11.5 Percent in 2004

Accor, the megabuck French hotel chain, saw its gross gains take a nosedive in 2004, down 11.5 percent from 2003 to €239 million, chiefly as a result of the exceptional depreciation of its Compass high-end stocks, a move that cost the company some €58 million.

However, Accor´s consolidated revenues rose 4.3 percent to €7.1 billion in the year ended December 31, 2004. Excluding the currency effect and changes in the scope of consolidation, the increase was 4.6 percent, and 5.1 percent in the fourth quarter alone, reflecting generally good demand across the business base.

Hotel revenues for the year were up 4.1 percent like-for-like. The 3.8 percent reported increase was due to a negative 2.2 percent dollar-related currency effect, partially offset by newly opened hotels, which added 2.8 percent to growth.

For the year, like-for-like revenues in the upscale and midscale segments rose by 5.0 percent, led in particular by strong performances in the United States, the United Kingdom, Eastern Europe, Asia and Latin America. However, France, Spain and Italy have yet to show tangible signs of a sustained recovery. Economy hotel revenues were up 3.2 percent in Europe and 2.6 percent in the United States.

The Services business continued its steady and sustained growth. Like-for-like revenues rose 9.4 percent for the year, including gains of 7.5 percent in Europe and 11.8 percent in Latin America.

On a reported basis, the full-year increase was 7.5 percent, mainly because of the currency effect linked to Latin American currencies. In the fourth quarter, business activity improved by 8.3 percent.

Revenues from other businesses (travel agencies, casinos, restaurants and onboard train services) rose by 4.7 percent like-for-like and 4.9 percent as reported for the full year. The travel agency business enjoyed sustained growth in the fourth quarter, with like-for-like revenues increasing 14.1 percent.

During the year, Accor continued to expand in Hotels with the opening of 188 new units (23,472 rooms), in Services with the acquisition of the British company Capital Incentives, specialized in gift vouchers, and in Travel Agencies with Carlson Wagonlit Travel´s integration of the Protravel network in France and the Maritz network in the United States.

With 158,000 people in 140 countries, Accor is the European leader and one of the world´s largest groups in travel, tourism and corporate services, with two major international activities.