Accor`s Sound Results in Tough Times

6th Mar 2003

Accor reported profit before tax of EUR 703 million in 2002, in line with the target of
EUR 700 million announced during the year. Free cash flow improved by 7.5% to
EUR 645 million, while the dividend to be approved by Annual General Meeting of
Shareholders on May 20, 2003 is unchanged at EUR 1.05.
In an environment shaped by a slowdown in business in major cities worldwide, the
Business & Leisure Hotels division maintained its margins thanks to good
performance in France. In Economy Hotels (outside the U.S.), margins were
adversely impacted in France by higher payroll costs and new contractual
arrangements with independent operators of hotels.
Economy hotels margins rose elsewhere in Europe. In U.S. Economy Hotels, a
significant cost savings program limited the decline in margins, despite lower sales.
Accor Services performed well in local currencies, but was negatively affected by
South American currency devaluations.
Of the Group’s other businesses, Travel Agencies saw a substantial improvement in
Overall, the consolidated EBITDAR margin held firm at 27.1% of sales, compared
with 27.0% in 2001, thanks to tight management and efficient control over operations.
Despite the current unfavorable environment, Accor is committed to leveraging its
unique strengths to increase its market share, streamline its organization and
maintain its expansion, while pursuing a more selective investment strategy.
With 150,000 associates 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:
- hotels: 3,836 hotels (441,281 rooms) in 90 countries, casinos, travel agencies,
and restaurants;
- services to corporate clients and public institutions: each day, 13 million people in
32 countries use a broad range of services (food vouchers, people care and
services, incentive, loyalty programs, events) engineered and managed by Accor.



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